AXON · 10-Q · 2026Q2

AXON ENTERPRISE, INC.

Filed 2026-08-06 · Industrials · View original filing on EDGAR

Ranked Events

• Financing ActivitiesImportance 83 · Surprise 82
  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…
• Liquidity and Cash PositionImportance 81 · Surprise 64
  Cash and cash equivalents declined $603.4 million to $597.7 million at June 30, 2026, while available-for-sale investments declined $429.7 million to $75.7 million, reducing total cash and investments by $1.033 billion…
• Strategic InvestmentsImportance 71 · Surprise 82
  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…
• Acquisition / Partnership / DivestitureImportance 71 · Surprise 60
  On February 18, 2026, Axon acquired the remaining 89.3% interest in Carbyne, a cloud-native emergency communications and response platform, for approximately $551.7 million of cash paid and $563.2 million of…
• Geographic Revenue CommentaryImportance 69 · Surprise 64
  The United States remained Axon’s largest market, generating $1.389 billion, or approximately 81% of six-month 2026 revenue, compared with $1.067 billion in the prior-year period. Revenue from other countries increased…
• Revenue Performance and MixImportance 69 · Surprise 64
  Axon’s six-month 2026 revenue increased across all reported offerings, with TASER revenue rising to $494.2 million from $411.7 million, Personal Sensors to $204.1 million from $181.2 million, Platform Solutions to…
• Operating Expense TrendsImportance 65 · Surprise 48
  Second-quarter operating expenses increased $94.9 million year over year, while six-month operating expenses increased $168.4 million, primarily because of higher headcount and investments in AI and other initiatives.…
• Outstanding IndebtednessImportance 64 · Surprise 42
  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…
• Operating Income and MarginsImportance 63 · Surprise 64
  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…
• Trade Policy and TariffsImportance 59 · Surprise 60
  On February 20, 2026, the Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act were unauthorized. Axon received $47.4 million of tariff refunds during the three months ended…
• Supply Chain and InventoryImportance 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,…
• Income Tax Rate ChangesImportance 57 · Surprise 64
  The second-quarter effective tax rate decreased to 10.0% from 192.9% in the prior-year quarter, while the tax provision increased to $3.3 million from a $75.0 million benefit. For the first six months, the effective…
• Contracted Demand BacklogImportance 56 · Surprise 24
  As of June 30, 2026, Axon reported approximately $9.8 billion of remaining performance obligations, including recognized contract liabilities and amounts to be invoiced and recognized in future periods. The company…
• Operating Cash Flow TrendsImportance 51 · Surprise 64
  Net cash used in operating activities improved to $11.4 million for the six months ended June 30, 2026, compared with $65.9 million used in the prior-year period. The 2026 operating cash outflow included $198.7 million…
• Gross Margin DriversImportance 49 · Surprise 32
  Second-quarter gross margin dollars increased $142.7 million year over year, while GAAP gross margin remained 60.4%; six-month gross margin declined to 59.8% from 60.5%. Adjusted gross margin decreased to 62.9% from…
• AI Technology AdoptionImportance 39 · Surprise 50
  Axon is integrating artificial intelligence across its hardware and software network, including evidence management, records management, real-time operations, emergency response, training, and productivity tools. The…
• Regulatory RiskImportance 37 · Surprise 42
  In May 2026, the Financial Accounting Standards Board issued ASU 2026-02, Environmental Credits and Environmental Credit Obligations (Topic 818). The standard establishes recognition, measurement, presentation, and…
• Product Launch and TransitionImportance 31 · Surprise 42
  Axon’s product portfolio includes TASER energy devices, cameras and sensors, drones and robotics, cloud-based evidence and records management, real-time operations software, emergency response systems, immersive…
• Capital ExpendituresImportance 25 · Surprise 6
  Axon spent $44.2 million on property and equipment during the six months ended June 30, 2026. Property and equipment purchases were included in total investing cash outflows of $465.8 million. Investing cash usage…

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