Axon Enterprise (AXON) FY2025 10-K Annual Report
Axon Enterprise (AXON) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 25, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
Axon Enterprise FY2025 10-K Analysis
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
Axon Enterprise FY2025 Key Financial MetricsXBRL
Revenue
$2.8B
▲ +33.5% YoY
Net Income
$125M
▼ -66.9% YoY
Gross Margin
59.7%
▲ +5bp YoY
Operating Margin
-2.2%
▼ -504bp YoY
Net Margin
4.5%
▼ -1362bp YoY
ROE
3.8%
▼ -1235bp YoY
Total Assets
$7.0B
▲ +56.4% YoY
EPS (Diluted)
$1.51
▼ -68.5% YoY
Operating Cash Flow
$211M
▼ -48.2% YoY
Source: XBRL data from Axon Enterprise FY2025 10-K filing on SEC EDGAR. All figures in USD.
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