Axon Enterprise reported second-quarter revenue of $904 million on Wednesday, representing a 35% increase compared to the previous year [1].
The results highlight the company's ability to scale its recurring revenue streams and maintain high customer retention despite a slight miss in earnings expectations.
Brittany Bagley, the company's chief operating officer and chief financial officer, said revenue was $904 million, up 35% year-over-year [1]. Bagley said net revenue retention reached 126% [1]. This growth is reflected in the annual recurring revenue, which increased 39% to $1.6 billion [1].
Despite the revenue growth, the company's adjusted earnings per share for the second quarter were $1.88 [5]. This figure fell short of the Zacks Consensus EPS estimate of $1.89 [6]. The adjusted earnings per share also showed a decline from the $2.12 reported in the second quarter of 2025 [7].
Axon shared these results through a conference call to investors and an online press release [2]. The company used the presentation to outline its performance and provide a growth outlook for the remainder of the calendar year [3].
Management focused on the strength of its subscription-based model. The 126% net revenue retention rate suggests that existing customers are spending more on Axon services over time [1]. This trend supports the company's push toward a more predictable, software-driven revenue stream, a shift from its traditional hardware-centric sales model.
“"Revenue was $904 million, up 35% year-over-year."”
Axon's financial profile is shifting toward a Software-as-a-Service (SaaS) model, as evidenced by the significant growth in annual recurring revenue and high retention rates. While the slight miss in earnings per share and the year-over-year decline in EPS may concern some investors, the strong top-line growth and expanding subscription base indicate a broadening market capture for its public safety technology ecosystem.
