# AXON ENTERPRISE, INC. (AXON)

Informational only - not investment advice.

CIK: 0001069183
SIC: 3480 Ordnance & Accessories, (No Vehicles/Guided Missiles)
SIC breadcrumb: [Manufacturing](/division/D/) > [SIC Major Group 34](/major-group/34/) > [SIC 3480 Ordnance & Accessories, (No Vehicles/Guided Missiles)](/industry/3480/)
Latest 10-K filed: 2026-02-25
SEC page: https://www.sec.gov/edgar/browse/?CIK=1069183
Filing source: https://www.sec.gov/Archives/edgar/data/1069183/000162828026011360/axon-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-25 · accession 0001628280-26-011360 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001069183.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 2,779,536,000 USD | 2025 | verified |
| Net income | 124,656,000 USD | 2025 | verified |
| Assets | 7,000,313,000 USD | 2025 | verified |
| Free cash flow | 75,081,000 USD | 2025 | computed |
| Net margin | 4.48% | 2025 | computed |
| Operating margin | -2.23% | 2025 | computed |
| Revenue YoY | +33.47% | 2025 | computed |
| ROE | 3.84% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | AXON | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 4.5% | 6.1% | 35 | 35 |
| Operating margin | -2.2% | 9.3% | 3 | 32 |
| Revenue growth | 33.5% | 4.5% | 100 | 36 |
| FCF margin | 2.7% | 10.7% | 18 | 35 |
| ROE | 3.8% | 11.6% | 18 | 35 |
| ROA | 1.8% | 4.4% | 17 | 36 |
| Liabilities / equity | 1.16 | 0.89 | 68 | 35 |
| Current ratio | 2.53 | 2.59 | 49 | 36 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 34 SIC Major Group 34, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 2779536000 | USD | 2025 | 2026-02-25 |
| Net income | 124656000 | USD | 2025 | 2026-02-25 |
| Assets | 7000313000 | USD | 2025 | 2026-02-25 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-25. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001069183.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 268,245,000 | 343,798,000 | 420,068,000 | 530,860,000 | 681,003,000 | 863,381,000 | 1,187,143,000 | 1,560,699,000 | 2,082,526,000 | 2,779,536,000 |
| Net income | 17,297,000 | 5,207,000 | 29,205,000 | 882,000 | -1,724,000 | -60,018,000 | 146,930,000 | 175,783,000 | 377,034,000 | 124,656,000 |
| Operating income | 31,851,000 | 13,023,000 | 24,841,000 | -6,394,000 | -14,150,000 | -168,123,000 | 92,973,000 | 156,850,000 | 58,540,000 | -62,076,000 |
| Gross profit | 170,536,000 | 207,088,000 | 258,583,000 | 307,286,000 | 416,331,000 | 540,910,000 | 726,113,000 | 955,453,000 | 1,241,380,000 | 1,658,125,000 |
| Diluted EPS | 0.32 | 0.10 | 0.50 | 0.01 | -0.03 | -0.91 | 2.03 | 2.33 | 4.80 | 1.51 |
| Operating cash flow | 21,135,000 | 18,471,000 | 63,875,000 | 65,673,000 | 38,481,000 | 124,494,000 | 235,361,000 | 189,263,000 | 408,312,000 | 211,339,000 |
| Capital expenditures | 4,957,000 | 10,419,000 | 11,139,000 | 15,939,000 | 72,629,000 | 49,886,000 | 55,802,000 | 59,635,000 | 78,785,000 | 136,258,000 |
| Assets | 278,163,000 | 169,376,000 | 732,023,000 | 845,639,000 | 1,381,023,000 | 1,688,210,000 | 2,851,894,000 | 3,409,174,000 | 4,474,588,000 | 7,000,313,000 |
| Liabilities | 127,275,000 | 153,408,000 | 264,699,000 | 302,144,000 | 404,768,000 | 640,361,000 | 1,583,403,000 | 1,793,409,000 | 2,146,923,000 | 3,757,655,000 |
| Stockholders' equity | 150,888,000 | 167,444,000 | 467,324,000 | 543,495,000 | 976,255,000 | 1,050,233,000 | 1,270,666,000 | 1,615,765,000 | 2,327,665,000 | 3,242,658,000 |
| Cash and cash equivalents | 40,651,000 | 75,105,000 | 349,462,000 | 172,250,000 | 155,440,000 | 356,332,000 | 353,684,000 | 598,545,000 | 454,844,000 | 1,201,147,000 |
| Free cash flow | 16,178,000 | 8,052,000 | 52,736,000 | 49,734,000 | -34,148,000 | 74,608,000 | 179,559,000 | 129,628,000 | 329,527,000 | 75,081,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 6.45% | 1.51% | 6.95% | 0.17% | -0.25% | -6.95% | 12.38% | 11.26% | 18.10% | 4.48% |
| Operating margin | 11.87% | 3.79% | 5.91% | -1.20% | -2.08% | -19.47% | 7.83% | 10.05% | 2.81% | -2.23% |
| Return on equity | 11.46% | 3.11% | 6.25% | 0.16% | -0.18% | -5.71% | 11.56% | 10.88% | 16.20% | 3.84% |
| Return on assets | 6.22% | 3.07% | 3.99% | 0.10% | -0.12% | -3.56% | 5.15% | 5.16% | 8.43% | 1.78% |
| Liabilities / equity | 0.84 | 0.92 | 0.57 | 0.56 | 0.41 | 0.61 | 1.25 | 1.11 | 0.92 | 1.16 |
| Current ratio | 2.27 | 1.17 | 3.31 | 3.12 | 3.83 | 2.65 | 3.00 | 3.14 | 1.37 | 2.53 |

## As-reported value updates

3 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/AXON/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001069183.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 0.17 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 0.61 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 0.16 | reported discrete quarter |
| 2023-Q3 | 2023-06-30 |  | 12,420,000 |  | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 413,601,000 |  | 0.78 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 432,142,000 | 57,271,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 460,736,000 | 133,218,000 | 1.73 | reported discrete quarter |
| 2024-Q2 | 2024-03-31 |  | 133,218,000 |  | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 504,099,000 |  | 0.53 | reported discrete quarter |
| 2024-Q3 | 2024-06-30 | 503,236,000 | 41,473,000 |  | reported discrete quarter |
| 2024-Q3 | 2024-09-30 |  |  | 0.86 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 575,145,000 | 135,184,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 603,633,000 | 87,980,000 | 1.08 | reported discrete quarter |
| 2025-Q2 | 2025-03-31 |  | 87,980,000 |  | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 668,538,000 |  | 0.44 | reported discrete quarter |
| 2025-Q3 | 2025-06-30 |  | 36,117,000 |  | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 710,641,000 |  | -0.03 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 796,724,000 | 2,745,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 807,345,000 | 169,312,000 | 2.05 | reported discrete quarter |
| 2026-Q2 | 2026-03-31 |  | 169,312,000 |  | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 904,389,000 |  | 0.36 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from AXON's latest 10-K: [/company/AXON/business/](/company/AXON/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from AXON's latest 10-K: [/company/AXON/risk-factors/](/company/AXON/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1069183/000162828026053646/axon-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-06
Report date: 2026-06-30

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition as of June 30, 2026, and results of operations for the three and six months ended June 30, 2026 and 2025, should be read in conjunction with the unaudited consolidated financial statements and related notes included in this Quarterly Report on Form 10-Q and the audited consolidated financial statements and related notes in our 2025 Annual Report on Form 10-K for the year ended December 31, 2025. The discussion includes references to non-GAAP financial measures, such as adjusted gross margin, which supplement our GAAP results by providing additional insight into our financial and operational performance. For definitions and reconciliations of these non-GAAP measures to the most directly comparable GAAP measures, refer to “Non-GAAP Measures” within this Quarterly Report on Form 10-Q. This discussion also contains forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from those anticipated in such forward-looking statements.

Overview

Axon is a technology company that provides integrated hardware and software solutions. 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.

Our revenues for the three months ended June 30, 2026 were $904.4 million, an increase of $235.9 million, or 35.3%, from the three months ended June 30, 2025. We had income from operations of $46.8 million, compared to loss from operations of $1.0 million for the same period in the prior year. Gross margin dollars increased $142.7 million reflecting consistent percentage of revenue at 60.4%, when compared to the three months ended June 30, 2025. Adjusted gross margin decreased to 62.9% for the three months ended June 30, 2026 compared to 63.3% for the same period in the prior year. The decrease in gross margin and adjusted gross margin was primarily driven by a higher mix of professional services revenue and scaling new product offerings, partially offset by tariff refunds received in the quarter. Operating expenses increased by $94.9 million, primarily reflecting increased headcount and investments in AI and other initiatives to support business growth. Net income of $29.4 million included a $3.3 million tax provision, income from strategic investments, net, of $5.7 million, and a net realized and unrealized gain of $1.1 million related to our marketable securities. Net income of $36.1 million for the three months ended June 30, 2025 included a $75.0 million tax benefit, partially offset by a noncash unrealized loss of $30.9 million related to our marketable securities.

Our revenues for the six months ended June 30, 2026 were $1.7 billion, an increase of $439.6 million, or 34.6%, from the six months ended June 30, 2025. We had income from operations of $76.0 million, compared to loss from operations of $9.8 million for the same period in the prior year. Gross margin dollars increased $254.3 million and decreased as a percentage of revenue to 59.8% from 60.5% compared to the six months ended June 30, 2025. Adjusted gross margin decreased to 62.3% for the six months ended June 30, 2026 compared to 63.4% for the same period in the prior year. The decrease in gross margin and adjusted gross margin was primarily due to a higher mix of professional services revenue and scaling new product offerings, partially offset by tariff refunds received in the quarter. Operating expenses increased by $168.4 million, primarily reflecting increased headcount and investments in AI and other initiatives to support business growth. Net income of $198.7 million included net realized and unrealized gains of $202.3 million related to our strategic investments and a $34.2 million tax provision, partially offset by a noncash unrealized loss of $4.4 million related to our marketable securities. Net income of $124.1 million for the six months ended June 30, 2025 included net realized and unrealized gains of $166.0 million related to our strategic investments and a $54.6 million tax benefit, partially offset by a noncash unrealized loss of $54.3 million related to our marketable securities and inducement expense of $28.7 million associated with the early repurchase of a portion of our 2027 Notes.

On February 20, 2026, the Supreme Court determined that tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”) were unauthorized. During the three months ended June 30, 2026, we received $47.4 million in refunds. Of this amount, $18.1 million had been previously expensed in 2025 to cost of sales and the remaining is associated with amounts primarily classified as inventory and property and equipment, net, for which the majority would have been expensed in the current year.

23

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Results of Operations

Three Months Ended June 30, 2026 Compared to the Three Months Ended June 30, 2025

The following table presents data from our consolidated statements of operations as well as the percentage relationship to total net sales (dollars in thousands):

[[GREPCENT_TABLE]]
[["","Three Months Ended June 30,"],["","2026","","2025"],["Net sales from products","$","506,553","","56.0","%","","$","376,360","","56.3","%"],["Net sales from services","397,836","","44.0","","","292,178","","43.7"],["Net sales","904,389","","100.0","","","668,538","","100.0"],["Cost of product sales","243,861","","27.0","","","193,507","","28.9"],["Cost of service sales","114,081","","12.6","","","71,288","","10.7"],["Cost of sales","357,942","","39.6","","","264,795","","39.6"],["Gross margin","546,447","","60.4","","","403,743","","60.4"],["Operating expenses:"],["Selling, general and administrative","290,982","","32.2","","","242,212","","36.2"],["Research and development","208,687","","23.1","","","162,567","","24.4"],["Total operating expenses","499,669","","55.3","","","404,779","","60.6"],["Income (loss) from operations","46,778","","5.1","","","(1,036)","","(0.2)"],["Interest income","6,815","","0.8","","","23,253","","3.5"],["Interest expense","(28,101)","","(3.1)","","","(28,686)","","(4.3)"],["Other income (loss), net","7,192","","0.9","","","(32,414)","","(4.8)"],["Income (loss) before provision for income taxes","32,684","","3.7","","","(38,883)","","(5.8)"],["Provision for (benefit from) income taxes","3,257","","0.4","","","(75,000)","","(11.2)"],["Net income","$","29,427","","3.3","%","","$","36,117","","5.4","%"]]
[[/GREPCENT_TABLE]]

The following table presents our revenues disaggregated by geography (dollars in thousands):

[[GREPCENT_TABLE]]
[["","Three Months Ended June 30,"],["","2026","","2025"],["United States","$","742,307","","","82","%","","$","537,373","","","80","%"],["Other countries","162,082","","","18","","","131,165","","","20"],["Total","$","904,389","","","100","%","","$","668,538","","","100","%"]]
[[/GREPCENT_TABLE]]

International revenue increased compared to the prior year June 30, 2025 comparative period, primarily driven by increased sales in our EMEA region.

24

Table of Contents

Net Sales

Net sales by product line were as follows (dollars in thousands):

[[GREPCENT_TABLE]]
[["","Three Months Ended June 30,","","Dollar Change","","Percent Change"],["","2026","","2025"],["Connected Devices segment:"],["TASER (1)","$","261,321","","","28.9","%","","$","216,234","","","32.3","%","","$","45,087","","","20.9","%"],["Personal Sensors (2)","95,392","","","10.5","","","92,819","","","13.9","","","2,573","","","2.8"],["Platform Solutions (3)","149,840","","","16.6","","","67,307","","","10.1","","","82,533","","","122.6"],["Total Connected Devices segment","506,553","","","56.0","","","376,360","","","56.3","","","130,193","","","34.6"],["Total Software and Services segment","397,836","","","44.0","","","292,178","","","43.7","","","105,658","","","36.2"],["Total net sales","$","904,389","","","100.0","%","","$","668,538","","","100.0","%","","$","235,851","","","35.3","%"]]
[[/GREPCENT_TABLE]]

(1)'TASER' includes TASER handles, cartridges and related extended warranties.

(2)'Personal Sensors' primarily includes body cameras and accessories, signal sidearm, and related extended warranties.

(3)'Platform Solutions' primarily includes fleet in-car video, interview room, fixed cameras, drones and counter-drone equipment, virtual reality training hardware, and related extended warranties.

Net sales for the Connected Devices segment increased 34.6% for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase of $45.1 million in TASER is primarily driven by higher TASER 10 handle and cartridge volume. Personal Sensors increased $2.6 million on continued adoption of our newest body camera, AB4, and higher warranty revenue from more devices in the field. The $82.5 million increase in Platform Solutions is primarily driven by higher volume for counter-drone equipment.

Net sales for the Software and Services segment increased 36.2% for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase in the aggregate number of users and growing adoption of our premium solutions by existing customers drove the majority of the increase of $105.7 million.

Gross Margin

As a percentage of net sales, gross margin for the Connected Devices segment increased to 51.9% from 48.6% for the three months ended June 30, 2026 and 2025, respectively. Adjusted gross margin for the Connected Devices segment was 53.4% for the three months ended June 30, 2026, compared to 51.1% for the three months ended June 30, 2025. The increase in gross margin and adjusted gross margin was primarily driven by tariff refunds, partially offset by increased mix to counter-drone equipment.

As a percentage of net sales, gross margin for the Software and Services segment decreased to 71.3% from 75.6% for the three months ended June 30, 2026 and 2025, respectively. Adjusted gross margin for the Software and Services segment decreased to 75.1% for the three months ended June 30, 2026, compared to 78.9% for the three months ended June 30, 2025. The decrease in gross margin and adjusted gross margin was primarily driven by a higher mix of professional services revenue and scaling new product offerings.

Selling, General and Administrative Expenses

SG&A expenses were as follows (dollars in thousands):

[[GREPCENT_TABLE]]
[["","Three Months Ended June 30,","","Dollar Change","","Percent Change"],["","2026","","2025"],["Total selling, general and administrative expenses","$","290,982","","","$","242,212","","","$","48,770","","","20.1","%"],["As a percentage of net sales","32.2%","","36.2%"]]
[[/GREPCENT_TABLE]]

Salaries, benefits and bonus expense increased $12.0 million in comparison to the prior year June 30, 2025 comparable period, primarily attributable to an increase in headcount.

25

Table of Contents

Sales and marketing expense increased $8.9 million in comparison to the prior year June 30, 2025 comparable period, primarily attributable to increased commissions.

Other SG&A expenses increased $27.9 million in comparison to the prior year June 30, 2025 comparable period, primarily driven by increased advisory expenses of $8.7 million, increased travel expenses of $5.4 million, and increased technology license expenses of $4.4 million as a result of the continued adoption of AI initiatives.

Research and Development Expenses

R&D expenses were as follows (dol

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1069183/000162828026011360/axon-20251231.htm
Complete FY 2025 MD&A: /company/AXON/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-25
Report date: 2025-12-31

Item 7.    Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) provides the perspective of our management on our financial condition, results of operations, liquidity and certain other factors that may affect our future results. MD&A should be read in conjunction with the other sections of this Annual Report on Form 10-K. The discussion includes references to non-GAAP financial measures, such as adjusted gross margin, which supplement our GAAP results by providing additional insight into our financial and operational performance. For definitions and reconciliations of these non-GAAP measures to the most directly comparable GAAP measures, refer to “Non-GAAP Measures” within this Annual Report on Form 10-K. The various sections of our MD&A contain forward-looking statements, all of which are based on our current expectations and could be affected by the uncertainties and risk factors described throughout this filing.

MD&A discusses our results of operations for the year ended December 31, 2025 as compared to the year ended December 31, 2024. For discussion of the year ended December 31, 2024 as compared to the year ended December 31, 2023, refer to MD&A included in Part II, Item 7 of our amended 2024 Annual Report on Form 10-K/A for the year ended December 31, 2024, filed with the SEC on May 7, 2025.

Overview

Axon is a technology company that provides integrated hardware and software solutions. 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 AI.

During the year ended December 31, 2025, we realigned our business into two reportable segments, Connected Devices and Software and Services (the “Segment Realignment”). As a result of the Segment Realignment, we have recast our segment and other relevant disclosures for the year ended December 31, 2024 to conform to the new presentation.

Our revenues for the year ended December 31, 2025 were $2.8 billion, an increase of $697.0 million, or 33.5%, from the year ended December 31, 2024. We had loss from operations of $62.1 million for the year ended December 31, 2025, compared to income from operations of $58.5 million for the same period in the prior year. Gross margin dollars increased $416.7 million and increased as a percentage of revenue to 59.7% from 59.6% compared to the year ended December 31, 2024. Adjusted gross margin decreased to 62.6% for the year ended December 31, 2025 compared to 63.2% for the year ended December 31, 2024. The decrease was primarily driven by global tariffs and a higher mix of Platform Solutions revenue. Operating expenses increased by $537.4 million, reflecting increased headcount to support business growth and stock-based compensation expense. Net income of $124.7 million included net realized and unrealized gains of $186.4 million related to our strategic investments and a $105.7 million tax benefit, partially offset by a net realized and unrealized loss of $46.4 million related to our marketable securities, inducement expense of $38.9 million associated with the early repurchase of a portion of our 2027 Notes, and interest loss, net of $18.8 million. Net income of $377.0 million for the year ended December 31, 2024 included net realized and unrealized gains of $162.9 million related to our strategic investments, a net unrealized gain of $120.3 million related to our marketable securities, and interest income, net of $36.6 million.

40

Table of Contents

Results of Operations

The following table presents data from our consolidated statements of operations and comprehensive income as well as the percentage relationship to total net sales of items included in our consolidated statements of operations and comprehensive income (dollars in thousands):

[[GREPCENT_TABLE]]
[["","Year Ended December 31,"],["","2025","","2024"],["Net sales from products","$","1,576,864","","","56.7","%","","$","1,221,292","","","58.6","%"],["Net sales from services","1,202,672","","","43.3","","","861,234","","","41.4"],["Net sales","2,779,536","","","100.0","","","2,082,526","","","100.0"],["Cost of product sales","809,303","","","29.1","","","618,136","","","29.7"],["Cost of service sales","312,108","","","11.2","","","223,010","","","10.7"],["Cost of sales","1,121,411","","","40.3","","","841,146","","","40.4"],["Gross margin","1,658,125","","","59.7","","","1,241,380","","","59.6"],["Operating expenses:"],["Selling, general and administrative","1,035,893","","","37.3","","","741,247","","","35.6"],["Research and development","684,308","","","24.6","","","441,593","","","21.2"],["Total operating expenses","1,720,201","","","61.9","","","1,182,840","","","56.8"],["Income (loss) from operations","(62,076)","","","(2.2)","","","58,540","","","2.8"],["Interest income","75,431","","","2.7","","","43,693","","","2.1"],["Interest expense","(94,238)","","","(3.4)","","","(7,098)","","","(0.3)"],["Other income, net","99,857","","","3.6","","","286,369","","","13.8"],["Income before provision for income taxes","18,974","","","0.7","","","381,504","","","18.4"],["Provision for (benefit from) income taxes","(105,682)","","","(3.8)","","","4,470","","","0.2"],["Net income","$","124,656","","","4.5","%","","$","377,034","","","18.2","%"]]
[[/GREPCENT_TABLE]]

The following table presents our revenues disaggregated by geography (dollars in thousands):

[[GREPCENT_TABLE]]
[["","Year Ended December 31,"],["","2025","","2024"],["United States","$","2,305,012","","83","%","","$","1,775,194","","85","%"],["Other countries","474,524","","17","","","307,332","","15"],["Total","$","2,779,536","","100","%","","$","2,082,526","","100","%"]]
[[/GREPCENT_TABLE]]

International revenue increased compared to the prior year 2024 comparative period, primarily driven by increased sales in our Americas region.

41

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Net Sales

Net sales by product line were as follows (dollars in thousands):

[[GREPCENT_TABLE]]
[["","Year Ended December 31,","","Dollar Change","","Percent Change"],["","2025","","2024"],["Connected Devices segment:"],["TASER (1)","$","913,883","","","32.9","%","","$","750,141","","","36.0","%","","$","163,742","","","21.8","%"],["Personal Sensors (2)","397,035","","","14.2","","","316,938","","","15.2","","","80,097","","","25.3"],["Platform Solutions (3)","265,946","","","9.6","","","154,213","","","7.4","","","111,733","","","72.5"],["Total Connected Devices segment","1,576,864","","","56.7","","","1,221,292","","","58.6","","","355,572","","","29.1"],["Total Software and Services segment","1,202,672","","","43.3","","","861,234","","","41.4","","","341,438","","","39.6"],["Total net sales","$","2,779,536","","","100.0","%","","$","2,082,526","","","100.0","%","","$","697,010","","","33.5","%"]]
[[/GREPCENT_TABLE]]

(1)'TASER' includes TASER handles, cartridges and related extended warranties.

(2)'Personal Sensors' primarily includes body cameras and accessories, signal sidearm, and related extended warranties.

(3)'Platform Solutions' primarily includes fleet in-car video, interview room, fixed cameras, drones and counter-drone equipment, virtual reality training hardware, and related extended warranties.

Net sales for the Connected Devices segment increased 29.1% for the year ended December 31, 2025 as compared to the year ended December 31, 2024. The increase of $163.7 million in TASER is primarily driven by higher TASER 10 handle and cartridge volume. Personal Sensors increased $80.1 million, which was primarily driven by the continued adoption of our newest body camera, AB4, and higher warranty revenue from more devices in the field. The $111.7 million increase in Platform Solutions is primarily driven by higher volume for counter-drone equipment, virtual reality training, and fleet systems.

Net sales for the Software and Services segment increased 39.6% for the year ended December 31, 2025 as compared to the year ended December 31, 2024. The increase in the aggregate number of users and growing adoption of our premium add-on features by existing customers drove the majority of the increase of $341.4 million.

Gross Margin

As a percentage of net sales, gross margin for the Connected Devices segment decreased to 48.7% from 49.4% for the years ended December 31, 2025 and 2024, respectively. Adjusted gross margin for the Connected Devices segment was 51.2% for the year ended December 31, 2025, compared to 53.6% for the year ended December 31, 2024. The decrease in gross margin and adjusted gross margin is primarily driven by higher mix of Platform Solutions revenue and global tariffs.

As a percentage of net sales, gross margin for the Software and Services segment decreased to 74.0% from 74.1% for the years ended December 31, 2025 and 2024, respectively. The decrease was primarily driven by higher stock-based compensation expense and acquired intangibles amortization. Adjusted gross margin for the Software and Services segment increased to 77.5% for the year ended December 31, 2025, compared to 76.8% for the year ended December 31, 2024. The increase was primarily driven by higher software mix.

Selling, General and Administrative Expenses

SG&A expenses (dollars in thousands):

[[GREPCENT_TABLE]]
[["","Year Ended December 31,","","Dollar Change","","Percent Change"],["","2025","","2024"],["Total selling, general and administrative expenses","$","1,035,893","","$","741,247","","$","294,646","","","39.8","%"],["As a percentage of net sales","37.3","%","","35.6","%"]]
[[/GREPCENT_TABLE]]

We incurred non-recurring severance costs during the three months ended December 31, 2025 of $28.7 million, which consisted of stock-based compensation, cash payments and employee benefits.

42

Table of Contents

Stock-based compensation expense, excluding the impact of non-recurring severance costs, increased $127.8 million in comparison to the prior year December 31, 2024 comparable period, which was primarily related to an increase in headcount and a full year of expense recognized in the current year for grants of Employee XSP and the CEO Performance Award (as defined below), compared to a partial year of expense recognized in the prior year.

Salaries, benefits and bonus expense, excluding the impact of non-recurring severance costs, increased $73.2 million in comparison to the prior year December 31, 2024 comparable period, which was primarily attributable to an increase in headcount and higher wages.

Sales and marketing expense increased $17.5 million in comparison to the prior year December 31, 2024 comparable period, which was primarily attributable to increased commissions.

Other SG&A expenses increased $47.4 million in comparison to the prior year, partially driven by $11.9 million in increased travel expenses. Further increases were driven by litigation and regulatory costs, as well as professional and consulting costs.

Research and Development Expenses

R&D expenses (dollars in thousands):

[[GREPCENT_TABLE]]
[["","Year Ended December 31,","","Dollar Change","","Percent Change"],["","2025","","2024"],["Total research and development expenses","$","684,308","","$","441,593","","$","242,715","","","55.0","%"],["As a percentage of net sales","24.6","%","","21.2","%"]]
[[/GREPCENT_TABLE]]

We incurred non-recurring severance costs during the three months ended December 31, 2025 of $1.1 million, which consisted of stock-based compensation, cash payments and employee benefits.

Stock-based compensation expense

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/AXON/mda/fy2025/
All MD&A years: /company/AXON/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/AXON/mda/fy2024/): filed 2025-02-28; accession 0001069183-25-000019 (https://www.sec.gov/Archives/edgar/data/1069183/000106918325000019/axon-20241231.htm)
- [FY 2023 MD&A](/company/AXON/mda/fy2023/): filed 2024-02-27; accession 0001069183-24-000006 (https://www.sec.gov/Archives/edgar/data/1069183/000106918324000006/axon-20231231x10k.htm)
- [FY 2022 MD&A](/company/AXON/mda/fy2022/): filed 2023-02-28; accession 0001558370-23-002413 (https://www.sec.gov/Archives/edgar/data/1069183/000155837023002413/axon-20221231x10k.htm)
- [FY 2021 MD&A](/company/AXON/mda/fy2021/): filed 2022-02-25; accession 0001558370-22-002006 (https://www.sec.gov/Archives/edgar/data/1069183/000155837022002006/axon-20211231x10k.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3480 Ordnance & Accessories, (No Vehicles/Guided Missiles)) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/AXON.md · JSON record: /company/AXON.json · verified financials: /company/AXON/financials.json / /company/AXON/financials.csv · machine TOC for the whole site: /llms.txt