Axon Enterprise Raises Revenue Guidance to $2.73B, Accelerates AI and International Expansion

Axon Enterprise, Inc. raised its 2025 revenue guidance to $2.73B, driven by strong demand for new technologies such as artificial intelligence, drones, and real-time operations. CEO Patrick W. Smith noted that these emerging technologies are resonating with customers, contributing to the company's accelerated growth and expansion plans, including international expansion.

Axon Enterprise, Inc. (Axon) has raised its 2025 revenue guidance to a range of $2.65 billion to $2.73 billion, up from the previous range of $2.60 billion to $2.70 billion [1]. The company reported a 33% year-over-year (YoY) increase in quarterly revenue for the second quarter of 2025, reaching $669 million. This growth is primarily attributed to strong demand for new technologies such as artificial intelligence (AI), drones, and real-time operations solutions.

Axon's Software & Services segment, which includes digital evidence management, real-time operations, and productivity tools, saw a 39% YoY increase in revenue to $292 million. The segment's annual recurring revenue (ARR) grew by 39% to $1.2 billion. The company's Connected Devices revenue rose by 29% YoY to $376 million, driven by robust demand for TASER 10 and Axon Body 4. The TASER revenue grew by 19% to $216 million, while Personal Sensors revenue increased by 24% to $93 million.

Axon's CEO, Patrick W. Smith, noted that the company's accelerated growth and expansion plans are driven by the strong resonance of these emerging technologies with customers. Smith highlighted the company's commitment to responsible AI deployment and its efforts to address real-world challenges faced by law enforcement professionals. The company's AI-driven solutions have demonstrated significant time savings for officers, with respondents to a national survey reporting savings of between 6 to 12 hours per week on average [1].

Axon's gross margin of 60.4% decreased by 40 basis points YoY, while its adjusted gross margin increased by 20 basis points to 63.3%. The company reported an operating loss of $1 million, primarily due to stock-based compensation expense of $139 million. Despite this, Axon's Adjusted EBITDA margin increased by 37% YoY to 25.7%, driven by higher revenue and operating leverage. The company's net income margin of 5.4% supported a non-GAAP net income margin of 26.0%.

As of June 30, 2025, Axon had a net cash position of $66 million, down $44 million sequentially. The company continues to target an Adjusted EBITDA margin of approximately 25%, which implies Adjusted EBITDA of $665 million to $685 million for the full year [1].

References:
[1] https://www.prnewswire.com/news-releases/axon-reports-q2-2025-revenue-of-669-million-up-33-year-over-year-302521063.html