Axon Enterprise, Inc. · NASDAQ:AXON
Axon Enterprise — Q2 2025 Earnings Presentation
36 slides from Axon Enterprise's earnings presentation, Aug 4, 2025
Slide 1: Investor Presentation
INVESTOR PRESENTATION VIEW REPORT AUGUST 2025
Slide 2: Safe-Harbor Statement
INVESTOR DECK Q2 2025 OVERVIEW OUR ECOSYSTEM MARKET OPPORTUNITY FINANCIALS APPENDIX 2 SAFE-HARBOR Forward-looking statements in this letter include, without limitation, statements regarding: proposed products and services and related development efforts and activities; expectations about the market
Slide 3: Overview
sa AXON OVERVIEW
Slide 4: Our Mission Is to Protect Life
INVESTOR DECK Q2 2025 OVERVIEW OUR ECOSYSTEM MARKET OPPORTUNITY FINANCIALS APPENDIX 4 OUR MISSION IS Technology platform TO PROTE CT LIFE revolutionizing public safety Axon is building the technology ecosystem for public safety. Mission-driven to protect life, $129B total addressable market capture
Slide 5: Our Moonshot: Cut Gun-Related Deaths Between Police and Public
INVESTOR DECK Q2 2025 OVERVIEW OUR ECOSYSTEM MARKET OPPORTUNITY FINANCIALS APPENDIX 5 OUR MOONSHOT CUT GUN-RELATED DEATHS BETWEEN POLICE AND PUBLIC BY 50% BY 2033
Slide 6: Our Leadership
INVESTOR DECK Q2 2025 OVERVIEW OUR ECOSYSTEM MARKET OPPORTUNITY FINANCIALS APPENDIX 6 OUR LEADERSHIP We are led by our founder and a leadership team with a track record of scaling innovative products and driving sustainable growth. RICK SMITH JOSH ISNER BRITTANY BAGLEY JEFF KUNINS CAMERON BROOKS Chi
Slide 7: We Serve and Protect Our Customers Every Day
INVESTOR DECK Q2 2025 OVERVIEW OUR ECOSYSTEM MARKET OPPORTUNITY FINANCIALS APPENDIX 7 WE SERVE AND PROTECT OUR CUSTOMERS EVERY DAY U.S. STATE & LOCAL U.S. FEDERAL INTERNATIONAL ENTERPRISE Trusted by over 17,000 FedRAMP High cloud services Deployed in more than 85 Workplace safety is a top priority s
Slide 8: Results and Opportunities
INVESTOR DECK Q2 2025 OVERVIEW OUR ECOSYSTEM MARKET OPPORTUNITY FINANCIALS APPENDIX 8 RESULTS AND OPPORTUNITIES Our mission drives our results and opportunities. $2.1B $1.2B $129B 2024 annual annual recurring total addressable revenue revenue* market 25.0% 124% $10.7B 2024 annual Adjusted net revenu
Slide 9: Our Ecosystem
sa AXON OUR ECOSYSTEM
Slide 10: Our Technology Ecosystem Powers Connected Hardware Devices and Software & Services
INVESTOR DECK Q2 2025 OVERVIEW OUR ECOSYSTEM MARKET OPPORTUNITY FINANCIALS APPENDIX 10 OUR TECHNOLOGY ECOSYSTEM POWERS CONNECTED HARDWARE DEVICES AND SOFTWARE & SERVICES PROTECT LIFE CAPTURE ACCELERATE TRUTH JUSTICE
Slide 11: Hardware & Devices
INVESTOR DECK Q2 2025 OVERVIEW OUR ECOSYSTEM MARKET OPPORTUNITY FINANCIALS APPENDIX 11 HARDWARE & DEVICES TASER DE-ESCALATION & TRAINING CONNECTED VIDEO & SENSORS DRONES & ROBOTIC SECURITY TASER devices are the proven, Axon is a market leader in connected body Our drone & robotic security products l
Slide 12: Software & Services
INVESTOR DECK Q2 2025 OVERVIEW OUR ECOSYSTEM MARKET OPPORTUNITY FINANCIALS APPENDIX 12 SOFTWARE & SERVICES DIGITAL EVIDENCE MANAGEMENT REAL-TIME OPERATIONS AI & PRODUCTIVITY Axon Evidence is used in every state Axon Respond and Fusus is a real-time Our AI solutions and productivity in the U.S. and 9
Slide 13: Ecosystem at a Glance
INVESTOR DECK Q2 2025 OVERVIEW OUR ECOSYSTEM MARKET OPPORTUNITY FINANCIALS APPENDIX 13 ECOSYSTEM AT A GLANCE ACQUISITIONS PARTNERSHIPS FOUNDRY 45
Slide 14: Axon Products Deliver Results for Our Customers
I N V E S T O R D E C K Q 2 2 0 25 OVERVIEW OUR ECOSYSTEM MARKET OPPORTUNITY FINANCIALS APPENDIX 14 AXON PRODUCTS DELIVER RESULTS “Decrease time spent redacting evidence by 75% with Redaction “Decrease time spent writing incident reports by 67% through Draft One.” FOR OUR Assistant.” Fort Collins Po
Slide 15: Market Opportunity
MARKET OPPORTUNITY
Slide 16: Massive Market Opportunity
INVESTOR DECK Q2 2025 OVERVIEW OUR ECOSYSTEM MARKET OPPORTUNITY FINANCIALS APPENDIX 16 MASSIVE MARKET OPPORTUNITY BY END CUSTOMER ($B) Law enforcement use cases across our end customers account for approximately 50% of our Total Addressable Market (TAM). Within U.S. State & Local, our law enforcemen
Slide 17: Multi-Faceted Growth Drivers
INVESTOR DECK Q2 2025 OVERVIEW OUR ECOSYSTEM MARKET OPPORTUNITY FINANCIALS APPENDIX 17 MULTI-FACETED GROWTH DRIVERS UPGRADE CREATE NEW MODERNIZE ANTIQUATED SOLVE UNIVERSAL EXPAND PRODUCTS CATEGORIES TECHNOLOGIES PROBLEMS GLOBALLY Axon relentlessly innovates and Axon’s ecosystem provides a Legacy tec
Slide 18: Product Led Flywheel of Growth
INVESTOR DECK Q2 2025 OVERVIEW OUR ECOSYSTEM MARKET OPPORTUNITY FINANCIALS APPENDIX 18 PRODUCT LED OSP 1.0 (2017) OSP 10 PREMIUM OSP 10 PREMIUM WITH AI ERA PLAN FLYWHEEL OF GROWTH $99 $350 $549 Subscription offerings grow as Axon Everything in OSP 10 + Axon releases new products: Package includes …
Slide 19: Healthy State & Local Budget Tailwinds
INVESTOR DECK Q2 2025 OVERVIEW OUR ECOSYSTEM MARKET OPPORTUNITY FINANCIALS APPENDIX 19 HEALTHY STATE & LOCAL BUDGET TAILWINDS OPPORTUNITY FOR EFFICIENCY U.S. PUBLIC SAFETY SPEND IS RESILIENT & GROWING WITH TECHNOLOGY SPEND Not dependent on budget growth 400% 300% 200% 100% 0% 1978 1984 1990 1996 200
Slide 20: Growing Priority in Emerging Customer Verticals
INVESTOR DECK Q2 2025 OVERVIEW OUR ECOSYSTEM MARKET OPPORTUNITY FINANCIALS APPENDIX 20 GROWING PRIORITY IN EMERGING CUSTOMER VERTICALS INTERNATIONAL U.S. FEDERAL ENTERPRISE CORRECTIONS JUSTICE LAW ENFORCEMENT 8 in 10 DHS 60% 70% $3M police officers in the United of CEOs have increased reduction in e
Slide 21: Financials
sa AXON FINANCIALS
Slide 22: High Visibility Revenue Model
INVESTOR DECK Q2 2025 OVERVIEW OUR ECOSYSTEM MARKET OPPORTUNITY FINANCIALS APPENDIX 22 HIGH VISIBILITY OFFICER SAFETY PLAN 10 PREMIUM WITH AI ERA PLAN REVENUE MODEL Illustrative revenue recognition over 5-year term Subscription plans support high-visibility with annual recurring software revenue and
Slide 23: Strong, Consistent Growth with Attractive Gross Margin Profile
INVESTOR DECK Q2 2025 OVERVIEW OUR ECOSYSTEM MARKET OPPORTUNITY FINANCIALS APPENDIX 23 STRON G, CON SISTEN T GROWTH WITH ATTRACTIVE GROSS M ARGIN PROFILE SEGMENT QUARTERLY REVENUE ANNUAL REVENUE $2,392 ($MILLIONS) ($MILLIONS) $2,083 $669 $604 $575 $544 $503 $292 $1,561 $245 $263 $216 $210 $1,187 $37
Slide 24: Strong, Consistent Financial Record
INVESTOR DECK Q2 2025 OVERVIEW OUR ECOSYSTEM MARKET OPPORTUNITY FINANCIALS APPENDIX 24 STRONG, CONSISTENT FINANCIAL RECORD Revenue growth % Adjusted gross margin* 33% in 2024 63.2% 37% 33% in 2024 63.7% 63.2% 31% 27% 61.8% 61.8% 2021 2022 2023 2024 2021 2022 2023 2024 Non-GAAP net Non-GAAP EPS* inco
Slide 25: Healthy Margins and Increasing Free Cash Flow
INVESTOR DECK Q2 2025 OVERVIEW OUR ECOSYSTEM MARKET OPPORTUNITY FINANCIALS APPENDIX 25 HEALTHY MARGINS ADJUSTED EBITDA & AND INCREASING ADJUSTED EBITDA MARGIN FREE CASH FLOW $550 $521 55% $450 45% $350 $331 ADJUSTED FREE CASH FLOW* 35% 2021 2022 2023 2024 $250 $232 $79 $197 $148 $344 $183 25% 25% $1
Slide 26: Forward-Looking Opportunities
INVESTOR DECK Q2 2025 OVERVIEW OUR ECOSYSTEM MARKET OPPORTUNITY FINANCIALS APPENDIX 26 FORWARD- LOOKIN G OPPORTUN ITIES Future contracted Net revenue bookings ($B)* retention* $10.7B as of Q2 2025 $10.1 $10.7 124% as of Q2 2025 124% $9.9 123% 123% 123% 122% $8.2 $7.5 Q2 2024 Q3 2024 Q4 2024 Q1 2025
Slide 27: Guidance Fiscal Year 2025
INVESTOR DECK Q2 2025 OVERVIEW OUR ECOSYSTEM MARKET OPPORTUNITY FINANCIALS APPENDIX 27 GUIDANCE FISCAL YE AR 2025 Category Prior Guidance (May 7, 2025) Updated Guidance Revenue $2.60 billion – $2.70 billion (27% growth at midpoint) $2.65 billion – $2.73 billion (29% growth at midpoint) Adjusted EBIT
Slide 28: Appendix
sa AXON APPENDIX
Slide 29: Statistical Definitions
INVESTOR DECK Q2 2025 OVERVIEW OUR ECOSYSTEM MARKET OPPORTUNITY FINANCIALS APPENDIX 29 STATISTICAL Annual recurring revenue: Annual recurring revenue is a performance indicator that management believes provides more visibility into the growth of our DEFINITIONS revenue generated by our highest margi
Slide 30: Statement Regarding Use of Non-GAAP
INVESTOR DECK Q2 2025 OVERVIEW OUR ECOSYSTEM MARKET OPPORTUNITY FINANCIALS APPENDIX 30 STATEMENT To supplement the Company's financial results presented in accordance with GAAP, we present the non-GAAP financial measures of EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Gross Margin, Non-
Slide 31: Non-GAAP Reconciliation: Adjusted Gross Margin
INVESTOR DECK Q2 2025 OVERVIEW OUR ECOSYSTEM MARKET OPPORTUNITY FINANCIALS APPENDIX 31 NON-GAAP RECONCILIATION: ADJUSTED GROSS MARGIN THREE MONTHS ENDED T WELVE MONTHS ENDED $ IN THOUSANDS 30-JUN-2025 30-JUN-2024 31-DEC-2024 31-DEC-2023 31-DEC-2022 31-DEC-2021 Net sales $668,538 $503,236 $2,082,526
Slide 32: Non-GAAP Reconciliation: Adjusted EBITDA
INVESTOR DECK Q2 2025 OVERVIEW OUR ECOSYSTEM MARKET OPPORTUNITY FINANCIALS APPENDIX 32 NON-GAAP RECONCILIATION: ADJUSTED EBITDA THREE MONTHS ENDED T WELVE MONTHS ENDED $ IN THOUSANDS 30-JUN-2025 30-JUN-2024 31-DEC-2024 31-DEC-2023 31-DEC-2022 31-DEC-2021 Net income (loss) $36,117 $41,473 $377,034 $1
Slide 33: Non-GAAP Reconciliation: Non-GAAP Net Income
INVESTOR DECK Q2 2025 OVERVIEW OUR ECOSYSTEM MARKET OPPORTUNITY FINANCIALS APPENDIX 33 NON-GAAP RECONCILIATION: NON-GAAP NET INCOME THREE MONTHS ENDED T WELVE MONTHS ENDED $ IN THOUSANDS 30-JUN-2025 30-JUN-2024 31-DEC-2024 31-DEC-2023 31-DEC-2022 31-DEC-2021 Net income (loss) $36,117 $41,473 $377,03
Slide 34: Non-GAAP Reconciliation: Adjusted Free Cash Flow
INVESTOR DECK Q2 2025 OVERVIEW OUR ECOSYSTEM MARKET OPPORTUNITY FINANCIALS APPENDIX 34 NON-GAAP RECONCILIATION: ADJUSTED FREE CASH FLOW THREE MONTHS ENDED T WELVE MONTHS ENDED $ IN THOUSANDS 30-JUN-2025 30-JUN-2024 31-DEC-2024 31-DEC-2023 31-DEC-2022 31-DEC-2021 Net cash (used in) provided by operat
Slide 35: User Plan Pricing Details
INVESTOR DECK Q2 2025 OVERVIEW OUR ECOSYSTEM MARKET OPPORTUNITY FINANCIALS APPENDIX 35 USER PLAN PRICING DETAILS OFFICER SAFETY PLANS TASER PLANS OSP 10 OSP 10+ OSP 10 PREMIUM T10 CERT T10 CERT PRO FIRE/EMS JUSTICE AI ERA PLAN $210 $310 $350 $80 $100 $134 $149 $199 • TASER 10 • OSP 10 Plan • OSP 10+
Slide 36: Thank You
sa AXON THANK YOU