Axon Enterprise Reports 32.8% Revenue Growth to $668.5 Million in Q2 2025

Axon Enterprise, Inc. reported significant financial results for the second quarter of 2025, with total revenues reaching $668.5 million, a 32.8% increase from $503.2 million in the same period last year. The company's net income for the quarter was $36.1 million, down from $41.5 million in Q2 2024, reflecting a loss from operations of $1.0 million compared to an income of $33.8 million in the prior year. The gross margin for the quarter was 60.4%, slightly lower than 60.8% in the previous year, primarily due to increased stock-based compensation expenses.

For the first half of 2025, Axon reported revenues of $1.3 billion, up 32.1% from $963.1 million in the first half of 2024. The company experienced a loss from operations of $9.8 million, contrasting with a profit of $50.2 million in the same period last year. The gross margin improved to 60.5% from 58.6%, driven by a higher mix of software revenue. Net income for the six months was $124.1 million, down from $174.8 million in the prior year, influenced by unrealized losses on marketable securities and expenses related to the early repurchase of convertible debt.

Operationally, Axon has seen growth in both its Connected Devices and Software and Services segments. The Connected Devices segment generated $376.4 million in revenue for Q2 2025, a 28.6% increase year-over-year, while the Software and Services segment contributed $292.2 million, up 38.8%. The company reported a total of 1.5 million users across its platforms, with significant adoption of its premium features. Axon also expanded its geographic reach, with international sales accounting for 20% of total revenue in Q2 2025, compared to 16% in the previous year.

In terms of strategic developments, Axon completed several acquisitions, including the remaining interests in Fusus and Dedrone, which contributed to its growth strategy in public safety technology. The company also raised $1.8 billion through the issuance of Senior Notes and generated approximately $185.8 million from its at-the-market equity offering program. As of June 30, 2025, Axon had $615.5 million in cash and cash equivalents, a significant increase from $454.8 million at the end of 2024, bolstered by its investment activities.

Looking ahead, Axon anticipates continued growth driven by its expanding product offerings and market presence. The company expects to maintain its focus on innovation and strategic investments to enhance its public safety technology solutions. However, it also acknowledges potential risks related to market conditions and operational challenges that could impact future performance.