Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Axon Enterprise delivered 33.5% revenue growth to $2.78B in FY2025, but swung to an operating loss of $62.1M as R&D and SG&A spending surged 55% and 40% respectively, while net income fell 66.9% to $124.7M.
Revenue
$2.78B
+33.47% YoY
EPS (Diluted)
$1.51
-68.54% YoY
Gross Margin
59.7%
+0.0 pts YoY
Operating Income
-$62.08M
-206.04% YoY
Source: SEC XBRL
Axon Enterprise (AXON) reported FY2025 revenue of $2.78B, up 33.5% year over year. Operating margin was -2.2%, against 2.8% a year earlier. Operating cash flow was $211.34M, down 48.2% year over year.
Last 4 quarters: 1 beat
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 1.88 | 1.89 | Miss -0.3% |
| Mar 2026 | 1.61 | 1.63 | Miss -1.3% |
| Dec 2025This filing | 2.15 | 1.64 | Beat +31.3% |
| Sep 2025 | 1.17 | 1.55 | Miss -24.5% |
Reported EPS of $2.15 versus the $1.64 analyst consensus — a +31.3% beat for Dec 2025.
Compiled by AI from this SEC filing
Axon grew revenue 33.5% year-over-year from $2.08B to $2.78B in FY2025, reflecting sustained demand across its hardware and software ecosystem. This growth rate demonstrates the company's ability to expand its customer base and increase adoption of its platform.
Source: 10-K Income Statement
Gross margin remained virtually flat at 59.65% versus 59.61% in the prior year, indicating that Axon maintained pricing power and cost discipline at the product level even as total cost of revenue rose 33.3% to $1.12B.
Source: 10-K Income Statement
R&D expenses surged 55.0% to $684.3M and SG&A rose 39.8% to $1.04B, together totaling $1.72B and pushing operating income to a loss of $62.1M compared to a profit of $58.5M in FY2024. This reflects a deliberate investment phase to expand product capabilities and go-to-market reach.
Source: 10-K Income Statement
Total assets grew 56.4% to $7.0B, funded in part by a 166.2% increase in long-term debt to $1.81B. Financing cash flows surged to $1.25B (from -$45.4M), and cash & equivalents jumped 164.1% to $1.20B, suggesting a major capital raise during the year.
Source: 10-K Balance Sheet & Cash Flow Statement
Operating cash flow fell 48.2% to $211.3M from $408.3M in the prior year, reflecting the significant increase in operating expenses and working capital requirements. Free cash flow was pressured further by $724.9M in investing outflows, up 47.8% year-over-year.
Source: 10-K Cash Flow Statement
Compiled by AI from this SEC filing · 3 high, 2 medium, 0 low
R&D and SG&A expenses grew at 55% and 40% respectively, far outpacing revenue growth of 33.5%, resulting in an operating loss of $62.1M. If Axon cannot achieve operating leverage as it scales, sustained losses could pressure long-term profitability. This trend represents a key execution risk for the company.
Source: 10-K Income Statement
Long-term debt more than doubled to $1.81B in FY2025, raising the debt-to-equity ratio to 1.16x. Increased leverage introduces interest expense obligations and financial covenant risks that could constrain operational flexibility. If revenue growth slows, servicing this debt could become burdensome.
Source: 10-K Balance Sheet
Net income fell 66.9% to $124.7M and diluted EPS dropped 68.5% to $1.51, despite a 33.5% increase in revenue. This divergence signals that cost growth is materially eroding bottom-line returns to shareholders. Continued margin compression could negatively affect investor sentiment.
Source: 10-K Income Statement
Investing cash outflows reached $724.9M in FY2025, up 47.8% year-over-year, reflecting significant capital deployment into growth initiatives. Combined with declining operating cash flow of $211.3M, free cash flow is deeply negative, increasing reliance on external financing. Sustained negative free cash flow limits financial flexibility.
Source: 10-K Cash Flow Statement
The company is making large, concentrated bets on R&D at $684.3M (up 55%), which may not yield proportional returns if new products fail to gain market traction. The return on assets stands at only 1.78% and ROE at 3.84%, suggesting current investments have yet to generate strong returns. Failure to monetize R&D investments could impair future profitability.
Source: 10-K Income Statement & Key Ratios
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 2.78 $B | 2.08 $B | +33.47% |
Cost of Revenue $B | 1.12 $B | 0.84 $B | +33.32% |
Gross Profit $B | 1.66 $B | 1.24 $B | +33.57% |
Operating Income $M | -62.08 $M | 58.54 $M | -206.04% |
Net Income $M | 124.66 $M | 377.03 $M | -66.94% |
EPS (Basic) $ | 1.60 $ | 4.98 $ | -67.87% |
EPS (Diluted) $ | 1.51 $ | 4.80 $ | -68.54% |
R&D Expense $M | 684.31 $M | 441.59 $M | +54.96% |
SG&A Expense $B | 1.04 $B | 0.74 $B | +39.75% |
Answers draw on this SEC filing and the data on this page
Axon delivered 35% revenue growth and swung to an operating profit in Q2 FY2026 on the back of TASER 10 and counter-drone equipment sales, though net income fell as a prior-year tax benefit did not repeat.
Axon Enterprise delivered strong Q1 2026 revenue of $807.3M (+33.7% YoY) and net income of $169.3M (+92.4% YoY), though operating cash flow turned negative at -$31.5M and gross margin compressed slightly to 59.1%.
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