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Axon Enterprise (AXON) FY2025 results: revenue $2.8 billion, up 33.5% on the year

Axon Enterprise, Inc. (AXON) reported revenue of $2.8 billion for fiscal 2025, the year ended 31 December 2025, up 33.5% on the year before. Net income was $125 million, down 66.9%, and diluted earnings per share $1.51. The figures are the company's own, from the 10-K it filed with the SEC on 25 February 2026.

Revenue
$2.8 billion
+33.5% on the year
FY2018FY2025
Operating margin
-2.2%
2.8% a year earlier
FY2018FY2025
Net income
$125 million
-66.9% on the year
FY2018FY2025
Diluted EPS
$1.51
-68.5% on the year
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 8 new.

  • Quarterly revenue grew 39%: Q4 revenue was $797 million. Management said premium software adoption, TASER 10, Axon Body 4 and counter-drone equipment drove the growth.
  • Adjusted EBITDA rose 46%: Q4 Adjusted EBITDA was $206 million, a 25.9% margin. Management attributed the increase to higher revenue, partly offset by continued R&D investment.
  • Vehicle Intelligence entered fixed ALPR: The company announced and shipped its entry into fixed automatic license plate recognition in under a year, adding Outpost and Lightpost form factors and a certified third-party camera program.
  • Gross margin down 220 basis points: Total gross margin was 57.9%, down 220 basis points, and adjusted gross margin was 61.1%, down 210 basis points. Management attributed the decline to tariffs and Platform Solutions mix.
  • Operating loss tied to headcount: Operating loss was $50 million. Management attributed it to increased headcount to support growth and to stock-based compensation expense.
Read the Q4 FY2025 earnings call summary

From this 10-K

Axon is a technology company selling integrated hardware and software to public safety agencies and to private sector and consumer customers. Founder-led since 1993, it began with a mission to protect life, and its network ties software to connected devices including TASER energy devices, cameras and sensors, drones and robotics, cloud-based evidence management, records management, real-time operations software, critical incident and emergency response systems, immersive training and productivity tools, with artificial intelligence across them. The stated mission is to make the bullet obsolete, reduce social conflict and enable a fair and effective justice system. Corporate headquarters are in Scottsdale, Arizona, with hubs in major United States cities and expansion across Europe, Asia and the Americas.

Axon Enterprise, Inc., the 10-K for 2025

Axon is a technology company selling integrated hardware and software to public safety agencies and to private sector and consumer customers. Founder-led since 1993, it began with a mission to protect life, and its network ties software to connected devices including TASER energy devices, cameras and sensors, drones and robotics, cloud-based evidence management, records management, real-time operations software, critical incident and emergency response systems, immersive training and productivity tools, with artificial intelligence across them. The stated mission is to make the bullet obsolete, reduce social conflict and enable a fair and effective justice system. Corporate headquarters are in Scottsdale, Arizona, with hubs in major United States cities and expansion across Europe, Asia and the Americas.

Two segments

During 2025 the company realigned from the former TASER and Software and Sensors segments into two: Software and Services, and Connected Devices, to draw a clearer line between software and hardware. Revenue comes from a mix of hardware sales, multi-year recurring software subscriptions, professional services and extended warranties, with the products designed to work together as one ecosystem.

Software and Services

The segment develops, makes and sells cloud-based software as a service that lets customers capture, store, manage, share and analyse video and other digital evidence, and supports productivity and real-time operations. Digital evidence management runs through Axon Evidence, a cloud platform for storing, managing and sharing evidence while keeping chain of custody and compliance. The productivity suite includes Axon Records, Axon Standards and the AI Era Plan tools such as Real-Time Translation, Draft One, Policy Chat and Auto-Transcribe, aimed at automation, data integration and faster decisions. Real-time operations, including Axon Respond, pulls together location data, alerts and video feeds during an unfolding incident. The segment also carries non-recurring professional services revenue for implementation, configuration and workflow integration, along with certain on-premise software licences. The software subscriptions build annual recurring revenue, which the company measures from monthly recurring licence, integration, warranty and storage charges.

Connected Devices

The segment sells hardware that works with the software, earning from device sales, accessories and extended warranties across three categories. TASER covers the energy devices used by public safety customers as a less-lethal option to de-escalate conflict, along with cartridges, accessories and warranties, and consumer personal protection. Personal Sensors covers Axon Body cameras and their accessories, with the software also supporting an open ecosystem of devices made by other vendors. Platform Solutions covers Axon Fleet in-car video, fixed cameras, drone and counter-drone technology, virtual reality training hardware and other situational awareness devices.

Customers and manufacturing

Core customers are United States federal, state and local governments, international government bodies, commercial enterprises and consumers. Most revenue comes from direct sales, with distribution partners and third-party resellers alongside, and no customer was more than 10% of total net sales in 2025, 2024 or 2023. The company has been adding sales staff as it moves into new markets. Manufacturing, final assembly and final test run at its Arizona facilities, where it owns substantially all the equipment needed to develop, prototype, manufacture and assemble finished products, holding ISO 9001 and ISO 9001:2015 certification. Components and raw materials come from numerous suppliers in various countries, with some single source components, though the company owns substantially all the injection-molded tooling, designs and test fixtures used for custom parts and monitors the supply chain for alternate shipping and logistics routes.

Patents and people

At 31 December 2025 the company held over 370 United States patents, over 170 United States registered trademarks, over 350 international patents and over 480 international registered trademarks, with further applications pending. It had more than 5,100 full-time employees and more than 1,200 temporary staff, including contractors, interns and individual consultants. Full-time headcount rose by approximately 1,000, or 24%, during 2025, mainly in sales and research and development and partly through acquisitions completed in the year.

From Axon Enterprise's annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 25 February 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue2,7802,0831,563+33.5%
Cost of revenue1,121841605+33.3%
Gross profit1,6581,241955+33.6%
Gross margin59.7%59.6%61.1%
Research and development684442304+55.0%
Selling, general and administrative1,036741495+39.8%
Operating income-62.158.5157
Operating margin-2.2%2.8%10.0%
Interest expense94.27.17.0+1,227.7%
Pre-tax income19.0382157-95.0%
Income tax-1064.5-18.7
Effective tax rate-557.0%1.2%-11.9%
Net income125377176-66.9%
Net margin4.5%18.1%11.2%
Diluted EPS$1.51$4.80$2.33-68.5%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow211408189-48.2%
Capital expenditure13678.859.6+72.9%
Free cash flow75.1330130-77.2%
Free cash flow margin2.7%15.8%8.3%
Cash from investing-725-49112.5
Cash from financing1,252-45.441.3
Depreciation and amortisation83.248.419.3+71.7%
Share-based compensation634383131+65.8%
Diluted shares, weighted82m79m75m+4.9%
Shares outstanding at period end80m77m75m+4.7%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity3,2432,3281,616+39.3%
Debt1,811680677+166.2%
Operating lease liabilities98.941.433.5+139.1%
Other liabilities1,8481,4251,083+29.7%
Total liabilities and equity7,0004,4753,409+56.4%
Fixed assets331247201+33.8%
Goodwill1,37075757.9+81.0%
Intangible assets19717519.5+12.5%
Investments505333644+51.7%
Cash and equivalents1,201455599+164.1%
Inventory342265270+28.8%
Other assets3,0542,2421,619+36.2%
Total assets7,0004,4753,409+56.4%

10-K for the year ended 31 December 2025, filed 25 February 2026: the filing.