Axon (AXON) Q2 Revenue Jumps 33%

Recurring software and services revenue surged 39%, and Annual recurring revenue (non-GAAP) reached $1.2 billion. Free cash flow (non-GAAP) reversed to negative, at -$115 million, reflecting investment and working capital build, while hardware margins continued to see pressure.

Axon Enterprise (NASDAQ:AXON), a leader in public safety technology best known for its TASER devices and digital evidence platforms, reported its second quarter results on August 4, 2025. Axon delivered revenue (GAAP) and non-GAAP EPS above analyst estimates, as both product and recurring software revenues continued to grow sharply. Revenue (GAAP) totaled $669 million, beating the $641.02 million consensus, while non-GAAP EPS reached $2.12. Year over year, GAAP revenue grew 33%, and non-GAAP EPS increased 73.8% year over year. Despite this strong top-line and earnings growth, Free cash flow (non-GAAP) turned negative. Net income under U.S. GAAP declined, reflecting higher operating costs, stock compensation, and hardware margin pressure. Overall, The quarter delivered another period of rapid expansion and innovation but saw margin challenges and significant investment-driven cash usage.

Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.

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Source Fool.com