Evolv Technology terminates CEO Peter George amidst internal investigation

WALTHAM, Mass.—Evolv Technology’s Board of Directors has announced the termination of President and CEO Peter George without cause, effective immediately, as the company continues its internal investigation involving allegations of misconduct during sales transactions and subsequent inaccurate financial reporting. 

The Board of Directors has appointed cofounder Michael Ellenbogen, Evolv’s chief innovation officer and a member of the board, as interim president and CEO.

Evolv’s announcement follows months of careful planning and deliberation by the board. In May 2024, the board formed a succession planning committee of independent directors of the board to evaluate leadership performance and effectiveness and plan for an orderly CEO transition.

The committee has been actively recruiting and interviewing CEO candidates with the assistance of a nationally recognized executive search firm, Following the decision to terminate George, the committee will continue these efforts, and the board intends to announce a new CEO expeditiously.

“We appreciate Peter’s years of dedication to our company and his significant contributions to the company’s mission. We wish him well in his future endeavors,” the board said. “That said, we have determined that a change in leadership is needed to improve the company’s culture as we prepare for the next phase of growth. We continue to believe that the fundamentals of our business remain strong. But we are also convinced that the company can do even better.”

On Oct. 25, the manufacturer of AI-based weapons detection technology announced that employees “engaged in misconduct” during sales transactions covering a nearly two-year period, following a preliminary committee investigation, resulting in the company delaying the reporting of its Q3 financials. 

Under investigation is whether certain sales of products and subscriptions to channel partners and end users were subject to extra-contractual terms and conditions that impacted revenue recognition and other metrics, and if so, when senior company personnel became aware of these issues. 

The preliminary committee determined that the accounting for certain sales transactions was inaccurate and that, among other things, revenue was prematurely or incorrectly recognized in connection with financial statements prepared for the periods between the second quarter of 2022 and the second quarter of 2024. The committee determined that these misstatements impacted certain financial statements prepared for these periods, and that the recognition of revenue in the proper periods will impact each of those financial statements. 

Currently, the committee estimates that, on a net basis through June 30, 2024, sales transactions at issue “resulted in premature or incorrect revenue recognition of approximately $4 million to $6 million.” 

The Board of Directors commented on the internal investigation. “The board has been evaluating leadership and performance for several months, long before we became aware of any potential issues relating to the company’s sales practices and financial reporting. With respect to that ongoing investigation, the board remains committed to completing a thorough investigation as expeditiously as possible. Our goal is to ensure the company’s financial reports are always current and reliable and that our organizational culture reflects our values of integrity and honesty. That is the only way we can regain the trust and confidence of our investors.”

Ellenbogen is a seasoned security technology industry veteran who has been a critical part of Evolv’s leadership team since he co-founded the company in 2013. Prior to assuming his current role as chief innovation officer in 2021, he served as Evolv’s CEO for approximately seven years. Ellenbogen will serve in this interim role until a successor to George is appointed.

“As a cofounder, I care deeply for this company and its customers, employees, and shareholders,” he said. “I look forward to working closely with the board and our senior leadership team to advance our mission of creating a safer world while also driving the business forward.”‘

Evolv will provide a further update on the internal investigation once it is complete.