Trevor Walsh

Josh Isner said some customers now combine Prepared and Carbyne up front while others buy one first, expressing strong conviction on winning the 911 market.

CFO said they may give qualitative color on calls but formal segment breakout is far off. Will continue providing breadcrumbs on developments.

CSO said counter-drone is the primary driver currently, especially in international, enterprise, and federal markets. CTO noted the underlying technology is shared between counter-drone and DFR.

Rick said it's a continued evolution, some special accommodations for World Cup cities, and broader legislation progressing. Axon is engaging at all levels of Congress. Expects state/local mitigation authorization within a few years, possibly extending to private security at stadiums and critical infrastructure. Josh added the administration has been very open to modernizing drone policy.

Rick used the landline-to-mobile analogy, Axon builds parallel cloud infrastructure that coexists with legacy CAD, letting customers migrate at their own pace. Jeff added Prepared requires minimal integration (just taps an audio feed port) while Carbyne provides complete cloud-based call handling when agencies are ready to replace on-prem systems.

Brittany confirmed federal was never a big part of guidance for the year, more upside than risk at this point. Josh said despite the shutdown, Q4 is expected to be the best federal quarter of the year, driven by Dedrone interest ahead of major events like the World Cup. Significant federal personnel still working through opportunities.

Brittany confirmed all known tariff information as of call day is baked into guidance. More clarity now than a quarter ago has allowed for better mitigation plans.

Rick confirmed agencies are reallocating unfilled headcount budget to technology, DFR, AI call handling, translation. Estimates 50% of police workload is automatable via combination of AI and robotics.

Josh disagreed with the premise, noting some dried-up grants were not impactful to Axon. Rick added that public safety technology has bipartisan support and Axon's products deliver clear outcomes.

Brittany confirmed the metric captures contracts excluded from GAAP RPO due to termination-for-convenience clauses. Moving to non-GAAP version as GAAP RPO diverges from actual business performance.

Spice said GHOST-enabled launches are HASTE missions priced consistently with HASTE, and if HASTE behaves like the Electron portfolio where ASPs have risen significantly, there is opportunity for higher pricing across Virginia, Alaska and New Zealand pads.

Beck said Motiv brings world-leading high-precision actuation (arms, servicing, array drives), closing a subsystem Rocket Lab had bought externally.

Beck said owning OSI's optics, the most expensive long-lead item in optical payloads, drives cost, schedule and innovation certainty.

Beck said Flatellite suits most payloads except large optical apertures, with adjustable payload bay depth and array sizes.

Moore said disincentives are not yet being communicated and pushed the timeline out 12 to 24 months, focusing on incentives.

Miller gave a specific starting run rate, timing and the mandate-driven ramp path, contrasting it with last quarter's deal.

Brian said margin progression not linear, ahead of long-term trajectory from early cloud benefits. Lynn confirmed Army data center exit completed early (huge milestone), cautioned transitional costs before long-term margin tailwind. Greenlighted new product and AI investments.

Lynn said federal projects intact but Q3 is biggest federal quarter so still TBD. No material change in outlook; scattered impacts across portfolio are immaterial.

Prince gave detailed comparison vs hyperscalers: serverless model vs year-long machine leases, 70% peak GPU utilization vs sub-10% for hyperscaler customers. Multi-tenant GPU work provides moat.