Axon Enterprise

AXON Q1 2025 Earnings

Reported May 7, 2025 at 4:36 PM ET · SEC Source

Q1 25 EPS

$1.41

BEAT +13.52%

Est. $1.24

Q1 25 Revenue

$603.6M

BEAT +2.95%

Est. $586.3M

vs S&P Since Q1 25

-63.8%

TRAILING MARKET

AXON -36.2% vs S&P +27.5%

Market Reaction

Did AXON Beat Earnings? Q1 2025 Results

Axon Enterprise opened 2025 with a record first quarter, posting revenue of $603.63 million, a 31.3% year-over-year increase that topped the $586.34 million consensus estimate by 2.95% and marked the company's 13th consecutive quarter of at least 25%… Read more Axon Enterprise opened 2025 with a record first quarter, posting revenue of $603.63 million, a 31.3% year-over-year increase that topped the $586.34 million consensus estimate by 2.95% and marked the company's 13th consecutive quarter of at least 25% growth. Non-GAAP earnings per share of $1.41 beat the $1.24 consensus by 13.52%, with the quarter's standout driver being Software and Services, which grew 39% year over year to $262.74 million as premium software adoption pushed annual recurring revenue to $1.10 billion and net revenue retention to a robust 123%. Future contracted bookings surged 41% to $9.90 billion, providing substantial long-term visibility that underpinned management's decision to raise full-year 2025 revenue guidance to $2.60 billion to $2.70 billion, up from the prior $2.55 billion to $2.65 billion range. Adjusted EBITDA guidance was similarly lifted to $650 million to $675 million. The strong results sent shares up more than 14%, reflecting broad investor confidence in the company's growth trajectory.

Key Takeaways

  • Software & Services revenue grew 39% YoY driven by new users and expansion with existing customers adopting premium software
  • Annual recurring revenue grew 34% YoY to $1.1 billion
  • Net revenue retention of 123% reflecting strong customer expansion and minimal churn
  • Strong demand for TASER 10 devices and cartridges
  • Axon Body 4 adoption driving Personal Sensors growth
  • Platform Solutions grew 51% YoY fueled by VR training and counter-drone demand
  • Total company gross margin expanded 440 basis points YoY to 60.6%
  • Adjusted EBITDA grew 42% YoY driven by revenue growth, improved adjusted gross margin and operating leverage
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AXON YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

24/7 Wall St

AXON Revenue by Segment

With YoY comparisons, source: SEC Filings

Q4 22 Q4 25
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AXON Revenue by Geography

With YoY comparisons, source: SEC Filings

Q1 25 Q4 25

“These aren't just product and capability launches—it's a blueprint for the future of public safety”

— Rick Smith, Q1 2025 Earnings Press Release