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Mar 31, 2025
Axon Q1 2025 Earnings Report
Axon delivered record revenue and raised its full-year outlook.
Key Takeaways
Axon reported strong Q1 2025 results with 31% year-over-year revenue growth led by software and services. Net income remained positive despite higher stock-based compensation, and the company raised its full-year revenue and EBITDA guidance.
Quarterly revenue reached $604 million, growing 31% YoY.
Net income was $88 million with a 14.6% margin.
Annual recurring revenue rose to $1.1 billion, up 34% YoY.
Axon raised full-year revenue outlook to $2.60–$2.70 billion.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Axon increased its full-year 2025 revenue and adjusted EBITDA guidance, expecting sustained growth driven by software, new product rollouts, and a broadening partner ecosystem.
Positive Outlook
- Raised revenue guidance midpoint to $2.65 billion.
- Adjusted EBITDA guidance increased to $650–$675 million.
- Continued demand for TASER 10 and Axon Body 4.
- Strong software expansion with ARR expected to grow further.
- New AI and vehicle intelligence products contributing to growth.
Challenges Ahead
- High stock-based compensation projected at $580–$630 million.
- Ongoing impact of reciprocal tariffs included in EBITDA outlook.
- Increased R&D and SG&A expenses impacting margins.
- Adjusted free cash flow remains low.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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