AXON · 10-Q · 2026Q2 · Full report
Operating Income and Margins
AXON ENTERPRISE, INC. · 2026-08-06 · Importance 63 · Surprise 64 · No source text
Six-month income from operations improved to $76.0 million from a $9.8 million operating loss, producing an operating margin of approximately 4.4% versus negative 0.8% in the prior-year period. Second-quarter operating income was $46.8 million versus a $1.0 million operating loss, producing a 5.2% operating margin versus negative 0.2%. The six-month improvement reflected $441.7 million of additional gross margin compared with $168.4 million of additional operating expenses. Six-month net income increased 60.2% to $198.7 million, although other income included $202.3 million of strategic-investment gains.
Key facts
- Income from operations for the six months ended June 30, 2026 was $76.0 million compared to a loss from operations of $9.8 million for the same period in the prior year. source
- Income from operations for the three months ended June 30, 2026 was $46.8 million compared to a loss from operations of $1.0 million for the same period in the prior year. source
- Net income for the six months ended June 30, 2026 was $198.7 million and included net realized and unrealized gains of $202.3 million related to our strategic investments and a $34.2 million tax provision, partially offset by a noncash unrealized loss of $4.4 million related to our marketable securities. source
- Net income for the six months ended June 30, 2026: $198,739 (in thousands); basic EPS $2.47; diluted EPS $2.41. source
- We recorded net income of $198.7 million for the six months ended June 30, 2026; net income per basic share was $2.47 and net income per diluted share was $2.41. source
- Adjusted EBITDA for the three months ended June 30, 2026 was $242,024 thousand and for the six months ended June 30, 2026 was $443,654 thousand. source
- Income from operations for the three months ended June 30, 2026: $46,778 (in thousands). source
- Net income for the three months ended June 30, 2026: $29,427 (in thousands); basic EPS $0.37; diluted EPS $0.36. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | positive | realized | +22.4% | Net income for the six months ended June 30, 2026 was $198.7 million and included net realized and unrealized gains of $202.3 million… |
| operating_income | positive | realized | +9.5% | Income from operations for the six months ended June 30, 2026 was $76.0 million compared to a loss from operations of $9.8 million for the… |
| operating_income | positive | realized | +5.3% | Income from operations for the three months ended June 30, 2026 was $46.8 million compared to a loss from operations of $1.0 million for… |
| net_income | negative | realized | -3.8% | Net income for the six months ended June 30, 2026 was $198.7 million and included net realized and unrealized gains of $202.3 million… |
| net_income | negative | realized | -0.5% | Net income for the six months ended June 30, 2026 was $198.7 million and included net realized and unrealized gains of $202.3 million… |
| net_income | positive | realized | — | We recorded net income of $198.7 million for the six months ended June 30, 2026; net income per basic share was $2.47 and net income per… |
| operating_income | positive | realized | — | Adjusted EBITDA for the three months ended June 30, 2026 was $242,024 thousand and for the six months ended June 30, 2026 was $443,654… |