NASDAQ: AXON
AXON ENTERPRISE, INC.CIK 0001069183 · SIC 3480 · Ordnance & Accessories, (No Vehicles/Guided Missiles)
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Axon Enterprise, Inc. (“Axon,” the “Company,” “we” or “us”) is a technology company that provides integrated hardware and software solutions. Founder-led since 1993, Axon began with a mission to protect life and has grown into a global technology company serving a range of customers. Our products… About this business →
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Latest financial statements
From 10-Q filed Aug 6, 2026 (period ending Jun 30, 2026). As printed on the EDGAR/iXBRL face — not generated by the model.
Consolidated Statements of Operations and Comprehensive Income (Unaudited)
(in thousands, except per share data)
| Description | Three months ended June 30, 2026 | Three months ended June 30, 2025 | Six months ended June 30, 2026 | Six months ended June 30, 2025 |
|---|---|---|---|---|
| Net sales from products | 506,553 | 376,360 | 959,374 | 717,256 |
| Net sales from services | 397,836 | 292,178 | 752,360 | 554,915 |
| Net sales | 904,389 | 668,538 | 1,711,734 | 1,272,171 |
| Cost of product sales | 243,861 | 193,507 | 476,017 | 363,688 |
| Cost of service sales | 114,081 | 71,288 | 211,984 | 139,001 |
| Cost of sales | 357,942 | 264,795 | 688,001 | 502,689 |
| Gross margin | 546,447 | 403,743 | 1,023,733 | 769,482 |
| Operating expenses: | ||||
| Selling, general and administrative | 290,982 | 242,212 | 550,075 | 465,721 |
| Research and development | 208,687 | 162,567 | 397,637 | 313,590 |
| Total operating expenses | 499,669 | 404,779 | 947,712 | 779,311 |
| Income (loss) from operations | 46,778 | (1,036) | 76,021 | (9,829) |
| Interest income | 6,815 | 23,253 | 17,426 | 33,857 |
| Interest expense | (28,101) | (28,686) | (56,744) | (36,507) |
| Other income (loss), net | 7,192 | (32,414) | 196,202 | 81,987 |
| Income (loss) before provision for income taxes | 32,684 | (38,883) | 232,905 | 69,508 |
| Provision for (benefit from) income taxes | 3,257 | (75,000) | 34,166 | (54,589) |
| Net income | 29,427 | 36,117 | 198,739 | 124,097 |
| Net income per common and common equivalent shares: | ||||
| Basic | 0.37 | 0.46 | 2.47 | 1.60 |
| Diluted | 0.36 | 0.44 | 2.41 | 1.52 |
| Weighted average number of common and common equivalent shares outstanding: | ||||
| Basic | 80,573 | 77,999 | 80,363 | 77,448 |
| Diluted | 82,541 | 82,062 | 82,518 | 81,782 |
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
| Net income | 29,427 | 36,117 | 198,739 | 124,097 |
| Foreign currency translation adjustments | (5,147) | 5,159 | (4,500) | 5,517 |
| Unrealized gain (loss) on available-for-sale investments | — | 73 | (111) | (51) |
| Comprehensive income | 24,280 | 41,349 | 194,128 | 129,563 |
Consolidated Balance Sheets
(in thousands, except share data)
| Description | June 30, 2026 (Unaudited) | December 31, 2025 |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | 597,704 | 1,201,147 |
| Short-term investments | 75,703 | 505,417 |
| Marketable securities | 19,126 | 27,213 |
| Accounts and notes receivable, net of allowance of $4,949 and $4,198 as of June 30, 2026 and December 31, 2025, respectively | 768,637 | 777,486 |
| Contract assets, net | 750,950 | 582,630 |
| Inventory | 486,556 | 341,811 |
| Prepaid expenses | 190,682 | 149,800 |
| Other current assets | 115,347 | 127,548 |
| Total current assets | 3,004,705 | 3,713,052 |
| Property and equipment, net | 341,507 | 330,979 |
| Deferred tax assets, net | 345,500 | 359,803 |
| Intangible assets, net | 281,583 | 196,972 |
| Goodwill | 1,898,827 | 1,370,189 |
| Long-term notes receivable, net | 1,597 | 6,066 |
| Long-term contract assets, net | 296,458 | 178,249 |
| Strategic investments | 853,842 | 416,833 |
| Other long-term assets | 457,138 | 428,170 |
| Total assets | 7,481,157 | 7,000,313 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
| Current liabilities: | ||
| Accounts payable | 269,957 | 139,086 |
| Accrued liabilities | 423,932 | 510,538 |
| Current portion of deferred revenue | 670,740 | 714,708 |
| Current portion of notes payable, net | — | 80,552 |
| Customer deposits | 16,477 | 16,156 |
| Other current liabilities | 17,131 | 9,107 |
| Total current liabilities | 1,398,237 | 1,470,147 |
| Deferred revenue, net of current portion | 385,659 | 359,902 |
| Liability for unrecognized tax benefits | 26,587 | 24,376 |
| Long-term deferred compensation | 33,094 | 23,675 |
| Long-term lease liabilities | 101,658 | 98,942 |
| Long-term notes payable, net | 1,731,817 | 1,730,170 |
| Other long-term liabilities | 129,568 | 50,443 |
| Total liabilities | 3,806,620 | 3,757,655 |
| Commitments and contingencies (Note 11) | ||
| Stockholders’ equity: | ||
| Preferred stock, $0.00001 par value; 25,000,000 shares authorized; no shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively | — | — |
| Common stock, $0.00001 par value; 200,000,000 shares authorized, 101,510,494 shares issued and 81,235,921 shares outstanding as of June 30, 2026, and 200,000,000 shares authorized, 100,444,971 shares issued and 80,211,537 shares outstanding as of December 31, 2025 | 1 | 1 |
| Additional paid-in capital | 2,735,708 | 2,475,035 |
| Treasury stock at cost, 20,274,573 shares and 20,233,434 shares as of June 30, 2026 and December 31, 2025, respectively | (180,164) | (157,242) |
| Retained earnings | 1,135,409 | 936,670 |
| Accumulated other comprehensive loss | (16,417) | (11,806) |
| Total stockholders’ equity | 3,674,537 | 3,242,658 |
| Total liabilities and stockholders’ equity | 7,481,157 | 7,000,313 |
Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
| Description | Six months ended June 30, 2026 | Six months ended June 30, 2025 |
|---|---|---|
| Cash flows from operating activities: | ||
| Net income | 198,739 | 124,097 |
| Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
| Stock-based compensation | 278,697 | 279,483 |
| Gain on strategic investments and marketable securities, net | (197,873) | (111,754) |
| Debt inducement expense | — | 28,666 |
| Depreciation and amortization | 62,824 | 36,610 |
| Provision for bad debts and inventory | 2,630 | 6,254 |
| Deferred income taxes | 11,456 | (70,065) |
| Other noncash items | 18,466 | 19,278 |
| Change in assets and liabilities: | ||
| Receivables and contract assets | (256,919) | (212,833) |
| Inventory | (145,099) | (48,098) |
| Deferred revenue | (35,334) | (51,143) |
| Accounts payable, accrued and other liabilities | 105,531 | 21,175 |
| Prepaid expenses and other assets | (54,558) | (87,580) |
| Net cash used in operating activities | (11,440) | (65,910) |
| Cash flows from investing activities: | ||
| Purchases of investments | (302,844) | (1,793,862) |
| Business combinations, net of cash acquired | (551,593) | (3,809) |
| Proceeds from call, maturity, and sale of investments | 434,345 | 756,654 |
| Purchases of property and equipment | (44,174) | (47,815) |
| Other, net | (1,496) | 83 |
| Net cash used in investing activities | (465,762) | (1,088,749) |
| Cash flows from financing activities: | ||
| Net proceeds from equity offering | 100,477 | 183,960 |
| Principal payments for conversion and redemption of convertible debt | (81,110) | (407,453) |
| Income and payroll tax payments for net-settled stock awards | (140,192) | (192,835) |
| Payments to third parties for debt issuance, amendment, conversion and redemption activity | (964) | (24,735) |
| Proceeds from issuance of notes | — | 1,750,000 |
| Other, net | (829) | (76) |
| Net cash (used in) provided by financing activities | (122,618) | 1,308,861 |
| Effect of exchange rate changes on cash and cash equivalents | (3,949) | 6,497 |
| Net change in cash and cash equivalents | (603,769) | 160,699 |
| Cash and cash equivalents and restricted cash, beginning of period | 1,213,393 | 466,763 |
| Cash and cash equivalents and restricted cash, end of period | 609,624 | 627,462 |
| Supplemental disclosures: | ||
| Cash and cash equivalents | 597,704 | 615,496 |
| Restricted cash (Note 1) | 11,920 | 11,966 |
| Total cash, cash equivalents and restricted cash shown in the statements of cash flows | 609,624 | 627,462 |
| Cash paid for interest | 54,124 | 1,204 |
| Non-cash transactions: | ||
| Leased assets obtained in exchange for new operating lease liabilities | 8,502 | 5,554 |
| Property and equipment purchases in accounts payable and accrued liabilities | 8,051 | 3,060 |
| Expense for induced conversion of convertible debt, debt offering and revolver modification | — | 33,725 |
Amounts as printed on the EDGAR/iXBRL face — (in thousands, except per share data); (in thousands, except share data); (in thousands). Labels, columns, and figures are the filing face, not a GAAP stencil. Interactive statements & notes on EDGAR ↗
About AXON ENTERPRISE, INC.
Source: Item 1 (Business) from the 10-K filed February 25, 2026. Description as filed by the company with the SEC.
Item 1. Business
Overview
Axon Enterprise, Inc. (“Axon,” the “Company,” “we” or “us”) is a technology company that provides integrated hardware and software solutions. Founder-led since 1993, Axon began with a mission to protect life and has grown into a global technology company serving a range of customers. Our products and services allow customers across the public and private sector to capture and use critical data to support fully-connected operational workflows. Our trusted network seamlessly integrates software and hardware with a range of connected devices, including TASER energy devices, cameras and sensors, drones and robotics, cloud-based evidence management, records management, real-time operations software, critical incident and emergency response systems, immersive training, and productivity tools – all enhanced by artificial intelligence (“AI”). Designed to work together, these solutions create a unified, data-driven operating system that prioritizes safety and helps protect people and places with greater speed, accuracy, transparency, and accountability.
Our integrated technology platform of hardware and software solutions advances our mission to (i) make the bullet obsolete, (ii) reduce social conflict, and (iii) enable a fair and effective justice system. Our products and technology solutions address complex, high-stakes challenges, and our mission attracts top talent. We aim to invent and deliver technology solutions that progressively make the right things easier and the wrong things harder every day.
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Axon is a diversified technology company with employees distributed across multiple geographies. Alongside our primary corporate headquarters in Scottsdale, Arizona, we have hubs in many major cities across the United States and ongoing international expansion across Europe, Asia, and the Americas, as we continue to drive our mission globally.
Business Segments
During the year ended December 31, 2025, we realigned our business to better reflect our continued growth and expansion of our technology solutions. Previously reported within two reportable segments, TASER and Software and Sensors, we realigned our business in a manner that provides increased transparency and distinction between our software and services and hardware components.
Axon’s operations comprise a fully integrated suite of products across connected hardware, software, and services which are disclosed in two reportable segments:
1.Software and Services: We develop, manufacture and sell cloud-based Software-as-a-Service (“SaaS”) solutions that leverage AI and enable our customers to capture, securely store, manage, share and analyze video and other digital evidence. Our software offerings also support productivity and real-time operations. Our offerings include Axon Evidence, Draft One, Axon Records, Axon Standards, Axon Fusus, and Axon Assistant, among others. The Software and Services segment includes recurring cloud-hosted software revenue, related non-recurring professional services revenue, and revenue from certain software, including on-premise licenses.
2.Connected Devices: We develop, manufacture and sell fully integrated hardware solutions such as conducted energy devices (“CEDs”) sold under the TASER brand, body cameras, fixed and in-car cameras, drone and counter-drone technologies, and a broad ecosystem of accessories, extended warranties and related hardware products.
For further information about our reportable segments and sales by geographic region, refer to Note 1 of Part II, Item 8 of this Annual Report on Form 10-K.
Key Product Category Revenue Drivers: What We Offer
Axon’s products and services are designed to operate as an integrated ecosystem consisting of integrated connected hardware devices, cloud-hosted software applications and real-time operational tools. Our revenue is derived from a combination of hardware sales, multi-year recurring software subscriptions, professional services, and extended warranties. The following describes the principal product categories that drive revenue across our two reportable segments.
Software and Services
Axon has a suite of cloud-based, SaaS solutions that deeply integrate with our hardware to benefit customers and drive annual recurring revenue, which totaled $1.3 billion1 as of December 31, 2025. Revenue from our SaaS solutions is primarily driven from subscription licensing, premium offering adoptions, and ecosystem expansion. Our SaaS solutions can be best categorized into three categories:
•Digital Evidence Management: Axon Evidence is a secure, cloud-based platform that enables public safety to efficiently store, manage and share critical evidence while ensuring chain of custody and compliance.
•Productivity Solutions: Our productivity suite includes Axon Records, Axon Standards, and a suite of solutions available under our AI Era Plan, including Real-Time Translation, Draft One, Policy Chat, and Auto-Transcribe, among others. These offerings are designed to boost efficiency and improve decision-making through automation, data integration, and intelligent workflows.
•Real-time Operations: Our real-time operations capabilities, which include Axon Respond, integrates location data, signal alerts and video feeds to provide a complete picture of evolving situations as they occur.
In addition to subscription SaaS revenue, this segment includes non-recurring professional services revenue supporting implementation, configuration, and ongoing workflow integration, as well as revenue from certain on-premise software licenses.
Connected Devices
Our Connected Devices segment consists of hardware products that seamlessly integrate with our suite of software solutions to revolutionize our customers' capabilities for capturing, analyzing, and responding to real-world events. Revenue in this segment is derived from device sales, accessories, and related extended warranties. These products are designed to operate as a networked system and include devices such as cameras, sensors, drones, and personal protection equipment across the following three categories:
•TASER: We develop smart devices, tools and services that support public safety officers in de-escalating situations, avoiding or minimizing use of force and aiding consumer personal protection. TASER energy devices are used by public safety customers as a less-lethal force option to de-escalate conflict. Revenue is generated through device sales, cartridges, accessories, and extended warranties.
•Personal Sensors: Axon devices address many needs, including transparency, real-time situational awareness, and accurate capture and integration of evidence with software workflows. Product categories within personal sensors include Axon Body cameras and accessories. Our software solutions also support an open ecosystem of connected devices produced by other vendors.
•Platform Solutions: Platform Solutions include Axon Fleet in-car video systems, fixed cameras, drone and counter-drone technology, virtual reality (“VR”) training hardware, and other devices that support operational awareness.
Our research & development (“R&D”) investments support continuous innovation on behalf of our customers. Our financial strategy is to build highly recurring, highly profitable businesses and to drive growth through this purposeful product innovation.
1 Calculated as monthly recurring license, integration, warranty, and storage revenue for the year ended December 31, 2025. Annual recurring revenue is a forward-looking performance indicator that management believes provides more visibility into the growth of our revenue generated by our highest margin, recurring services. Annual recurring revenue should be viewed independently of revenue and deferred revenue because it is an operating measure and is not intended to be combined with or to replace GAAP revenue or deferred revenue, as they can be impacted by contract start and end dates and renewal rates. Annual recurring revenue is not intended to be a replacement or forecast of revenue or deferred revenue.
Sales and Distribution: Who We Sell To and Where We Deliver
Our core customers across the public and private sectors include U.S. federal, state, and local governments, international governmental entities, commercial enterprises, and consumers. Axon’s sales force and strong customer relationships represent key strategic advantages. Although the majority of our revenues are generated via direct sales, we also leverage distribution partners and third party resellers. No customer represented more than 10% of total net sales for the years ended December 31, 2025, 2024 or 2023. As we diversify into new markets, we have been investing in sales personnel and strategic headcount additions to support growth in these markets.
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Manufacturing and Supply Chain
We perform manufacturing, final assembly and final test operations at our facilities in Arizona and own substantially all of the equipment required to develop, prototype, manufacture and assemble our finished products. We have continued to maintain both our ISO 9001 and our ISO 9001:2015 certifications.
We purchase many components and raw materials used in manufacturing our products from numerous suppliers in various countries. Although we currently obtain certain components from single source suppliers, we own substantially all injection-molded component tooling, designs and test fixtures used in production for all custom components. We continuously monitor our supply chain, identify alternate shipping and logistic sources, and work with foreign regulators so our suppliers can provide high quality parts. Supply chain disruptions are an ongoing occurrence and our continuous monitoring allows us to minimize their impact. For more information on the risks associated with manufacturing and supply chain, see “