Quality Investor
About 

Axon Enterprise, Inc.

Rank #323Hypergrowth

AXON · Nasdaq · Industrials

Axon Enterprise, Inc. (AXON) — Rank #323 by gross profitability (GP/assets 0.22) · ROE 3.4% · Piotroski F-Score 5 / 9.

As-of 2026-09-15 · 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.

Show more

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

Price History

AXON+159.3% · +21.0% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

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

Market Cap

$36.01B

P/E (annual)

293.6

P/S (annual)

13.0

P/B

9.8

P/OCF (annual)

170.4

Shareholder Yield

-4.9%

Employees

5,100

Industry

Aerospace & Defense

Exchange

Nasdaq

Signal Flags

3 green1 yellow1 red
Revenue growth acceleratingGrowth rate increasing year over year
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation
Operating margin decliningOperating margin lower than prior year

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%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

53.8%

stretched

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 4.9% — per-share value needs a total required return of 58.6% once share-count change is priced in.

vs. own 6-year median revenue growth: 32.4%

priced above its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

47.0%

r = 10% (base)

53.8%

r = 12%

59.6%

Net debt / market cap: 2.9%

Base FCF: $75.1M3Y mean FCF: $178.1M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

344.5xFair
98.7xmed 145.5x7737.0x

P / S

Price / revenue per share

15.4xExpensive
7.7xmed 11.6x19.9x

P / B

Price / book value per share

13.2xFair
6.9xmed 12.1x19.7x

P / GP

Price / gross profit per share

25.8xExpensive
12.4xmed 18.7x33.4x

P / FCF

Price / free cash flow per share

570.7xExpensive
60.9xmed 126.0x570.7x

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

Profitability

Gross profitability (GP / assets)

0.22

Primary signal (Novy-Marx).

11th of 15 SIC 34 peers

Return on equity

3.4%

Gross margin

59.7%

1st of 15 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%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.04

12th of 15 SIC 34 peers (best = lowest)

Current ratio

2.15×

10th of 15 SIC 34 peers

Quick ratio

—

Net cash

-$1.06B

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$75.08M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

-0.40

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

WARN

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

22.8%

Stock-based comp intensity.

Piotroski F-Score

F-Score

5 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Hypergrowth
View full financial statements →