Free cash flow remains highly unstable, oscillating between a negative $114.7 million in 2025Q2 and a positive $225.4 million in 2024Q4, reflecting the lumpy nature of municipal contract fulfillment.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 |
|---|
| Cash from Operations | 154.03M | 211.34M | 408.31M | 189.26M | 235.36M | 124.49M | 38.48M | 65.67M | 63.88M | 18.49M | 17.93M | 46.45M | 35.43M | 32.43M | 26.52M | 17.32M | 731.52K | 10.15M | 8.12M | 13.92M | 7.48M | 1.07M | 30.3M | 4.37M | -834.51K | -554.89K | 8.47K |
| Operating CF Margin % | - | 7.6% | 19.61% | 12.13% | 19.78% | 14.42% | 5.65% | 12.37% | 15.21% | 5.38% | 6.68% | 23.47% | 21.54% | 23.53% | 23.11% | 19.24% | 0.84% | 9.74% | 8.74% | 13.82% | 11.05% | 2.24% | 44.8% | 17.86% | -8.48% | -8.1% | 0.25% |
| Operating CF Growth % | -480.44% | -48.24% | 115.74% | -19.59% | 89.05% | 223.52% | -41.41% | 2.81% | 245.46% | 3.15% | -61.41% | 31.08% | 9.27% | 22.28% | 53.06% | 2268.32% | -92.79% | 25.02% | -41.69% | 86.09% | 600.74% | -96.48% | 594.01% | 623.25% | -50.39% | -6654.29% | - |
| Net Income | 206.24M | 124.66M | 377.03M | 174.23M | 147.14M | -60.02M | -1.72M | 882K | 29.2M | 5.21M | 17.3M | 19.93M | 19.92M | 19.79M | 14.74M | -7.04M | -4.38M | 276.37K | 3.64M | 15.03M | -4.09M | 1.06M | 19.12M | 4.45M | 208.9K | 515.03K | -473.25K |
| Depreciation & Amortization | 94.07M | 83.16M | 48.42M | 32.64M | 24.38M | 18.69M | 12.47M | 11.36M | 10.62M | 8.04M | 3.66M | 3.29M | 4.32M | 5.13M | 6.52M | 8.09M | 7.29M | 3.63M | 2.64M | 2.52M | 2.1M | 1.71M | 551.79K | 393.57K | 255.5K | 196.5K | 124.8K |
| Stock-Based Compensation | 493.99M | 634.23M | 382.6M | 131.36M | 106.18M | 303.33M | 133.57M | 78.5M | 21.88M | 15.61M | 9.37M | 7.26M | 5.58M | 4.34M | 3.42M | 3.1M | 3.68M | 4.99M | 171.1K | 49.95K | 1.14B | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -15.89M | -82.68M | -85.1M | -68.23M | 25.57M | -82.01M | -15.86M | -7M | -2.45M | 2.64M | -6.02M | -6.1M | -4.18M | -5.96M | 2.6M | -2.49M | -1.09M | -1.19M | 2.06M | 6.93M | -1.17M | -521.55K | 727.89K | -1.01M | -41.33K | 0 | 0 |
| Other Non-Cash Items | -468.28M | -66.29M | -241.97M | 37.63M | -86.95M | -12.22M | 10.79M | 6.54M | 2.45M | 1.75M | 1.85M | 1.86M | 3.88M | 503K | -977.83K | 12.8M | 2.26M | 1.36M | 3.7M | 2.6M | -1.14B | 2.64M | 12.55M | 4.47M | 266.9K | 151.75K | 0 |
| Working Capital Changes | -155.85M | -481.74M | -72.69M | -118.36M | 19.05M | -43.28M | -100.78M | -24.6M | 2.17M | -14.76M | -8.22M | 20.2M | 5.92M | 8.62M | 212.75K | 2.86M | -7.02M | 1.08M | -4.09M | -13.21M | 9.17M | -3.82M | -2.65M | -3.94M | -1.52M | -1.42M | 356.91K |
| Change in Receivables | -17.03M | -505.56M | -245.84M | -172.52M | -73.23M | -245.93M | -122.65M | -48.67M | -67.64M | -35.3M | -13.3M | 4.24M | -8.39M | -4.41M | -6.08M | 1.46M | 1.77M | 1.33M | 0 | 0 | -4.65B | 3.01B | -3.15B | 0 | 0 | 0 | 0 |
| Change in Inventory | -129.68M | -81.95M | 607K | -71.9M | -95.99M | -18.27M | -52.16M | -4.9M | 14.8M | -11.75M | -18.67M | 3.14M | -9.37M | -711K | -62.15K | 1.33M | -4.01M | -2.44M | -600.97K | -4.46M | 762.26K | -3.56M | -3.71M | -791.16K | -1.53M | -580.76K | -63K |
| Change in Payables | 127.23M | 286.88M | 54.52M | 64.38M | 80.76M | 45.3M | 8.89M | 4.97M | 13.51M | 39K | 17.58M | 5.87M | 9.46M | 5.56M | 2.72M | -223.49K | 0 | 0 | 0 | 0 | 256.63M | -2.61B | 5.16B | 0 | 0 | 0 | 0 |
| Cash from Investing | -639.65M | -724.93M | -490.57M | 12.48M | -830.97M | 252.56M | -356.53M | -240.74M | -9.86M | 19.08M | -3.04M | -36.01M | -24.58M | -23.06M | 1.68M | -7.6M | -4.47M | -11.68M | 8.12M | 13.01M | -3.56M | -191.11K | -46.79M | -4.22M | -386.64K | -453.14K | -99.76K |
| Capital Expenditures | -134.52M | -136.26M | -78.78M | -59.63M | -56.11M | -50.28M | -72.87M | -16.34M | -11.7M | -11.44M | -8.45M | -6.5M | -2.69M | -2.11M | -1.76M | -2.27M | -4.5M | -14.18M | -6.89M | -4.52M | -2.07M | -7.81M | -11.32M | -3.65M | -377.99K | -368.14K | -99.76K |
| CapEx % of Revenue | 4.51% | 4.9% | 3.78% | 3.82% | 4.72% | 5.82% | 10.7% | 3.08% | 2.78% | 3.33% | 3.15% | 3.29% | 1.63% | 1.53% | 1.54% | 2.52% | 5.18% | 13.6% | 7.42% | 4.49% | 3.06% | 16.38% | 16.74% | 14.93% | 3.84% | 5.37% | 2.92% |
| Acquisitions | -1.2B | -646.88M | -621.82M | -21.09M | -2.1M | -22.39M | -7.07M | 404K | -4.99M | -10.63M | -3.5M | -11.19M | 24.41M | -1.26M | 428.98K | 7.33M | 0 | 0 | 0 | 0 | -80.89B | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 138.39M | 139.92M | 54K | -537K | 287K | 43K | 95K | -404K | 6.27M | 24K | 42K | 40K | -24.4M | 34K | -383.47K | -7.18M | 30.97K | 0 | 0 | 0 | 80.89B | -104.07K | -195.4K | -565.11K | -8.64K | -85K | 0 |
| Cash from Financing | -153.05M | 1.25B | -45.44M | 41.31M | 598.1M | -174.18M | 299.26M | -3.94M | 219.35M | -3.85M | -34.66M | 603K | -4.84M | -3.19M | -13.36M | -31.12M | 929.39K | 155.54K | -12.16M | 3.1M | -1.5M | 718.16K | 15.37M | 12.15M | -838.02K | 6.44M | 242.8K |
| Debt Issued (Net) | -283.05M | 1.14B | 0 | 0 | 673.77M | 0 | 0 | 0 | 0 | -34K | -107K | -80K | -36K | -34K | -9K | 0 | 0 | 0 | 0 | -45.24K | -43.11K | -31.34K | -264.24K | -635K | -881.44K | -1.96M | 134.97K |
| Equity Issued (Net) | 311.27M | 489.55M | 14.58M | 94.7M | 124.19M | 105.51M | 306.78M | 0 | 233.99M | 0 | -33.75M | -8.93M | -23.79M | -25.31M | -18.07M | -32.5M | 0 | 0 | -12.16M | 3.14M | -1.46M | 749.5K | 15.63M | 1.82M | 43.42K | 8.4M | 187.74K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | -74K | 0 | 0 | 0 | 0 | 0 | -33.75M | -7.56M | -22.44M | -25M | -20M | -32.5M | 0 | 0 | -12.5M | 0 | -2.21M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -181.27M | -378.2M | -60.01M | -53.39M | -199.86M | -279.69M | -7.51M | -3.94M | -14.64M | -3.82M | -808K | 9.61M | 18.98M | 22.15M | 4.71M | 1.44M | 929.39K | 155.54K | 0 | 0 | 0 | 0 | 0 | 10.97M | 0 | 0 | -79.92K |
| Net Change in Cash | -633.59M | 746.63M | -133.91M | 245.12M | -886K | 200.89M | -16.8M | -178.67M | 272.59M | 34.45M | -18.88M | 11.16M | 6.1M | 6.14M | 14.83M | -21.39M | -2.82M | -1.38M | 4.08M | 30.03M | 2.42M | 1.59M | -1.12M | 12.3M | -2.06M | 5.43M | 151.5K |
| Free Cash Flow | 19.51M | 75.08M | 329.53M | 128.99M | 179.25M | 74.22M | -34.39M | 49.33M | 52.18M | 7.05M | 9.47M | 39.94M | 32.74M | 30.32M | 24.75M | 15.06M | -3.77M | -4.03M | 1.23M | 9.4M | 5.41M | -6.74M | 18.98M | 715.44K | -1.21M | -923.03K | -91.29K |
| FCF Margin % | 0.65% | 2.7% | 15.82% | 8.27% | 15.06% | 8.6% | -5.05% | 9.29% | 12.42% | 2.05% | 3.53% | 20.18% | 19.9% | 22% | 21.57% | 16.73% | -4.34% | -3.87% | 1.32% | 9.33% | 7.99% | -14.14% | 28.06% | 2.93% | -12.32% | -13.47% | -2.68% |
| FCF Growth % | -94.62% | -77.22% | 155.46% | -28.04% | 141.53% | 315.81% | -169.71% | -5.46% | 640.43% | -25.61% | -76.28% | 21.98% | 7.99% | 22.48% | 64.4% | 499.28% | 6.44% | -428.26% | -86.94% | 73.68% | 180.25% | -135.53% | 2553.19% | 159% | -31.36% | -911.06% | - |
| FCF per Share | 0.24 | 0.75 | 4.19 | 1.71 | 2.47 | 1.12 | -0.56 | 0.82 | 0.90 | 0.13 | 0.18 | 0.73 | 0.60 | 0.56 | 0.45 | 0.25 | -0.06 | -0.06 | 0.02 | 0.14 | 0.09 | -0.11 | 0.30 | 0.02 | -0.03 | -0.03 | -0.00 |
| FCF Conversion (FCF/Net Income) | 0.09x | 1.69x | 1.08x | 1.08x | 1.60x | -2.07x | -22.32x | 74.46x | 2.19x | 3.55x | 1.04x | 2.33x | 1.78x | 1.78x | 1.80x | -2.46x | -0.17x | -9176.26x | 2.23x | 0.93x | -1.83x | 1.01x | 1.60x | 0.98x | -3.99x | -1.08x | -0.02x |
| Interest Paid | 0 | 0 | 3.45M | 3.51M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 49.56M | 0 | 67.84M | 64.49M | 10.51M | 5.11M | 10.89M | 3.67M | 10.61M | 11.49M | 14.05M | 6.76M | 386K | 3.63M | 1.08M | 52K | 703.98K | 894.56K | 523.95K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
High stock-based compensation dilution
As reported in recent financial statements, the relationship between net income and operating cash flow is highly erratic, with the OCF/NI ratio swinging from a negative 0.19 in 2026Q1 to a peak of 72.41 in 2025Q4, highlighting significant disconnects between accounting profits and actual cash generation.
The extreme variance in the OCF/NI ratio suggests that GAAP net income is a poor proxy for the company's underlying cash-generating capacity. Investors should monitor how non-cash charges and working capital swings distort the perceived profitability of the core business model.
Based on quarterly cash flow data, Axon's free cash flow trajectory remains highly unstable, oscillating between a negative $114.7 million in 2025Q2 and a positive $225.4 million in 2024Q4, which indicates that the company has yet to achieve a predictable, self-sustaining cash flow profile.
The lack of a consistent FCF margin suggests that the company's aggressive growth strategy and heavy investment in R&D frequently overwhelm operational inflows. This volatility implies that the business remains in a capital-intensive phase where cash flow is secondary to market share expansion.
According to the provided cash flow statements, working capital changes have been a primary source of volatility, ranging from a $365.0 million inflow in 2025Q3 to a $307.3 million outflow in 2025Q2, reflecting the lumpy nature of large-scale municipal contract fulfillment and inventory management.
These dramatic fluctuations in working capital suggest that the timing of large hardware deployments and software subscription renewals creates significant quarterly noise. Analysts should investigate whether these swings represent structural inefficiencies in the supply chain or merely the timing of milestone-based revenue recognition.
As evidenced by recent filings, Axon has prioritized inorganic growth over shareholder returns, with net acquisition outflows reaching $624.1 million in 2025Q4 alone, while simultaneously reporting zero dividends or share repurchases across the entire ten-quarter period analyzed in the provided data set.
The heavy reliance on acquisitions to drive the ecosystem suggests that management views external technology integration as a critical component of its moat. This strategy effectively consumes available cash, leaving little room for direct capital returns to shareholders in the near term.
Based on the reported figures, stock-based compensation has surged to $208.6 million in 2025Q4, a trend that consistently masks the true cash cost of operations and complicates the assessment of the company's ability to generate organic, non-dilutive cash flow for its investors.
The reliance on equity-based incentives appears to be a structural feature of the compensation model, which effectively shifts the burden of operational costs from the cash flow statement to the equity base. This warrants further investigation into the long-term impact of dilution on per-share cash flow metrics.
Quick answers to the most common questions about buying AXON stock.
Axon Enterprise, Inc. (AXON) generated $211.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Axon Enterprise, Inc. (AXON) generated $75.1M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Axon Enterprise, Inc. (AXON) spent $136.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.