Revenue growth accelerated to 35.3% YoY in 2026Q2, reaching $904.4M, while gross margin held at 60.4%, but operating margin remained thin at 5.2% due to R&D and SG&A consuming 55% of revenue.
Axon Enterprise, Inc. (AXON) annual income statement — 26-year revenue, gross profit & net income history
| 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 |
|---|
| Sales/Revenue | 3.22B | 2.78B | 2.08B | 1.56B | 1.19B | 863.38M | 681M | 530.86M | 420.07M | 343.8M | 268.25M | 197.89M | 164.53M | 137.83M | 114.75M | 90.03M | 86.93M | 104.25M | 92.85M | 100.73M | 67.72M | 47.69M | 67.64M | 24.46M | 9.84M | 6.85M | 3.41M |
| Revenue Growth % | 34.6% | 33.47% | 33.44% | 31.16% | 37.82% | 26.78% | 28.28% | 26.37% | 22.18% | 28.17% | 35.55% | 20.28% | 19.37% | 20.11% | 27.46% | 3.56% | -16.62% | 12.29% | -7.82% | 48.75% | 41.98% | -29.49% | 176.58% | 148.46% | 43.62% | 100.82% | - |
| Cost of Goods Sold | 1.31B | 1.12B | 841.15M | 605.25M | 461.3M | 332.3M | 264.67M | 223.57M | 161.49M | 136.71M | 97.71M | 69.25M | 62.98M | 51.99M | 47.04M | 45.5M | 43.59M | 42.75M | 37.48M | 44.9M | 26.1M | 19.39M | 22.46M | 9.4M | 4.31M | 2.91M | 1.71M |
| COGS % of Revenue | - | 40.35% | 40.39% | 38.78% | 38.77% | 38.49% | 38.87% | 42.12% | 38.44% | 39.76% | 36.43% | 34.99% | 38.28% | 37.72% | 40.99% | 50.54% | 50.14% | 41% | 40.36% | 44.57% | 38.54% | 40.66% | 33.2% | 38.45% | 43.75% | 42.53% | 50.21% |
| Gross Profit | 1.91B | 1.66B | 1.24B | 955.45M | 728.64M | 531.09M | 416.33M | 307.29M | 258.58M | 207.09M | 170.54M | 128.65M | 101.55M | 85.84M | 67.71M | 44.53M | 43.34M | 61.51M | 55.37M | 55.83M | 41.62M | 28.3M | 45.18M | 15.05M | 5.54M | 3.94M | 1.7M |
| Gross Margin % | 59.41% | 59.65% | 59.61% | 61.22% | 61.23% | 61.51% | 61.13% | 57.88% | 61.56% | 60.24% | 63.57% | 65.01% | 61.72% | 62.28% | 59.01% | 49.46% | 49.86% | 59% | 59.64% | 55.43% | 61.46% | 59.34% | 66.8% | 61.55% | 56.25% | 57.47% | 49.79% |
| Gross Profit Growth % | - | 33.57% | 29.93% | 31.13% | 37.2% | 27.56% | 35.49% | 18.83% | 24.87% | 21.43% | 32.56% | 26.69% | 18.3% | 26.77% | 52.07% | 2.73% | -29.53% | 11.08% | -0.83% | 34.16% | 47.05% | -37.37% | 200.17% | 171.9% | 40.55% | 131.83% | - |
| Operating Expenses | 1.83B | 1.72B | 1.18B | 796M | 635.38M | 697.91M | 430.48M | 312.38M | 231.74M | 194.06M | 138.38M | 93.31M | 69.04M | 56.47M | 47.23M | 47.99M | 48.48M | 61.59M | 50.14M | 35.46M | 30.82M | 26.76M | 14.7M | 7.47M | 5.18M | 3.17M | 1.62M |
| OpEx % of Revenue | - | 61.81% | 56.8% | 51% | 53.4% | 80.83% | 63.21% | 58.84% | 55.17% | 56.45% | 51.59% | 47.15% | 41.97% | 40.97% | 41.15% | 53.31% | 55.77% | 59.07% | 54.01% | 35.2% | 45.52% | 56.11% | 21.74% | 30.55% | 52.58% | 46.21% | 47.5% |
| Selling, General & Admin | 1.12B | 1.03B | 741.25M | 494.88M | 399.33M | 503.88M | 309.08M | 211.66M | 154.89M | 138.58M | 107.16M | 69.7M | 54.16M | 46.58M | 39.09M | 38M | 37.07M | 41.58M | 37.23M | 31.04M | 28.12M | 25.19M | 13.88M | 6.97M | 5.04M | 3.12M | 1.61M |
| SG&A % of Revenue | - | 37.19% | 35.59% | 31.71% | 33.56% | 58.36% | 45.39% | 39.87% | 36.87% | 40.31% | 39.95% | 35.22% | 32.92% | 33.8% | 34.06% | 42.21% | 42.65% | 39.89% | 40.09% | 30.81% | 41.52% | 52.81% | 20.52% | 28.52% | 51.19% | 45.57% | 47.29% |
| Research & Development | 708.31M | 684.31M | 441.59M | 303.72M | 233.81M | 194.03M | 123.19M | 100.72M | 76.86M | 55.37M | 30.61M | 23.61M | 14.88M | 9.89M | 8.14M | 9.99M | 11.41M | 20M | 12.92M | 4.42M | 2.7M | 1.57M | 823.59K | 498.47K | 136.5K | 43.36K | 7.14K |
| R&D % of Revenue | - | 24.62% | 21.2% | 19.46% | 19.65% | 22.47% | 18.09% | 18.97% | 18.3% | 16.11% | 11.41% | 11.93% | 9.05% | 7.17% | 7.09% | 11.1% | 13.13% | 19.19% | 13.91% | 4.39% | 3.99% | 3.3% | 1.22% | 2.04% | 1.39% | 0.63% | 0.21% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 109K | 621K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 83.89M | -62.08M | 58.54M | 159.45M | 93.25M | -166.82M | -14.15M | -5.09M | 26.84M | 13.02M | 32.15M | 35.34M | 32.51M | 29.37M | 20.49M | -3.46M | -5.14M | -79.17K | 5.23M | 20.37M | 10.79M | 1.54M | 30.48M | 7.58M | 361.01K | 772.26K | -46.88K |
| Operating Margin % | 2.61% | -2.23% | 2.81% | 10.22% | 7.84% | -19.32% | -2.08% | -0.96% | 6.39% | 3.79% | 11.99% | 17.86% | 19.76% | 21.31% | 17.85% | -3.84% | -5.91% | -0.08% | 5.63% | 20.23% | 15.94% | 3.23% | 45.06% | 31% | 3.67% | 11.27% | -1.37% |
| Operating Income Growth % | - | -206.04% | -63.29% | 70.99% | 155.9% | -1078.96% | -177.78% | -118.98% | 106.1% | -59.49% | -9.01% | 8.71% | 10.67% | 43.35% | 692.09% | 32.67% | -6391.57% | -101.52% | -74.35% | 88.76% | 600.73% | -94.95% | 302.08% | 1999.85% | -53.25% | 1747.13% | - |
| EBITDA | 169.87M | 21.09M | 106.97M | 178.76M | 124.36M | -142.56M | -1.68M | 6.27M | 37.46M | 21.06M | 35.81M | 38.63M | 36.82M | 34.5M | 27.01M | 4.64M | 2.15M | 3.56M | 7.86M | 22.9M | 12.89M | 3.25M | 31.03M | 7.97M | 616.51K | 968.75K | 77.92K |
| EBITDA Margin % | 5.28% | 0.76% | 5.14% | 11.45% | 10.45% | -16.51% | -0.25% | 1.18% | 8.92% | 6.13% | 13.35% | 19.52% | 22.38% | 25.03% | 23.54% | 5.15% | 2.47% | 3.41% | 8.47% | 22.73% | 19.04% | 6.82% | 45.88% | 32.61% | 6.26% | 14.14% | 2.28% |
| EBITDA Growth % | 172.36% | -80.29% | -40.16% | 43.75% | 187.24% | -8410.81% | -126.73% | -83.27% | 77.82% | -41.18% | -7.29% | 4.9% | 6.72% | 27.75% | 482.56% | 115.91% | -39.6% | -54.79% | -65.66% | 77.61% | 296.25% | -89.52% | 289.16% | 1193.45% | -36.36% | 1143.3% | - |
| D&A (Non-Cash Add-back) | 71.97M | 83.16M | 48.42M | 19.32M | 31.11M | 24.27M | 12.47M | 11.36M | 10.62M | 8.04M | 3.66M | 3.29M | 4.32M | 5.13M | 6.52M | 8.1M | 7.29M | 3.63M | 2.64M | 2.52M | 2.1M | 1.71M | 551.79K | 393.57K | 255.5K | 196.5K | 124.8K |
| EBIT | 368.08M | 113.21M | 388.6M | 164.06M | 196.52M | -141.38M | -6.19M | 2.07M | 28.1M | 15.76M | 31.5M | 35.36M | 32.51M | 28.03M | 22.61M | -9.63M | -5.11M | 91.37K | 6.94M | 22.53M | -4.98M | 2.71M | 30.92M | 7.58M | 361.01K | 772.26K | 77.92K |
| Net Interest Income | -55.48M | -18.81M | 36.59M | 42.11M | 4.8M | 30.95M | 4.9M | 7.86M | 4.36M | 1.6M | 700K | 7K | -194K | 86K | 82.84K | 1.29M | 25.82K | 170.55K | 1.72M | 2.15M | 1.87M | 1.22M | 437.96K | 41.07K | 19.73K | -156.49K | -426.36K |
| Interest Income | 59M | 75.43M | 43.69M | 49.11M | 4.8M | 30.95M | 5M | 7.86M | 4.36M | 1.6M | 700K | 7K | 0 | 86K | 82.84K | 1.29M | 25.82K | 170.55K | 1.72M | 2.15M | 1.88M | 1.23M | 439.45K | 50.38K | 57.93K | 90.28K | 0 |
| Interest Expense | 114.47M | 94.24M | 7.1M | 7M | 0 | 0 | 100K | 0 | 0 | 0 | 0 | 0 | 194K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7.28K | 4.21K | 1.49K | 9.31K | 38.2K | 246.78K | 426.36K |
| Other Income/Expense | 169.72M | 81.05M | 322.96M | -2.39M | 103.27M | 25.45M | 7.86M | 7.16M | 1.26M | 2.74M | -654K | 26K | -194K | -1.34M | 2.12M | -6.17M | 25.82K | 170.55K | 1.72M | 2.15M | -15.78M | 1.17M | 440.27K | -213.41K | 19.73K | -152.23K | 46.88K |
| Pretax Income | 253.61M | 18.97M | 381.5M | 157.06M | 196.52M | -141.38M | -6.29M | 2.07M | 28.1M | 15.76M | 31.5M | 35.36M | 32.31M | 28.03M | 22.61M | -9.63M | -5.11M | 91.37K | 6.94M | 22.53M | -4.98M | 2.71M | 30.92M | 7.37M | 380.75K | 620.02K | -473.25K |
| Pretax Margin % | 7.88% | 0.68% | 18.32% | 10.06% | 16.52% | -16.37% | -0.92% | 0.39% | 6.69% | 4.58% | 11.74% | 17.87% | 19.64% | 20.34% | 19.7% | -10.7% | -5.88% | 0.09% | 7.48% | 22.36% | -7.36% | 5.67% | 45.71% | 30.13% | 3.87% | 9.05% | -13.87% |
| Income Tax | 54.05M | -105.68M | 4.47M | -18.72M | 49.38M | -81.36M | -4.57M | 1.19M | -1.1M | 10.55M | 14.2M | 15.43M | 12.39M | 9.79M | 7.87M | -2.59M | -729.38K | 92.48K | 3.31M | 7.5M | -895.9K | 1.65M | 12.04M | 2.91M | 171.84K | 105K | 473.25K |
| Effective Tax Rate % | 21.31% | -556.98% | 1.17% | -11.92% | 25.13% | 57.55% | 72.6% | 57.39% | -3.92% | 66.96% | 45.08% | 43.63% | 38.36% | 34.92% | 34.82% | 26.89% | 14.26% | 101.21% | 47.62% | 33.29% | 17.98% | 60.95% | 38.94% | 39.55% | 45.13% | 16.93% | -100% |
| Net Income | 199.55M | 124.91M | 377.03M | 175.78M | 147.14M | -60.02M | -1.72M | 882K | 29.2M | 5.21M | 17.3M | 19.93M | 19.92M | 18.24M | 14.74M | -7.04M | -4.38M | -1.11K | 3.64M | 15.03M | -4.09M | 1.06M | 18.88M | 4.45M | 208.9K | 515.03K | -473.25K |
| Net Margin % | 6.2% | 4.49% | 18.1% | 11.26% | 12.37% | -6.95% | -0.25% | 0.17% | 6.95% | 1.51% | 6.45% | 10.07% | 12.11% | 13.24% | 12.84% | -7.82% | -5.04% | -0% | 3.92% | 14.92% | -6.04% | 2.22% | 27.92% | 18.21% | 2.12% | 7.52% | -13.87% |
| Net Income Growth % | -38.84% | -66.87% | 114.49% | 19.47% | 345.16% | -3381.32% | -295.46% | -96.98% | 460.88% | -69.9% | -13.22% | 0.08% | 9.18% | 23.79% | 309.35% | -60.57% | -396322.69% | -100.03% | -75.8% | 467.6% | -486.9% | -94.4% | 323.96% | 2031.94% | -59.44% | 208.83% | - |
| Net Income (Continuing) | 199.55M | 124.66M | 377.03M | 175.78M | 147.14M | -60.02M | -1.72M | 882K | 29.2M | 5.21M | 17.3M | 19.93M | 19.92M | 18.24M | 14.74M | -7.04M | -4.38M | -1.11K | 3.64M | 15.03M | -4.09M | 1.06M | 18.88M | 4.45M | 208.9K | 515.03K | -473.25K |
| Discontinued Operations | 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 |
| Minority Interest | 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 |
| EPS (Diluted) | 2.42 | 1.51 | 4.80 | 2.33 | 2.03 | -0.91 | -0.03 | 0.01 | 0.50 | 0.10 | 0.32 | 0.36 | 0.37 | 0.37 | 0.27 | -0.12 | -0.07 | -0.02 | 0.06 | 0.23 | -0.07 | 0.02 | 0.30 | 0.10 | 0.01 | 0.01 | -0.02 |
| EPS Growth % | -40.44% | -68.54% | 106.01% | 14.78% | 323.08% | -3161.65% | -289.8% | -97.06% | 400% | -68.75% | -11.11% | -2.7% | 0% | 37.04% | 325% | -71.18% | -300.57% | -129.17% | -73.91% | 449.01% | -429.5% | -93.33% | 215.79% | - | -64.79% | 189.31% | - |
| EPS (Basic) | - | 1.60 | 4.98 | 2.37 | 2.07 | -0.91 | -0.03 | 0.01 | 0.52 | 0.10 | 0.33 | 0.37 | 0.38 | 0.38 | 0.27 | -0.12 | -0.07 | -0.02 | 0.06 | 0.24 | -0.07 | 0.02 | 0.33 | 0.12 | 0.01 | 0.02 | -0.02 |
| Diluted Shares Outstanding | 82.52M | 100M | 78.56M | 75.46M | 72.53M | 66.19M | 61.78M | 60.02M | 57.92M | 53.9M | 53.54M | 54.64M | 54.5M | 54.15M | 54.72M | 59.44M | 62.52M | 63.27M | 64.07M | 65.69M | 61.98M | 63.56M | 62.32M | 46.6M | 34.92M | 36.35M | 29.83M |
| Basic Shares Outstanding | 80.36M | 80.4M | 75.75M | 74.19M | 71.09M | 66.19M | 61.78M | 59.19M | 56.39M | 52.73M | 52.67M | 53.55M | 52.95M | 51.88M | 53.83M | 59.44M | 62.52M | 61.92M | 62.37M | 62.62M | 61.98M | 61.3M | 57.23M | 37.89M | 33.56M | 27.64M | 29.83M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying AXON stock.
For fiscal year 2025, Axon Enterprise, Inc. (AXON) reported total revenue of $2.78B. This represents a 81348.7% increase compared to $3.4M in 2000.
Axon Enterprise, Inc. (AXON) is profitable, generating $124.9M in net income for the fiscal year ending 2025 with a net profit margin of 4.5%.
Axon Enterprise, Inc. (AXON) reported an operating income of $-62.1M, resulting in an operating profit margin of -2.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Axon Enterprise, Inc. (AXON) generated $1.66B in gross profit for the year, representing a gross profit margin of 59.7%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Regulatory bundling scrutiny
Metrics are mathematically derived from official filings.
Sustained 30%+ Growth Momentum
Axon's revenue grew 35.3% YoY in 2026Q2 to $904.4M, marking the tenth consecutive quarter of over 30% growth, according to the latest income statement data.
The consistent double-digit growth, driven by the TASER 10 refresh cycle and cloud/AI adoption, appears durable given the company's integrated hardware-software ecosystem. However, the elevated growth rate raises the bar for future quarters, and investors should monitor for any signs of deceleration as the installed base matures.
Gross Margin Stability Amid Mix Shift
Gross margin held steady at 60.4% in 2026Q2, up from 56.2% in 2024Q1, reflecting a favorable shift toward higher-margin software and services, as reported in financial statements.
The stable gross margin suggests that the company is successfully managing input costs and product mix, despite the hardware-heavy TASER segment. The slight improvement from 56.2% to 60.4% over the past two years indicates that the software mix is gradually increasing, which may support margin expansion if the trend continues.
Operating Leverage Masked by Heavy Investment
Operating income swung to $46.8M in 2026Q2 from a loss of $2.1M in 2025Q3, but SG&A and R&D expenses remain elevated, consuming 55% of revenue, based on reported figures.
The positive operating leverage is evident as revenue scales, but the company continues to invest heavily in sales and marketing and R&D, which keeps operating margins thin. The negative operating margin in prior quarters suggests that the business model requires significant scale to achieve profitability, and the recent improvement may indicate that the investment phase is beginning to pay off.
SBC Distorts Reported Profitability
Stock-based compensation reached $144.0M in 2026Q2, nearly triple net income of $29.4M, highlighting a wide gap between GAAP and cash earnings, as disclosed in the income statement.
The heavy use of SBC, particularly performance-based grants, appears to significantly understate reported profitability. The volatile net income figures, such as the $169.3M gain in 2026Q1 versus $3.0M in 2025Q4, suggest that non-operating items and tax effects are influencing results. Investors should adjust for SBC to assess the company's true earnings power.
R&D and SG&A Escalation
R&D and SG&A expenses grew to $499.7M in 2026Q2, up 35% YoY, outpacing revenue growth and pressuring operating margins, according to the latest quarterly data.
The company's aggressive investment in R&D, including 'moonshot' projects like drone-integrated TASERs, and SG&A to support international expansion and sales, appears to be a deliberate strategy to fuel long-term growth. However, the pace of expense growth relative to revenue suggests that operating leverage may be limited in the near term, and investors should monitor whether these investments translate into sustained profitability.
Valuation and Regulatory Overhang
Despite 35% revenue growth, Axon's operating margin is only 5.2%, and the stock's rapid run-up implies the market expects significant future profitability expansion, as per recent filings.
Short-sellers might argue that the negative operating margin in several quarters and the heavy reliance on SBC indicate that the business is not as profitable as it appears. Additionally, the antitrust investigation into hardware/software bundling could disrupt the integrated monetization model, potentially compressing margins. If growth decelerates or regulatory actions force separation, the current valuation could be vulnerable to multiple compression.