Axon Enterpri

Pricing power is solid and improving as mix tilts to software and premium bundles.

Evidence.com and adjacent applications are a small fraction of agency budgets relative to the operational and legal risks they mitigate, allowing for periodic price and package enhancement without material churn. 2025 software and services reached roughly 40 percent of revenue, and ARR grew 35 percent year over year, indicating customers are adopting higher-value modules.

Offsetting factors are public procurement processes and budget cycles that limit mid-contract repricing, and political scrutiny that can pressure ALPR or AI-related pricing. Overall, we see room for continued ARPU expansion through AI assistants, real-time operations, and 911 integrations that increase mission-criticality per seat.