10-K · February 25, 2026
Axon’s 2025 filing emphasizes a strategic shift to a software-first model by realigning reporting into Software and Services and Connected Devices and highlights $1.3 billion of annual recurring revenue as of December…
Earnings analysis · 10-Q
AXON earnings analysis
Filed May 6, 2026 · Our reading of the company's report
The latest report
Axon reported a strong Q1 2026 performance, with revenue of $807.3 million, a 33.7% increase year-over-year, and EPS of $1.61, exceeding estimates by 25.8%. The company attributed its success to robust growth in both…
Read full summary
Axon reported a strong Q1 2026 performance, with revenue of $807.3 million, a 33.7% increase year-over-year, and EPS of $1.61, exceeding estimates by 25.8%. The company attributed its success to robust growth in both product and service segments, though it faced margin pressure due to increased operating expenses and changing revenue mix.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.61
- Segment
- Connected Devices
- Segment
- Software and Services
What stood out
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Strong Revenue Growth
Revenue increased by $203.7 million, or 33.7%, to $807.3 million compared to $603.6 million in Q1 2025.
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EPS Exceeds Expectations
Reported EPS was $1.61, beating consensus estimates of $1.28 by approximately 25.8%.
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Significant Growth in Segments
Connected Devices revenue increased 32.8% to $452.8 million, while Software and Services rose by 34.9% to $354.5 million.
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Improved Income from Operations
Income from operations turned positive at $29.2 million, compared to a loss of $8.8 million in Q1 2025.
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Healthy Net Income
Net income reached $169.3 million, up from $88.0 million year-over-year.
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Robust Cash Flow Despite Outflows
Operating cash flow saw a net outflow of $31.5 million, compared to positive flow of $25.8 million a year ago.
What to watch
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Decline in Gross Margin
Gross margin decreased to 59.1% from 60.6% year-over-year, driven by higher operational costs and tariffs.
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Increased Operating Expenses
Total operating expenses rose by $73.5 million, impacting overall profitability despite revenue growth.
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Cash Position Reduction
Cash and cash equivalents decreased by $742.2 million from $1.2 billion at year-end, potentially impacting liquidity.
Management's outlook
No explicit numeric guidance in the 10-Q; management anticipates continued growth.
Earlier filings 4
10-Q · November 5, 2025
Axon reported Q3 net sales of $710,641,000 (up $166,367,000 or +30.6% YoY) but recorded a GAAP net loss of $2,186,000 (diluted EPS $(0.03)) after a $17,889,000 tax provision. Gross margin was largely stable at 60.1%…
10-K · February 28, 2025
Axon positions itself as a vertically integrated public-safety platform combining cloud software, sensors and TASER devices and reports $1.0 billion of annual recurring revenue as of December 31, 2024. The business…
10-Q · November 8, 2024
Axon reported Q3 net sales of $544,274,000, up $130,996,000 (31.7%) versus Q3 2023, driven by both product and service revenue. Gross margin rose to $330,747,000 but operating income fell to $24,081,000 from $57,419,000…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.