Core Insights - Axon Enterprise reported a revenue of $710.64 million for the quarter ended September 2025, reflecting a year-over-year increase of 30.6% [1] - The earnings per share (EPS) for the quarter was $1.17, down from $1.45 in the same quarter last year, indicating a decline [1] - The reported revenue exceeded the Zacks Consensus Estimate of $699.57 million by 1.58%, while the EPS fell short of the consensus estimate of $1.63 by 28.22% [1] Financial Performance Metrics - Annual recurring revenue reached $1,252.00 million, surpassing the average estimate of $1,231.82 million from five analysts [4] - Net sales from Connected Devices amounted to $405.4 million, exceeding the six-analyst average estimate of $396.32 million [4] - Net sales from Software and Services were reported at $305.24 million, slightly above the average estimate of $302.27 million [4] - Net sales from Connected Devices - TASER were $237.95 million, marginally higher than the estimated $237.85 million [4] - Net sales from Services also matched the reported figure of $305.24 million against the average estimate of $302.27 million, showing a year-over-year increase of 41.1% [4] - Net sales from Connected Devices - Platform Solutions reached $60.77 million, exceeding the six-analyst average estimate of $55.05 million [4] - Net sales from Products were $405.4 million, compared to the average estimate of $396.32 million, reflecting a year-over-year growth of 23.6% [4] - Net sales from Connected Devices - Personal Sensors were reported at $106.68 million, above the average estimate of $103.42 million [4] - Adjusted gross margin for Software and Services was $234.32 million, slightly below the three-analyst average estimate of $239.95 million [4] - Adjusted gross margin for Connected Devices was $211.13 million, slightly above the three-analyst average estimate of $209.83 million [4] Stock Performance - Over the past month, Axon shares have returned +0.4%, while the Zacks S&P 500 composite has changed by +2.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

分组1 - Axon Enterprise reported quarterly earnings of $1.17 per share, missing the Zacks Consensus Estimate of $1.63 per share, and down from $1.45 per share a year ago, representing an earnings surprise of -28.22% [1] - The company posted revenues of $710.64 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.58%, and up from $544.27 million year-over-year [2] - Over the last four quarters, Axon has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] 分组2 - The stock has gained approximately 21.8% since the beginning of the year, outperforming the S&P 500's gain of 16.5% [3] - The current consensus EPS estimate for the coming quarter is $1.67 on revenues of $740.62 million, and for the current fiscal year, it is $6.91 on revenues of $2.72 billion [7] - The Zacks Industry Rank for Aerospace - Defense Equipment is currently in the bottom 40% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Data and Key Metrics Changes - The company reported Q3 revenue of $711 million, a 31% year-over-year increase, marking the seventh consecutive quarter of 30% or greater growth [21] - Software and services revenue increased 41% year-over-year to $305 million, while connected devices revenue grew 24% year-over-year to $405 million [21][22] - Adjusted gross margin was 62.7%, a decrease of 50 basis points year-over-year, primarily due to tariffs [22] - Annual recurring revenue (ARR) grew 41% to $1.3 billion, with net revenue retention at 124% [21][22] Business Line Data and Key Metrics Changes - TASER revenue grew 17%, driven by TASER 10, while personal sensors grew 20%, led by Axon Body 4 [21][22] - Platform solutions revenue surged 71%, driven by CounterDrone, virtual reality, and Fleet [21][22] - AI Aeroplan is on pace to contribute over 10% of U.S. state and local bookings for the year, with bookings for newer offerings like Axon Air and Dedrone up more than 3X year-to-date [16][18] Market Data and Key Metrics Changes - Year-to-date bookings are up over 30%, with significant contributions from corrections and international markets [17][18] - The company closed a nine-figure cloud deal in Europe, indicating a shift in international markets driven by cloud product value [17][51] - The international business is seeing consistent bookings from Canada, Australia, and South America, with growing adoption of TASER 10 [51] Company Strategy and Development Direction - The company is focused on expanding its ecosystem, particularly through the introduction of Axon 911, Prepared, and Carbine, which aim to unify technology for better outcomes in public safety [6][11] - The strategy includes leveraging AI to enhance 911 call processing and improve response times, moving away from legacy systems [9][10][31] - The company aims to create a connected platform that upgrades existing systems without requiring complete replacements, allowing agencies to modernize at their own pace [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, anticipating another record year in 2026, driven by investments in products and sales teams [18][70] - The management highlighted the importance of customer trust and product-market fit, as evidenced by increasing deal sizes and the breadth of product offerings sold to customers [15][18] - The company is optimistic about the future, believing that the best is yet to come as it continues to innovate and expand its reach [11][18] Other Important Information - The company is raising its Q4 revenue guidance to between $750-$755 million, implying full-year revenue of about $2.74 billion, representing approximately 31% growth at the midpoint [24] - Adjusted EBITDA for Q4 is expected to be between $178-$182 million, maintaining a full-year margin target of 25% [24] Q&A Session Summary Question: Was there any delayed contract decisions in Q3 that affected bookings? - Management confirmed that they still expect bookings growth to be in the high 30s% year-over-year, indicating confidence in Q4 performance [27] Question: Can you elaborate on the rationale behind the Prepared and Carbine acquisitions? - The acquisitions are seen as foundational for innovating in the 911 space, allowing the company to leverage AI and improve communication systems [30][32] Question: How do you see the interplay between software and services and connected devices? - Management expects software and services to continue growing at a higher-than-average rate, driven by increasing user counts and upselling opportunities [40][41] Question: What is the outlook for gross margins moving forward? - The impact from tariffs is expected to be a one-time adjustment, with future growth in software business expected to improve overall gross margins [82] Question: How is the company positioned regarding the competitive landscape, especially with Motorola's new offerings? - Management emphasized their focus on customer needs and innovation, asserting confidence in their body camera products and the potential of the 911 space [66]

Financial Data and Key Metrics Changes - The company reported Q3 revenue of $711 million, a 31% year-over-year increase, marking the seventh consecutive quarter of 30% or greater growth [34] - Adjusted gross margin was 62.7%, a decrease of 50 basis points year-over-year, primarily due to tariffs [36] - Annual recurring revenue (ARR) grew 41% to $1.3 billion [35] - Adjusted EBITDA margin was 24.9%, reflecting the impact from tariffs and planned increased R&D investments [37] Business Line Data and Key Metrics Changes - Software and services revenue increased 41% year-over-year to $305 million, driven by new and existing customers expanding their use of the platform [34] - Connected devices revenue grew 24% year-over-year to $405 million [35] - TASER product line grew 17%, led by TASER 10, while personal sensors grew 20% driven by Axon Body 4 [35] Market Data and Key Metrics Changes - Year-to-date bookings were up in excess of 30% and accelerating from last year [32] - Corrections contributed two of the top 10 deals in Q3, with year-to-date bookings up more than 2x from last year [29] - International bookings also delivered two of the top 10 deals, including a nine-figure cloud deal in Europe [29][30] Company Strategy and Development Direction - The company is focused on expanding its ecosystem, particularly through the integration of Prepared and Carbyne, which are expected to enhance the 911 response system [20][34] - The strategy includes leveraging AI to improve communication and response times in emergency situations [19][49] - The company aims to innovate faster by moving away from legacy systems and focusing on cloud-based solutions [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering another record year in 2026, with expectations for continued strong performance driven by AI tools and efficient decentralized ownership [33] - The management highlighted the importance of investing in sales and product development to sustain long-term growth [95] - There is optimism regarding the international market, with consistent bookings from Canada, Australia, and South America [71] Other Important Information - The company is raising its Q4 revenue guidance to between $750-$755 million, implying full-year revenue of about $2.74 billion [40] - The company is also focused on addressing the challenges posed by tariffs, which have impacted gross margins [110] Q&A Session Summary Question: AI's contribution to total bookings and any delayed contract decisions - Management confirmed that bookings growth is expected to remain strong, with a belief in high 30s% year-over-year growth for Q4 [44] Question: Rationale behind acquiring Prepared and Carbyne - Management explained that these acquisitions enhance the company's ability to innovate in the 911 space and integrate with existing systems [46][48] Question: Interplay between software and services, and connected devices - Management indicated that software and services are expected to continue growing at a higher-than-average rate, driven by increased user count and upselling [58][60] Question: International deals and pipeline - Management provided insights into the successful cloud opportunities in Europe and consistent bookings from other international markets [70][71] Question: Competitive landscape regarding body cameras - Management emphasized their focus on customer needs and confidence in their product offerings despite competition [90] Question: Gross margin outlook and tariff impacts - Management discussed the one-time adjustment from tariffs and the expectation of improved gross margins as the software business continues to grow [110][112]

Financial Data and Key Metrics Changes - Third quarter revenue reached $711 million, a 31% year-over-year increase, marking the seventh consecutive quarter of 30% or greater growth [31] - Software and services revenue increased 41% year-over-year to $305 million, driven by both new and existing customers [31] - Annual recurring revenue (ARR) grew 41% to $1.3 billion, with a strong net revenue retention rate of 124% [32] - Adjusted gross margin was 62.7%, a decrease of 50 basis points year-over-year, primarily due to tariffs [33] - Adjusted EBITDA margin was 24.9%, reflecting the impact of tariffs and planned increased R&D investments [33] Business Line Data and Key Metrics Changes - Connected Devices revenue grew 24% year-over-year to $405 million, reflecting broad-based demand [32] - TASER revenue increased by 17%, led by TASER 10, while Personal Sensors grew 20% driven by Axon Body 4 [32] - Platform Solutions revenue surged 71%, driven by Counter Drone, Virtual Reality, and Fleet [32] Market Data and Key Metrics Changes - Year-to-date bookings were up over 30%, with significant contributions from corrections and international markets [28] - International deals included a notable nine-figure cloud deal in Europe, indicating a shift in some countries towards cloud products [28][67] - The company reported strong growth in the corrections segment, with year-to-date bookings up more than 2x from last year [28] Company Strategy and Development Direction - The company is focused on expanding its ecosystem, particularly through the integration of Prepared and Carbine, which are expected to enhance 911 call response capabilities [10][20] - The strategy includes leveraging AI to improve communication and response times in emergency situations, aiming to create a more efficient and connected public safety system [16][44] - The company is also investing in new product lines and acquisitions to drive long-term growth and innovation [34][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving another record year in 2026, with expectations for continued strong growth driven by AI tools and efficient decentralized ownership [29][92] - The company highlighted the importance of customer success as a key driver of its own success, emphasizing a relentless focus on customer needs [22][23] - Management acknowledged the impact of tariffs but maintained a positive outlook on gross margins as the software business continues to grow [33][108] Other Important Information - The company is excited about the upcoming launch of the Axon Body Workforce Mini, which is expected to significantly expand its enterprise opportunities [20][72] - Recent acquisitions, including Prepared and Carbine, are seen as strategic moves to enhance the company's capabilities in the 911 space and voice communications [20][46] Q&A Session Summary Question: AI's contribution to total bookings and any delays in contract decisions - Management confirmed that bookings growth is expected to remain strong, with a belief that high thirties year-over-year growth will continue into Q4 [39][40] Question: Rationale behind acquiring Prepared and Carbine - The acquisitions are aimed at enhancing the company's ecosystem, particularly in the 911 space, where there is significant room for innovation and improvement [42][46] Question: Interplay between software and services, and connected devices - Management indicated that software and services are expected to continue growing at a higher-than-average rate, driven by increasing user counts and upselling [50][54] Question: International deals and pipeline outlook - Management reported strong momentum in international markets, particularly in Europe, with expectations for continued growth [66][70] Question: Competitive landscape for body cameras and response to Motorola's new product - Management emphasized a focus on their own product development and customer satisfaction, asserting confidence in their body camera offerings [84][86] Question: Guidance for Q4 revenue acceleration and backlog - Management expressed strong visibility into Q4 bookings and confidence in achieving a significant bookings quarter [88][90]

Financial Data and Key Metrics Changes - Third-quarter revenue reached $711 million, a 31% year-over-year increase, marking the seventh consecutive quarter of 30% or greater growth [22][26] - Software and services revenue increased 41% year-over-year to $305 million, driven by new and existing customers [22][23] - Annual recurring revenue (ARR) grew 41% to $1.3 billion, with strong net revenue retention at 124% [22][23] - Adjusted gross margin was 62.7%, a decrease of 50 basis points year-over-year, primarily due to tariffs [23][26] - Adjusted EBITDA margin was 24.9%, reflecting the impact from tariffs and planned increased R&D investments [23][26] Business Line Data and Key Metrics Changes - Connected devices revenue grew 24% year-over-year to $405 million, reflecting broad-based demand [22][23] - TASER revenue increased by 17%, led by TASER 10, while personal sensors grew 20% driven by Axon Body 4 [22][23] - Platform solutions revenue surged 71%, driven by CounterDrone, virtual reality, and Fleet [22][23] Market Data and Key Metrics Changes - Year-to-date bookings were up over 30%, with significant contributions from corrections and international markets [19][20] - International deals included a nine-figure cloud deal in Europe, indicating a shift in some countries towards cloud products [19][53] - The company is seeing strong momentum in Canada, Australia, and South America, with consistent bookings [53] Company Strategy and Development Direction - The company is focused on expanding its ecosystem, particularly with the introduction of Axon 911, Prepared, and Carbine [5][12] - The strategy includes leveraging AI to enhance emergency response systems and improve operational efficiency [10][11] - The company aims to innovate in critical response workflows without rebuilding legacy systems, allowing for faster innovation [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving another record year in 2026, driven by strong indicators across the business [20][26] - The company is committed to investing in products and sales teams to capture market opportunities [20][74] - Management highlighted the importance of customer trust and product-market fit as key drivers of growth [17][20] Other Important Information - The company is raising its revenue guidance for Q4, expecting revenue between $750-$755 million, implying full-year revenue of about $2.74 billion [26] - The company is also focused on strategic investments in newer product lines like Fusus and Dedrone, which are scaling quickly [25][26] Q&A Session Summary Question: AI's contribution to total bookings and any delays in contract decisions - Management confirmed expectations for bookings growth in the high 30s% year-over-year, indicating confidence in Q4 performance [29][30] Question: Rationale behind acquiring Prepared and Carbine - The acquisitions are seen as foundational for enhancing the 911 ecosystem, allowing for innovation in emergency response and voice communications [30][35] Question: Interplay between software, services, and connected devices - Management expects software and services to continue growing at a higher-than-average rate, driven by increasing user counts and upselling [39][42] Question: International deals and pipeline outlook - Management noted strong momentum in international markets, particularly in Europe, Canada, and Australia, with a focus on capturing cloud opportunities [53][54] Question: Competitive landscape for body cameras and response to Motorola - Management emphasized confidence in their body camera products and the focus on customer needs, dismissing concerns about competition [69][70] Question: Gross margin outlook and tariff impacts - Management indicated that tariff impacts are a one-time adjustment, with expectations for gross margins to improve as software growth outpaces connected devices [84][86]

Market Overview - U.S. equities faced a significant downturn on November 4, 2025, with all three major indexes closing in the red, particularly the tech-heavy Nasdaq Composite, which led the declines [1][2] - The S&P 500 fell 1.2% to 6,771 points, while the Dow Jones Industrial Average decreased by 0.5% or approximately 238 points to 47,085, and the Nasdaq Composite dropped 2% to 23,348 [2] - The Cboe Volatility Index (VIX) surged 10% to 18.9, indicating increased investor apprehension amid concerns over valuations and a potential market correction [2] Economic Data and Events - The ongoing U.S. government shutdown is delaying key economic data releases, increasing focus on private sector data [3] - The ADP employment report is anticipated, which may provide insights into hiring trends following a dip in September [3] - The ISM Manufacturing PMI declined to 48.7 in October from 49.1 in September, marking the eighth consecutive month of contraction [4] Corporate Developments - Palantir Technologies (PLTR) saw a significant decline of 7.9% despite surpassing analysts' forecasts for sales and profit, raising concerns over high valuations [5] - Nvidia (NVDA) fell 4%, and Microsoft (MSFT) dipped 1%, reflecting growing concerns about the sustainability of the AI rally [5] - Uber Technologies (UBER) slumped 6.3% despite reporting better-than-expected financial results [5] - Yum! Brands (YUM) rose 6.1% after announcing strong quarterly results and considering selling its Pizza Hut unit [5] - Kinross Gold Corporation (KGC) reported robust third-quarter results, including record free cash flow and an increase in share buyback target and dividend [6] Earnings Announcements - Advanced Micro Devices, Inc. (AMD) is expected to report a 27.63% year-over-year increase in earnings per share [10] - Arista Networks, Inc. (ANET) is forecasted to see a 14.04% increase in earnings per share [10] - Axon Enterprise, Inc. (AXON) plunged 20% in after-hours trading following a Q3 earnings miss [10] - Digital Turbine (APPS) surged 22% in after-hours trading after reporting its FY 2026 Q2 earnings [10]

Axon Enterprise Inc (NASDAQ:AXON) shares are tumbling in Tuesday’s after-hours session after the company reported mixed financial results and announced a deal to acquire an emergency communications and response platform.AXON is among today’s weakest performers. Track the latest developments here.What To Know: Axon reported third-quarter revenue of $710.64 million, beating analyst estimates of $703.5 million. The company reported first-quarter adjusted earnings of $1.17 per share, missing estimates of $1.52 ...

Company Overview - Axon's mission is to protect life by building the technology ecosystem for public safety[7] - The company estimates a total addressable market of $159 billion[9, 68] - Axon has over 1 million software users and has sold over 1 million TASER devices[9] Financial Performance - Axon's 2024 annual revenue was $2.1 billion[32] - The company's annual recurring revenue was $1.3 billion[34] - Future contracted bookings reached $11.4 billion[34, 122] - The adjusted EBITDA margin for 2024 was 25%[34] - Net revenue retention was 124%[34, 82, 123] Market Opportunity - The U S State & Local Law Enforcement TAM is under 15% penetrated[63] - Law enforcement use cases account for approximately 50% of the total addressable market[62] - U S State & Local law enforcement accounted for approximately 75% of company revenue in 2024[66] Forward-Looking Statements - Axon projects Q4 2025 revenue between $750 million and $755 million, representing approximately 31% annual growth[127] - The company anticipates an adjusted EBITDA of $178 million to $182 million for Q4 2025, with an approximate 24% margin[127] - Axon expects approximately $2.74 billion in revenue for the full year 2025, a growth of approximately 31%[127]

Axon Enterprise (NASDAQ: AXON) delivered a revenue beat and raised full-year guidance on Tuesday, but a steep earnings miss and collapsing operating income sent the stock lower in after-hours trading. ...