Axon Enterprise — Feb 25, 2025 release

Excluding the impacts of stock-based compensation expense and intangibles amortization, Axon Cloud & Services adjusted gross margin of 77.2% increased from 75.7% year over year primarily due to a higher software mix revenue relative to professional services. Software-only gross margin continued to exceed our target of 80%. • Sensors & Other revenue growth of 18% year over year was primarily driven by strong demand for Axon Body 4 and Fleet. • Sensors & Other gross margin of 32.8% decreased from 46.9% year over year. Excluding the impact of stock-based compensation and intangibles amortization, Sensors & Other adjusted gross margin of 36.2% decreased from 47.5% year over year due to product mix and inventory reserve charges associated with legacy products. TASER THREE MONTHS ENDED CHANGE 31 DEC 2024 30 SEP 2024 31 DEC 2023 QoQ YoY (in thousands) Revenue $ 221,232 $ 221,734 $ 161,343 (0.2) % 37.1  % Gross margin 61.3  % 60.8  % 57.1  % 50  bp 420   bp Adjusted gross margin 63.7  % 63.0  % 57.6  % 70  bp 610  bp • TASER segment revenue growth of 37% year over year was primarily driven by strong demand for TASER 10 devices and associated cartridges and services, including VR training. • TASER segment gross margin of 61.3% increased from 57.1% year over year. Excluding the impact of stock-based compensation expense, TASER segment adjusted gross margin of 63.7% increased from 57.6% year over year driven by investments in automation, cost reduction initiatives and the absence of warranty reserve charges r