Axon Enterprise, Inc.AXON
NasdaqGS•Industrials•Aerospace & Defense
Axon Enterprise, Inc. provides public safety technology solutions in the United States and internationally. The company operates in two segments, Software and Services, and Connected Devices. The Software and Services segment develops, manufactures, and sells cloud-based software-as-a-service solutions to capture, store, manage, share, and analyze video and other digital evidence. This segment also offers Axon Evidence, Draft One, Axon Records, Axon Standards, Axon Fusus, Axon Assistant, and others. The Connected Devices segment engages in the development, manufacture, and sale of integrated hardware solutions, such as conducted energy devices under the TASER brand, body cameras, fixed and in-car cameras, drone and counter-drone technologies, accessories, extended warranties, and related hardware products, as well as virtual reality training hardware. The company serves first responders across international, federal, state, and local governments, international governmental entities, commercial enterprises, and consumers through direct sales, distribution partners, and third-party resellers. The company was formerly known as TASER International, Inc. and changed its name to Axon Enterprise, Inc. in April 2017. Axon Enterprise, Inc. was incorporated in 1993 and is headquartered in Scottsdale, Arizona.
as of March 2026
Are revenues and earnings expanding?
$2.98B in TTM revenue grew 34.1% YoY, reaching $807.35M last quarter. TTM EBITDA of $106.79M on operating income of $29.24M shows growth is flowing through. Net income of $205.99M TTM confirms the company is converting revenue into profit. Revenue is growing at a healthy pace — a signal to hold.
Is revenue turning into profit effectively?
Op. margin of 3.6% is up 5.1% YoY — cost efficiency is improving. Net margin at 21.0% and gross margin of 59.1%. ROE of 5.8% shows the company generates solid returns on shareholder equity.
Is the stock cheap or expensive?
At 164.7x P/E, the stock trades at a premium — the market expects above-average growth. P/S of 11.4x and P/B of 9.6x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.
Is the company financially stable?
With $7.07B in assets and $1.73B in long-term debt, the D/E of 0.5 shows a conservative capital structure — the company has a strong financial cushion to weather downturns.
Is the business self-funding?
FCF of $-54.64M on $-31.52M in operating cash flow. The FCF / Net Income ratio of -0.3x shows cash consumption — the business is not yet self-funding. Cash reserves of $458.92M provide financial flexibility. Shares outstanding rose 4.2% YoY — shareholder dilution is eroding per-share value.
Competitive analysis based on 60 quarters of fundamental data
Operating margins are under pressure, averaging 0.5%. The business may lack pricing power or face rising costs.'
ROE is positive at ~11.1% on average, adequate but below the threshold typically associated with wide moats.
Data-driven red flags and warnings across 60 quarters
Operating margins dropped 145.1% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.
FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.
D/E ratio is 0.5 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
FCF turned negative in 2 of the last 8 quarters — occasional cash consumption.
Shares outstanding increased 6.1% — significant dilution, likely from stock compensation or capital raises.
6 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
TTM revenue has grown consistently (7 of 7 quarters up), with ~64.8% growth over the period. Strong demand durability.