During this call we will discuss our business outlook and make forward-looking statements. You go down the list, this technology in the past three years has come out of nowhere to where this is the fundamental technology or this is how we generally deploy drones today. First, demand for new technology from our customers is accelerating and it's outpacing even my most optimistic expectations. Draft One remains our fastest adopted software solution, TASER 10 our fastest adopted TASER weapon, Axon Body 4 our fastest adopted camera.
Dedrone, Fusus and the AI Era Plan are also being deployed faster than we've seen with prior new technologies, while laying the groundwork for future innovations coming over the horizon. This summer we spent time with our product teams working through our future product investments, and we have the broadest, yet most cohesive and synchronized pipeline of products and development we've ever had. This team took back the record for the largest deal in Axon company history by a wide margin. Second quarter revenue of $669 million increased 33% year-over-year, marking our 14th consecutive quarter of over 25% revenue growth.
Josh shared some great color on our bookings and why we're so excited for the future in terms of translating that into revenue. Today, the top line growth continues to be driven by software and services, which grew 39% year-over-year to $292 million. Our ability to win new users and to drive adoption of our newest products underpins this continued growth. Net Revenue Retention increased to 124% and has been near or above 120% for 20 consecutive quarters, demonstrating the result of our ongoing investment in our products and customers.
| Metric | Period | Current guidance |
|---|---|---|
| Revenue (FY2025) | FY2025 | $2.65B–$2.73B (~29% growth at midpoint) (Raised) |
| Adjusted EBITDA (second half) | 2H 2025 | $665M–$685M (Raised) |
| Adjusted EBITDA margin (FY2025) | FY2025 | ~25% target maintained (Maintained) |
| Bookings growth (year-over-year) | FY2025 | High 30% range (New) |
| Metric | YoY | Note |
|---|---|---|
| Total revenue | +33% | Broad-based demand; 14th straight quarter of 25%+ growth |
| Software and services revenue | +39% | Winning new users and driving adoption of newest products; NRR of 124% |
| Connected devices revenue | +29% | Strength across categories |
| TASER revenue | +19% | Driven by TASER 10 |
| Personal sensors revenue | +24% | Driven by Axon Body 4 |
| Platform solutions revenue | +86% | Driven by Counter-Drone and Virtual Reality |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| AI Era Plan adoption | Expected some incremental growth in 1H (Q1 call) | Almost $150M booked in Q2; back-half pipeline loaded and accelerating | Accelerating |
| Counter-Drone / Dedrone | Acquisition rationale of leading in international markets | Market leader with strong demand across stadiums, infrastructure, executive protection; not yet a material overall growth driver | Growing |
| International expansion | Investment area being validated | Best year-over-year and quarter-on-quarter growth; ~20% level this quarter; large European deals in pipeline | Accelerating |
| Per-officer monetization | Mid-$200s top OSP offering ~3 years ago; max under $300 a few years ago | OSP now mid-$300s; combined plans push value to ~$600 per officer in largest deals | Rising |
| Bookings growth | Strong start to year (Q1) | High-30% year-over-year growth guidance; 2H expected to match prior full year | Accelerating |