Axon reports Q3 2025 revenue of $711 million, up 31% year over year

Core Insights - Axon reported a record quarter with revenue growth of 31% year-over-year, reaching $711 million, marking the seventh consecutive quarter of over 30% growth [1][12] - The company achieved a GAAP net loss margin of 0.3%, supporting an Adjusted EBITDA margin of 24.9% [1][15] - Annual Recurring Revenue (ARR) increased by 41% to $1.3 billion, with a net revenue retention rate of 124% [2][24] Financial Performance - Software & Services revenue grew 41% year-over-year to $305 million, driven by the adoption of premium software features and an expanding user base [2][22] - Connected Devices revenue rose 24% year-over-year to $405 million, with TASER revenue at $238 million (up 17%), Personal Sensors at $107 million (up 20%), and Platform Solutions at $61 million (up 71%) [2][23] - The company expects Q4 2025 revenue between $750 million and $755 million, implying full-year revenue of approximately $2.74 billion, also representing about 31% annual growth [4][31] Strategic Developments - Axon continues to invest in R&D for future growth, including the launch of new products like the Vehicle Intelligence platform and the acquisition of Prepared and Carbyne to enhance emergency response capabilities [3][9] - The integration of Prepared and Carbyne aims to modernize 911 call handling and dispatch workflows, significantly reducing high-priority response times [6][7] - The company envisions a future where 911 calls activate an integrated response system, enhancing efficiency and situational awareness [8][10] Market Position - The acquisitions of Prepared and Carbyne expand Axon's ecosystem, contributing to a market opportunity exceeding $74 billion across various product categories, part of a total addressable market of $159 billion [9][35] - Axon Body Workforce (ABW) Mini, a new enterprise product, is set for early deployments in the U.S. and Canada in 2026, targeting industries like retail and healthcare [10][11] Operational Metrics - Operating cash flow for the quarter was $60 million, down from $91 million the previous year, with a net cash position of $356 million as of September 30, 2025 [16][30] - Future contracted bookings grew 39% year-over-year to $11.4 billion, indicating strong demand for Axon's products and services [24][20]