Axon Enterprise Reports Q2 EPS and Revenue Beats, Raises Full-Year Guidance

Axon Enterprise reported Q2 non-GAAP EPS of $2.12, beating expectations by $0.66. Revenue reached $668.54M, a 32.6% YoY increase and $27.57M above consensus. The company raised its full-year revenue outlook to $2.65B-$2.73B, exceeding consensus of $2.66B. Shares rose 0.96% after hours.

Axon Enterprise (AAXN) has reported its Q2 2025 financial results, showcasing robust growth and exceeding market expectations. The company's non-GAAP EPS came in at $2.12, surpassing analysts' estimates by $0.66. Revenue reached $668.54 million, representing a 32.6% year-over-year (YoY) increase and a $27.57 million beat over consensus estimates. Additionally, Axon Enterprise raised its full-year revenue outlook to a range of $2.65 billion to $2.73 billion, surpassing the consensus estimate of $2.66 billion. The stock price rose by 0.96% after hours.

Key Highlights:

- Revenue Growth: Axon Enterprise's Q2 2025 revenue of $668.54 million marked a significant 32.6% YoY increase, driven by strong premium software adoption and robust demand for TASER 10, Axon Body 4, and counter-drone equipment [1].
- Software & Services Segment: The Software & Services segment reported a 39% YoY increase in revenue to $292 million, driven by growing adoption of premium digital evidence management solutions, real-time operations, virtual reality training, and productivity tools [1].
- Connected Devices Segment: The Connected Devices segment saw a 29% YoY increase in revenue to $376 million, reflecting strength across all major device lines [1].
- TASER Segment: TASER revenue grew 19% to $216 million, driven by demand for the TASER 10 [1].
- Personal Sensors Segment: Personal Sensors revenue increased 24% to $93 million, supported by the adoption of Axon Body 4 [1].
- Platform Solutions Segment: Platform Solutions revenue grew 86% to $67 million, showcasing strong market demand for emerging products, including counter-drone and VR training [1].
- Adjusted EBITDA Margin: Adjusted EBITDA margin increased to 25.7%, up from 24.3% in the prior year, driven by higher revenue and operating leverage [1].

Outlook:

Axon Enterprise's performance in Q2 2025 supports its increased outlook for the remainder of the year. The company expects full-year 2025 revenue between $2.65 billion and $2.73 billion, representing approximately 29% growth at the midpoint. This compares to prior guidance of $2.60 to $2.70 billion, or approximately 27% growth at the midpoint. The company continues to target an Adjusted EBITDA margin of approximately 25%, implying Adjusted EBITDA of $665 million to $685 million [1].

Conclusion:

Axon Enterprise's strong Q2 2025 financial performance reflects consistent execution and a robust foundation for long-term growth. The company's focus on premium software solutions, innovative products, and customer feedback has driven significant revenue growth and margin expansion. Investors and financial professionals should closely monitor Axon Enterprise's progress as it continues to expand its product offerings and market share.

References:
[1] https://www.streetinsider.com/PRNewswire/Axon+reports+Q2+2025+revenue+of+%24669+million%2C+up+33%25+year+over+year/25142812.html