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Dec 31, 2025
Axon Q4 2025 Earnings Report
Axon Q4 2025 Earnings Report
Key Takeaways
Axon delivered a strong fourth quarter with revenue growing 39% year-over-year to $797 million, driven by robust demand for TASER 10 and software adoption. While the company reported a GAAP operating loss due to increased headcount and stock-based compensation, non-GAAP profitability remained strong with Adjusted EBITDA growing 46% year-over-year.
Q4 revenue of $797 million exceeded expectations, growing 39% year-over-year.
Software & Services revenue grew 40% to $343 million, now representing 43% of total revenue.
Future contracted bookings reached a record $14.4 billion, up 43% year-over-year.
The company introduced ambitious 2028 targets including $6 billion in annual revenue and 28% Adjusted EBITDA margins.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Axon expects continued strong growth in 2026 and has established a new long-term target model for 2028.
Positive Outlook
- Expected 2026 revenue growth of 27% to 30%.
- Targeting 2026 Adjusted EBITDA margin of 25.5%.
- New 2028 target of $6 billion in annual revenue.
- New 2028 target of 28% Adjusted EBITDA margin.
- Expected 2028 Adjusted Free Cash Flow conversion of 60% of Adjusted EBITDA.
Challenges Ahead
- Stock-based compensation expense projected at $590 million to $620 million for 2026.
- Capital expenditures expected between $185 million and $215 million in 2026.
- Gross margins impacted by global tariffs.
- Increased Platform Solutions product mix weighing on Connected Devices margins.
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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