Summary
Axon Enterprise, Inc. (AXON) reported its financial results for the period ending September 30, 2025. The company experienced a significant increase in net sales, up 30.6% year-over-year for the third quarter, reaching $710.6 million. This growth was driven by strong performance in both its Connected Devices segment (up 23.6%) and its Software and Services segment (up 41.1%). However, the company reported a net loss of $2.2 million for the quarter, a reversal from the $67.0 million net income in the prior year period. This shift was influenced by increased operating expenses, particularly in Research & Development and Selling, General & Administrative, and a higher effective tax rate, partly due to the enactment of the 'One Big Beautiful Bill Act' (OBBBA) impacting R&D tax credits. Despite the quarterly net loss, the year-to-date (nine months ended September 30, 2025) performance shows a net income of $121.9 million, albeit lower than the $241.9 million in the same period last year. The company's balance sheet reflects a robust increase in cash and cash equivalents to $1.4 billion from $454.8 million, supported by strong financing activities including the issuance of $1.75 billion in Senior Notes and proceeds from an at-the-market equity offering. Management believes current liquidity sources are sufficient to meet anticipated cash requirements for at least the next 12 months.
Financial Highlights
54 data points| Revenue | $710.64M |
| Cost of Revenue | $283.29M |
| Gross Profit | $427.35M |
| R&D Expenses | $176.67M |
| SG&A Expenses | $252.80M |
| Operating Expenses | $429.48M |
| Operating Income | -$2.13M |
| Net Income | -$2.19M |
| EPS (Basic) | $-0.03 |
| EPS (Diluted) | $-0.03 |
| Shares Outstanding (Basic) | 78.42M |
| Shares Outstanding (Diluted) | 78.42M |
Key Highlights
- 1Net sales grew by 30.6% to $710.6 million in Q3 2025 compared to Q3 2024, driven by strong performance in both Connected Devices and Software & Services segments.
- 2The company reported a net loss of $2.2 million for Q3 2025, a significant change from a net income of $67.0 million in Q3 2024, primarily due to increased operating expenses and a higher effective tax rate.
- 3Total assets increased to $6.66 billion from $4.47 billion year-over-year, with a substantial rise in cash and cash equivalents ($1.42 billion) and short-term investments ($952.8 million).
- 4Long-term debt increased significantly due to the issuance of $1.75 billion in Senior Notes in March 2025.
- 5Operating expenses, specifically Selling, General & Administrative and Research & Development, increased substantially year-over-year, reflecting investments in headcount and stock-based compensation.
- 6Remaining performance obligations (backlog) stood at approximately $8.1 billion as of September 30, 2025, indicating strong future revenue potential.