Axon Enterprise (AXON) Q1 2025 Earnings
How Did AXON Stock React to Q1 2025 Earnings?
S&P 500 over the same 30 days: +6.73%.
Did AXON Beat Earnings? Q1 2025 Results
Yes. Axon Enterprise reported Q1 2025 earnings of $1.41 a share on May 7, 2025, beating the $1.24 consensus estimate by 13.5%. Revenue was $603.6M against a $586.3M estimate.
Axon Enterprise opened 2025 with a record first quarter, posting revenue of $603.63 million, a 31.3% year-over-year increase that topped the $586.34 million consensus estimate by 2.95% and marked the company's 13th consecutive quarter of at least 25% growth. Non-GAAP earnings per share of $1.41 beat the $1.24 consensus by 13.52%, with the quarter's standout driver being Software and Services, which grew 39% year over year to $262.74 million as premium software adoption pushed annual recurring revenue to $1.10 billion and net revenue retention to a robust 123%. Future contracted bookings surged 41% to $9.90 billion, providing substantial long-term visibility that underpinned management's decision to raise full-year 2025 revenue guidance to $2.60 billion to $2.70 billion, up from the prior $2.55 billion to $2.65 billion range. Adjusted EBITDA guidance was similarly lifted to $650 million to $675 million. The strong results sent shares up more than 14%, reflecting broad investor confidence in the company's growth trajectory.
- Software & Services revenue grew 39% YoY driven by new users and expansion with existing customers adopting premium software
- Annual recurring revenue grew 34% YoY to $1.1 billion
- Net revenue retention of 123% reflecting strong customer expansion and minimal churn
- Strong demand for TASER 10 devices and cartridges
- Axon Body 4 adoption driving Personal Sensors growth
- Platform Solutions grew 51% YoY fueled by VR training and counter-drone demand
- Total company gross margin expanded 440 basis points YoY to 60.6%
- Adjusted EBITDA grew 42% YoY driven by revenue growth, improved adjusted gross margin and operating leverage
“These aren't just product and capability launches—it's a blueprint for the future of public safety”
Axon Enterprise CEO, on the earnings call
What Was Axon Enterprise's Outlook in Q1 2025?
Axon raised its full year 2025 revenue guidance to $2.60 billion to $2.70 billion, up from the prior range of $2.55 billion to $2.65 billion, representing approximately 27% annual growth at the midpoint. Adjusted EBITDA guidance was raised to $650 million to $675 million (approximately 25% margin), up from $640 million to $670 million previously, inclusive of expected impacts from reciprocal tariffs. Stock-based compensation is expected at approximately $580 million to $630 million, and CapEx is expected in the range of $160 million to $180 million, excluding potential costs for a new headquarters pending local zoning decisions.
AXON YoY Financials
| Metric | Q1 2025 | Q1 2024 | Year over year |
|---|---|---|---|
| Revenue | $603.6M | $459.9M | +31.3% |
| Gross Profit | $365.7M | $258.6M | +41.4% |
| Net Income | $88.0M | $133.3M | −34.0% |
AXON Revenue by Segment
AXON Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.