Axon shares up as software revenue growth drives earnings beat

Published 04/08/2025, 21:12
Axon shares up as software revenue growth drives earnings beat

Investing.com -- Axon Enterprise Inc (NASDAQ:AXON) saw its shares jump 4% after the law enforcement technology company reported second-quarter earnings that significantly exceeded analyst expectations, driven by strong software revenue growth and increased demand for its connected devices.

The company reported adjusted earnings per share of $2.12, surpassing the analyst estimate of $1.46 by $0.66. Revenue climbed 33% YoY to $669 million, beating the consensus estimate of $640.3 million. This marked Axon’s sixth consecutive quarter of revenue growth above 30%. Software (ETR:SOWGn) & Services revenue surged 39% YoY to $292 million, while Connected Devices revenue increased 29% to $376 million.

"Our performance through the first half of 2025 supports our increased outlook for the remainder of the year," said Rick Smith, Axon CEO & Founder. "Our job is to solve real problems. By listening to our customers and building what they need most, we create value."

Annual recurring revenue grew 39% YoY to $1.2 billion, with net revenue retention increasing to 124%, reflecting strong customer expansion and minimal attrition. The company’s Adjusted EBITDA rose 37% to $172 million, representing a margin of 25.7%.

Based on its strong performance, Axon raised its full-year 2025 revenue guidance to between $2.65 billion and $2.73 billion, up from its previous forecast of $2.60 billion to $2.70 billion. This new outlook represents approximately 29% growth at the midpoint, compared to the consensus estimate of $2.658 billion.

The company’s TASER revenue grew 19% to $216 million, driven by demand for TASER 10, while Personal Sensors revenue increased 24% to $93 million, supported by adoption of Axon Body 4. Platform Solutions revenue saw the strongest growth, jumping 86% to $67 million.

Axon maintained its target for an Adjusted EBITDA margin of approximately 25% for the full year, implying Adjusted EBITDA of $665 million to $685 million.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.