01—Abstract
Summary
Summary of the 10-K/A filed May 7, 2025. Cited figures are marked; the original filing is the authoritative source.
Axon Enterprise, Inc. reported strong revenue growth of 33.4% to $2.1 billiona for the year ended December 31, 2024.
This growth was driven by significant increases in both the TASER segment and the Software and Sensors segment, with notable contributions from TASER device and cartridge sales, as well as Axon Evidence and cloud services. Despite the revenue increase, the company's income from operations decreased to $58.5 millionb from $156.9 million in the prior year, primarily due to a substantial rise in operating expenses, particularly stock-based compensation and professional/consulting fees related to acquisitions. The company also disclosed two material weaknesses in its internal controls over financial reporting: one related to revenue recognition and another concerning the balance sheet presentation of its convertible senior notes.
These weaknesses have led to restatements of prior financial periods. Axon continues to invest heavily in research and development, with R&D expenses increasing by 45.4%c year-over-year. The company ended the year with a strong liquidity position, although cash and cash equivalents decreased due to acquisition activities.
02—Key points
Key Highlights
- Revenue increased by 33.4% to $2.1 billion for the year ended December 31, 2024, driven by growth in both TASER and Software & Sensors segments.
- Income from operations decreased significantly to $58.5 million due to a substantial increase in operating expenses, notably stock-based compensation and acquisition-related costs.
- The company reported two material weaknesses in internal control over financial reporting related to revenue recognition and convertible note presentation, necessitating restatements of prior financial periods.
- Research and Development (R&D) expenses rose by 45.4% to $441.6 million, reflecting continued investment in innovation.
- Axon completed two significant acquisitions in 2024: Fusus and Dedrone, integrating them into its Software and Sensors segment to enhance its public safety technology ecosystem.
- The company's liquidity remains strong, with $454.8 million in cash and cash equivalents and available-for-sale investments as of December 31, 2024, though this reflects a decrease from the prior year due to acquisition activities.
- Gross margin decreased to 59.6% from 61.2% year-over-year, primarily impacted by increased stock-based compensation and amortization of acquired intangibles.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Axon Enterprise, Inc. kept $0.18.
- Revenue$2.08B100.0%
- Cost of revenue−$841.1M40.4%
- Gross profit$1.24B59.6%
- Operating costs−$1.18B56.8%
- Operating income$58.5M2.8%
- Interest, other & tax$318.5M15.3%
- Net income$377.0M18.1%
Where FY2024 revenue went
$2.08B- Cost of revenue: $841.1M, 40% of revenue
- SG&A: $741.2M, 36% of revenue
- R&D: $441.6M, 21% of revenue
- Operating income: $58.5M, 2.8% of revenue
Kept 2.8% as operating incomeOperating income $58.5M · 2.8%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-K/AFY2024filed May 7, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $2.08B$1.56B | +33.4% |
| Cost of Revenue | $841.15M$605.25M | +39.0% |
| Gross Profit | $1.24B$955.45M | +29.9% |
| R&D Expenses | $441.59M$303.72M | +45.4% |
| SG&A Expenses | $741.25M$494.88M | +49.8% |
| Operating Expenses | $1.18B$798.60M | +48.1% |
| Operating Income | $58.54M$156.85M | −62.7% |
| Net Income | $377.03M$175.78M | +114.5% |
| EPS (Basic) | $4.98$2.37 | +110.1% |
| EPS (Diluted) | $4.80$2.33 | +106.0% |
| Shares Outstanding (Basic) | 75.75M74.19M | +2.1% |
| Shares Outstanding (Diluted) | 78.56M75.46M | +4.1% |
05—Questions
Frequently Asked Questions
What were Axon's key financial performance drivers in the past fiscal year?
Axon experienced robust revenue growth of 33.4% to $2.1 billion, propelled by strong demand in both its TASER and Software & Sensors segments. Growth in TASER devices and cartridges, alongside increased adoption of Axon Evidence and cloud services, were primary contributors. However, operating income declined due to significant increases in operating expenses, including stock-based compensation and expenses related to recent acquisitions.
What are the implications of the disclosed material weaknesses in internal control?
Axon identified two material weaknesses: one concerning revenue recognition processes for customer contracts and another related to the balance sheet presentation of its convertible senior notes. These have led to restatements of previously issued financial statements. While the company is implementing remediation plans, these weaknesses indicate potential areas for improved financial reporting controls and may impact investor confidence until fully resolved.
How has Axon's investment in R&D and strategic acquisitions impacted its financial results?
Axon significantly increased its R&D spending by 45.4% to $441.6 million, underscoring its commitment to innovation. The company also completed key acquisitions of Fusus and Dedrone in 2024, integrating them into its operations. While these investments are strategic for long-term growth and expanding its technology offerings, they contributed to the increase in operating expenses and impacted profitability in the short term.
What is the company's current liquidity and cash position?
Axon maintains a strong liquidity position, with approximately $454.8 million in cash and cash equivalents and $333.2 million in available-for-sale investments as of December 31, 2024. However, this total liquidity decreased from the prior year, largely due to funds utilized for acquisition activities during the period.
06—Continue