Axon Enterprise, Inc. stock research
FY2025 Q1
Axon Enterprise (AXON) Gross Margin — Quarter Ended Mar 31, 2025
In the current quarter, revenue increased while cost of revenue also increased, resulting in higher gross profit and an improved gross margin compared to both the prior quarter and the same quarter last year. The gross margin strengthened sequentially and year-over-year, reflecting that revenue growth outpaced the increase in cost of revenue.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
In the current quarter, revenue increased while cost of revenue also increased, resulting in higher gross profit and an improved gross margin compared to both the prior quarter and the same quarter last year. The gross margin strengthened sequentially and year-over-year, reflecting that revenue growth outpaced the increase in cost of revenue.
- The strongest observable driver of the margin improvement is the faster growth in revenue relative to cost of revenue, which expanded gross profit proportionally more than revenue.
- Compared to the immediately preceding quarter, revenue, gross profit, and gross margin all increased, with cost of revenue rising at a slower pace. Versus the same quarter one year earlier, all metrics were higher, and gross margin showed a notable improvement.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
60.6%
Gross profit
$365.7M
Revenue
$603.6M
Cost of revenue
$237.9M
Quarter-over-quarter change
+0.5 pts
Year-over-year change
+4.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2024 | $503.2M | $306.2M | $197.1M | 60.8% |
| Sep 30, 2024 | $544.3M | $330.7M | $213.5M | 60.8% |
| Dec 31, 2024 | $575.1M | $345.8M | $229.3M | 60.1% |
| Mar 31, 2025 | $603.6M | $365.7M | $237.9M | 60.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+0.5 pts
Year-over-year change
Mar 31, 2024
+4.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the margin improvement is the faster growth in revenue relative to cost of revenue, which expanded gross profit proportionally more than revenue.
Compared to the immediately preceding quarter, revenue, gross profit, and gross margin all increased, with cost of revenue rising at a slower pace. Versus the same quarter one year earlier, all metrics were higher, and gross margin showed a notable improvement.
The filing notes a substantial increase in cash and investments; however, the relationship between revenue growth and cost of revenue growth remains a key metric to monitor for margin sustainability.