The strong revenue growth, improved non-GAAP profitability, and raised guidance suggest accelerating momentum in Axon's ecosystem. The 125% net revenue retention indicates deep customer adoption of new products. Traders should monitor execution against the aggressive 2028 targets, particularly the expansion into enterprise markets with Axon Body Mini and the 911 product category.
Price Chart
Executive Summary
Axon reported strong Q4 2025 results with revenue of $797 million, up 39% year-over-year, driven by software adoption and hardware demand. Full-year revenue reached $2.8 billion, up 33%, with non-GAAP net income of $178 million and Adjusted EBITDA of $206 million. The company raised its 2026 revenue growth guidance to 27-30% and introduced 2028 targets of $6 billion in annual revenue and 28% Adjusted EBITDA margin, signaling strong confidence in its AI-driven product ecosystem.
Key Financial Metrics
Key Facts
- Q4 2025 revenue was $797 million, up 39% year-over-year
- Full-year 2025 revenue was $2.8 billion, up 33% year-over-year
- Non-GAAP net income was $178 million (22.3% margin), up from $168 million
- Adjusted EBITDA was $206 million (25.9% margin), up 46% year-over-year
- 2026 revenue growth guidance raised to 27-30% (up from 33% in 2025)
- 2028 targets set at $6 billion in annual revenue and 28% Adjusted EBITDA margin
- Annual recurring revenue reached $1.3 billion, up 35% year-over-year
- Net revenue retention accelerated to 125%
Financial Impact
Revenue growth of 39% YoY in Q4 and 33% for full-year 2025, with 2026 guidance of 27-30% growth
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Software Services | $342.5M | +39.8% |
| Connected Devices | $454.2M | +37.6% |
Risk Factors
- GAAP net income declined to $3 million from $135 million due to operating losses and strategic investments
- Gross margin decreased 220 basis points year-over-year due to product mix and tariffs
- Operating cash flow decreased to $217 million from $250 million due to inventory investments
- High stock-based compensation ($208.6 million in Q4) could pressure margins
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-011106 |
| Document: axon-20260224.htm | 0001628280-26-011106 |
| Document: 0001628280-26-011106-index-headers.html | 0001628280-26-011106 |
| Document: 0001628280-26-011106-index.html | 0001628280-26-011106 |
| Document: 0001628280-26-011106.txt | 0001628280-26-011106 |
| CONTEXT: Previous Earnings (2026-02-24) | 0001628280-26-011106 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 15, 2026 12d ago | Press Release | $417.19 | awaiting T+20 | — | $425.87 (+2.08%) |
Sep 21, 2026 5w ago | 8-K | $452.06 $383.09 | ▼ −15.26% | ▼ −14.35% | $425.87 (−5.79%) |
Sep 15, 2026 6w ago | 424B5 / 8-K | $442.08 $413.35 | ▼ −6.50% | ▼ −9.48% | $425.87 (−3.67%) |
Sep 14, 2026 6w ago | Insider Cluster | $442.08 $413.35 | ▼ −6.50% | ▼ −9.22% | $425.87 (−3.67%) |
Sep 8, 2026 7w ago | 144 | $490.00 $406.00 | ▼ −17.14% | ▼ −19.34% | $425.87 (−13.09%) |
Jul 14, 2026 14w ago | Institutional Cluster | $541.12 $599.78 | ▲ +10.84% | ▲ +8.50% | $425.87 (−21.30%) |
Jun 8, 2026 20w ago | Insider Cluster | $452.51 $640.46 | ▲ +41.53% | ▲ +40.09% | $425.87 (−5.89%) |
Jun 2, 2026 21w ago | Insider Cluster | $481.48 $597.04 | ▲ +24.00% | ▲ +25.00% | $425.87 (−11.55%) |
Apr 16, 2026 27w ago | DEFA14A | $402.85 $388.19 | ▼ −3.64% | ▼ −9.01% | $425.87 (+5.71%) |
Apr 10, 2026 28w ago | 8-K | $359.63 $394.36 | ▲ +9.66% | ▲ +1.93% | $425.87 (+18.42%) |
US Market Status
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