AXON · 10-Q · 2026Q2 · Full report
Outstanding Indebtedness
AXON ENTERPRISE, INC. · 2026-08-06 · Importance 64 · Surprise 42 · No source text
Axon had $1.750 billion of notes principal outstanding at June 30, 2026, consisting of $1.000 billion of 6.125% Senior Notes due 2030 and $750.0 million of 6.250% Senior Notes due 2033. The company redeemed or settled conversions of all remaining 2027 Notes during February 2026, paying $80.3 million in cash for conversions and $0.8 million for redeemed principal. Net notes payable was $1.732 billion at June 30, 2026, compared with $1.811 billion at December 31, 2025. Axon had no revolving-credit borrowings, $9.1 million of letters of credit outstanding, and $290.9 million of available borrowing under its $300.0 million facility.
Key facts
- The company redeemed and settled conversions in respect of all remaining outstanding 2027 Notes during the six months ended June 30, 2026; no 2027 Notes remained outstanding as of June 30, 2026. source
- In March 2025, the company issued $1.0 billion of 6.125% Senior Notes due 2030 and $750.0 million of 6.250% Senior Notes due 2033 in a private offering. source
- Purchase price of the 2027 Note Hedge: $194,994 (in thousands) for 3,016,680 shares; as of June 30, 2026, 2,642,030 shares remain covered by the Note Hedge which expires December 15, 2027 unless earlier terminated. source
- 2027 Warrants proceeds: $124,269 (in thousands) for initial shares 3,016,680 with strike price $338.86 and first expiration March 15, 2028; as of June 30, 2026, 2,662,063 shares remain subject to the Warrants. source
- The credit agreement provides a revolving credit facility of $300.0 million with an accordion to $400.0 million and letters of credit availability of $50.0 million. source
- As of June 30, 2026, no amounts were drawn under the Credit Agreement; letters of credit outstanding were approximately $9.1 million and available borrowing was $290.9 million (excluding accordion). source
- The change in financing cash flow compared to the prior period primarily reflects gross proceeds of $1.8 billion from the Senior Note issuance, partially offset by principal payments of $407.5 million related to the induced conversion of our 2027 Notes during the six months ended June 30, 2025. source
- The financing outflow was further driven by $81.1 million of principal payments related to the redemption of our 2027 Notes. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| assets | positive | realized | +2.6% | Purchase price of the 2027 Note Hedge: $194,994 (in thousands) for 3,016,680 shares; as of June 30, 2026, 2,642,030 shares remain covered… |
| cash | negative | realized | -1.1% | The financing outflow was further driven by $81.1 million of principal payments related to the redemption of our 2027 Notes. |
| liability | positive | realized | +1.1% | The financing outflow was further driven by $81.1 million of principal payments related to the redemption of our 2027 Notes. |
| liability | positive | realized | — | The company redeemed and settled conversions in respect of all remaining outstanding 2027 Notes during the six months ended June 30, 2026;… |
| liability | negative | realized | — | Notes payable principal at June 30, 2026: 2030 Notes $1,000,000; 2033 Notes $750,000; 2027 Notes $0, total principal $1,750,000 (all in… |
| liability | negative | realized | — | Total carrying amount of notes payable, net at June 30, 2026: $1,731,817 (in thousands) after unamortized debt issuance costs of $(18,183). |