- Record Q4 Revenue Growth: Revenue rose 12% YoY to $3.2B (full-year $11.7B), driven by double-digit growth in both segments and all three technologies.
- Backlog Surge: Ended 2025 with $15.7B backlog, up $1B YoY, reflecting 26% order growth and strong demand in defense and infrastructure upgrades.
- Margin Expansion: Non-GAAP operating margin hit record 32.1%, up 170 basis points YoY, with full-year guidance of 30.3% margin (up from 29%).
- Product Adoption: SVX shipped 15,000 units; APEX Next projected to reach 300,000 users by 2026 (up from 200,000 in 2025) at $300/year per user.
- 2026 Guidance Raised: Full-year revenue raised to $12.7B (+8% YoY), with $3B operating cash flow and non-GAAP EPS of $16.70–$16.85/share.
Segment Performance
The company's Command business grew 19% in Q4, with 15% growth expected for the full year. The VESTA and NEXT portfolio are showing great traction, with cloud 911 call handling and the Dispatcher Assist Suite being key drivers. The company is well-positioned to continue growing both businesses in an integrated way.
Guidance and Outlook
For 2026, the company expects revenue to be approximately $12.7 billion, with non-GAAP EPS between $16.70 and $16.85 per share. Analysts estimate next year's revenue growth at 5.5%. The company also expects to continue driving growth in the Services and Software segment, which grew 13% last year and is guiding 10% to 11% growth this year.
Valuation and Ratios
With a P/E Ratio of 33.16 and an EV/EBITDA of 23.03, the company's valuation appears to be reflecting its strong growth prospects. The ROE of 110.8% and ROIC of 15.75% indicate a high level of profitability. The Net Debt / EBITDA ratio of 2.63 suggests a manageable level of debt. As the company continues to drive growth and expand its margins, its valuation may be justified.
Key Drivers and Initiatives
The company's strong performance was driven by the successful release of SVX, its body-worn assistant, and the latest generation D Series mission-critical infrastructure. The APEX Next platform is also showing good traction, with 300,000 users expected by 2026. The company's focus on defense, borders, and international markets, as well as its expansion into unmanned systems, are expected to drive future growth.