AXON · 10-Q · 2026Q2 · Full report
Strategic Investments
AXON ENTERPRISE, INC. · 2026-08-06 · Importance 71 · Surprise 82 · In source text
Axon invested $189.8 million to acquire additional equity interests in an existing strategic investee and invested another $49.9 million in a separate strategic investee during the first six months of 2026. The company recognized a $158.8 million gain from an observable price change in the existing strategic investee. Strategic investments increased to $853.8 million at June 30, 2026 from $416.8 million at December 31, 2025. Net income from strategic investments was $202.3 million for the first six months, compared with $166.0 million in the prior-year period.
Key facts
- During the six months ended June 30, 2026, the company acquired additional equity interests in an existing strategic investee for aggregate $189.8 million and acquired equity interests in a separate strategic investee for $49.9 million. source
- Other income, net for the six months ended June 30, 2026 was $196,202 thousand, which included income from strategic investments, net, of $202,309 thousand and realized and unrealized loss on marketable securities, net, of $(4,436) thousand. source
- Net cash used in investing activities includes $302.8 million for investment purchases, which includes $302.1 million of strategic investments purchases. source
- Income (loss) from strategic investments, net for the six months ended June 30, 2026: $202,309 (in thousands). source
- Carrying value of total strategic investments at June 30, 2026: $853,842 (in thousands); non-marketable equity securities $848,099 (in thousands). source
- During the six months ended June 30, 2026, proceeds from the sale of available-for-sale securities were $70.5 million and net proceeds from sales of marketable securities were $3.7 million representing net realized gains of $1.7 million. source
- Other income (loss), net for the three months ended June 30, 2026 was $7,192 thousand, which included income from strategic investments, net, of $5,709 thousand and realized and unrealized gain on marketable securities, net, of $1,075 thousand. source
- The realized and unrealized gains on our strategic investments were primarily related to an observable price change for one of our investees. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | positive | realized | +21.7% | Other income, net for the six months ended June 30, 2026 was $196,202 thousand, which included income from strategic investments, net, of… |
| cash | negative | realized | -3.2% | During the six months ended June 30, 2026, the company acquired additional equity interests in an existing strategic investee for… |
| assets | positive | realized | +3.2% | During the six months ended June 30, 2026, the company acquired additional equity interests in an existing strategic investee for… |
| assets | unclear | realized | — | Carrying value of total strategic investments at June 30, 2026: $853,842 (in thousands); non-marketable equity securities $848,099 (in… |