MSI · Earnings call · 2026Q2T · Full report
Software Subscription Growth
Motorola Solutions, Inc. · 2026-08-05 · Importance 81 · Surprise 82 · In source text
APX NEXT software subscribers are expected to reach 300,000 by year-end 2026, up from approximately 200,000 at year-end 2025. Application pricing is approximately $300 per year and has increased modestly with new applications. The subscription business is expected to approach $100 million of annual recurring revenue by the end of 2026. Key applications include SmartConnect, Smart Programming and Location.
Key facts
- They expect 300,000 APX NEXT subscribers by year-end 2026, up from about 200,000 by end of 2025.
- They expect the APX NEXT app ecosystem to be almost a $100 million ARR business by year-end.
- They said many D-Series customers are signing up for new 5- and 10-year Software and Services wrappers around infrastructure purchases.
- Pricing of the APX NEXT apps is around $300 and has gone up a little with new apps.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | probable | — | They expect 300,000 APX NEXT subscribers by year-end 2026, up from about 200,000 by end of 2025. |
| revenue | positive | probable | — | They expect the APX NEXT app ecosystem to be almost a $100 million ARR business by year-end. |
| revenue | positive | committed | — | They said many D-Series customers are signing up for new 5- and 10-year Software and Services wrappers around infrastructure purchases. |