Axon Enterprise, Inc. stock research
FY2025 Q3
Axon Enterprise (AXON) Gross Margin — Quarter Ended Sep 30, 2025
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit also rose in both comparisons. Cost of revenue grew in both periods, and gross margin was slightly lower than both the preceding quarter and the year-ago quarter.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit also rose in both comparisons. Cost of revenue grew in both periods, and gross margin was slightly lower than both the preceding quarter and the year-ago quarter.
- Gross profit growth outpaced cost of revenue growth relative to both the prior quarter and the year-ago quarter, supporting an overall expansion in gross profit dollars despite the modest decline in gross margin percentage.
- Compared to the prior quarter, revenue was higher and gross profit was higher, while gross margin was slightly lower. Compared to the same quarter one year earlier, revenue was markedly higher and gross profit was higher, with gross margin slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
60.1%
Gross profit
$427.3M
Revenue
$710.6M
Cost of revenue
$283.3M
Quarter-over-quarter change
-0.3 pts
Year-over-year change
-0.6 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2025 | $710.6M | $427.3M | $283.3M | 60.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-0.3 pts
Year-over-year change
Sep 30, 2024
-0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit growth outpaced cost of revenue growth relative to both the prior quarter and the year-ago quarter, supporting an overall expansion in gross profit dollars despite the modest decline in gross margin percentage.
Compared to the prior quarter, revenue was higher and gross profit was higher, while gross margin was slightly lower. Compared to the same quarter one year earlier, revenue was markedly higher and gross profit was higher, with gross margin slightly lower.
Monitor the trajectory of cost of revenue relative to revenue in coming quarters, as gross margin has shown a small sequential and year-over-year decline.