AXON earnings call summary

Prepared Highlights

• Revenue: $807M, +34% YoY, ninth consecutive quarter of growth above 30% (CFO).
• Software & Services: $355M, +35% YoY; AI product revenue grew >700% YoY (CFO).
• Connected Devices: $453M, +33% YoY; Platform solutions (incl. counter drone hardware) +95% YoY; Dedrone revenue up >300% YoY (CFO).
• International Revenue: up >100% YoY, represented 20% of quarterly revenue (CFO).
• Future Contracted Bookings (RPO): $14.3B, +44% YoY (CFO).
• Net Revenue Retention: 125% in the quarter (CFO).
• ARR: $1.5B, +35% YoY (CFO).
• Adjusted EBITDA Margin: Q1 at 25%; full-year guidance maintained at 25.5% (CFO).
• Free Cash Flow: Full-year 2026 guide ~$450M; Q1 included inventory investments for supply chain durability (CFO).
• Stock-Based Compensation: Full-year expense expected $590M–$620M; committed to <2.5% average annual dilution (CFO).
• Rule of 40: Exceeded 55 again in Q1 (CFO).

Official Guidance

• Full-year 2026 revenue growth: raised to 30%–32% (from prior 30%+ commentary) (CFO).
• Full-year 2026 adjusted EBITDA margin: maintained at 25.5% (CFO).
• Full-year 2026 free cash flow: ~$450M (CFO).

Mgmt Quotes

• Patrick Smith (CEO): "I think we passed the inflection point. We are entering what I believe will be a generational leap in both the pace of innovation we can achieve and the speed of customer adoption we will see."
• Joshua Isner (IR): "AI bookings were up 140% versus Q1 last year and we are seeing AI move from early interest to a standard part of how large agencies think about their future technology stack."
• Joshua Isner (IR): "Dedrone, our counter drone business is scaling beyond our most aggressive assumptions. Bookings are up 500% year-over-year."
• Brittany Bagley (CFO): "Revenue of $807 million was up 34% year-over-year and marks our ninth consecutive quarter of growth above 30%."
• Patrick Smith (CEO): "Every camera, every device, every line of code, it's all been leading here to this moment, the AI breakout."

Prepared Metrics