Axon Enterprise Inc

Strong execution + raised guidance (what’s good): - Q2 revenue: $904M (+35% YoY); 10th consecutive quarter >30% growth. - Software & services: $398M (+36% YoY); more than one-third of software revenue now comes from newer offerings beyond Axon Evidence (real-time ops, productivity, AI Era Plan, counter-drone software, Axon 911). - AI Era Plan growth: ~+700% YoY; together the “beyond Evidence” bucket grew ~70% YoY. - Full-year revenue guidance raised to $32%–$34% growth (from 30%–32%). - Adjusted EBITDA margin target ~25.5% (consistent with prior view), with Q3 pressured by memory component cost, then improvement expected in Q4 (seasonality + tariff refund laps).

Demand momentum across segments (what’s good): - Bookings: Q2 gross bookings up ~20% YoY; on a five-year normalized basis bookings up >30% (helps reflect shorter deal durations in newer markets like international/enterprise). - Company expects normalized bookings finish the year in the ~30% range (and thus demand visibility in 2H remains strong). - Future contracted bookings: $15.1B (+40% YoY)—a key indicator of backlog/demand durability. - Net revenue retention: 126%; ARR: $1.6B (+39%)—high stickiness from installed base + cross-sell.

Device + platform growth driven by newer products (what’s good/surprising): - Connected devices revenue: $507M (+35% YoY) driven by Dedrone, Counter-drone, TASER 10, Axon Body 4. - Platform solutions revenue: $150M (+123% YoY), largely Dedrone; company frames counter-drone as a validated acquisition/category ramp (added end of 2024, now meaningful and scaling). - TASER 10 momentum is unusually strong: company said Q2-to-date TASER 10 units already exceed lifetime TASER 7 units, highlighting significant remaining market opportunity. - Body camera shipments expectation: management expects Q3 body camera shipments +20% to +30% sequentially and +15% to +20% QoQ; note bookings-seasonality is the main driver of shipment timing.