Axon Enterprise (AXON) AI Stock Analysis

• Market Cap: $59.62B
• Dividend Yield: N/A
• Average Volume (3M): 597.74K
• Price to Earnings (P/E): 187.7
• Beta (1Y): 1.57
• Revenue Growth: 32.09%
• EPS Growth: 10.30%
• Country: US
• Employees: 4,100
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 2.12
• Shares Outstanding: 78,504,440
• 10 Day Avg. Volume: 594,461
• 30 Day Avg. Volume: 597,740
• PEG Ratio: 1.07
• Price to Book (P/B): 19.34
• Price to Sales (P/S): 21.62
• P/FCF Ratio: 136.62
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 28.33
• Enterprise Value/Gross Profit: 46.85
• Enterprise Value/Ebitda: 202.79
• 1Y Price Target: $874.10
• Price Target Upside: 15.77% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 67 Neutral
• Price Target: $767.00 ▲(1.59% Upside)

Axon Enterprise's strong revenue growth and positive earnings call sentiment are the most significant factors driving its score. However, high valuation metrics and cash flow challenges weigh on the overall score. The technical analysis suggests a neutral market sentiment, while the lack of dividend yield and high P/E ratio indicate potential overvaluation concerns.

Positive Factors

Revenue Growth

Axon's consistent revenue growth over 14 quarters indicates strong market demand and effective product adoption, supporting long-term expansion.

Recurring Revenue Model

The recurring revenue from subscription services like Evidence.com ensures steady cash flow, enhancing financial stability and predictability.

International Expansion

International expansion, such as the new TASER customer in Africa, diversifies revenue streams and reduces reliance on domestic markets.

Negative Factors

Cash Flow Challenges

Declining free cash flow indicates potential liquidity issues, which could limit Axon's ability to invest in growth and innovation.

Operational Inefficiencies

Decreasing net profit margins suggest rising costs or inefficiencies, potentially impacting long-term profitability and competitiveness.

Challenges in Scaling New Hardware

Scaling challenges for new hardware products may delay market entry and revenue realization, affecting growth projections.

Axon Enterprise Business Overview & Revenue Model

Company Description

Axon 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 Money

Axon 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 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. Overall, the company is on a growth trajectory but needs to address profitability and cash flow issues to sustain long-term financial health.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.39B	2.08B	1.56B	1.19B	863.38M	681.00M
Gross Profit	1.45B	1.24B	955.45M	728.64M	531.09M	416.33M
EBITDA	334.09M	437.03M	183.37M	227.62M	-117.11M	6.28M
Net Income	326.31M	377.03M	175.78M	147.14M	-60.02M	-1.72M
Balance Sheet
Total Assets	6.22B	4.47B	3.41B	2.85B	1.69B	1.38B
Cash, Cash Equivalents and Short-Term Investments	2.09B	986.35M	1.32B	974.69M	443.02M	561.97M
Total Debt	2.05B	721.67M	710.66M	711.11M	20.44M	0.00
Total Liabilities	3.48B	2.15B	1.79B	1.58B	640.36M	404.77M
Stockholders Equity	2.73B	2.33B	1.61B	1.27B	1.05B	976.25M
Cash Flow
Free Cash Flow	176.49M	329.53M	128.99M	179.25M	74.22M	-34.39M
Operating Cash Flow	275.58M	408.31M	189.26M	235.36M	124.49M	38.48M
Investing Cash Flow	-1.49B	-490.57M	12.48M	-830.97M	252.56M	-356.53M
Financing Cash Flow	1.27B	-45.44M	41.31M	598.10M	-174.18M	299.26M

Axon Enterprise Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 755.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 755 is above the 20-day moving average (MA) of 711.31, above the 50-day MA of 732.50, and above the 200-day MA of 683.80, indicating a bullish trend. The MACD of 2.92 indicates Negative momentum. The RSI at 60.85 is Neutral, neither overbought nor oversold. The STOCH value of 94.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AXON.

Axon Enterprise Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LHX	―	$53.67B	32.09	8.90%	1.66%	2.93%	43.29%
NOC	―	$83.49B	21.36	26.15%	1.49%	-0.14%	72.35%
AXON	―	$59.62B	187.73	14.00%	―	32.09%	10.30%
KTOS	―	$15.40B	978.65	0.88%	―	7.76%	40.33%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SSTI	―	$117.68M	-11.50	-13.49%	―	1.47%	-430.99%
DGLY	―	$3.11M	―	-191.47%	―	-20.52%	83.27%

Axon Enterprise Corporate Events

Axon Enterprise Shines in Q2 Earnings Call

Axon Enterprise, Inc. Reports Strong Q2 Performance Amidst Tariff Challenges

Axon Enterprise Reports Strong Q2 2025 Growth

Axon Enterprise, Inc. is a leading technology company in the global public safety sector, known for its innovative hardware devices and cloud software solutions that enhance modern policing. In its latest earnings report, Axon reported a strong second quarter for 2025 with a 33% increase in revenue year-over-year, reaching $669 million. The company also raised its full-year revenue outlook to between $2.65 billion and $2.73 billion. Key financial highlights include a net income of $36 million and an adjusted EBITDA of $172 million, reflecting a 37% increase from the previous year. Axon’s Software & Services revenue grew by 39%, driven by the adoption of digital evidence management solutions and other premium offerings, contributing to a 39% increase in annual recurring revenue to $1.2 billion. The Connected Devices segment also saw a 29% revenue growth, led by strong demand for TASER devices and Axon Body cameras. Looking ahead, Axon remains optimistic about its growth trajectory, with a focus on expanding its software portfolio and maintaining a robust pipeline of new products to meet the evolving needs of its customers.