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Axon Enterprise, Inc. (AXON)
:AXON
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Axon Enterprise (AXON) AI Stock Analysis

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AXON

Axon Enterprise

(NASDAQ:AXON)

Rating:70Neutral
Price Target:
$832.00
▲(8.10% Upside)
Axon's overall stock score is driven by strong earnings call results, highlighting impressive revenue growth and strategic international expansion. However, the high P/E ratio suggests potential overvaluation, and technical indicators show mixed signals. Financial performance is solid but faces challenges in profitability and cash flow, which need to be addressed for sustained growth.
Positive Factors
Earnings
Axon delivered another exceptional quarter, exceeding across all metrics and with the stock rising in the aftermarket as ARR growth accelerated to 39%.
Partnerships
The partnership with SkyDio creates a large opportunity for Axon as the FAA expands drone operations for domestic use, leading to wider adoption by police.
Product Innovation
Axon's constant product innovation is supporting a higher growth rate than even our bullish expectations.
Negative Factors
Capacity Constraints
Strong demand for TASER 10 is driving growth, despite capacity constraints.
Uncertainty
The uncertainty and lack of details regarding the reconciliation bill funding likely slowed award decision making and pushed delivery timelines for Axon to later dates.

Axon Enterprise (AXON) vs. SPDR S&P 500 ETF (SPY)

Axon Enterprise Business Overview & Revenue Model

Company DescriptionAxon Enterprise, Inc. develops, manufactures, and sells conducted energy devices (CEDs) under the TASER brand in the United States and internationally. It operates through two segments, TASER, and Software and Sensors. The company also offers hardware and cloud-based software solutions that enable law enforcement to capture, securely store, manage, share, and analyze video and other digital evidence. Its products include TASER 7, TASER X26P, TASER X2, TASER Consumer devices, and related cartridges; on-officer body cameras, Axon Fleet in-car systems, and other devices; Axon Evidence digital evidence management software; Axon Signal enabled devices, as well as hardware extended warranties; and Axon docks, cartridges, and batteries. It sells its products through its direct sales force, distribution partners, online store, and third-party resellers. Axon Enterprise, Inc. has a strategic partnership with Fusus, Inc. to expand the capabilities of Axon Respond and the Fusus Real Time Crime Center in the Cloud solution to provide agencies real-time operations situational awareness, including streamlined investigative workflows. 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.
How the Company Makes MoneyAxon generates revenue through multiple streams, primarily by selling its hardware products, such as Tasers and body-worn cameras, as well as through subscription-based services for its software platforms. The company offers a cloud-based evidence management system known as Evidence.com, which allows agencies to store, manage, and share digital evidence securely. Subscription fees from this service provide a recurring revenue model. Additionally, Axon has established significant partnerships with various law enforcement agencies and government entities, enabling it to secure long-term contracts and bulk orders, further contributing to its earnings. The company also invests in research and development to innovate and expand its product offerings, ensuring it remains competitive in the evolving public safety landscape.

Axon Enterprise Key Performance Indicators (KPIs)

Any
Any
Annual Recurring Revenue
Annual Recurring Revenue
Measures the predictable revenue generated from subscriptions or contracts, highlighting the stability and growth potential of the company's income stream.
Chart InsightsAxon's Annual Recurring Revenue has shown a robust upward trajectory, surpassing $1 billion in 2024 and continuing strong growth into 2025. The latest earnings call underscores this trend, highlighting a 33% year-over-year revenue increase and significant gains in software and services. The company's strategic focus on AI, drones, and international expansion is driving this momentum. However, potential tariff impacts and challenges in the Platform Solutions segment could pose risks to margins. Overall, Axon's commitment to innovation and strategic investments positions it well for sustained growth.
Data provided by:Main Street Data

Axon Enterprise Earnings Call Summary

Earnings Call Date:Aug 04, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call reflects strong business growth with significant revenue and bookings increases, driven by robust product adoption and successful large deals. The company is expanding internationally and increasing its guidance, indicating confidence in future performance. However, there are challenges related to tariffs and scaling new hardware products.
Q2-2025 Updates
Positive Updates
Impressive Revenue Growth
Second quarter revenue of $669 million increased 33% year-over-year, marking the 14th consecutive quarter of over 25% revenue growth.
Strong Bookings and Product Adoption
Closed almost $150 million of bookings for the AI Era Plan in Q2 alone, with over 30% of bookings this quarter coming from new product categories. Draft One, TASER 10, and Axon Body 4 are the fastest adopted products.
Record-Breaking Deals
The state and local team achieved the largest deal in Axon company history, and the corrections team also closed their largest deal in team history.
International Expansion
Added a new TASER customer in Africa, becoming the largest in the region, and signed a contract in the gaming space, marking the first win in that vertical to include AI products.
Raising Guidance
2025 revenue guidance raised to $2.65 billion to $2.73 billion, representing approximately 29% annual growth at the midpoint. Adjusted EBITDA guidance raised to $665 million to $685 million.
Negative Updates
Tariff Impacts
Adjusted EBITDA margin of 25.7% was ahead of expectations, but the timing of tariffs will impact the second half of the year.
Challenges in Scaling New Hardware
While TASER 10 capacity is being ramped up, there is a need for continued investment to meet demand. New hardware like light post and outpost cameras are in trials, with some challenges in scaling.
Company Guidance
During Axon's Q2 2025 earnings call, the company reported a 33% year-over-year revenue increase to $669 million, marking their 14th consecutive quarter of over 25% revenue growth. Software and services revenue grew 39% to $292 million, while connected devices revenue rose 29% to $376 million. The company's net revenue retention was at 124%, maintaining above 120% for 20 consecutive quarters. Axon raised its 2025 revenue guidance to a range of $2.65 billion to $2.73 billion, representing approximately 29% annual growth at the midpoint, and adjusted EBITDA guidance to a range of $665 million to $685 million. In Q2, the company closed nearly $150 million of bookings for its AI Era Plan, with over 30% of bookings from new product categories. Axon highlighted its strong performance with state and local teams, international expansion, and enterprise opportunities, expecting high 30% bookings growth for the second half of the year.

Axon Enterprise Financial Statement Overview

Summary
Axon Enterprise demonstrates strong revenue growth and a solid gross profit margin, reflecting effective cost management. However, profitability metrics such as net profit margin and EBIT margin have shown some decline, indicating potential operational inefficiencies. The balance sheet is stable with moderate leverage, but cash flow metrics suggest challenges in cash generation.
Income Statement
75
Positive
Axon Enterprise shows a strong revenue growth trajectory with a 7.38% increase in TTM. The gross profit margin is robust at 60.47%, indicating efficient cost management. However, the net profit margin has decreased to 13.64% from 18.10% in the previous year, and the EBIT margin is negative, reflecting potential operational challenges.
Balance Sheet
70
Positive
The company maintains a moderate debt-to-equity ratio of 0.75, suggesting a balanced approach to leverage. Return on equity is healthy at 13.43%, though it has decreased from the previous year. The equity ratio stands at 43.96%, indicating a strong equity base relative to total assets.
Cash Flow
65
Positive
Operating cash flow is positive, but the free cash flow has declined significantly by 51.33% in the TTM. The operating cash flow to net income ratio is 0.21, indicating that cash generation is lower relative to net income. The free cash flow to net income ratio is 0.64, showing some cash flow challenges.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.39B2.08B1.56B1.19B863.38M681.00M
Gross Profit1.45B1.24B955.45M728.64M531.09M416.33M
EBITDA334.09M437.03M183.37M227.62M-117.11M6.28M
Net Income326.31M377.03M175.78M147.14M-60.02M-1.72M
Balance Sheet
Total Assets6.22B4.47B3.41B2.85B1.69B1.38B
Cash, Cash Equivalents and Short-Term Investments2.09B986.35M1.32B974.69M443.02M561.97M
Total Debt2.05B721.67M710.66M711.11M20.44M0.00
Total Liabilities3.48B2.15B1.79B1.58B640.36M404.77M
Stockholders Equity2.73B2.33B1.61B1.27B1.05B976.25M
Cash Flow
Free Cash Flow176.49M329.53M128.99M179.25M74.22M-34.39M
Operating Cash Flow275.58M408.31M189.26M235.36M124.49M38.48M
Investing Cash Flow-1.49B-490.57M12.48M-830.97M252.56M-356.53M
Financing Cash Flow1.27B-45.44M41.31M598.10M-174.18M299.26M

Axon Enterprise Technical Analysis

Technical Analysis Sentiment
Positive
Last Price769.68
Price Trends
50DMA
772.16
Negative
100DMA
720.17
Positive
200DMA
659.45
Positive
Market Momentum
MACD
-0.67
Positive
RSI
49.55
Neutral
STOCH
55.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AXON, the sentiment is Positive. The current price of 769.68 is below the 20-day moving average (MA) of 784.33, below the 50-day MA of 772.16, and above the 200-day MA of 659.45, indicating a neutral trend. The MACD of -0.67 indicates Positive momentum. The RSI at 49.55 is Neutral, neither overbought nor oversold. The STOCH value of 55.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AXON.

Axon Enterprise Risk Analysis

Axon Enterprise disclosed 56 risk factors in its most recent earnings report. Axon Enterprise reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Axon Enterprise Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$86.66B21.4817.91%1.79%11.85%16.12%
78
Outperform
$51.95B30.838.90%1.71%2.93%43.29%
71
Outperform
$106.33B25.2173.06%2.87%1.09%-35.50%
71
Outperform
$84.91B21.5726.50%1.45%-0.65%77.20%
70
Neutral
$60.37B190.2714.00%32.09%10.30%
68
Neutral
$11.49B728.760.88%7.76%40.33%
64
Neutral
$10.95B16.378.81%1.96%2.68%-15.33%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AXON
Axon Enterprise
769.68
407.68
112.62%
GD
General Dynamics
325.46
33.75
11.57%
LHX
L3Harris Technologies
276.76
47.74
20.85%
KTOS
Kratos Defense
67.92
45.34
200.80%
LMT
Lockheed Martin
454.47
-97.81
-17.71%
NOC
Northrop Grumman
586.61
76.22
14.93%

Axon Enterprise Corporate Events

Shareholder Meetings
Axon Enterprise Concludes 2025 Annual Shareholders Meeting
Neutral
Jun 2, 2025

On May 29, 2025, Axon Enterprise, Inc. held its 2025 Annual Meeting of Shareholders, where 89.8% of the company’s shares were voted. During the meeting, directors were elected for a one-year term, the compensation of named executive officers was approved in a non-binding advisory vote, and the appointment of PricewaterhouseCoopers LLP as the independent registered public accountant for fiscal year 2025 was ratified.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 20, 2025