• Software & Services revenue grows 39% to $263 million
  • Annual recurring revenue grows 34% to $1.1 billion
  • Net income of $88 million supports non-GAAP net income of $115 million and Adjusted EBITDA of $155 million
  • Raises full year revenue outlook to a range of $2.60 billion to $2.70 billion, up from $2.55 billion to $2.65 billion

Axon delivered a strong start to 2025, achieving record quarterly revenue while maintaining healthy margins and reinforcing our foundation for long-term growth through continued product innovation and a strengthened balance sheet. First quarter revenue reached $604 million, representing 31% year-over-year growth and marking our 13th consecutive quarter of growth exceeding 25%. We continued to demonstrate profitable expansion, with a net income margin of 14.6% and an Adjusted EBITDA margin of 25.7%.

Our performance was led by Software & Services, which generated $263 million in revenue, up 39% year over year, driven by robust demand for our premium software offerings and an expanding user base. Customers continue to find increasing value in our growing suite of solutions, with Annual Recurring Revenue (ARR) increasing 34% year over year to $1.1 billion and net revenue retention of 123%.

Connected Devices revenue totaled $341 million, up 26% year over year, with growth across all major device categories. TASER revenue grew 19% year over year to $195 million, reflecting  continued strength in demand for TASER 10. Personal Sensors revenue grew 30% year over year to $88 million, driven by Axon Body 4. Our newly introduced Platform Solutions category generated $57 million in revenue, growing 51% year over year, fueled by demand for VR training and counter drone equipment.

Select Highlights

Axon Week 2025

In April, we hosted our tenth annual user conference, Axon Week 2025, where we outlined our vision for the future of public safety technology. Attendance at this year’s event exceeded 2,500 participants, more than doubling over the past two years and underscoring the growing strength of our customer relationships. Across nearly 90 breakout sessions and daily keynotes, we highlighted innovations designed to meet the evolving challenges faced by public safety professionals.

We cannot guarantee that any forward-looking statement will be realized, although we believe we have been prudent in our plans and assumptions. Achievement of future results is subject to risks, uncertainties and potentially inaccurate assumptions. The following important factors could cause actual results to differ materially from those in the forward-looking statements: our exposure to cancellations of government contracts due to non-appropriation clauses, exercise of a cancellation clause or non-exercise of contractually optional periods; the ability of law enforcement agencies to obtain funding, including based on tax revenues; our ability to design, introduce and sell new products, services or features; our ability to defend against litigation and protect our intellectual property, and the resulting costs of this activity; our ability to win bids through the open bidding process for governmental agencies; our ability to manage our supply chain and avoid production delays, shortages and impacts to expected gross margins.

Explore RevTech News for the latest advancements in Revenue, Business & Marketing Operations with insightful updates from industry experts!  

Source: https://finance.yahoo.com/news/axon-reports-q1-2025-revenue-200100542.html