10-QPeriod: Q2 FY2026

AXON ENTERPRISE, INC. Quarterly Report for Q2 Ended Jun 30, 2026

Filed August 6, 2026For Securities:AXON

Summary

Axon Enterprise, Inc. (AXON) demonstrated strong top-line growth in its second quarter and first half of 2026, with net sales increasing by 35.3% and 34.6% year-over-year, respectively. This growth was fueled by robust performance in both the Connected Devices and Software and Services segments, with notable increases in TASER products, Platform Solutions (including counter-drone equipment), and its recurring revenue software and services. Despite significant investments in R&D and SG&A for growth initiatives like AI, the company achieved positive income from operations in both periods, a marked improvement from the prior year's operating loss. The company also successfully integrated the acquisition of Carbyne Ltd., contributing to the expanded revenue base and strategic positioning in emergency response solutions.

Key Highlights

  • 1Total net sales for the three months ended June 30, 2026, reached $904.4 million, a 35.3% increase year-over-year, driven by strong performance across all segments.
  • 2For the six months ended June 30, 2026, net sales grew to $1.71 billion, up 34.6% from the same period in 2025.
  • 3Income from operations was $46.8 million for Q2 2026, a significant improvement from a $1.0 million loss in Q2 2025. For the first six months, income from operations was $76.0 million, compared to a $9.8 million loss.
  • 4The Connected Devices segment saw strong growth, with Platform Solutions up 122.6% in Q2 and 110.0% year-to-date, primarily due to counter-drone equipment volume.
  • 5Software and Services revenue increased by 36.2% in Q2 and 35.6% year-to-date, supported by user growth and adoption of premium solutions.
  • 6Axon successfully acquired the remaining 89.3% interest in Carbyne Ltd. for approximately $551.7 million in cash, positioning the company to accelerate next-generation public safety communications.
  • 7The company ended the period with a strong cash position of $597.7 million, although this represents a decrease from $1.2 billion at the end of 2025, largely due to investments in acquisitions and strategic initiatives.

Frequently Asked Questions

Revenue growth in Q2 2026 was driven by strong performance across both the Connected Devices and Software and Services segments. Specifically, the Connected Devices segment saw significant increases in TASER 10 handle and cartridge volume, continued adoption of the AB4 body camera within Personal Sensors, and a substantial rise in Platform Solutions, largely due to higher volumes of counter-drone equipment. The Software and Services segment benefited from an increased number of users and growing adoption of premium solutions.

The acquisition of Carbyne, which was completed on February 18, 2026, contributed to the expanded revenue base and strategic positioning in public safety communications. While the full financial impact is still being determined as purchase accounting adjustments are finalized, the company reported approximately $551.7 million in cash paid for the acquisition. The integration of Carbyne is expected to accelerate Axon's offerings in emergency response solutions.

Axon ended Q2 2026 with $597.7 million in cash and cash equivalents, a decrease from the end of 2025 primarily due to investments in acquisitions and strategic initiatives. The company also has a $300 million revolving credit facility with $290.9 million available. Axon believes its current funding sources will be sufficient to meet its anticipated cash requirements for at least the next 12 months and remains open to opportunistic debt issuance for growth or refinancing.

Axon is involved in product liability litigation related to TASER devices, but based on current information, does not believe the outcome will materially affect its financial position. The company is also defending against a purported antitrust class action related to the Vievu acquisition and a patent infringement suit concerning drone technology. Axon denies all allegations of misconduct and is vigorously defending these cases. The company does not expect these matters to individually or in aggregate materially affect its results, financial condition, or cash flows.