One-glance verdict
Overvalued
$81.85 our estimate vs market $506.98
Wall Street consensus: $693.40 (747.2% higher than our fair-value estimate)
519% above our estimate, beyond the bull case
Fundamentals snapshot
Axon Enterprise, Inc.
AXON · NMS · Industrials · Aerospace & Defense
Current price
$506.98
52-week range
$339.01 - $792.16
Market cap
$41.19B
Balance sheet
Distressed
-0.66x Concerning
Net debt $1.16B. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Revenue grew 15.8% last year.
- Reward Free cash flow was positive in 9/10 years.
- Risk Stock trades 25.5% above its 5-year average P/E.
- Risk Operating margin compressed from 7.8% to 5.2% over 3 years.
What this company does
Axon Enterprise, Inc.
Axon makes technology for public safety, including the well-known TASER devices and body cameras worn by police officers. The company makes most of its money not just from selling the cameras, but also from selling subscriptions to its software that helps police departments store and manage video evidence. This creates a strong ecosystem (a family of products that work together, making it hard for customers to switch) and provides a steady stream of recurring revenue (income that is predictable and likely to continue over time).
How the company got here
Founded in 1993 as TASER International, the company's original focus was on creating less-lethal weapons as an alternative to firearms for law enforcement. A key turning point came in the late 2000s when the company developed its first body-worn camera and the Evidence.com cloud software to manage the video footage. This move expanded the company's mission from just weapons to include transparency and data management for public safety. To reflect this broader focus on technology, the company officially changed its name to Axon Enterprise in 2017.
What it actually does
Axon provides a network of devices, software, and services primarily for law enforcement, public safety, and government agencies. Think of it as building a complete operating system for public safety. This includes their well-known TASER energy devices, body-worn cameras, and in-car camera systems. They also offer a suite of software that helps agencies manage digital evidence, write reports, and even get real-time situational awareness during incidents.
Connected Devices
This part of the business involves the development, manufacturing, and sale of hardware. It includes the iconic TASER energy devices, as well as body cameras, in-car cameras, and drone technology. Customers, mainly law enforcement and public safety agencies, purchase these physical products to equip their officers and vehicles. This segment represents a significant portion of the company's revenue, driven by demand for new products like the TASER 10 and Axon Body 4 camera.
Software and Services
This segment provides cloud-based software that works with Axon's hardware. A key product is Axon Evidence, a platform for storing, managing, and sharing digital evidence like body camera footage. This business line also includes software for records management and tools that use artificial intelligence (AI) to help officers write reports faster. Customers pay subscription fees for these services, which creates a stream of predictable income known as recurring revenue (money that is expected to continue in the future). This is a fast-growing part of Axon's business.
What management is betting on now
Axon is focused on becoming the all-in-one technology platform for public safety, moving beyond just selling individual devices. A major priority is expanding their software and cloud services, which generate predictable subscription revenue and make it harder for customers to switch to a competitor. They are also investing heavily in artificial intelligence (AI) to create tools that save officers time on paperwork, such as automatically generating draft reports from body camera audio. Additionally, Axon is expanding into real-time operations by acquiring companies like Fusus, which allows for the integration of live video and data feeds to give law enforcement a comprehensive view of unfolding incidents.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$64.85M
FY2024 Q4
$225.37M
FY2025 Q1
$932.00K
FY2025 Q2
$-114.66M
FY2025 Q3
$33.38M
FY2025 Q4
$155.43M
FY2026 Q1
$-54.64M
FY2026 Q2
$-972.00K
Revenue
$904.39M
Net income
$29.43M
Diluted EPS
0.36
Operating cash flow
$20.08M
Free cash flow
$-972.00K
Fetching…
Sources
Revenue
$807.35M
Net income
$169.31M
Diluted EPS
2.05
Operating cash flow
$-31.52M
Free cash flow
$-54.64M
Fetching…
Sources
Revenue
$796.72M
Net income
$2.75M
Diluted EPS
0.02
Operating cash flow
$217.24M
Free cash flow
$155.43M
Fetching…
Sources
Revenue
$710.64M
Net income
$-2.19M
Diluted EPS
-0.03
Operating cash flow
$60.01M
Free cash flow
$33.38M
Fetching…
Sources
Revenue
$668.54M
Net income
$36.12M
Diluted EPS
0.44
Operating cash flow
$-91.70M
Free cash flow
$-114.66M
Fetching…
Sources
Revenue
$603.63M
Net income
$87.98M
Diluted EPS
1.08
Operating cash flow
$25.79M
Free cash flow
$932.00K
Fetching…
Sources
Revenue
$573.42M
Net income
$135.99M
Diluted EPS
1.68
Operating cash flow
$250.17M
Free cash flow
$225.37M
Fetching…
Sources
Revenue
$544.27M
Net income
$67.03M
Diluted EPS
0.86
Operating cash flow
$91.32M
Free cash flow
$64.85M
Fetching…
Sources
Is it cheap or expensive?
Fair value $81.85 vs current price $506.98
Wall Street consensus is the average analyst price target: $693.40 (747.2% higher than our fair-value estimate).
Our most-likely fair value is $81.85 a share — about 83.9% below today's price of $506.98, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Distressed
Net debt $1.2B. Interest coverage -0.7x.
Net debt
$1.16B
Interest coverage
-0.66x
Axon Enterprise, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
AXON
BASELINE
Axon Enterprise, Inc.
Total debt $1.85B Interest coverage -0.66x This is the baseline the peer rows are being compared against.
Total debt $9.62B Interest coverage 8.22x This peer still has a real interest-payment cushion, while AXON does not.
Total debt $7.93B Interest coverage 3.60x This peer still has a real interest-payment cushion, while AXON does not.
Total debt $6.58B Interest coverage 10.34x This peer still has a real interest-payment cushion, while AXON does not.
Total debt $1.46B Interest coverage 71.61x This peer still has a real interest-payment cushion, while AXON does not.
Total debt $9.48B Interest coverage 13.32x This peer still has a real interest-payment cushion, while AXON does not.
What you should know
The case for and against AXON
2 Rewards
2 Risks
Rewards
-
Revenue grew 15.8% last year.
-
Free cash flow was positive in 9/10 years.
Risks
-
Stock trades 25.5% above its 5-year average P/E.
-
Operating margin compressed from 7.8% to 5.2% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
217.59x
Forward P/E
48.01x
P/B
11.21x
P/S
12.79x
EV/EBITDA
256.46x
PEG ratio
2.38x
Profitability
How much profit each dollar creates
Gross margin
59.5%
Operating margin
5.2%
Net margin
6.2%
ROE
6.2%
ROA
0.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.50x
Current ratio
2.15x
Quick ratio
1.58x
Total debt
$1.85B
Total cash
$692.53M
Growth
How the business has been compounding
Revenue TTM
$3.22B
Revenue 5Y CAGR
33.9%
EPS TTM
2.33
EPS 5Y CAGR
-9.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$265.81M
Free CF TTM
$75.08M
FCF margin
2.3%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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