Axon Enterprise Inc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.07%.
Did AXON Beat Earnings? Q2 2025 Results
Axon Enterprise turned in a standout second quarter, delivering non-GAAP diluted EPS of $2.12 against a consensus estimate of $1.46, a 45.02% beat, while revenue of $668.54 million topped expectations by 4.30% and grew 32.9% year over year, marking the company's sixth consecutive quarter above 30% growth. The primary engine behind the outperformance was Software & Services, which surged 39% to $292.18 million as demand for AI-powered productivity tools and digital evidence management drove annual recurring revenue up 39% to $1.18 billion, with net revenue retention expanding to 124%. Connected Devices contributed $376.36 million, lifted by strong TASER 10 sales and an 86% jump in Platform Solutions on counter-drone and VR training equipment demand. Future contracted bookings grew 43% to $10.70 billion, underscoring the durability of the growth runway, and management raised full-year 2025 revenue guidance to $2.65 billion to $2.73 billion, representing roughly 29% annual growth at the midpoint. Investors <a href="https://247wallst.com/investing/2025/08/04/live-will-axon-enterprise-axon-rally-after-earnings-today/">closely watched the stock's reaction</a> as the company also lifted its adjusted EBITDA guidance to $665 million to $685 million.
- Growing adoption of premium digital evidence management solutions driving Software & Services growth of 39%
- Strong demand for TASER 10 devices and associated cartridges
- Axon Body 4 adoption driving Personal Sensors growth
- Counter-drone equipment and VR training driving Platform Solutions growth of 86%
- Net revenue retention expanding to 124%, reflecting expansion within existing customer base
- Annual recurring revenue growth of 39% to $1.2 billion
“Our job is to solve real problems. By listening to our customers and building what they need most, we create value.”
Axon Enterprise CEO, on the earnings call
Forward Guidance & Outlook
Axon raised its full-year 2025 revenue guidance to $2.65 billion to $2.73 billion (from $2.60 billion to $2.70 billion), representing approximately 29% annual growth at the midpoint. Adjusted EBITDA guidance was increased to $665 million to $685 million (from $650 million to $675 million), implying approximately 25% Adjusted EBITDA margin. The company expects stock-based compensation of approximately $580 million to $630 million and CapEx in the range of $170 million to $185 million. Adjusted EBITDA guidance includes expected impacts from U.S. and international tariffs. The company expects to recognize 20%–25% of its $10.7 billion in future contracted bookings over the next 12 months.
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Figures from SEC filings and company reports. Not investment advice.