Axon Enterprise Stock Earnings Reports

Axon reported strong Q3 2025 results and raised its full-year revenue guidance, driven by broad-based demand across software & services, connected devices, and recent acquisitions. Revenue was $711M, up 31% YoY; software & services grew 41% to $305M, ARR rose 41% to $1.3B, and net revenue retention remained 124%. Management emphasized the strategic importance of recent acquisitions Prepared and Carbyne to build Axon 911 — an AI-native, cloud-first voice and 911 platform that can automate noncritical calls, accelerate data flow to responders, and modernize legacy call-center infrastructure. They see immediate customer wins (Prepared reduced human-answered calls by ~33% in one city) and view Carbyne as a path to migrate agencies to resilient cloud voice infrastructure. Other growth areas highlighted include Dedrone (counter-drone), Fusus (real-time sensor network), Axon Air, enterprise body cameras (ABW Mini), corrections and international expansion (including a 9-figure European cloud deal). Management said bookings are accelerating (year-to-date bookings up >30%), expect AI-related bookings to be a meaningful portion of state & local bookings, and see continued multi-year growth driven by upsells, longer-term contracts, and international/enterprise expansion. On margins, Q3 adjusted gross margin was 62.7% (down ~50 bps, largely due to tariffs); adjusted EBITDA margin target of ~25% for the full year was maintained despite tariff headwinds and increased R&D/strategic investments. Management emphasized disciplined, ROI-driven investment to sustain long-term growth while preserving profitability.