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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.
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