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Axon Enterprise, Inc.

Rank #310HypergrowthWatchlistCompare with other stocks

AXON · Nasdaq · Industrials

Axon Enterprise, Inc. (AXON) — Rank #310 by gross profitability (GP/assets 0.22) · ROE 3.4% · Piotroski F-Score 5 / 9.

As-of 2026-10-30 · CIK 0001069183 · all metrics point-in-time as of the filing date.

About

Axon Enterprise, Inc. provides public safety technology solutions in the United States and internationally.

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The company operates in two segments, Software and Services, and Connected Devices. The Software and Services segment develops, manufactures, and sells cloud-based software-as-a-service solutions to capture, store, manage, share, and analyze video and other digital evidence. This segment also offers Axon Evidence, Draft One, Axon Records, Axon Standards, Axon Fusus, Axon Assistant, and others. The Connected Devices segment engages in the development, manufacture, and sale of integrated hardware solutions, such as conducted energy devices under the TASER brand, body cameras, fixed and in-car cameras, drone and counter-drone technologies, accessories, extended warranties, and related hardware products, as well as virtual reality training hardware. The company serves first responders across international, federal, state, and local governments, international governmental entities, commercial enterprises, and consumers through direct sales, distribution partners, and third-party resellers. The company was formerly known as TASER International, Inc. and changed its name to Axon Enterprise, Inc. in April 2017. Axon Enterprise, Inc.

was incorporated in 1993 and is headquartered in Scottsdale, Arizona.

Industry
Aerospace & Defense
Sector
Industrials
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
December 31
Website
axon.com

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

5,100

Industry

Aerospace & Defense

Exchange

Nasdaq

10/12

Flags passed

AXON fails 1 critical flag

Passes 10 of 12 quality flags, 1 caution

  • FAIL
    Operating margin declining

    Operating margin lower than prior year

  • CAUTION
    Dilution above 2%

    Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation

  • PASS
    Gross margin holding
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Revenue not declining
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    Balance sheet stable
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating · Deferred revenue growing · Sequential beat (rev + EPS)

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

Quality Profile

Profitability

1/1 pass
GP / assets
0.22
Return on equity
3.4%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.04
Current ratio
2.15×
Net cash
-$1.06B

Cash Flow

2/3 pass
Positive FCF
PASS
Cash-backed earnings
WARN
Accruals healthy
PASS
SBC / revenue
22.8%

Growth

1/2 pass
Revenue growth
33.5%
Piotroski F-Score
5 / 9
Share dilution
4.9%

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Does it make money well?

Warning: Operating margin declining · GP/assets 0.22

Gross profitability (GP / assets)

0.22

Primary signal (Novy-Marx).

10th of 12 SIC 34 peers

Return on equity

3.4%

Gross margin

59.7%

1st of 12 SIC 34 peers

Revenue growth (YoY)

33.5%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

32.8%

Revenue CAGR (5Y)

32.5%

Earnings CAGR (3Y)

-5.3%

FCF CAGR (3Y)

-25.2%

Cash Flow Health

Is the cash real?

No warning flags · FCF 40% below net income

Free cash flow

$75.08M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

-39.8%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

WARN

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

22.8%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

Caution: Dilution above 2% · net debt $1.06B, F-Score 5/9

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.04

11th of 12 SIC 34 peers (best = lowest)

Current ratio

2.15×

10th of 12 SIC 34 peers

Quick ratio

—

Net cash

-$1.06B

Cash & equivalents minus total debt.

Piotroski F-Score

5 / 9

Fundamental-strength score (0-9).

Valuation

Is the price reasonable?

No warning flags

Capital allocation quality

Composite score

1.3 / 5

Weak
Share count trend
4.9%1/5 Weak
Buyback timing
N/AN/A
Dividend growth consistency(non-payer or broken streak)
0 yr3/5 Good
Net debt trajectory
N/A0/5 Weak

Lifecycle Phase History

20202025
Hypergrowth

Price History

AXON+154.0% · +20.4% CAGRSPY+82.9% · +12.8% CAGR

View full financial statements →

Source filings on SEC EDGAR: 10-K annual reports · 10-Q quarterly reports