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Jun 30, 2025
Axon Q2 2025 Earnings Report
Axon reported strong Q2 results with record revenue and solid net income performance.
Key Takeaways
Axon delivered another record quarter with 33% revenue growth driven by strong adoption of premium software offerings and robust TASER 10 demand.
Revenue reached $668,538,000, growing 33% year-over-year.
Net income came in at $36,117,000 with diluted EPS of $0.44.
Adjusted EPS was $2.12, reflecting significant non-GAAP adjustments.
Annual recurring revenue rose to $1.183 billion, up 39% from last year.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Axon raised its full-year 2025 revenue guidance on the back of strong H1 performance and expects continued growth.
Positive Outlook
- Raised FY25 revenue guidance to $2.65B–$2.73B.
- Adjusted EBITDA outlook increased to $665M–$685M.
- Maintains 25% target Adjusted EBITDA margin.
- Expecting strong contributions from premium software.
- Software mix continuing to drive margin expansion.
Challenges Ahead
- Continued high stock-based compensation expenses ($580M–$630M).
- Operating cash flow turned negative for the quarter.
- Gross margin slightly declined YoY by 40 basis points.
- Free cash flow was negative at -$114.7M.
- Still awaiting zoning approvals for new HQ build.
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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