Short answer
Axon Enterprise (AXON) filed its fiscal 2025 10-K annual report with the SEC on Feb 25, 2026. It reported revenue of $2.8B (+33.5% year over year) and net income of $125M.
- Top risk flagged: ATF regulates TASER 10 CED under National Firearms Act 1934 and Gun Control Act 1968; non-compliance risks suspension of entire product line
FY2025 key financial metrics · XBRL
- Revenue
- $2.8B
- +33.5% YoY
- Net income
- $125M
- −66.9% YoY
- Operating margin
- -2.2%
- −5.0 pp YoY
- Gross margin
- 59.7%
- +0.0 pp YoY
- EPS (diluted)
- $1.51
- −68.5% YoY
- ROE
- 3.8%
- −12.4 pp YoY
- Operating cash flow
- $211M
- −48.2% YoY
Source: XBRL data from the Axon Enterprise (AXON) FY2025 10-K on SEC EDGAR. USD.
Axon Enterprise FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Integrated public safety tech platform: hardware (TASER, cameras, drones) plus AI-enhanced SaaS, generating $1.3B annual recurring revenue as of Dec 31, 2025
- Segment realignment: split former "TASER" and "Software & Sensors" into "Software & Services" and "Connected Devices" for greater transparency
- Carbyne acquisition expanded Axon into core NG911 call-handling layer, deepening emergency communications beyond prior over-the-top AI tools
- Full-time headcount grew ~1,000 to 5,100+, up 24% YoY, driven by sales/R&D hiring and acquisitions
- Regrettable attrition below 1.0% with 88%+ employee pride score: unusually strong retention metrics for a high-growth tech firm
Management Discussion & Analysis
- Revenue $2.8B, up $697M (+33.5% YoY); Software & Services fastest-growing at +39.6%, Connected Devices +29.1%
- Operating margin -2.2% vs +2.8% YoY; gross margin 59.7% vs 59.6%; adjusted gross margin 62.6% vs 63.2%, pressured by tariffs and Platform Solutions mix
- Best segment: Software & Services gross margin 74.0%; worst: Connected Devices adjusted gross margin 51.2% vs 53.6% prior year
- Operating cash flow $211.3M vs $408.3M prior year; capex $136.3M; $1.75B Senior Notes issued; ATM equity raise generated $489.4M net proceeds; no buybacks disclosed
- Post-period acquired Carbyne for $625M cash; global tariffs and rising SBC ($610M in FY25) cited as key cost risks
Risk Factors
- ATF regulates TASER 10 CED under National Firearms Act 1934 and Gun Control Act 1968; non-compliance risks suspension of entire product line
- Tariffs on PRC, Mexico, Canada imports directly raise supply costs; TASER 10 CED components face ATF import permit restrictions limiting supplier alternatives
- Unremediated material weakness in revenue recognition internal controls as of December 31, 2025; prior restatement of 2027 Notes classification between current and long-term liabilities
- AI Act (EU) imposes heightened compliance requirements on law enforcement AI products; potential recalls if noncompliant with evolving regulations
- CEO Patrick Smith identified as key-person dependency; no key-person insurance maintained on any officers or employees
Generated from the filing text; verify against the original. How to read a 10-K
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