Axon closed the first half of 2025 with record second-quarter revenue of $669 million, representing a 33% increase year-over-year. This marks the company's fourteenth consecutive quarter of growth exceeding 25%. Axon achieved a net income margin of 5.4% and an Adjusted EBITDA margin of 25.7%, reflecting consistent execution.
The Software & Services segment saw revenue increase 39% year-over-year to $292 million, driven by growing adoption of premium digital evidence management solutions, real-time operations, and AI-powered productivity tools. Annual Recurring Revenue (ARR) grew 39% to $1.2 billion, with net revenue retention increasing to 124%. Connected Devices revenue rose 29% to $376 million, with TASER revenue up 19% to $216 million due to demand for TASER 10, and Platform Solutions revenue growing 86% to $67 million from counter-drone and VR training.
Axon further raised its full-year 2025 revenue guidance to between $2.65 billion and $2.73 billion, up from the prior range of $2.60 billion to $2.70 billion, representing approximately 29% growth at the midpoint. The company also increased its Adjusted EBITDA guidance to $665 million to $685 million, maintaining an approximate 25% margin target. This updated outlook is supported by strong performance and accelerating demand for new technology.
A national survey conducted by Axon from November 2024 through January 2025 revealed that law enforcement professionals using Axon AI tools reported saving between 6 to 12 hours per week on average. This feedback, gathered prior to the general availability of AI Era Plan tools, reinforces the productivity benefits of Axon's AI solutions. As of June 30, 2025, Axon had $2.1 billion in cash, cash equivalents, and investments, with a net cash position of $66 million.
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