# Axon Enterprise Inc. (AXON) — Financial Analysis

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-13  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/axon/thesis · /memo/axon

## Financial Snapshot

---
ticker: AXON
step: 04
generated: 2026-05-12
source: quick-research
---

### Axon Enterprise Inc. (AXON) — Financial Snapshot

#### Income Statement Summary

| Metric | FY2022 | FY2023 | FY2024 | YoY |
|--------|--------|--------|--------|-----|
| Revenue | $1.19B | $1.56B | $2.08B | +33% |
| Gross Margin | ~56% | ~58% | ~60% | +2pp |
| Operating Margin | ~3% | ~4% | ~10% | +6pp |
| Net Income | ~$40M | ~$170M | ~$376M | +121% |
| EPS (diluted, GAAP) | ~$0.54 | ~$2.29 | ~$4.88 | +113% |

*FY2025: Revenue $2.80B (+33.5%); gross margin ~59.7%; operating income turned negative (-$29.7M GAAP) due to surging SBC ($500M+) and R&D/headcount investment; Adjusted EBITDA margin ~22–25%. FY2024 net income margin of 18.1% and Adj. EBITDA margin of 25% were exceptional; FY2025 GAAP earnings compressed by accelerated SBC grants.*
*Note: Management disclosed a material weakness in revenue recognition controls (immaterial dollar errors across 2022–2024).*

#### Cash Flow & Balance Sheet (FY2024)

| Metric | Value |
|--------|-------|
| Operating Cash Flow | $250M (+79% YoY) |
| Free Cash Flow | $225M |
| FCF Margin | ~11% |
| Cash & Equivalents | ~$1.0B+ |
| Total Debt | ~$600M (convertible notes) |

*FY2025 FCF declined sharply to ~$75M (-77% YoY) — driven by higher cash SBC, working capital build, and capex investment in platform scaling. Not a sign of business deterioration; Adjusted FCF backing out SBC-related taxes is closer to $400M+.*

#### Key Ratios (approximate, FY2025 trailing)
- P/E (GAAP): negative (FY2025 operating loss) | P/E (non-GAAP/Adj.): ~50–55x | EV/Revenue: ~8–9x
- ARR: $1.3B+ | Net Revenue Retention: 123%+ | Future Contracted Bookings: $10.1B
- Revenue Growth (FY2025): +33.5% | Adj. EBITDA Margin: ~22–24%

#### Growth Profile
Axon has compounded revenue at ~33% for four consecutive years — one of the most consistent hypergrowth trajectories among large-cap companies. The shift from TASER hardware seller to cloud subscription platform has raised gross margins (now ~60%), while the AI Era Plan (Draft One, Axon 911, advanced analytics) is accelerating ARR and average contract value expansion with existing customers. The company is still early in its TAM penetration (<2% of $129B), with international markets, enterprise verticals, and the AI software layer as the primary incremental drivers. Profitability on a GAAP basis will remain lumpy due to massive SBC grants to employees.

#### Forward Estimates
- **FY2026**: Revenue guidance $3.55–$3.65B (raised mid-year to ~30–32% growth); Adj. EBITDA margin targeted at 20–22%; annual bookings trajectory toward $10B+
- **FY2028 Target**: Management targets $5B+ revenue; AI software becoming 50%+ of revenue; margins structurally improving as software scales
- **SBC headwind**: $590–620M SBC guided for FY2026 — GAAP earnings will remain depressed vs. non-GAAP metrics

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/AXON/fundamental

## Navigation

- Overview: /stocks/axon
- Financials (this page): /stocks/axon/financials
- Thesis: /stocks/axon/thesis
- Investment Memo: /memo/axon
- Coverage universe: /stocks