Axon Delivers A Jolt With Latest Q4 Results

Axon’s fourth quarter results sketched out solid demand for 2026, with enough bookings strength and guidance detail to keep the optimism grounded. Fourth quarter 2025 revenue rose a remarkable 39% to $797 million, and the company paired the growth with enough metrics and context to keep the momentum clear and measurable. The results did not rely on one lucky lever, but instead pointed to a business that is getting broader and more repeatable.

The numbers were big, but even more interesting was how clearly Axon mapped the drivers. Software and Services revenue rose 40% to $343 million, while Connected Devices revenue grew 38% to $454 million, helped by demand across product lines the company called out, including TASER 10 and Axon Body 4. Profitability also held up well on an adjusted basis, with $206 million of Adjusted EBITDA, alongside GAAP net income of $3 million and non GAAP net income of $178 million, which worked out to non GAAP diluted EPS of $2.15. Cash generation remained meaningful, with operating cash flow of $217 million and free cash flow of $155 million, which the company attributed to receivables timing and inventory investments.

What kept the optimism from drifting was the scale of what Axon already has lined up. For full year 2025, Axon reported $2.8 billion in revenue and more than $1.3 billion in annual recurring revenue, with annual bookings of $7.4 billion and future contracted bookings of $14.4 billion. The company also said net revenue retention hit 125% in the quarter, a sign that existing customers continued to expand their spend. Together, those metrics add real visibility heading into 2026 and put a hard boundary around what is already contracted versus what still needs to be won.

Guidance kept the message straightforward and ambitious without getting sloppy. Axon set a 2026 outlook of 27% to 30% revenue growth with a 25.5% Adjusted EBITDA margin, and it introduced 2028 targets of about $6 billion in annual revenue and 28% Adjusted EBITDA margin, alongside a goal of converting 60% of Adjusted EBITDA into adjusted free cash flow and limiting dilution from stock based compensation to under 2.5% annually. That is a clear set of numbers to track, and a reminder that management is trying to scale growth without letting the economics or the share count wander.

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