Axon Enterprise

AXON · Nasdaq · Industrials · Financials, fiscal 2016 to 2025

AXON · Last close · October 26, 2026

$424.77

Axon Enterprise's revenue rose 33.5% to $2.8 billion in fiscal 2025. Its operating margin was −2.2%, down from 2.8% a year earlier. Free cash flow was $75 million, down 77.2%. The diluted share count rose 4.8%.

AXON ENTERPRISE, INC. Latest fiscal year ended December 31, 2025 10-K filed February 25, 2026 · 0001628280-26-011360 Updated October 9, 2026

Revenue

$2.8B

33.5%

Operating margin

−2.2%

5.0 pts

Net income

$125M

66.9%

Free cash flow

$75M

77.2%

Return on capital

−2.2%

5.8 pts

Market cap

$35.0B

Oct 26 close

P/E

176.3x

On $2.41 EPS, 4 qtrs

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

About these figures. Axon had no borrowings before it issued convertible notes in December 2022 (its credit line was undrawn), so debt counts as zero in earlier years. In 2024 Axon's convertible notes were due within a year and its amended 10-K moved them to a current line, which is counted as debt.

What Axon Enterprise does

Axon sells technology to police, other public safety agencies and some private customers. It describes itself as a company that sells both hardware and software that work together. Its products include TASER stun devices, body cameras, in-car and fixed cameras, drones, and cloud software for storing and sharing video evidence, writing reports and running real-time operations. Many of its software tools use artificial intelligence.

It reports two segments. Software and Services sells cloud subscriptions, such as Axon Evidence, Axon Records and the Draft One report-writing tool, along with professional services and some on-premise software licenses. Connected Devices sells TASER devices, body and other cameras, drone and counter-drone products, accessories and extended warranties. Its revenue comes from hardware sales, multi-year software subscriptions, professional services and extended warranties.

Axon is based in Scottsdale, Arizona, and is expanding in Europe, Asia and the Americas. Its largest customers are law enforcement agencies, so its sales depend on their budgets and their acceptance of its products.

Its biggest risks, as it describes them

Depending on law enforcement agencies around the world to keep buying its products and services.
Depending on sales of its TASER devices, which may lose acceptance.
Selling cycles are long and it spends money before it knows whether a sale will follow.
A security breach at Axon or its cloud providers, which hold sensitive evidence.
Uncertainty over how AI in its products will be developed, regulated and accepted.

From Axon Enterprise's annual report on Form 10-K, filed February 25, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new 10-K.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

From fiscal 2016 to 2025, earnings per share grew 18.8% a year and net income 24.5% a year, as new shares raised the share count by 54% and diluted each share's earnings.

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Valuation

Two ways to value Axon Enterprise yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Axon Enterprise's 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

Value per share on three example scenarios, from Axon Enterprise's cash from operations minus depreciation in fiscal 2025 (free cash flow before spending to grow: capital spending was 1.6 times depreciation, which holds its free cash flow down) of $128M, net cash of −$104M at December 31, 2025 and 82 million diluted shares, from its filings. The scenarios are fitted to Axon Enterprise: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, 32.8% a year, kept between 0% and 20%; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 10%: 9% for a business of moderate risk (Aerospace & Defense), plus 1 point for unsteady results (a loss in fiscal 2021); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus depreciation in fiscal 2025: a rough guide to cash flow before spending to grow, for a company building heavily.

Net cash, US$ millions

Cash and short-term investments minus debt and finance leases at December 31, 2025. Negative means net debt.

Diluted shares, millions

Weighted-average diluted shares in fiscal 2025.

Your assumptions

Start from

Fitted to Axon Enterprise's own revenue growth, as above. Cautious: growth of 10% then 6% a year, 2% after year 10, a 11% discount rate. Base: growth of 20% then 11% a year, 2.5% after year 10, a 10% discount rate. Optimistic: growth of 25% then 14% a year, 3% after year 10, a 9% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $424.77
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

Value per share on three example scenarios, from Axon Enterprise's earnings per share of $2.41 (over the last four quarters). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 31.6×, the middle of Axon Enterprise's own P/E today, its peers' median and its sector's median (its peers' median) for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 11%, 10% and 9%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

Earnings per share, US$

Diluted earnings per share over the four quarters to June 30, 2026, from the 10-Qs and 10-K.

P/E multiple

P/E today is the last close divided by the latest earnings per share, the four quarters' where available. Peers: BWX Technologies, Curtiss-Wright, Leonardo DRS, Moog.

Earnings growth in the years ahead (% a year) Starts at Axon Enterprise's revenue growth over the last 3 years, 32.8% a year, kept between 0% and 20%, as the base scenario does.

Earnings per share in the years ahead, US$

Year 1Year 2Year 3Year 4Year 5

Type your own estimate for any year; the years after it carry on at the growth rate.

Apply the multiple to earnings

A multiple on a future year's earnings gives the price then, brought back to today at the discount rate below.

Discount rate (% a year) The yearly return an investor wants for the risk, as in the cash flow model.

Value per share today at this multiple

—

Last close, October 26, 2026: $424.77
Value at this multiple, against the last close: —
Axon Enterprise's P/E at the last close: 176.3×

Company	Last close	Earnings per share	P/E today
Axon EnterpriseAXON	$424.77	$2.41	176.3×
BWX TechnologiesBWXT	$131.20	$3.86	34.0×
Curtiss-WrightCW	$476.54	$14.52	32.8×
MoogMOG-A	$358.27	$11.76	30.5×
Leonardo DRSDRS	$35.84	$1.19	30.1×

How the P/E method works. Value per share is earnings per share times the multiple. On a future year's earnings, that gives the price in that year, which is brought back to today at the discount rate: price ÷ (1 + discount rate) for each year ahead. It is quick and easy to compare across companies, but it ignores debt and cash, and earnings can swing with one-off gains and charges, so a multiple says most about steady, profitable businesses. Like the cash flow model, the result depends entirely on the assumptions you choose. It is not a forecast, a price target or a recommendation.

Balance sheet

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	371	936	1,243	788	1,707
Debt incl. finance leases	0	674	677	680	1,811
Net debt (negative means net cash)	−371	−262	−565	−108	104
Net debt to EBITDA	—	−2.2x	−3.2x	−1.0x	4.9x
Debt to equity	0.0x	0.5x	0.4x	0.3x	0.6x
Interest coverage	—	—	22.4x	8.2x	−0.7x
Current ratio	2.6x	3.0x	3.1x	1.4x	2.5x
Quick ratio	2.4x	2.7x	2.8x	1.2x	2.3x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

Over the 12 months between October 27, 2025 and October 26, 2026, no insider bought Axon Enterprise shares on the open market, and 11 insiders sold $129.6 million, $81.3 million of it under trading plans set up in advance.

Date	Insider	Trade	Shares	Price	Value	Filing
Sep 11, 2026	Isaiah FieldsChief Legal Officer	Sold plan	1,017	$480.45	$488,618	Form 4
Sep 8, 2026	Patrick W SmithChief Executive Officer, Director	Sold plan	10,000	$508.99	$5.1 million	Form 4
Aug 31, 2026	Joshua IsnerPresident	Sold plan	16,775	$574.43	$9.6 million	Form 4
Aug 21, 2026	Jeffrey C KuninsCpo & CTO	Sold plan	9,605	$626.70	$6.0 million	Form 4
Aug 7, 2026	Patrick W SmithChief Executive Officer, Director	Sold plan	9,930	$548.77	$5.4 million	Form 4
Aug 7, 2026	Patrick W SmithChief Executive Officer, Director	Sold plan	70	$566.62	$39,663	Form 4
Jul 7, 2026	Patrick W SmithChief Executive Officer, Director	Sold plan	10,000	$643.79	$6.4 million	Form 4
Jun 29, 2026	Patrick W SmithChief Executive Officer, Director	Sold plan	10,000	$500.00	$5.0 million	Form 4
Jun 5, 2026	Joshua IsnerPresident	Sold	13,000	$488.45	$6.3 million	Form 4
Jun 4, 2026	Patrick W SmithChief Executive Officer, Director	Sold plan	20,000	$500.00	$10.0 million	Form 4
Jun 4, 2026	Elizabeth Reid CoughlinChief Human Officer	Sold	1,554	$485.00	$753,690	Form 4
Jun 4, 2026	Cameron BrooksChief Revenue Officer	Sold plan	1,242	$500.00	$621,000	Form 4

The latest 12 of 38 trades. Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY23	FY24	FY25
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Fail	Pass	Fail
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Pass	Pass	Fail
Current ratio rose	Pass	Fail	Pass
Share count didn't rise	Fail	Fail	Fail
Gross margin rose	Pass	Fail	Pass
Revenue rose relative to assets	Fail	Pass	Pass
F-score	6 of 9	6 of 9	6 of 9
Accruals ratio	−0.4%	−0.8%	−1.5%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put Axon Enterprise side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Axon Enterprise	FY25	33.5%	−2.2%	2.7%	−2.2%	4.9x	6
BWX Technologies	FY25	18.3%	12.7%	9.2%	13.9%	3.0x	7	Compare
Curtiss-Wright	FY25	12.1%	18.1%	15.8%	15.9%	0.8x	8	Compare
Leonardo DRS	FY25	12.8%	9.5%	6.2%	11.6%	−0.4x	7	Compare
Moog	FY25	7.0%	11.7%	3.3%	11.7%	1.8x	7	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	268	344	420	531	681	863	1,187	1,561	2,082	2,780
Revenue growth	35.5%	28.2%	22.2%	26.4%	28.3%	26.8%	37.5%	31.5%	33.4%	33.5%
Gross profit	170	207	259	307	416	541	726	956	1,241	1,658
Research and development	31	55	77	101	123	194	234	304	442	684
Operating income	32	13	25	−6	−14	−168	93	157	58	−62
Net income	17	5	29	1	−2	−60	147	176	377	125
Diluted EPS (US$)	0.32	0.10	0.50	0.01	−0.03	−0.91	2.03	2.33	4.80	1.51
Diluted shares (millions)	54	54	58	60	62	66	72	76	79	82
Cash flow
Cash from operations	21	18	64	66	38	124	235	189	408	211
Capital expenditure	5	10	11	16	73	50	56	60	79	136
Free cash flow	16	8	53	50	−34	75	180	130	330	75
Dividends paid	0	0	0	0	0	0	0	0	0	0
Share buybacks	34	0	0	0	0	0	0	0	0	0
Acquisitions	4	11	5	0	0	22	2	21	622	647
Stock-based compensation	9	16	22	78	134	303	106	131	383	634
Balance sheet at fiscal year end
Cash and short-term investments	89	82	350	351	562	371	936	1,243	788	1,707
Debt incl. finance leases	0	0	0	0	0	0	674	677	680	1,811
Total assets	278	338	720	846	1,381	1,688	2,852	3,409	4,475	7,000
Total liabilities	127	171	252	302	405	640	1,583	1,793	2,147	3,758
Shareholders' equity	151	167	467	544	976	1,050	1,271	1,616	2,328	3,243
Margins and ratios
Gross margin	63.6%	60.2%	61.6%	57.9%	61.1%	62.6%	61.2%	61.2%	59.6%	59.6%
Operating margin	11.9%	3.8%	5.9%	−1.2%	−2.1%	−19.5%	7.8%	10.1%	2.8%	−2.2%
Net margin	6.5%	1.5%	7.0%	0.2%	−0.2%	−7.0%	12.4%	11.3%	18.1%	4.5%
Free cash flow margin	6.0%	2.3%	12.6%	9.4%	−5.0%	8.6%	15.1%	8.3%	15.8%	2.7%
Return on capital	32.1%	8.8%	24.4%	−2.1%	−3.7%	−24.3%	8.2%	15.2%	3.5%	−2.2%
Return on equity	11.2%	3.3%	9.2%	0.2%	−0.2%	−5.9%	12.7%	12.2%	19.1%	4.5%
Return on assets	6.8%	1.7%	5.5%	0.1%	−0.1%	−3.9%	6.5%	5.6%	9.6%	2.2%
Net debt to EBITDA	−2.5x	−3.9x	−9.9x	−70.6x	—	—	−2.2x	−3.2x	−1.0x	4.9x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Axon Enterprise's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Axon Enterprise.