AXON ENTERPRISE (AXON) Company Report

Axon reported Q3 revenue of $711 million, up 31% YoY, with software and services revenue of $305 million (+41% YoY), connected devices revenue of $405 million (+24% YoY); net revenue retention was 124%, and ARR reached $1.3 billion.
Adjusted gross margin was 62.7% (down 50 bps YoY due to tariffs) and Adjusted EBITDA margin was 24.9%; the company plans continued R&D and strategic investments in AI, ALPR products, and newly acquired businesses.
Management raised Q4 revenue guidance to $750–755 million and full-year revenue to $2.74 billion (implying ~31% growth); Q4 Adjusted EBITDA is projected at $178–182 million, maintaining a 25% full-year margin target.
Year-to-date bookings are up over 30%, driven by AI Aeroplan software and newer offerings—Axon Air, Dedrone, and Fusus bookings up more than 3× YTD—while corrections bookings more than doubled and the international segment secured a nine-figure cloud deal in Europe.
Axon acquired Prepared and announced the acquisition of Carbyne to enhance its 911 ecosystem with AI-driven call center and cloud communications capabilities; Carbyne is expected to close in early 2026.

Nov 4, 2025, 10:00 PM

Transcript

Axon reports Q3 2025 results

AXON

Earnings

Guidance Update

M&A

Q3 revenue of $711 million, up 31% year-over-year; software & services grew 41% to $305 million, with ARR up 41% to $1.3 billion and net revenue retention at 124%.
Adjusted gross margin was 62.7% (down 50 bps YoY) and adjusted EBITDA margin was 24.9%, reflecting tariffs and increased R&D investments.
Raised Q4 revenue guidance to $750–755 million, implying full-year revenue of ~$2.74 billion (≈31% growth), and maintained a full-year 25% adjusted EBITDA margin target.
Acquired Prepared and Carbine to modernize 911 call centers with AI-enabled voice communications; Carbine expected to close early 2026.

Nov 4, 2025, 10:00 PM

Transcript

Axon reports Q3 2025 results and updates guidance

AXON

Earnings

Guidance Update

M&A

Axon delivered Q3 revenue of $711 million (+31% Y/Y), with software & services revenue at $305 million (+41% Y/Y), net revenue retention of 124%, and ARR of $1.3 billion.
Adjusted gross margin was 62.7% (-50 bps Y/Y) and adjusted EBITDA margin was 24.9%, with Q4 revenue guidance set at $750–755 million (full-year ~$2.74 billion, ~31% growth) and a full-year 25% EBITDA margin target.
Axon announced acquisitions of Prepared and Carbine to build its Axon 911 AI voice ecosystem, expected to close in early 2026.
AI momentum remains strong: AI Aeroplan is the fastest-booked Axon software product and is projected to contribute >10% of U.S. state & local bookings, while Axon Air, Dedrone, and Fusus bookings are up >3× YTD.

Nov 4, 2025, 10:00 PM

Transcript

Axon reports strong Q3 2025 results and raises guidance

AXON

Earnings

Guidance Update

M&A

Axon delivered Q3 revenue of $711 M, up 31% YoY; Software & Services revenue grew 41% to $305 M, and ARR increased 41% to $1.3 B.
Adjusted gross margin was 62.7%, down 50 bps YoY due to tariffs and R&D scaling; adjusted EBITDA margin was 24.9%.
Announced the acquisition of Prepared and the launch of Carbine (expected to close early 2026) to modernize 911 call-handling with AI-driven, cloud-based voice communications.
Raised Q4 revenue guidance to $750–755 M, implying FY 2025 revenue of ~$2.74 B (+31% growth), with Q4 adjusted EBITDA of $178–182 M and a full-year margin target of 25%.

Nov 4, 2025, 10:00 PM

Transcript

Axon reports Q3 2025 results and raises full-year outlook

AXON

Earnings

Guidance Update

M&A

Axon posted Q3 revenue of $711 million, up 31% year-over-year, driven by Software & Services revenue of $305 million (+41% YoY) and Connected Devices revenue of $405 million (+24% YoY); GAAP net loss was $2 million, non-GAAP net income was $98 million, and Adjusted EBITDA was $177 million (24.9% margin).
Annual recurring revenue grew 41% year-over-year to $1.3 billion, with net revenue retention at 124%.
Axon raised its full-year 2025 revenue outlook to $2.74 billion (31% growth) and expects Q4 revenue of $750–755 million with Adjusted EBITDA of $178–182 million (~24% margin).
The company completed the acquisition of Prepared, signed a definitive agreement to acquire Carbyne to launch its Axon 911 platform, rolled out its Vehicle Intelligence suite, and announced the Axon Body Workforce Mini for enterprise use in H1 2026.

Nov 4, 2025, 9:12 PM

8-K

Axon to acquire Carbyne emergency-response platform

AXON

M&A

Axon has agreed to acquire Carbyne for $625 million, aiming to embed next-generation, cloud-native 911 call management into its public safety suite.
The deal will create “Axon 911,” uniting Carbyne’s real-time call routing and resilience with Axon’s AI-driven situational insights to streamline response from call to courtroom.
Carbyne currently serves hundreds of agencies, processes over 250 million data points annually, and protects more than 250 million people with 99.999% inbound call-flow uptime.
The transaction is expected to close in Q1 2026, subject to customary closing conditions; Axon and Carbyne have retained global legal counsel for the deal.

Nov 4, 2025, 9:02 PM

Press Release

Axon reports Q3 2025 revenue of $711 million

AXON

Earnings

Guidance Update

M&A

Axon delivered Q3 2025 revenue of $711 million, up 31% year over year, yielding a 24.9% Adjusted EBITDA margin and 0.3% GAAP net loss margin.
Software & Services revenue rose 41% to $305 million; Connected Devices revenue grew 24% to $405 million; ARR reached $1.3 billion with 124% net revenue retention.
Reported a $2 million GAAP net loss, $98 million non-GAAP net income, and $177 million Adjusted EBITDA.
Raised full-year 2025 revenue outlook to ≈$2.74 billion (31% growth) and Q4 revenue guidance of $750–755 million.
Enhanced ecosystem with acquisition of Prepared, planned acquisition of Carbyne, and launched Axon Body Workforce Mini.

Nov 4, 2025, 9:01 PM

Press Release

Axon to acquire AI-powered 911 communications company Prepared

AXON

M&A

Axon enters a definitive agreement to acquire Prepared, an AI-powered emergency communications platform, with closing expected in early Q4.
Prepared’s platform synthesizes 911 call audio, text, video, GPS, and real-time translation into a unified interface, supporting over 1,000 agencies in 49 states.
The acquisition integrates Prepared into Axon’s ecosystem to connect initial emergency calls to response resolution, enhancing public safety workflows.
This move reinforces Axon’s strategy to leverage AI for faster, more informed emergency responses.

Sep 23, 2025, 3:15 PM

Press Release

Axon Enterprise reports Q2 2025 results

AXON

Earnings

Guidance Update

Revenue Acceleration/Inflection

Revenue of $669 M, up 33% YoY, driven by software & services growth of 39% to $292 M and connected devices up 29% to $376 M; net revenue retention at 124%
$150 M in AI Era Plan bookings in Q2, with 30% of total bookings from new product categories and record‐breaking large deals including the largest contract in company history and largest in corrections
Raised 2025 revenue guidance to $2.65–$2.73 B (~29% growth) and adjusted EBITDA to $665–$685 M, maintaining a 25% margin target
Accelerating demand and adoption for new technologies—Draft One, TASER 10, Axon Body 4, d drone, FUSYS, AI Aeroplan—and expanding customer base and ecosystem partnerships

Aug 5, 2025, 2:56 AM

Axon Enterprise Outlines Growth Strategy and Product Innovation at 45th Annual William Blair Growth Stock Conference

AXON

Product Launch

Revenue Acceleration/Inflection

New Projects/Investments

Axon highlighted robust growth with over 25% annual growth for five straight years, including 30% last year and strong EBITDA margins around 25%.
The company emphasized expanding its product portfolio with innovations such as body cameras, fixed cameras, drone solutions, and integrated AI tools including real-time translation and automated report drafting.
Axon outlined a market expansion strategy targeting US state and local, federal, international, and enterprise segments, positioning itself as the operating system for public safety.

Jun 5, 2025, 4:23 PM

Earnings Transcripts

Quarterly earnings call transcripts for AXON ENTERPRISE.

Q3 2025

Nov 4, 2025

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Q2 2025

Aug 4, 2025

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Q1 2025

May 7, 2025

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AXON ENTERPRISE (AXON)

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