Axon delivered a strong start to 2025, reporting record first-quarter revenue of $604 million, representing a 31% increase year-over-year. This marks the company's thirteenth consecutive quarter of growth exceeding 25%. Axon achieved a net income margin of 14.6% and an Adjusted EBITDA margin of 25.7%, demonstrating profitable expansion.
The Software & Services segment led performance with $263 million in revenue, up 39% year-over-year, driven by robust demand for premium software offerings and an expanding user base. Annual Recurring Revenue (ARR) increased 34% year-over-year to $1.1 billion, with a net revenue retention rate of 123%. The Connected Devices segment generated $341 million in revenue, up 26% year-over-year, fueled by TASER 10 demand (TASER revenue up 19%) and Axon Body 4 adoption (Personal Sensors revenue up 30%). Platform Solutions revenue grew 51% to $57 million, driven by VR training and counter-drone equipment.
Axon raised its full-year 2025 guidance, now expecting revenue between $2.60 billion and $2.70 billion, up from the prior range of $2.55 billion to $2.65 billion, representing approximately 27% growth at the midpoint. The company also increased its Adjusted EBITDA target to $650 million to $675 million, maintaining an approximate 25% margin. This updated outlook reflects strong alignment with customers, expanding vertical applications, and sustained product innovation.
During Q1, Axon introduced Axon Vehicle Intelligence, including Axon Outpost and Axon Lightpost, and unveiled Axon Assistant, an AI voice-enabled companion built into Axon Body 4. The company also launched "Works With Axon," a certified third-party partner program, and announced integrations with Ring and Citizen to expand its public-private safety network. As of March 31, 2025, Axon had $2.2 billion in cash, cash equivalents, and investments, with a net cash position of $171 million.
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