Axon Enterprise (AXON) investor relations material

Executive summary

• Q1 2026 revenue reached $807 million, up 34% year over year, marking the ninth consecutive quarter of 30%+ growth, driven by strong demand across product lines including AI and counter-drone solutions.

• Achieved $2.8B in annual revenue for 2025, with 33% year-over-year growth and strong profitability metrics.

• AI product revenue grew over 700% year-over-year, with AI bookings up 140% and rapid adoption across large agencies.

• Dedrone bookings surged 500% year-over-year, with revenue up over 300%, supporting major events and expanding internationally.

• International revenue more than doubled, now representing 20% of total revenue.

Financial highlights

• Software & Services revenue grew 35% to $355 million, with gross margin at 72.4% and adjusted gross margin at 75.8%.

• Connected Devices revenue rose 33% to $453 million, driven by TASER 10, Axon Body 4, and platform solutions.

• Platform Solutions revenue rose 95% year over year, driven by Dedrone (up 300% YoY).

• Net revenue retention was 125%, and annual recurring revenue (ARR) grew 35% to $1.5 billion.

• Future contracted bookings climbed 44% year-over-year to $14.3 billion.

Outlook and guidance

• Full-year 2026 revenue growth outlook raised to 30–32%, with Adjusted EBITDA margin guidance maintained at 25.5%.

• Expected full-year operating cash flow over $600 million and free cash flow around $450 million.

• Stock-based compensation expected at $590–$620 million for 2026, with dilution kept below 2.5%.

• Capital expenditures for 2026 projected at $160M–$190M.

• 2028 targets include $6B annual revenue, 28% adjusted EBITDA margin, and average annual free cash flow conversion of 60% of adjusted EBITDA.