AXON · 10-Q · 2026Q2 · Full report

Supply Chain and Inventory

AXON ENTERPRISE, INC. · 2026-08-06 · Importance 58 · Surprise 56

Axon’s inventory increased to $486.6 million at June 30, 2026 from $341.8 million at December 31, 2025, an increase of approximately 42% in six months. Raw-material inventory rose to $214.9 million from $152.7 million, while finished goods increased to $258.2 million from $180.3 million. Work-in-process also increased to $13.5 million from $8.9 million. The filing separately reported $25.6 million of accrued inventory in transit, up from $15.7 million, indicating a larger inventory pipeline supporting higher demand for hardware products.

Key facts

• The change in operating assets and liabilities includes $39.6 million of inventory and accounts payable primarily driven by advanced raw material purchases for TASER 10 CEDs and counter-drone equipment. source
• Inventory at June 30, 2026: $486,556 (in thousands). source
• Inventory composition at June 30, 2026: Raw materials $214,857; Work-in-process $13,537; Finished goods $258,162 (all in thousands). source
• Warranty reserves balance, end of period for six months ended June 30, 2026: $10,302 (in thousands); beginning balance $10,858; utilization $(7,411); warranty expense $6,855. source