Axon Enterprise, Inc. Q1 FY2026 earnings call

Rick emphasized the explosion of AI capabilities over the past year, including fax-on-assisting, chatbots, vehicle intelligence, smart detection, and Axon Gravity. Josh reported Q1 was the strongest first quarter in revenue, bookings, and new products, with AI bookings up 140% and D-Drone bookings up 500% year over year. Brittany noted revenue growth, software and services growth, strong net revenue retention, and ARR growth. They also discussed the integration of acquisitions like Fusys and D-Drone, and the momentum in various segments including enterprise and international.

Revenue was $807 million, up 34% year-over-year. Software and services increased 35% year-over-year to $355 million, with AI product revenue growing more than 700% year-over-year. Connected devices revenue grew 33% to $453 million, with platform solutions (including counter-drone hardware) up 95% year-over-year. International revenue was up over 100% year over year, representing 20% of revenue for the quarter. Future contracted bookings was up 44% year over year to $14.3 billion.

Raised revenue guidance for the year to a range of 30% to 32% growth. Still expect 25.5% adjusted EBITDA margins for the year, with operating leverage expected in the second half. Expect free cash flow conversion to improve meaningfully and deliver approximately $450 million of free cash flow for the full year in 2026. Stock-based compensation expense expected to be down from last year, with average annual dilution less than 2.5%.

No specific risks detailed in the provided transcript but mentioned that forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially as discussed in SEC filings.

Includes questions and answers from various analysts regarding AI capabilities, enterprise deals, inventory investment, drone go-to-market, counter drone use cases, and more. For example, Will Power asked about customer engagement with AI capabilities, Brittany responded on inventory investment and free cash flow; Andrew Sherman asked about AI bookings and enterprise telco deal, Josh responded; Jim Fisher asked about drone impact on bookings and pipeline, Jim and Brittany responded; etc.