- 2025 Full-Year Bookings Surpassed $7 billion, a 40% year-over-year increase, with Q4 bookings up 50% to $2.5 billion.
- AI Era Plan Performance Generated $750 million in bookings (10% of total), with new AI and Fusus product bookings tripling to $1 billion compared to 2024.
- Q4 Revenue Growth Revenue rose 39% Y/Y to $797 million, driven by 40% growth in Software & Services ($343 million) and strong Connected Devices & TASER sales.
- 2028 Revenue Target Aims to double revenue to $6 billion, with adjusted EBITDA margin expanding to 28% from 25.5% in 2025, reflecting long-term margin improvement.
- New Market Opportunities 9-figure federal, corrections, retail, and healthcare contracts, plus a 125% net retention rate (NRR) and 30% of customers on premium plans (OSP) highlight ecosystem stickiness.
Bookings and Revenue Growth
The company's bookings growth was driven by strong demand for its new products, including AI and Fusus, which totaled over $1 billion, nearly triple the amount in 2024. The AI Era plan accounted for approximately $750 million in bookings, about 10% of the total. The company's revenue growth is expected to continue, with guidance for 2026 expecting revenue growth of 27-30% year-over-year. Analysts estimate next year's revenue growth at 29.3%, which is in line with the company's guidance.
Valuation Metrics
Axon's valuation metrics indicate a high-growth company with a strong market position. The company's P/S Ratio is 14.77, and EV/EBITDA is 171.24, indicating a premium valuation. However, the company's strong revenue growth and expanding margins justify the premium. The company's ROE is 4.32%, and ROIC is 0.02%, indicating a relatively low return on equity and invested capital.
Growth Prospects
Axon's growth prospects are driven by its strong product pipeline, including new categories and technologies. The company is well-positioned to capitalize on the growing demand for AI-powered solutions in the public safety and security markets. With a strong team and supportive shareholders, the company is well-positioned for future growth. As Josh Isner mentioned, the company sees a lot of runway in its new product portfolio, including ALPR and Vehicle Intelligence, with a pipeline in the 9 figures.
Innovation and Expansion
The company is focused on driving innovation and expansion, with a strong pipeline of new products and technologies. The company's AI Era Plan is seeing strong adoption, with customers often buying it in tandem with other capabilities. Axon's customer success team is focused on driving adoption of new products, and the company is excited about the future of AI adoption amongst its customers.