Axon (AXON) Q4 2025 Earnings Call Transcript

The Motley Fool

by newsfeedback@fool.com (Motley Fool Transcribing)

February 24, 2026

AI-Generated Deep Dive Summary

Axon Enterprise (AXON) delivered a standout performance in its Q4 2025 earnings call, showcasing robust growth across both hardware and software segments. The company reported record-breaking bookings of over $7.0 billion for the full year, marking a 40% year-over-year increase. This acceleration was driven by strong demand for emerging AI-driven solutions, including AIR, AI, and Fūsus, which collectively generated over $1.0 billion in new product bookings—nearly tripling previous results. Additionally, Axon achieved a historic milestone with annual international bookings surpassing $1.0 billion, fueled by significant cloud deployments in Europe and broader regional momentum. Revenue growth remained impressive, with Q4 revenue climbing 39% to $797 million, marking the eighth consecutive quarter of over 30% year-over-year growth. Software and services contributed $343 million, up 40%, while connected devices revenue surged 38% to $454 million. Notably, TASER sales reached $264 million, a 32% increase, and platform solutions grew 81% to $81 million. Axon’s financial health was further underscored by a strong net revenue retention rate of 125%, annual recurring revenue exceeding $1.3 billion, and adjusted EBITDA of $206 million—a 46% year-over-year jump with a margin of 25.9%. The company’s strategic initiatives, including the completion of the Prepared acquisition in Q4 and the recent closure of Carbyne, demonstrate its commitment to expanding its product portfolio and market reach. Axon also highlighted its pipeline of innovative products, such as Apollo DART, which is entering field tests and poised for customer deployments. With a projected 27%-30% revenue growth in 2026 and an adjusted EBITDA margin target of 25.5%, Axon continues to position itself as a leader in public safety technology. Its ability to consistently outperform expectations, combined with its focus on AI-driven innovation and international expansion, makes it a standout investment opportunity in the finance and tech sectors.

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Originally published on The Motley Fool on 2/24/2026