Axon Enterprise (AXON)

Industrials · $24.6B market cap · SEC CIK 0001069183

Next reports on Feb 22, 2027, after the close, with analysts expecting $2.11 in earnings per share.

52-week range $296.78 to $665.07. 55% below its 52-week high and 2% above its low.

The case for AXON

• Revenue up 33.6% on the year.
• Has compounded revenue at 32.5% a year over five years.
• Gross margin of 59% absorbs cost shocks.
• Current assets cover the near-term bills 3.0 times over.

The case against

• Expensive for its growth: 95.3× earnings, where 25%+ a year of growth would justify about 46×.
• Down 49.7% over the past year.
• Long-term debt of $1.7B would take 8 years of operating cash flow to repay.
• Return on equity of only 7%.
• Near the bottom of its 52-week range, 55% below the high. Falling prices usually have a reason; find it first.
• Swings harder than the market (beta 1.55).

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Industrials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Each factor except momentum is half fixed thresholds, half rank among the 79 Industrials companies.

The financials

The financials, five years deep

Pulled from Axon Enterprise's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

What Axon Enterprise says it does

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…

Risk factors AXON lists in its 10-K

• We substantially depend on continued acceptance of our products and services by law enforcement agencies worldwide, and any reduction in demand could materially adversely affect our business
• We substantially depend on sales of our CEDs, and if these products do not continue to be widely accepted, our growth prospects, operating results and financial condition will be diminished
• If we are unable to design, introduce, sell and deploy new products or new product features successfully, our business and financial results could be adversely affected
• We face risks associated with rapid technological change and new competing products
• Negative publicity could adversely impact sales, which could cause our revenues or operating results to decline
• Acquisitions of, or investments in, other products, technologies or businesses could disrupt our business, dilute shareholder value, or adversely affect our operating results
• We may not successfully manage our growth or plan for future growth
• Unavailability of materials or higher costs could adversely affect our financial results
• Material adverse developments in domestic and global economic conditions, or the occurrence of other sufficiently disruptive world events, could materially adversely affect our revenue and results of operations
• Delays in product development schedules could adversely affect our revenues and cash flows
• We expend significant resources in anticipation of a sale due to our lengthy sales cycle and may receive no revenue in return
• Catastrophic events could materially adversely affect our business prospects, operating results, and financial condition
• Uncertainty in the development, deployment, and use of AI in our products and services, as well as our business more broadly, could adversely affect our business and reputation
• Defects or disruptions in our services could impact demand for our services and subject us to substantial liability
• Defects in our products could reduce demand for our products or result in product recalls and result in a loss of sales, delay in market acceptance and damage to our reputation
• Our international operations expose us to additional risks that could harm our business prospects, operating results and financial condition
• We depend on our ability to attract and retain our key management, sales and technical personnel
• Our revision and our restatement of previously issued consolidated financial statements may adversely affect investor confidence and could result in regulatory actions and stockholder litigation
• An increasing percentage of our revenue is derived from subscription billing arrangements that may result in delayed cash collections and may increase customer credit risk on receivables and contract assets
• factors, including our product mix, cost structure
• and acquisitions we may make, any of which could cause our gross margin to fluctuate
• Revenue for our SaaS products is recognized over multi-year contract terms, which may delay the reflection of new business in our operating results
• Most of our end-user customers are subject to budgetary and political constraints, which may delay or prevent sales, result in cancellations, or lead to the non-renewal of contracts
• The open bidding process introduces uncertainty in securing future contract awards
• We hold the majority of our cash balances, some of which are not insured,
• Stock transactions may have a material, unpredictable impact on our operating results and may result in dilution to existing shareholders
• Our financial performance is subject to risks associated with changes in the value of the U.S. dollar versus local currencies
• Unanticipated changes in our effective tax rate and additional tax liabilities could adversely affect our operating results and financial condition
• Our revenue and operating results may fluctuate unexpectedly from quarter-to-quarter, which could impact our stock price
• Our profitability could suffer from declines in fair value or impairment of our investments, including our strategic investments, and could fluctuate if the fair values of our investments increase
• We may face personal injury, wrongful death, product liability and other liability claims that could harm our reputation and adversely affect our business prospects, operating results and financial condition
• Other litigation, government inquiries and regulatory actions may subject us to significant costs and judgments and divert management attention from our business
• If we are unable to protect our intellectual property, the value of our brands and products may decrease and we may lose our competitive market advantage
• We may be unable to enforce patent rights internationally, which may limit our ability to prevent our product features from being used by competitors in some foreign jurisdictions
• The use of open-source software in our products, services and technologies may expose us to additional risks and harm our intellectual property
• A variety of new and existing laws and/or interpretations could materially and adversely affect our business
• Uncertainties with complex U.S. federal, state and local and foreign procureme
• nt laws and regulations of governments could cause us to incur costs, which could have a material adverse effect on our business, financial position, results of operations and cash flows
• We are subject to evolving corporate governance and public disclosure regulations and expectations that could expose us to numerous risks
• Fulfilling our debt obligations requires significant cash resources, which may exceed our available cash flow
• The 2027 Note Hedge and Warrant transactions may impact the value of our common stock
• We are exposed to counterparty risk with respect to the 2027 Note Hedge transactions
• Our indebtedness contains restrictive covenants that could limit our operational flexibility and adversely affect the value of our common stock

Filings

Other Industrials companies