AXON · 10-Q · 2026Q2 · Full report
Financing Activities
AXON ENTERPRISE, INC. · 2026-08-06 · Importance 83 · Surprise 82 · Contradicted
Net cash used in financing activities was $122.6 million for the six months ended June 30, 2026, compared with $1.3 billion of financing cash provided in the prior-year period. Employee stock-award net settlements generated $140.2 million of income and payroll tax payments, with another $0.3 million unpaid at June 30, 2026. Axon also paid $81.1 million of principal related to redemption of its 2027 Notes. Financing inflows included $100.5 million of net proceeds from the ATM equity offering program, while the prior-year period benefited from $1.8 billion of Senior Note issuance proceeds.
Key facts
- The ATM program authorizes sale up to approximately 2.0 million shares; during the three months ended June 30, 2026 the company sold approximately 0.2 million shares generating aggregate gross proceeds of approximately $101.2 million and net proceeds of $100.3 million after $0.9 million of related expenses. source
- Net cash used in financing activities: $122.6 million for the six months ended June 30, 2026 compared to net cash provided by financing activities of $1.3 billion for the six months ended June 30, 2025. source
- As of June 30, 2026, the Employee XSP had an approved pool of approximately 4.5 million shares reserved for XSUs, approximately 0.9 million XSUs remain available, and approximately 0.5 million XSUs were granted during the six months ended June 30, 2026. source
- Shareholders approved the Amended 2022 Plan in May 2024 authorizing an additional 2.2 million shares; as of June 30, 2026 there are 2.6 million shares available for grant under the Amended 2022 Plan. source
- The financing cash outflow in the current period was primarily driven by $140.2 million of income and payroll tax payments made on behalf of employees who net-settled stock awards during the period, as well as $0.3 million which remains unpaid as of the six months ended June 30, 2026. source
- Financing cash inflow for the period includes $100.5 million of net cash proceeds from our ATM equity offering program, considering any unpaid issuance costs as of June 30, 2026. source
- During the six months ended June 30, 2026, conversion of convertible debt and shares received from convertible note hedge, net: 170,731 shares issued and $22,979 (in thousands) additional paid-in capital; 41,139 shares received from option counterparties in February 2026 related to partial termination of the Note Hedge and Warrants. source
- Net cash used in financing activities for the six months ended June 30, 2026 was $(122,618) thousand. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | negative | realized | -1.9% | The financing cash outflow in the current period was primarily driven by $140.2 million of income and payroll tax payments made on behalf… |
| cash | positive | realized | +1.3% | The ATM program authorizes sale up to approximately 2.0 million shares; during the three months ended June 30, 2026 the company sold… |
| operating_income | negative | realized | — | As of June 30, 2026, the Employee XSP had an approved pool of approximately 4.5 million shares reserved for XSUs, approximately 0.9… |
| liability | negative | realized | 0.0% | The financing cash outflow in the current period was primarily driven by $140.2 million of income and payroll tax payments made on behalf… |