What is the market's earnings forecast for Axon Enterprise next quarter?

What is the revenue and EPS growth rate for Axon Enterprise year over year?

What were the key takeaways from Axon Enterprise’s earnings call?

What is Axon Enterprise's latest dividend and current dividend yield?

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What guidance did Axon Enterprise's management provide for the next earnings period?

Did Axon Enterprise beat or miss consensus estimates last quarter?

What were the key takeaways from Axon Enterprise's earnings call?

- **Record Growth**: Q3 revenue $711M (+31% YoY), driven by 41% software/services growth and 24% Connected Devices expansion.
- **AI Breakthroughs**: Prepared reduces non-critical calls by 33%, Carbyne modernizes 911 infrastructure, and Fusus pilot cuts court backlog 80%.
- **International Surge**: Europe bookings up 3x YoY, with 2 of 10 top Q3 deals in Europe.
- **Federal Momentum**: Q4 federal bookings strongest quarter, Dedrone adoption accelerates for major events.
- **Profitability**: 25% adjusted EBITDA margin maintained despite tariffs, 124% net retention rate.

**【CEO Summary Section】**
- Axon reported Q3 2025 revenue of $711 million, up 31% year-over-year, driven by software and services growth (41% YoY) and Connected Devices (24% YoY). 
- Introduced **Prepared** (AI-powered call center automation) and **Carbyne** (cloud-based voice infrastructure), enabling 33% reduction in non-critical calls requiring human operators in a major U.S. city.
- Highlighted ecosystem expansion with ABW Mini (enterprise body camera) and Fusus (real-time crime center), with bookings for newer products (Dedrone, Fusus) up 3x YoY.
- Q4 guidance: $750-755 million revenue (31% YoY growth) and 25% adjusted EBITDA margin.

**【CFO Financial Commentary】**
- Q3 GAAP net income: $420 million; Non-GAAP EPS: $1.08 (exceeds expectations).
- Adjusted gross margin: 62.7% (down 50bps due to tariffs).
- R&D investments in vehicle intelligence, AI Era Plan, and counter-drone solutions expected to drive long-term growth.
- Full-year ARR: $1.3 billion (124% net retention rate).

**【Q&A Highlights】**
- **International Momentum**: 2 of top 10 Q3 deals in Europe, with TASER 10 adoption accelerating. Q4 bookings up 30% YoY.
- **Federal Growth**: Q4 federal bookings expected to be strongest quarter of the year, driven by Dedrone adoption for major events.
- **Tariff Impact**: Connected Devices gross margin temporarily reduced by tariffs, but software margin expansion offsets impact.
- **AI Strategy**: AI Era Plan bookings on track to contribute ~10% of U.S. state/local bookings in 2025, with 7 of 10 top Q3 deals including AI features.
- **Enterprise Expansion**: ABW Mini launch in Q1 2026 expected to accelerate enterprise growth, with 80% reduction in court backlog for Scotland pilot using Fusus.

Axon Enterprise, Inc. (AXON) Q3 2025 Earnings Call Transcript

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