Business Segments · Adjusted gross margin
Software and Services — Adjusted gross margin
Axon Enterprise, Inc. Software and Services — Adjusted gross margin increased by 2.3% to $268.61M in Q1 2026 compared to the prior quarter. Year-over-year, this metric grew by 31.6%, from $204.06M to $268.61M. Over 2 years (FY 2022 to FY 2025), Software and Services — Adjusted gross margin shows an upward trend with a 53.4% CAGR. This is a positive signal — higher values indicate stronger performance for this metric.
Analysis
StatementSegment
CategoryProfitability
SignalHigher is better
VolatilityStable
First reportedQ1 2022
Last reportedQ1 2026
How to read this metric
Higher margins indicate strong pricing power and efficient service delivery.
Detailed definition
Measures the profitability of the software and services segment after accounting for direct costs of sales, typically ex...
Peer comparison
Standard SaaS metric; comparable to 'Non-GAAP Gross Margin' for software segments.
Metric ID:
axon_segment_software_and_services_adjusted_gross_marginHistorical Data
15 periods
| Q1 '22 | Q2 '22 | Q3 '22 | Q4 '22 | Q2 '23 | Q3 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $99.00M | $99.00M | $99.00M | $99.00M | $139.81M | $157.15M | $144.10M | $191.25M | $204.26M | $260.88M | $204.06M | $230.58M | $234.32M | $262.57M | $268.61M |
| QoQ Change | — | +0.0% | +0.0% | +0.0% | +41.2% | +12.4% | -8.3% | +32.7% | +6.8% | +27.7% | -21.8% | +13.0% | +1.6% | +12.1% | +2.3% |
| YoY Change | — | — | — | — | +41.2% | +58.7% | — | +36.8% | +30.0% | — | +41.6% | +20.6% | +14.7% | +0.6% | +31.6% |
Range$99.00M – $268.61M
CAGR+33.0%
Avg YoY Growth+30.7%
Median YoY Growth+31.6%
Current Streak4 quarters growth
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Frequently Asked Questions
- What is Axon Enterprise, Inc.'s software and services — adjusted gross margin?
- Axon Enterprise, Inc. (AXON) reported software and services — adjusted gross margin of $268.61M in Q1 2026.
- How has Axon Enterprise, Inc.'s software and services — adjusted gross margin changed year-over-year?
- Axon Enterprise, Inc.'s software and services — adjusted gross margin increased by 31.6% year-over-year, from $204.06M to $268.61M.
- What is the long-term trend for Axon Enterprise, Inc.'s software and services — adjusted gross margin?
- Over 2 years (2022 to 2025), Axon Enterprise, Inc.'s software and services — adjusted gross margin has grown at a 53.4% compound annual growth rate (CAGR), from $396.02M to $931.53M.
- What does software and services — adjusted gross margin mean?
- The profit remaining from software and services revenue after subtracting direct costs, often excluding non-cash expenses.