AXON · 8-K · 20260805PR053363
Operating Expense Trends
AXON ENTERPRISE, INC. · 2026-08-05 · Importance 59 · Surprise 48 · In source text
Q2 SG&A expense increased 20.1% year over year to $291.0 million, or 32.2% of revenue, and included $71.0 million of stock-based compensation. R&D expense increased 28.4% year over year to $208.7 million, or 23.1% of revenue, and included $61.7 million of stock-based compensation. Total operating expenses were $499.7 million, up from $404.8 million a year earlier, reflecting increased investment to support future growth. Axon expects full-year 2026 stock-based compensation expense of approximately $590 million to $620 million, including approximately $280 million associated with Employee XSP and the CEO Performance Award.
Key facts
- Axon expects full-year 2026 stock-based compensation expense of approximately $590 million to $620 million source
- Full-year 2026 stock-based compensation includes approximately $280 million related to the Employee XSP and the CEO Performance Award source
- Cost of goods sold (COGS) for the quarter: $358 million, or 39.6% of revenue, included $11 million in stock-based compensation expense source
- Selling, general and administrative (SG&A) expense: $291 million, or 32.2% of revenue, included $71 million in stock-based compensation expense source
- Research and development (R&D) expense: $209 million, or 23.1% of revenue, included $62 million in stock-based compensation expense source
- Depreciation and amortization: 32,463 (three months ended 30 JUN 2026), 30,361 (31 MAR 2026), 17,157 (30 JUN 2025); 62,824 (six months ended 30 JUN 2026) and 36,610 (six months ended 30 JUN 2025) source
- Long-term deferred compensation: 33,094 (30 JUN 2026) and 23,675 (31 MAR 2026?) source
- Stock-based compensation: $143,996 (three months ended 30 JUN 2026) and $134,701 (31 MAR 2026) and $139,244 (30 JUN 2025); $278,697 (six months ended 30 JUN 2026) and $279,483 (six months ended 30 JUN 2025) source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -39.6% | Cost of goods sold (COGS) for the quarter: $358 million, or 39.6% of revenue, included $11 million in stock-based compensation expense |
| operating_income | negative | probable | -33.5% | Axon expects full-year 2026 stock-based compensation expense of approximately $590 million to $620 million |
| operating_income | negative | realized | -32.2% | Selling, general and administrative (SG&A) expense: $291 million, or 32.2% of revenue, included $71 million in stock-based compensation… |
| operating_income | negative | realized | -23.1% | Research and development (R&D) expense: $209 million, or 23.1% of revenue, included $62 million in stock-based compensation expense |
| operating_income | negative | probable | -15.5% | Full-year 2026 stock-based compensation includes approximately $280 million related to the Employee XSP and the CEO Performance Award |
| operating_income | negative | realized | -7.8% | Selling, general and administrative (SG&A) expense: $291 million, or 32.2% of revenue, included $71 million in stock-based compensation… |
| operating_income | negative | realized | -6.9% | Research and development (R&D) expense: $209 million, or 23.1% of revenue, included $62 million in stock-based compensation expense |
| operating_income | negative | realized | -1.2% | Cost of goods sold (COGS) for the quarter: $358 million, or 39.6% of revenue, included $11 million in stock-based compensation expense |