Axon Enterprise, Inc. stock research
FY2025 Q4
Axon Enterprise (AXON) Gross Margin — Quarter Ended Dec 31, 2025
Revenue and gross profit both increased compared to the previous quarter and the same quarter last year, while cost of revenue also increased. The gross margin was lower than both prior periods, indicating that cost of revenue grew faster than revenue.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue and gross profit both increased compared to the previous quarter and the same quarter last year, while cost of revenue also increased. The gross margin was lower than both prior periods, indicating that cost of revenue grew faster than revenue.
- The strongest observable driver of the margin change is the relationship between cost of revenue and revenue; the cost of revenue increased at a faster pace than revenue, compressing the gross margin.
- Compared to the immediately preceding quarter, gross margin weakened. Compared to the same quarter one year earlier, gross margin also weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
57.9%
Gross profit
$461.3M
Revenue
$796.7M
Cost of revenue
$335.4M
Quarter-over-quarter change
-2.2 pts
Year-over-year change
-2.2 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2025 | $796.7M | $461.3M | $335.4M | 57.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-2.2 pts
Year-over-year change
Dec 31, 2024
-2.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the margin change is the relationship between cost of revenue and revenue; the cost of revenue increased at a faster pace than revenue, compressing the gross margin.
Compared to the immediately preceding quarter, gross margin weakened. Compared to the same quarter one year earlier, gross margin also weakened.
Monitor the trend of cost of revenue relative to revenue to assess future margin performance.