Axon Enterprise, Inc.

Worth knowing

• Profit looks boosted by one-off gains. Reported profit is 1.6× operating cash profit (EBITDA), lifted by income outside the core business.Reported profit is 1.6× operating cash profit, lifted by income outside the core business.

  Axon Enterprise's reported profit is 1.6× its operating cash profit (EBITDA), which is unusual: normally it's the other way round. Income outside the core business, such as interest on a large cash pile, gains on investments or asset sales, or tax items, has lifted net income, so its earnings-based valuation may look cheaper than the business alone justifies.Axon Enterprise's reported profit is 1.6× its operating cash profit, which is unusual: normally it's the other way round. Income outside the core business, such as interest on a large cash pile, gains on investments or asset sales, or tax items, has lifted net income, so its earnings-based valuation may look cheaper than the business alone justifies.

• Shareholders being diluted. Shares outstanding up 14% from December 2022 to July 2026.

  Axon Enterprise had 14% more shares at July 2026 than at December 2022, mostly from issuing stock (for pay, acquisitions or fundraising). Each existing share now owns a smaller slice of the business.Axon Enterprise had 14% more shares at July 2026 than at December 2022, mostly from issuing stock. Each existing share now owns a smaller slice of the business.

• Stock-based pay is a large cost. Stock pay was 23% of revenue in 2025.

  Axon Enterprise paid employees $634M in stock in 2025, 23% of its $2.8B revenue. It doesn't use cash, so it flatters cash flow, but it is a real cost to shareholders through dilution.

• Annual revenue rose 5 years in a row. Fiscal-year revenue rose from $681M in 2020 to $2.8B in 2025.

  Axon Enterprise's fiscal-year revenue rose in each of the five years to 2025, from $681M to $2.8B.