Core Points - The author has a background in finance and computer science, with ten years of experience writing for Seeking Alpha [1] - The author emphasizes the importance of community engagement and diverse opinions within the Seeking Alpha platform [1] Group 1 - The author has passed all three levels of the CFA exam and currently works in fintech as a data engineer [1] - The author encourages readers to engage with their articles and share thoughts, highlighting the value of community feedback [1] Group 2 - The articles and comments made by the author are not considered financial or investment advice, but rather personal opinions [2] - The author has no current stock or derivative positions in the companies mentioned but may consider initiating a short position in AXON within the next 72 hours [1]

Core Insights - The article emphasizes the importance of community engagement and diverse opinions within the Seeking Alpha platform, highlighting the author's background in finance and computer science as a foundation for investment analysis [1]. Group 1 - The author has a double degree in finance and computer science and has passed all three levels of the CFA exam, indicating a strong educational background in investment analysis [1]. - The author currently works in fintech as a data engineer, suggesting a blend of financial and technical expertise that may enhance analytical capabilities [1]. - The Seeking Alpha community is noted for its diversity of opinion and sophisticated user base, which can provide valuable insights for investors [1]. Group 2 - The author expresses a willingness to engage with readers through comments and direct messages, fostering a collaborative environment for discussion and analysis [1]. - There is a disclosure regarding the author's potential to initiate a short position in AXON, indicating a proactive approach to investment opportunities [1].

Core Points - U.S. stock futures are lower, with Dow futures falling over 50 points [1] - Super Micro Computer Inc reported disappointing first-quarter results, with earnings of 35 cents per share, missing the consensus estimate of 40 cents, and revenue of $5.01 billion, below the expected $5.99 billion [2] - Super Micro's revenue decreased from $5.93 billion in the same period last year [2] - The company's shares fell 9.2% to $43.12 in pre-market trading [2] Company-Specific Movements - Biohaven Ltd experienced a significant drop of 46.2% to $7.51 after receiving an FDA Complete Response Letter for VYGLXIA [4] - Trex Company Inc declined 31.9% to $32.02 following worse-than-expected third-quarter results and lowered FY25 sales guidance [4] - Soleno Therapeutics Inc fell 22.2% to $49.65 after reporting third-quarter results [4] - Axon Enterprise Inc's shares dropped 19.6% to $567.50 after mixed third-quarter results and an acquisition announcement [4] - Pinterest Inc dipped 18.8% to $26.69 after posting disappointing third-quarter earnings [4] - SSR Mining Inc fell 17.5% to $17.90 after its third-quarter results [4] - Uniqure NV's shares decreased by 15.8% to $25.61 after a prior gain [4] - Clover Health Investments Corp fell 15.5% to $2.97 after mixed third-quarter results [4] - Upstart Holdings Inc declined 15.3% to $39.15 after mixed results and lowered FY25 guidance [4] - Corsair Gaming Inc fell 12.4% to $6.59 following worse-than-expected third-quarter results [4] - Advanced Micro Devices, Inc. declined 5% to $237.80 despite reporting better-than-expected third-quarter results and projecting fourth-quarter revenue of approximately $9.6 billion [4]

Core Insights - Axon Enterprise's shares fell by 19% in premarket trading following a disappointing third-quarter profit report that missed analysts' expectations due to increased costs from U.S. tariffs [1] Company Summary - The decline in Axon Enterprise's stock price reflects investor reaction to the company's financial performance, specifically the impact of higher costs attributed to tariffs [1]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - SMX (Security Matters) Public Limited Company (SMX) increased by 52% to $2.24 [3] - Entravision Communications Corporation (EVC) rose by 33% to $2.66 [3] - Babcock & Wilcox Enterprises, Inc. (BW) saw a 28% increase to $4.79 [3] - NeuroPace, Inc. (NPCE) gained 24% reaching $11.71 [3] - Kennedy-Wilson Holdings, Inc. (KW) also increased by 24% to $9.30 [3] - Rigel Pharmaceuticals, Inc. (RIGL) rose by 22% to $34.72 [3] - Digital Turbine, Inc. (APPS) increased by 21% to $7.20 [3] - Lumentum Holdings Inc. (LITE) saw a 15% increase to $218.06 [3] - AsiaStrategy (SORA) rose by 14% to $3.63 [3] - Marine Petroleum Trust (MARPS) increased by 7% to $5.05 [3] Premarket Losers - Biohaven Ltd. (BHVN) decreased by 42% to $7.96 [4] - Trex Company, Inc. (TREX) fell by 34% to $30.65 [4] - Soleno Therapeutics, Inc. (SLNO) saw a 23% decline to $49.00 [4] - Axon Enterprise, Inc. (AXON) decreased by 19% to $572.00 [4] - Clover Health Investments, Corp. (CLOV) fell by 19% to $2.82 [4] - Pinterest, Inc. (PINS) decreased by 18% to $26.91 [4] - SSR Mining Inc. (SSRM) saw a 17% decline to $17.91 [4] - Upstart Holdings, Inc. (UPST) decreased by 16% to $38.81 [4] - WF International Limited (WXM) fell by 12% to $2.25 [4] - Corsair Gaming, Inc. (CRSR) decreased by 11% to $6.66 [4]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Performance - Revenues for the three months ended September 30, 2025, were $710.6 million, an increase of $166.4 million, or 30.6%, from the same period in 2024[145]. - For the nine months ended September 30, 2025, revenues reached $2.0 billion, up $475.4 million, or 31.5%, compared to the same period in 2024[146]. - Net sales for the nine months ended September 30, 2025, were $1,982.8 million, a 31.5% increase from $1,507.4 million in the same period of 2024[164]. - Net sales from the Connected Devices segment increased by 23.6% for the three months ended September 30, 2025, driven by higher TASER and Platform Solutions sales[148]. - Net sales for the Software and Services segment rose by 41.1% for the three months ended September 30, 2025, largely due to an increase in the number of users and adoption of premium features[149]. - The Connected Devices segment net sales increased by 26.0% to $1,122.7 million for the nine months ended September 30, 2025, driven by higher TASER handle and cartridge volume[164]. - The Software and Services segment net sales increased by 39.6% to $860.2 million for the nine months ended September 30, 2025, primarily due to an increase in the aggregate number of users and adoption of premium features[165]. Profitability and Loss - Gross margin for the three months ended September 30, 2025, was 60.1%, down from 60.8% in the prior year, while adjusted gross margin decreased to 62.7% from 63.2%[145]. - Net loss for the three months ended September 30, 2025, was $2.2 million, compared to net income of $67.0 million for the same period in 2024[145]. - For the nine months ended September 30, 2025, the net income was $121.9 million, a decrease from $241.9 million in the same period of 2024[184]. - The company recorded net income of $121.9 million for the nine months ended September 30, 2025, down from $241.9 million in the same period of 2024, with net income per diluted share decreasing to $1.48 from $3.12[179]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $503.8 million, compared to $379.8 million for the same period in 2024, reflecting a 32.7% increase[184]. Expenses - Operating expenses increased by $122.8 million for the three months ended September 30, 2025, primarily due to increased headcount and stock-based compensation[145]. - Research and development expenses for the three months ended September 30, 2025, totaled $176.7 million, an increase of 54.3% compared to the prior year[156]. - Total research and development expenses increased by 59.7% to $490.3 million for the nine months ended September 30, 2025, as a percentage of net sales, this represented 24.7% compared to 20.4% in 2024[173]. - Selling, general and administrative expenses rose by 39.7% to $718.5 million for the nine months ended September 30, 2025, accounting for 36.2% of net sales[168]. Cash Flow and Financing - Cash and cash equivalents increased to $1.4 billion as of September 30, 2025, up by $969.0 million from December 31, 2024[186]. - Net cash used in operating activities was $5.9 million for the nine months ended September 30, 2025, compared to a net cash inflow of $158.1 million for the same period in 2024[196]. - Net cash used in investing activities was $498.5 million for the nine months ended September 30, 2025, primarily due to $2.0 billion in investment purchases, including $1.8 billion for short-term investments[199]. - Net cash provided by financing activities was $1.5 billion for the nine months ended September 30, 2025, driven by $1.8 billion from Senior Notes issuance and $362.2 million from an ATM equity offering[200]. - The company has access to a $300.0 million line of credit, with $291.1 million available for borrowing as of September 30, 2025[206]. Interest and Taxation - Interest income for the three months ended September 30, 2025, was $23.9 million, while interest expense rose to $28.9 million, resulting in a net interest loss of $4.97 million[158]. - Interest income for the nine months ended September 30, 2025, was $57.8 million, while interest expense increased to $(65.4) million, resulting in a net interest loss of $(7.6) million[175]. - The effective tax rate for the nine months ended September 30, 2025, was (43.1)%, a significant change from 18.6% in the same period of 2024, primarily due to net tax benefits related to stock-based compensation[177]. Strategic Initiatives - The company aims to cut gun-related deaths between police and the public in the U.S. in half by 2033, focusing on integrating hardware and cloud software solutions for public safety[144]. - Subsequent to the quarter ended September 30, 2025, the company acquired the remaining outstanding stock of Prepared and entered into a definitive agreement to acquire Carbyne[190]. Market and Currency Risks - The majority of international sales are transacted in foreign currencies, exposing the company to exchange rate fluctuations[207]. - The company has not engaged in currency hedging activities to date but may consider it in the future to mitigate foreign exchange risks[208].

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]