A Business at a Glance
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AXON ENTERPRISE, INC.
AXON
$41.5B
Mkt Cap
$502.34
+2.12%
AXON ENTERPRISE, INC. (AXON) has a current P/E ratio of 332.7, compared to its historical median P/E of 81.3. The stock is currently considered Expensive based on its historical valuation range.
AXON ENTERPRISE, INC. (AXON) has a 5-year average return on invested capital (ROIC) of 7.4%. This is below average and may indicate limited pricing power.
AXON ENTERPRISE, INC. (AXON) has a market capitalization of $40.5B. It is classified as a large-cap stock.
AXON ENTERPRISE, INC. (AXON) does not currently pay a regular dividend.
Based on historical P/E analysis, AXON ENTERPRISE, INC. (AXON) appears expensive. The current P/E of 332.7 is 309% above its historical median of 81.3. The estimated fair value CAGR (P/E method) is 87.4%.
AXON ENTERPRISE, INC. (AXON) operates in the Ordnance & Accessories, (No Vehicles/Guided Missiles) industry, within the Industrials sector.
AXON ENTERPRISE, INC. (AXON) reported annual revenue of $2.8 billion in its most recent fiscal year, based on SEC EDGAR filings.
Axon Enterprise is a technology company providing integrated hardware and software solutions to public and private sector customers globally, with a mission to protect life through innovation in public safety and justice systems. The company operates through two reportable segments: Software and Services, which delivers cloud-based SaaS solutions for digital evidence management, productivity, and real-time operations with annual recurring revenue of $1.3 billion as of December 31, 2025; and Connected Devices, which manufactures and sells conducted energy devices (TASER), body cameras, in-car cameras, drones, counter-drone technologies, and related accessories and warranties. Axon's business model combines recurring software subscription revenue with hardware sales, professional services, and extended warranties, creating a diversified revenue stream with strong unit economics driven by multi-year customer relationships and ecosystem lock-in. The company distributes primarily through direct sales to U.S. federal, state, and local governments, international governmental entities, commercial enterprises, and consumers, with no single customer exceeding 10% of total net sales, and maintains manufacturing and assembly operations in Arizona with substantial ownership of production equipment and tooling. Axon's competitive advantages include its integrated platform architecture that seamlessly connects hardware and software, extensive intellectual property portfolio of over 370 U.S. patents and 170 registered trademarks, strong customer relationships and sales force, and a mission-driven culture that attracts talent to solve complex public safety challenges.
【AI-driven platform acceleration】 Management expects rapid adoption of AI-enabled capabilities including Axon 911, Axon Vision, Axon Gravity, and expanded Axon Assistant functionality to drive continued growth momentum. The company is positioning itself as the AI company in public safety and sees significant runway in new product portfolios with pipelines in the nine figures, supported by strong bookings trends and customer consolidation around trusted platforms. Counter-drone technology represents a major growth leg with demand described as among the fastest hardware adoption rates the company has experienced, while international markets are showing fundamentally stronger momentum with two consecutive quarters at approximately 20% growth. Management expects software growth to outpace hardware growth over the longer term, with continued investment in R&D and new market expansion into corrections, justice, international, and enterprise segments, while maintaining disciplined capital allocation focused on execution and integration of recent acquisitions.
| Metric | Target | Period |
|---|---|---|
| Revenue growth | 30%-32% | FY2026 |
| Adjusted EBITDA margin | 25.5% | FY2026 |
| Free cash flow | approximately $450 million | FY2026 |
| Stock-based compensation expense | $590 million-$620 million | FY2026 |
Revenue growth (FY2026): “we're well-positioned to deliver on our top-line expectations and are raising our revenue guidance for the year to a range of 30%-32% growth”
Adjusted EBITDA margin (FY2026): “We still expect to deliver 25.5% adjusted EBITDA margins for the year, consistent with our prior guidance.”
Free cash flow (FY2026): “we expect free cash flow conversion to improve meaningfully and expect to deliver approximately $450 million of free cash flow for the full year in 2026”
Stock-based compensation expense (FY2026): “On stock-based compensation, we expect full year of expense of approximately $590 million-$620 million.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 3.0B | 2.8B | 2.1B | 1.6B | 1.2B | 863M |
| Net Income | 206M | 125M | 377M | 176M | 147M | -60M |
| EPS | $2.57 | $1.51 | $4.80 | $2.33 | $2.03 | $-0.91 |
| Free Cash Flow | 20M | 75M | 330M | 130M | 180M | 75M |
| ROIC | -1.0% | 3.4% | 16.3% | 14.9% | 8.0% | -5.9% |
| Gross Margin | 59.3% | 59.7% | 59.6% | 61.2% | 61.2% | 62.7% |
| Debt/Equity | 0.49 | 0.59 | 0.31 | 0.44 | 0.56 | 0.03 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | -24M | -62M | 59M | 157M | 93M | -168M |
| Operating Margin | -0.8% | -2.2% | 2.8% | 10.0% | 7.8% | -19.5% |
| ROE | 5.8% | 4.5% | 19.1% | 12.2% | 12.7% | -5.9% |
| Shares Outstanding | 81M | 83M | 79M | 75M | 72M | 66M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 165M | 198M | 268M | 344M | 420M | 531M | 681M | 863M | 1.2B | 1.6B | 2.1B | 2.8B | 3.0B |
| Gross Margin | 61.7% | 65.0% | 63.6% | 60.2% | 61.6% | 57.9% | 61.1% | 62.7% | 61.2% | 61.2% | 59.6% | 59.7% | 59.3% |
| R&D | 15M | 24M | 31M | 55M | 77M | 101M | 123M | 194M | 234M | 304M | 442M | 684M | 722M |
| SG&A | 54M | 70M | 108M | 139M | 157M | 213M | 307M | 515M | 399M | 495M | 741M | 1.0B | 1.1B |
| EBIT | 33M | 35M | 32M | 13M | 25M | -6.4M | -14M | -168M | 93M | 157M | 59M | -62M | -24M |
| Op. Margin | 19.8% | 17.9% | 11.9% | 3.8% | 5.9% | -1.2% | -2.1% | -19.5% | 7.8% | 10.0% | 2.8% | -2.2% | -0.8% |
| Net Income | 20M | 20M | 17M | 5.2M | 29M | 882K | -1.7M | -60M | 147M | 176M | 377M | 125M | 206M |
| Net Margin | 12.1% | 10.1% | 6.4% | 1.5% | 7.0% | 0.2% | -0.3% | -7.0% | 12.4% | 11.3% | 18.1% | 4.5% | 6.9% |
| Non-Recurring | 483K | 19K | 1.1M | 51K | -303K | -2.5M | -1.7M | -92K | -5.5M | 0 | 0 | 32M | 32M |
| Returns on Capital | |||||||||||||
| ROIC | 34.9% | 40.3% | 35.0% | 10.6% | 24.4% | 0.2% | -0.2% | -5.9% | 8.0% | 14.9% | 16.3% | 3.4% | -1.0% |
| ROE | 16.8% | 13.9% | 11.2% | 3.3% | 9.2% | 0.2% | -0.2% | -5.9% | 12.7% | 12.2% | 19.1% | 4.5% | 5.8% |
| ROA | 11.9% | 9.6% | 6.8% | 1.7% | 5.5% | 0.1% | -0.2% | -3.9% | 6.5% | 5.6% | 9.6% | 2.2% | 2.9% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 35M | 46M | 21M | 18M | 64M | 66M | 38M | 124M | 235M | 189M | 408M | 211M | 154M |
| Free Cash Flow | 33M | 40M | 16M | 8.1M | 53M | 50M | -34M | 75M | 180M | 130M | 330M | 75M | 20M |
| Owner Earnings | 26M | 36M | 8.1M | -5.2M | 31M | -24M | -108M | -198M | 106M | 39M | -23M | -506M | -569M |
| CapEx | 2.5M | 6.0M | 5.0M | 10M | 11M | 16M | 73M | 50M | 56M | 60M | 79M | 136M | 135M |
| Maint. CapEx | 4.3M | 3.3M | 3.7M | 8.0M | 11M | 11M | 12M | 19M | 23M | 19M | 48M | 83M | 94M |
| Growth CapEx | 0 | 2.7M | 1.3M | 2.4M | 524K | 4.6M | 60M | 31M | 33M | 40M | 30M | 53M | 40M |
| D&A | 4.3M | 3.3M | 3.7M | 8.0M | 11M | 11M | 12M | 19M | 23M | 19M | 48M | 83M | 94M |
| CapEx/OCF | 7.1% | 12.9% | 23.5% | 56.4% | 17.4% | 24.3% | 188.7% | 40.1% | 23.7% | 31.5% | 19.3% | 64.5% | 87.3% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 22M | 7.6M | 34M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Buyback Yield | 1.5% | 0.8% | 2.5% | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.0% |
| Stock-Based Comp | 5.6M | 7.3M | 9.4M | 16M | 22M | 78M | 134M | 303M | 106M | 131M | 383M | 634M | 629M |
| Debt Repayment | 0 | 0 | 75K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 609M | 609M |
| Balance Sheet | |||||||||||||
| Net Debt | -71M | -110M | -89M | -82M | -349M | -340M | -538M | -344M | -218M | -524M | -57M | 210M | 1.0B |
| Cash & Equiv. | 48M | 60M | 41M | 75M | 349M | 172M | 155M | 356M | 354M | 599M | 455M | 1.2B | 719M |
| Long-Term Debt | 29K | 81K | 75K | 0 | N/A | N/A | N/A | N/A | 674M | 677M | 0 | 1.7B | 1.7B |
| Debt/Equity | 0.08 | 0.00 | 0.00 | 0.00 | 0.00 | 0.02 | 0.02 | 0.03 | 0.56 | 0.44 | 0.31 | 0.59 | 0.49 |
| Interest Coverage | 8126.3 | 35335.0 | 2895.5 | N/A | N/A | N/A | N/A | N/A | 929.7 | 22.4 | 8.2 | -0.7 | -0.7 |
| Equity | 129M | 157M | 151M | 167M | 467M | 543M | 976M | 1.1B | 1.3B | 1.6B | 2.3B | 3.2B | 3.5B |
| Total Assets | 185M | 230M | 278M | 338M | 720M | 846M | 1.4B | 1.7B | 2.9B | 3.4B | 4.5B | 7.0B | 7.1B |
| Total Liabilities | 56M | 73M | 127M | 171M | 252M | 302M | 405M | 640M | 1.6B | 1.8B | 2.1B | 3.8B | 3.5B |
| Intangibles | 3.1M | 7.6M | 15M | 19M | 16M | 13M | 9.4M | 15M | 12M | 20M | 175M | 197M | 295M |
| Retained Earnings | 81M | 101M | 118M | 123M | 171M | 172M | 170M | 110M | 257M | 435M | 812M | 937M | 1.1B |
| Working Capital | 103M | 123M | 99M | 97M | 392M | 414M | 726M | 691M | 1.2B | 1.6B | 620M | 2.2B | 1.5B |
| Current Assets | 135M | 161M | 177M | 205M | 558M | 609M | 982M | 1.1B | 1.8B | 2.4B | 2.3B | 3.7B | 2.7B |
| Current Liabilities | 32M | 38M | 78M | 108M | 166M | 196M | 256M | 419M | 603M | 762M | 1.7B | 1.5B | 1.2B |
| Per Share Data | |||||||||||||
| EPS | 0.37 | 0.36 | 0.32 | 0.10 | 0.50 | 0.01 | -0.03 | -0.91 | 2.03 | 2.33 | 4.80 | 1.51 | 2.57 |
| Owner EPS | 0.47 | 0.65 | 0.15 | -0.10 | 0.54 | -0.27 | -1.87 | -2.99 | 1.47 | 0.51 | -0.29 | -6.13 | -7.06 |
| Book Value | 2.40 | 2.84 | 2.79 | 3.22 | 8.00 | 6.16 | 16.99 | 15.92 | 17.56 | 21.42 | 29.63 | 39.28 | 43.86 |
| Cash Flow/Share | 0.66 | 0.84 | 0.39 | 0.35 | 1.09 | 0.74 | 0.67 | 1.89 | 3.25 | 2.51 | 5.20 | 2.56 | 3.72 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 53.8M | 55.4M | 54.1M | 52.1M | 58.4M | 88.2M | 57.5M | 66.0M | 72.4M | 75.4M | 78.5M | 82.6M | 80.6M |
| Valuation | |||||||||||||
| P/E Ratio | 72.7 | 47.9 | 76.7 | 269.3 | 86.1 | N/A | N/A | N/A | 81.3 | 111.0 | 127.3 | 386.6 | 195.6 |
| P/FCF | 44.0 | 23.6 | 82.1 | 174.1 | 47.7 | 129.3 | N/A | 136.0 | 66.6 | 150.5 | 145.6 | 641.9 | N/A |
| EV/EBIT | 42.4 | 23.9 | 38.9 | 101.4 | 87.1 | N/A | N/A | N/A | 125.5 | 120.8 | 829.6 | N/A | N/A |
| Price/Book | 11.2 | 6.1 | 8.8 | 8.4 | 5.4 | 11.8 | 7.4 | 9.7 | 9.4 | 12.1 | 20.6 | 14.9 | 11.5 |
| Price/Sales | N/A | 113.1 | 41.1 | 21.7 | 7.1 | 10.1 | 7.5 | 12.4 | 7.8 | 10.0 | 13.8 | 19.7 | 13.6 |
| FCF Yield | 2.3% | 4.2% | 1.2% | 0.6% | 2.1% | 0.8% | -0.5% | 0.7% | 1.5% | 0.7% | 0.7% | 0.2% | 0.0% |
| Market Cap | 1.4B | 955M | 1.3B | 1.4B | 2.5B | 6.4B | 7.2B | 10.1B | 12.0B | 19.5B | 48.0B | 48.2B | 40.5B |
| Avg. Price | 16.52 | 25.87 | 22.55 | 24.10 | 51.16 | 60.57 | 88.97 | 162.78 | 128.70 | 206.34 | 365.29 | 662.89 | 502.34 |
| Year-End Price | 26.91 | 17.25 | 24.56 | 26.93 | 43.03 | 72.90 | 125.16 | 153.81 | 165.10 | 258.59 | 610.98 | 583.84 | 502.34 |
AXON ENTERPRISE, INC. passes 3 of 9 quality checks, indicating weak fundamentals.
AXON ENTERPRISE, INC. trades at 332.7x trailing earnings, compared to its 15-year median P/E of 81.3x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 552.3x vs a median of 66.6x. The company's 5-year average ROIC is 7.4% with a gross margin of 60.9%. At current prices, the estimated annualized return to fair value is +37.8%.
AXON ENTERPRISE, INC. (AXON) has a net profit margin of 4.5%. This is a modest margin.
AXON ENTERPRISE, INC. (AXON) generated $75 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
AXON ENTERPRISE, INC. (AXON) has a debt-to-equity ratio of 0.59. This indicates moderate leverage.
AXON ENTERPRISE, INC. (AXON) reported earnings per share (EPS) of $1.51 in its most recent fiscal year.
AXON ENTERPRISE, INC. (AXON) has a return on equity (ROE) of 4.5%. This indicates moderate shareholder returns.
AXON ENTERPRISE, INC. (AXON) has a 5-year average gross margin of 60.9%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 17 years of financial data for AXON ENTERPRISE, INC. (AXON), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
AXON ENTERPRISE, INC. (AXON) has a book value per share of $39.28, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects rapid adoption of AI-enabled capabilities including Axon 911, Axon Vision, Axon Gravity, and expanded Axon Assistant functionality to drive continued growth momentum. The company is positioning itself as the AI company in public safety and sees significant runway in new product portfolios with pipelines in the nine figures, supported by strong bookings trends and customer consolidation around trusted platforms. Counter-drone technology represents a major growth leg with demand described as among the fastest hardware adoption rates the company has experienced, while international markets are showing fundamentally stronger momentum with two consecutive quarters at approximately 20% growth. Management expects software growth to outpace hardware growth over the longer term, with continued investment in R&D and new market expansion into corrections, justice, international, and enterprise segments, while maintaining disciplined capital allocation focused on execution and integration of recent acquisitions.
Based on recent SEC filings and earnings calls, AXON ENTERPRISE, INC. (AXON) has provided the following forward guidance: Revenue growth: 30%-32% (FY2026); Adjusted EBITDA margin: 25.5% (FY2026); Free cash flow: approximately $450 million (FY2026); Stock-based compensation expense: $590 million-$620 million (FY2026).