AXON ENTERPRISE, INC.AXON
AXON ENTERPRISE, INC. Financial Overview 2021–2025
Updated Jul 10, 2026Axon Enterprise has engineered a relentless recurring-revenue machine, capping off recent performance with a 33.5% sales surge to reach $2.8 billion in FY2025. This top-line velocity proves the company has successfully locked law enforcement agencies into a sticky ecosystem of connected devices and high-margin cloud software, even as aggressive internal spending weighs heavily on operating margins.
The sheer scale of top-line acceleration is evident across the reporting period, as revenue grew from $863.4 million in FY2021 to $2.8 billion in FY2025. Software and Services led this charge, jumping 39.6% in FY2025 alone on strong premium feature adoption. Visibility into future cash flows is equally robust, backed by an $8.1 billion revenue backlog recorded in Q3 2025. Yet, capturing this growth requires steep structural costs. A surge in stock-based compensation and engineering headcount forced Axon to swing from a $58.5 million operating income in FY2024 to a $62.1 million operating loss in FY2025.
To sustain this expansion and fund acquisitions like Dedrone, Axon bolstered its liquidity through heavy debt issuance, finishing FY2025 with $1.2 billion in cash. The market is fully pricing in the continuation of this aggressive growth trajectory. At the close of FY2025, the stock traded at $567.93, commanding a $45.6 billion market cap and an extreme 376.1x price-to-earnings ratio.
Recent Developments (Q4 2025 and Q1 2026)
In Q1 2026, Axon reversed recent operating losses, generating $29.2 million in operating income alongside a 33.7% revenue jump to $807.3 million. Net income more than doubled year-over-year to $169.3 million, translating to a diluted earnings per share of $2.05. The company actively deployed capital, acquiring Carbyne Ltd. for $549.7 million and fully redeeming its 2027 convertible notes in February 2026.
Bulls will applaud this swift return to operating profitability and rapid bottom-line expansion despite heavy ongoing investments. Bears will highlight gross margin compression to 59.1% from 60.6% due to global tariffs, alongside an ongoing material weakness in revenue recognition controls. The equity remains richly valued at 282.7x earnings as of May 7, 2026.
What to watch: gross margin impacts from the Carbyne integration; progress on revenue recognition control remediation.
Rev
$2.78B
FY2025
NI
$124.7M
FY2025
EPS
$1.60
FY2025
OCF
$211.3M
FY2025
Year-over-year comparison from 10-K annual reports
Data from SEC Company Facts
Recent SEC Filings
AXON ENTERPRISE, INC. 8-K Report, Shareholder Vote Results (Jun 1, 2026)
Axon Enterprise, Inc. (AXON) held its 2026 Annual Meeting of Shareholders on May 28, 2026, with a strong turnout of approximately 90.5% of outstanding shares represented. The meeting confirmed the election of all nine director nominees for the upcoming year, with each nominee receiving a substantial majority of the votes cast. This indicates continued shareholder confidence in the current board leadership and governance structure. Furthermore, shareholders overwhelmingly approved the "Say-on-Pay" proposal, a non-binding advisory vote on executive compensation, signifying shareholder alignment with the company's compensation practices. The appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for fiscal year 2026 was also ratified with near-unanimous support. These outcomes suggest a stable and supportive shareholder base for Axon's operational and strategic direction.
AXON ENTERPRISE, INC. 8-K Report, Financial Results (May 6, 2026)
Axon Enterprise, Inc. (AXON) has filed an 8-K on May 6, 2026, to report its financial results for the first quarter ended March 31, 2026. The filing primarily consists of a shareholder letter (Exhibit 99.1) detailing the company's performance. While specific financial figures are not detailed within the 8-K text itself, investors should refer to the attached shareholder letter for comprehensive insights into revenue, profitability, and any forward-looking statements. This report serves as the official notification of the Q1 2026 results. Investors seeking detailed operational and financial condition updates should carefully review Exhibit 99.1. The company's disclosure emphasizes that this information is furnished and not deemed 'filed' for certain regulatory purposes, which is standard for earnings release disclosures.
AXON ENTERPRISE, INC. 8-K Report, Executive Changes (Apr 10, 2026)
Axon Enterprise, Inc. (AXON) announced that Matthew McBrady will not be standing for re-election as a director at the upcoming 2026 Annual Meeting of Shareholders. Mr. McBrady will continue to serve until the end of his current term at the meeting. Importantly, his decision is stated to be unrelated to any disagreements with the Company regarding its operations, policies, or practices, which mitigates concerns about internal disputes or governance issues. Investors should note that while Mr. McBrady's departure is a change in board composition, the company has indicated it was his personal decision regarding re-election. The Board expressed gratitude for his service, highlighting his contributions to the company's growth and progress. This announcement does not appear to signal any immediate operational or strategic shifts but represents a transition in the Board's membership.
AXON ENTERPRISE, INC. 8-K Report, Executive Changes (Mar 11, 2026)
Axon Enterprise, Inc. (AXON) announced that director Julie Anne Cullivan will not stand for re-election at the upcoming 2026 Annual Meeting of Shareholders. Ms. Cullivan's tenure will conclude at the meeting, and her decision is stated to be voluntary, without any disagreements with the Company regarding its operations, policies, or practices. The Board of Directors has expressed gratitude for her significant contributions to the Company's growth and leadership during her service. This announcement, filed on March 11, 2026, relates to a change in the composition of the Board. Investors should note that while Ms. Cullivan's departure is amicable, any changes in board leadership can sometimes signal shifts in strategic focus or governance. However, given the information provided, the impact is primarily a procedural one related to board refreshment.
AXON ENTERPRISE, INC. 8-K Report, Financial Results (Feb 24, 2026)
Axon Enterprise, Inc. (AXON) filed an 8-K on February 24, 2026, to report its financial results for the fourth quarter and full fiscal year ended December 31, 2025. The accompanying shareholder letter (Exhibit 99.1) contains the detailed financial performance and outlook. Investors should refer to this exhibit for specific revenue figures, profitability metrics, and any forward-looking statements regarding the company's performance in the upcoming year. The filing is procedural, primarily serving to incorporate the shareholder letter into public record. While the 8-K itself doesn't contain the numerical results, it directs investors to the official shareholder letter for the most crucial financial information. This includes insights into the drivers of revenue growth, any significant cost impacts, and management's commentary on market conditions affecting Axon's business segments, such as TASER, Cloud, and Artificial Intelligence solutions.
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