Question · Q3 2025
Trevor Walsh asked about the potential risks of integrating new 911 solutions (Prepared and Carbyne) with existing legacy CAD systems, specifically if these older systems could break or limit scalability, and if Axon anticipates customers needing to replace them faster. He also inquired about the federal deals, asking if the guidance was influenced by the shutdown and the outlook for 2026 in this segment.
Answer
CEO Rick Smith explained that Axon's strategy involves building parallel systems that respect existing infrastructure while allowing for innovation. He likened the transition to landlines versus mobile phones, expecting CAD systems to become less relevant over time as AI-based systems process information. CPO and CTO Jeff Kunins added that Prepared is an easy-to-deploy AI overlay that taps into existing audio feeds, while Carbyne offers a modern cloud-based call-handling infrastructure for agencies ready to replace old systems. CFO Brittany Bagley stated that federal business was not a significant part of the current year's guidance, implying potential upside. President Josh Isner confirmed that Q4 is expected to be Axon's best federal quarter of the year, driven by Dedrone interest and ongoing opportunities despite the shutdown.