Video  |  2025-05-08

Axon Reports Q1 2025 Revenue of $604 Million, up 31% Year Over Year

Curated by: Gert Jan Wolf - Editor-in Chief for The Critical Communications Review

Axon delivered a strong start to 2025, achieving record quarterly revenue while maintaining healthy margins and reinforcing our foundation for long-term growth through continued product innovation and a strengthened balance sheet.

First quarter revenue reached $604 million, representing 31% year-over-year growth and marking the 13th consecutive quarter of growth exceeding 25%. The company continued to demonstrate profitable expansion, with a net income margin of 14.6% and an Adjusted EBITDA margin of 25.7%.

Q1 2025 Summary Results

Quarterly revenue of $604 million grew 31% year over year, exceeding our expectations, driven by Software & Services, strong adoption of TASER 10, Axon Body 4, and growing demand for platform sensors1.

Total company gross margin of 60.6% increased 440 basis points year over year, primarily driven by a decrease in stock-based compensation expense in our cost of goods sold (COGS). Excluding the impacts of stock-based compensation and intangibles amortization, adjusted gross margin of 63.6% increased 40 basis points year over year, driven by higher software mix.

Operating loss of $9 million was primarily due to increased stock-based compensation expense of $140 million.

  • COGS of $238 million, 39% of revenue, included $13 million in stock-based compensation expense.
  • SG&A expense of $224 million, 37% of revenue, included $71 million in stock-based compensation expense.
  • R&D expense of $151 million, 25% of revenue, included $56 million in stock-based compensation expense.

Net income of $88 million (14.6% net income margin), or $1.08 per diluted share, supported non-GAAP net income of $115 million (19.0% non-GAAP net income margin), or $1.41 per diluted share.

Adjusted EBITDA of $155 million (25.7% Adjusted EBITDA margin) increased 42% year over year, driven by higher revenue, improved adjusted gross margin and operating leverage.

Operating cash flow of $26 million, an improvement of $42 million year over year, supported free cash flow of $1 million and adjusted free cash flow of $3 million.

As of March 31, 2025, Axon had $2.2 billion in cash, cash equivalents and investments, and outstanding convertible and senior notes in principal amount of $2.0 billion, for a net cash position of $171 million, up $61 million sequentially.