Axon Enterprise (AXON)
Industrials · $37.3B market cap · SEC CIK 0001069183
fundamentals score out of 100
Next reports on Nov 2, 2026, with analysts expecting $1.96 in earnings per share.
The case for AXON
- Revenue up 34.6% 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 2.1 times over.
The case against
- Very expensive at 187.2× earnings. Years of growth are already in the price.
- Earnings per share down 40.2%.
- Down 41.6% 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 6%.
- Free cash flow is only 0.2% of its market value, a thin cash return for the price.
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. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 10 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 79 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 27 |
| Momentumhow the price has behaved lately | 33 |
| Stabilityhow violently it moves, what it owes and what it pays you | 18 |
- Each factor except momentum is half fixed thresholds, half rank among the 79 Industrials companies.
Key numbers
| Price / earnings | 187.2× |
|---|---|
| Price / book | 12.30× |
| Price / sales | 11.6× |
| Revenue growth (YoY) | +34.6% |
| EPS growth (YoY) | -40.2% |
| Gross margin | 59% |
| Operating margin | 0% |
| Net margin | 6% |
| Return on equity | 6% |
| Debt / equity | 0.47× |
| Current ratio | 2.15 |
| Dividend yield | none |
| Beta | 1.46 |
| 52-week range | $339.01 – $792.16 |
| Position in that range | 27% of the way up |
| 3-month return | +6.8% |
| 1-year return | -41.6% |
Five years of financials, as filed
Pulled from Axon Enterprise's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $2.8B | $2.1B | $1.6B | $1.2B | $866M |
| Gross profit | $1.7B | $1.2B | $955M | $726M | $546M |
| Operating income | -$62.1M | $58.5M | $157M | $93.0M | -$163M |
| Net income | $125M | $377M | $176M | $147M | -$56.3M |
| Operating cash flow | $211M | $408M | $189M | $235M | $124M |
| Capital expenditure | $136M | $78.8M | $59.6M | $55.8M | $49.9M |
| Total assets | $7.0B | $4.5B | $3.4B | $2.9B | $1.7B |
| Total liabilities | $3.8B | $2.1B | $1.8B | $1.6B | $640M |
| Shareholder equity | $3.2B | $2.3B | $1.6B | $1.3B | $1.1B |
| Cash | $1.2B | $455M | $599M | $354M | $356M |
| Long-term debt | $1.7B | $0 | $677M | — | — |
| Free cash flow | $75.1M | $330M | $130M | $180M | $74.6M |
| Gross margin | 59.7% | 59.6% | 61.2% | 61.2% | 63.0% |
| Operating margin | -2.2% | 2.8% | 10.0% | 7.8% | -18.8% |
| Net margin | 4.5% | 18.1% | 11.3% | 12.4% | -6.5% |
| Diluted shares | 82.4M | 78.6M | 75.5M | 72.5M | 66.2M |
Share count is up 24.4% over 4 years. Your slice has been diluted.
What Axon Enterprise says it does
– Governmental Regulation" in this Annual Report on Form 10-K for the year ended December 31, 2025. 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 have entered and will enter into contracts with U.S. federal, state and local governments and foreign governments. This subjects us to various statutes and regulations applicable to companies doing business with governments, including the Federal Acquisition Regulation ("FAR"). We must comply with laws and regulations relating to the formation, administration and performance of U.S. federal, state and local and foreign government contracts. These laws and regulations govern how we conduct business with government customers. Recently issued executive orders are intended to…
Risk factors AXON lists in its 10-K
- Sensors — Connected Cameras and Digital Evidence Management Software
- Productivity and Real-Time Operations Software — Records Management System ("RMS") and Axon Fusus
- Emergency Communications Software — 911 Data, AI and Call Handling Platforms
- VR De-Escalation Training for Law Enforcement, Corrections and Private Security
- Radio Spectrum and Unmanned Systems
- CED Products and Related Operations
- Export Controls and International Regulation
- State and Local Regulation and Supply Chain Regulation
- Regrettable attrition is defined as rolling 12-month attrition of employees rated as top performing in the prior performance rating cycle
- 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