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Sep 30, 2025
Axon Q3 2025 Earnings Report
Axon reported strong Q3 results with $711 million in revenue, driven by continued software momentum and demand across product lines.
Key Takeaways
Axon posted another record quarter with $711 million in revenue, achieving its seventh consecutive quarter of 30%+ growth. While GAAP net income was slightly negative, non-GAAP results showed robust profitability. Software & Services led the growth with a 41% increase, and annual recurring revenue rose to $1.3 billion.
Revenue reached $711 million, up 31% year-over-year.
Net loss of $2 million, but non-GAAP net income was $98 million.
Annual recurring revenue hit $1.3 billion, up 41%.
Raised full-year revenue guidance to $2.74 billion.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Axon expects Q4 revenue between $750M and $755M and maintains an Adjusted EBITDA margin around 25% for the full year.
Positive Outlook
- Raised full-year revenue outlook to $2.74B.
- Q4 revenue guidance implies continued 31% YoY growth.
- Adjusted EBITDA margin forecast remains at 25%.
- Continued strong ARR and SaaS momentum.
- New products and acquisitions set to fuel future growth.
Challenges Ahead
- Net income remained negative on a GAAP basis.
- Gross margin slightly compressed due to tariffs and product mix.
- Free cash flow declined versus last year.
- Operating cash flow down from $91M to $60M YoY.
- Stock-based compensation continues to be a significant expense.
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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