Axon Enterprise, Inc. · NASDAQ:AXON
Axon Enterprise — Q4 2025 Earnings Presentation
29 slides from Axon Enterprise's earnings presentation, February 2026
Slide 1: Next Play: Earnings Call Q4 2025
NEXT PLAY EARNINGS CALL Q4 2025
Slide 2: Safe-Harbor Statement
EARNINGS CALL 2 SAFE-HARBOR Forward-looking statements in this letter include, without limitation, statements regarding: proposed products and services production delays, shortages and impacts to expected gross margins; the impacts of inflation, macroeconomic conditions and related development effor
Slide 3: Financials
FINANCIALS BRITTANY BAGLEY Chief Operating Officer & Chief Financial Officer
Slide 4: GAAP Trailing Performance
EARNINGS CALL 4 GAAP TRAILING PERFORMANCE Revenue ($B) Gross Margin $2.8B as of 2025 59.7% $2,780 as of 2025 63% 61% 61% $2,083 60% 60% $1,561 $1,187 $866 2021 2022 2023 2024 2025 2021 2022 2023 2024 2025 Net Income ($M) Net Income Margin $125M as of 2025 4.5% 12% 18% 11% as of 2025 (7%) 4% $377 ($5
Slide 5: Trailing Performance
EARNINGS CALL 5 TRAILING PERFORMANCE Revenue ($B) Adjusted Gross Margin $2.8B as of 2025 62.6% 33% 3-Year CAGR $2,780 as of 2025 64% 62% 62% 63% 63% $2,083 $1,561 $1,187 $866 2021 2022 2023 2024 2025 2021 2022 2023 2024 2025 Adjusted EBITDA ($M) Adjusted EBITDA Margin $710M as of 2025 25.5% 45% 3-Ye
Slide 6: 2025 Milestones
EARNINGS CALL 6 2025 MILESTONES Annual Bookings Revenue Future Contracted AI Bookings Adjusted Gross Margin Bookings $7.4B Up 46% Y/Y $2.8B Up 33% Y/Y $14.4B >$750M 63% Consistent Y/Y AI Era Plan Up 43% Y/Y Software Revenue New Product Bookings Software & Services Annual Recurring Adjusted EBITDA Ma
Slide 7: 2028 Target Model
EARNINGS CALL 7 2028 TARGET MODEL 3-YEAR TARGET REVENUE & MARGIN $7,000 34% $6B $6,000 $6B 2028 annual revenue $5,000 32% $4,000 28% 30% Adjusted EBITDA margin $3,000 $2.8B 28.0% 28% $2,000 ADDITIONAL 2028 TARGETS 25.5% 26% $1,000 Average annual free cash Annual dilution from flow conversion: stock-
Slide 8: How We Get There
HOW WE GET THERE Innovate and develop new products Drive product adoption with new and existing customers Expand in emerging and new customer verticals Build for scale Deliver on our vision INNOVATE BUILD EXPAND DELIVER
Slide 9: Vision
VISION RICK SMITH Founder & Chief Executive Officer
Slide 10: Moonshot Update
2025 is the first year we began to see progress MOONSHOT 1,300 UPDATE Combined Gun Fatalities (2015-2025) 1,200 1,100 Our moonshot began in 2023. After a peak of approximately 1,300 in 2024, fatalities between police and the public in the United States declined nearly 10% in 2025 1,000 2015 2016 201
Slide 11: Axon Enterprise Inc. Company Confidential.
Axon Enterprise Inc. Company Confidential.
Slide 12: Sheriff testimonial on TASER 10 and shooting reduction
“In 2025, we held a 42% reduction in deputy-involved shootings. We believe TASER 10 was a contributing factor.” - Sheriff at a major US County Sheriff’s Office
Slide 13: Axon Today
EARNINGS CALL 13 AXON TODAY 1 live TASER 10 cartridge fired OUR MOONSHOT nearly every 30 seconds in the US CUT GUN-RELATED Axon products are everywhere… DEATHS BETWEEN AND COMING TO MORE PLACES. POLICE AND PUBLIC 400K+ VR training sessions BY 50% BY 2033 Over 60 million hours of recordings from Axon
Slide 14: Axon Next
AXON NEXT #1 GLOBAL SENSOR NETWORK FULLY CONNECTED SUPERCHARGED BY AI
Slide 15: Global Sensor Network, Fully Connected, Supercharged with AI
EARNINGS CALL 15 #1 GLOBAL SENSOR NETWORK Axon’s portfolio of sensors has grown from personal protection and documentation equipment with TASER and body camera devices to a comprehensive suite of wearable devices and scaled platform solutions capable of capturing vast sets of data for a diverse set
Slide 16: Emergency Response Accelerated
EARNINGS CALL 16 EMERGENCY RESPONSE Body-worn camera + AI Assistant delivers full-scene visibility ACCELERATED Incident Real-time crime center (RTCC) Drone arrives and pulls location and available streams live data to camera feeds into view RTCC Operator 911 call received, Call details are reported
Slide 17: Infrastructure Protection Modernized
EARNINGS CALL 17 INFRASTRUCTURE PROTECTION MODERNIZED Location of aircraft, flight path, and origin point of Dedrone Defender aims operator identified directly at the drone, delivering precise interference Drone threat Stadium security detected through arrives at pilot Dedrone Tracker AI location, l
Slide 18: Communities Coordinated
EARNINGS CALL 18 AND COMMUNITIES COORDINATED Incident occurs in retail store, associate calls for help Body-worn camera + AI Assistant helps associate communicate and document Enterprise security team Law enforcement Post-incident report receives alert and investigates dispatches to help connects th
Slide 19: End-to-End Community Safety
END-TO-END COMMUNITY SAFETY CITY-WIDE THREAT DETECTION & INTERAGENCY PUBLIC SAFETY EMERGENCY RESPONSE COORDINATION
Slide 20: Federal, Healthcare, Corrections
A | EARNINGS CALL 20 FEDERAL HEALTHCARE CORRECTIONS \\
Slide 21: Why Axon
WHY AXON Highly integrated hardware + software ecosystem Powered by massive real-world data Deployed in complex, high-regulation environments Built on deep trust with our customers TAKE SMART RISKS INVEST BUILD RE-IMAGINE #BoldlyGo
Slide 22: Slide 22
Slide 23: Appendix
a AXON APPENDIX
Slide 24: Non-GAAP Reconciliation: Adjusted Gross Margin
EARNINGS CALL 24 NON-GAAP RECONCILIATION: ADJUSTED GROSS MARGIN T WELVE MONTHS ENDED $ IN THOUSANDS 31-DEC-2025 31-DEC-2024 31-DEC-2023 31-DEC-2022 31-DEC-2021 Net sales $2,779,536 $2,082,526 $1,560,699 $1,187,143 $865,638 Cost of sales 1,121,411 841,146 605,246 461,030 319,916 Gross margin $1,658,1
Slide 25: Non-GAAP Reconciliation: Adjusted EBITDA
EARNINGS CALL 25 NON-GAAP RECONCILIATION: ADJUSTED EBITDA T WELVE MONTHS ENDED $ IN THOUSANDS 31-DEC-2025 31-DEC-2024 31-DEC-2023 31-DEC-2022 31-DEC-2021 Net income (loss) $124,656 $377,034 $175,783 $146,930 $(56,339) Depreciation and amortization 86,789 56,815 32,638 24,381 18,694 Interest expense
Slide 26: Non-GAAP Reconciliation: Non-GAAP Net Income
EARNINGS CALL 26 NON-GAAP RECONCILIATION: NON-GAAP NET INCOME T WELVE MONTHS ENDED $ IN THOUSANDS 31-DEC-2025 31-DEC-2024 31-DEC-2023 31-DEC-2022 31-DEC-2021 Net income (loss) $124,656 $377,034 $175,783 $146,930 $(56,339) Stock-based compensation expense 610,151 382,604 131,358 106,176 303,331 Unrea
Slide 27: Non-GAAP Reconciliation: Adjusted Free Cash Flow
EARNINGS CALL 27 NON-GAAP RECONCILIATION: ADJUSTED FREE CASH FLOW T WELVE MONTHS ENDED $ IN THOUSANDS 31-DEC-2025 31-DEC-2024 31-DEC-2023 31-DEC-2022 31-DEC-2021 Net cash (used in) provided by operating activities $211,339 $408,312 $189,263 $235,361 $124,494 Purchases of property and equipment (136,
Slide 28: Statistical Definitions and Use of Non-GAAP
EARNINGS CALL 28 STATISTICAL Annual recurring revenue: Annual recurring revenue is a performance indicator that management believes provides more visibility into the growth of our revenue generated by our highest margin, recurring services. Annual recurring revenue should be viewed independently of
Slide 29: Thank You
a AXON THANK YOU