Axon Enterprise Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.73%.
Did AXON Beat Earnings? Q1 2025 Results
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
Forward Guidance & Outlook
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
AXON Revenue by Segment
AXON Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.