AXON earnings call summary

Prepared Highlights

• Q3 2025 revenue: $711M, +31% YoY, seventh consecutive quarter of ≥30% growth (CFO).
• Software & services revenue: $305M, +41% YoY; ARR grew 41% to $1.3B; net revenue retention 124% (CFO).
• Connected Devices revenue: $405M, +24% YoY; TASER +17% (led by TASER 10), Personal Sensors +20% (Axon Body 4), Platform Solutions +71% (counter-drone, VR, fleet) (CFO).
• Adjusted gross margin: 62.7%, −50 bps YoY, driven by tariffs (first full quarter impact) and scaling platform solutions (CFO).
• Adjusted EBITDA margin: 24.9%, impacted by tariffs and increased R&D (vehicle intelligence, ABW Mini, AI features) (CFO).
• Bookings: YTD bookings up >30%, on pace for high-30% YoY growth in Q4 (CFO, IR).
• AI Era plan: fastest booked software product; on track to contribute >10% of US state & local bookings in 2025 (IR).
• Corrections: two of top-10 deals in Q3, YTD bookings >2x YoY (IR).
• International: two of top-10 deals in Q3; 9-figure cloud deal in Europe closed October 2025 (IR).
• Enterprise: launched ABW Mini, pent-up demand noted; existing enterprise customers deploying Axon Body 4 (IR, CEO).
• D Drone and FUSYS: bookings up >3x YTD; robotic docks scaling in last two quarters (CEO, IR).

Official guidance (CFO):

• Q4 2025 revenue: $750M–$755M.
• Full-year 2025 revenue: ~$2.74B (midpoint), representing ~31% growth.
• Q4 2025 adjusted EBITDA: $178M–$182M; full-year 25% margin target maintained.

Mgmt quotes (prepared remarks only):

• "We're building the nervous system of the modern police agency, and these two acquisitions move us into really being a major player in voice communications." (CEO)
• "We are still in the early innings. We see the healthiest and best indicators across our business we have ever had." (IR)
• "Our growth can only accelerate via elite talent. Our team is now stronger than ever with the additions of Michael, Dylan, Neil, and the rest of the Prepared team, and Amir, Alex, and the rest of the Carbine team." (IR)
• "The AI era plan continues to be the fastest booked Axon software product to date. We're on pace for AI bookings to contribute over 10% of US state and local bookings for this year." (IR)
• "We think the combination of top-line growth and bottom-line profitability is the right balance for the business, delivering at 55 plus versus the rule of 40." (CFO)

Prepared Metrics