Axon has maintained gross margins near 59.1% as of 2026Q1, though operating margins remain pressured by heavy R&D and SG&A spending, which contributed to a -2.7% operating margin in 2024Q4.
| 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 | 2.98B | 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% | 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 | 1.21B | 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 | 1.77B | 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 % | 59.32% | 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 | 1.73B | 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 | 1.07B | 1.03B | 741.25M | 492.28M | 401.57M | 503.88M | 307.29M | 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% | 31.54% | 33.75% | 58.36% | 45.12% | 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 | 662.19M | 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 | 38.18M | -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 % | 1.28% | -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 | 96.94M | 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 % | 3.25% | 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 % | 9.8% | -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) | 58.76M | 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 | 97.48M | 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 | -21.59M | -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 | 75.44M | 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 | 57.77M | 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 | 143.86M | 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 | 182.04M | 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 % | 6.1% | 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 | -24.2M | -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 % | -13.29% | -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 | 206.24M | 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 % | 6.91% | 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 % | -37.82% | -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) | 206.24M | 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) | 2.50 | 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 % | -39.8% | -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 | 82.48M | 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 | 80.15M | 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 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
High stock-based compensation dilution
According to recent financial disclosures, Axon has maintained a robust growth trajectory, with quarterly revenue climbing from $430.4 million in 2023Q4 to $807.3 million by 2026Q1, representing a consistent ability to scale its integrated hardware and software ecosystem across its core law enforcement customer base.
The acceleration in top-line growth appears driven by the successful adoption of multi-year strategic bundles that lock agencies into long-term service agreements. This transition suggests that the company is effectively converting transactional hardware sales into a predictable, recurring revenue stream that remains resilient against broader industrial sector volatility.
As reported in quarterly filings, Axon has sustained gross margins consistently near the 60% threshold, with the most recent 2026Q1 figure of 59.1% indicating that the company retains significant pricing power despite the ongoing manufacturing ramp-up of the TASER 10 platform.
The stability of these margins suggests that the high-margin software component of the business is successfully offsetting the variable costs associated with hardware production. Investors should monitor whether future product cycles or shifts in international market penetration exert downward pressure on these structural profitability levels.
Based on the provided income statement data, Axon's net income exhibits extreme volatility, evidenced by a sharp decline to $3.0 million in 2025Q4, largely attributable to significant stock-based compensation expenses that reached $208.6 million during that same period, complicating the assessment of underlying operational performance.
The wide divergence between GAAP net income and operational cash generation warrants caution, as heavy reliance on equity-based incentives may be masking the true cost of talent acquisition. Analysts should interpret these figures with skepticism, as the recurring nature of these charges suggests a persistent drag on reported earnings per share.
Data from recent income statements reveals that Axon is prioritizing market share capture over immediate operating profitability, with R&D and SG&A expenses collectively consuming the vast majority of gross profit, resulting in an operating margin that fluctuated to a low of -2.7% in 2024Q4.
This aggressive spending profile suggests management is focused on building a defensible moat through technological innovation and expanded sales reach. While this strategy may be necessary to maintain competitive dominance, it leaves the company vulnerable to earnings misses if revenue growth were to decelerate unexpectedly.
A critical review of the income statement suggests that Axon's reliance on high-growth narratives may be challenged by the persistent volatility in operating margins and the potential for future shareholder dilution, as evidenced by the significant quarterly stock-based compensation charges observed throughout the 2025 fiscal year.
Short-term investors should consider the risk that the current valuation premium, which aligns more with high-growth SaaS peers than traditional defense contractors, may be unsustainable if operating leverage does not materialize. The lack of consistent GAAP profitability suggests that the company's long-term value proposition remains highly dependent on future execution rather than current cash flow generation.
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.