Axon Enterprise, Inc. stock research
FY2025 Q2
Axon Enterprise (AXON) Gross Margin — Quarter Ended Jun 30, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin was slightly lower than both comparable periods, reflecting a modest shift in the relationship between revenue and cost of revenue.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin was slightly lower than both comparable periods, reflecting a modest shift in the relationship between revenue and cost of revenue.
- The slight decline in gross margin from the prior quarter and the year-ago quarter is the strongest observable driver, as cost of revenue increased proportionally more than revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were higher while gross margin was slightly lower. Versus the same quarter one year earlier, revenue and gross profit were higher, but gross margin again was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
60.4%
Gross profit
$403.7M
Revenue
$668.5M
Cost of revenue
$264.8M
Quarter-over-quarter change
-0.2 pts
Year-over-year change
-0.4 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2025 | $668.5M | $403.7M | $264.8M | 60.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
-0.2 pts
Year-over-year change
Jun 30, 2024
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The slight decline in gross margin from the prior quarter and the year-ago quarter is the strongest observable driver, as cost of revenue increased proportionally more than revenue.
Compared to the immediately preceding quarter, revenue and gross profit were higher while gross margin was slightly lower. Versus the same quarter one year earlier, revenue and gross profit were higher, but gross margin again was slightly lower.
Monitor the ratio of cost of revenue to revenue, as it has increased relative to both prior periods.