During this call, we will discuss our business outlook and make forward-looking statements. You may recall that over the past few quarters, we laid out an ambitious plan to drive record bookings. 2025 full-year bookings surpassed $7 billion, and we're up more than 40% from last year. That's on the back of fourth quarter bookings, up more than 50%, representing a major acceleration relative to two straight years of bookings growth in the high 20% range.
We just booked almost as much business in the quarter as we did in the full year, just two years ago, and we see no sign of that slowing down. To that end, in our first full year of selling the AI Era Plan, it accounted for approximately $750 million worth of bookings, or about 10% of the overall bookings total. Our pipeline is sitting in the nine figures for that new product set, and we expect that to continue to grow. We're hearing directly from customers, some of whom came to us from other vendors, that our track record on privacy and ethics was a deciding factor in their decision.
Customers aren't just buying hardware and software, they're buying confidence that will help them deploy technology responsibly. Bookings in this category, which include everything outside US state and local law enforcement, surpassed $2 billion on the back of record results in international corrections and justice. It's impossible to talk about explosive growth at Axon without mentioning our corrections team. First, I'll walk through our fourth quarter performance, then we'll move to guidance, our new 2028 targets, and how we think about the future.
| Metric | Period | Current guidance |
|---|---|---|
| 2026 revenue growth | FY2026 | 27%-30% year over year (strongest outlook heading into a year) (issued) |
| 2026 adjusted EBITDA margin | FY2026 | 25.5% maintained (maintained) |
| Free cash flow conversion on adjusted EBITDA | FY2026 | Targeting back closer to 60% in 2026 (reaffirmed) |
| Tariff assumption | FY2026 | New 15% global tariff baked in; no refunds assumed (issued) |
| 2028 targets | FY2028 | New long-term targets introduced; no major change to assume versus this year's delivery, with all product lines and markets growing (issued) |
| Metric | YoY | Note |
|---|---|---|
| Total revenue | +39% to $797M | Broad-based growth across product lines and new customers |
| Software and services revenue | +40% to $343M | Expansion within existing customers and new customer growth; Fusus, AI, VR, Counter-drone |
| Connected devices revenue | +38% to $454M | TASER 10, Body 4, Counter-drone equipment, VR Training |
| TASER revenue | +32% to $264M | Strong demand and efficacy of TASER 10, plus new corrections and international customers |
| Platform solutions revenue | +81% to $81M | Counter-drone and platform product drivers |
| Personal sensors revenue | +28% to $109M | Body camera demand |
| ARR | +35% to over $1.3B | New product adoption by existing customers |
| Net revenue retention | expanded to 125% | Adoption of new products by existing customers |
| Adjusted EBITDA | +46% to $206M (25.9% margin) | Higher revenue than forecast and operating leverage |
| Adjusted gross margin | 61.1% (down sequentially) | Tariffs and higher platform-solutions mix, partly offset by software growth |
| Full-year bookings | +40%+ to over $7B | Q4 bookings up 50%+, three nine-figure state and local deals, record international and corrections |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| AI Era Plan adoption | first year of selling the plan | ~$750M of bookings (about 10% of total); over 500 agencies live with Axon Assistant generating 200,000+ monthly messages; often bought in tandem with OSP | Early-innings growth |
| New product portfolio | — | New product bookings over $1B, nearly triple 2024; ALPR/vehicle intelligence and Dedrone pipelines in the nine figures opening federal and international doors | Expanding |
| International expansion | — | Crossed $1B in annual bookings for the first time; two of the largest Q4 deals were large European cloud deployments; AI accelerating cloud adoption | Inflecting |
| 911 / acquisitions (Prepared, Carbyne) | Prepared acquired earlier in 2025 | Carbyne closed this month; combination targets breadth (Prepared overlay) and depth (Carbyne call handling); immaterial revenue/EBITDA impact in 2025, expected to scale going forward | Building |
| Acquisition strategy | — | Focus on disruptive upstarts with fresh tech stacks (Fusus, Dedrone, Prepared, Carbyne) integrated into the platform rather than rolling up legacy cash cows | Consistent |
| Moonshot / mission impact | moonshot to halve police-public gun deaths by 2033 | Preliminary 2025 data suggests first substantial decline in US gun-related deaths; one major county sheriff cited a 42% reduction in deputy-involved shootings | Encouraging early signs |
| Enterprise market | — | Multiple large contracts called out; go-to-market focused on making early customers successful rather than logo count; leading with varied products (Body Mini, Fusus, Dedrone, DFR) | Early but progressing |
| Hardware innovation | — | Apollo Dart testing better than expected (not a meaningful 2026 revenue contributor but in customer hands by next cold season); at least two new product categories in the pipeline | Ongoing |