Axon Enterprise, Inc.

“Axon Enterprise, Inc. (“Axon,” the “Company,” “we” or “us”) is a technology company that provides integrated hardware and software solutions. Founder-led since 1993”

“During the year ended December 31, 2025, we realigned our business to better reflect our continued growth and expansion of our technology solutions. Previously reported within two reportable segments, TASER and Software and Sensors”

“Our core customers across the public and private sectors include U.S. federal, state, and local governments, international governmental entities, commercial enterprises, and consumers.”

“Although the majority of our revenues are generated via direct sales, we also leverage distribution partners and third party resellers.”

“Axon has a suite of cloud-based, SaaS solutions that deeply integrate with our hardware to benefit customers and drive annual recurring revenue, which totaled $1.3 billion”

“Platform Solutions include Axon Fleet in-car video systems, fixed cameras, drone and counter-drone technology, virtual reality (“VR”) training hardware, and other devices that support operational awareness.”

“United States$2,305,01283 %$1,775,19485 % Other countries474,52417 307,33215”

“TASER (1) $913,883 32.9 %$750,141 36.0 %$163,742 21.8 %”

“As a percentage of net sales, gross margin for the Software and Services segment decreased to 74.0% from 74.1% for the years ended December 31, 2025 and 2024, respectively.”

“We do not currently engage in hedging activities related to fluctuations in foreign currency.”

“We perform manufacturing, final assembly and final test operations at our facilities in Arizona and own substantially all of the equipment required to develop, prototype, manufacture and assemble our finished products.”

“Although we currently obtain certain components from single source suppliers, we own substantially all injection-molded component tooling, designs and test fixtures used in production for all custom components.”

“We depend on our ability to attract and retain our key management, sales and technical personnel.”

“Business combinations, net of cash acquired(646,875)(621,817)(21,090)”

“International revenue increased compared to the prior year 2024 comparative period, primarily driven by increased sales in our Americas region.”

“The increase of $163.7 million in TASER is primarily driven by higher TASER 10 handle and cartridge volume.”

“We incurred R&D expense of $684.3 million, $441.6 million and $303.7 million in the years ended December 31, 2025, 2024 and 2023, respectively.”

“The decrease was primarily driven by global tariffs and a higher mix of Platform Solutions revenue.”

“The 2027 Note Hedge and Warrant transactions may impact the value of our common stock.”

“Our revenues for the year ended December 31, 2025 were $2.8 billion, an increase of $697.0 million, or 33.5%, from the year ended December 31, 2024.”

“Cash and cash equivalents$1,201,147 $454,844”

“Net cash provided by operating activities211,339 408,312 189,263”

“Our revision and our restatement of previously issued consolidated financial statements may adversely affect investor confidence and could result in regulatory actions and stockholder litigation.”

“Failure to comply with federal, state, or local regulations applicable to our firearm product, the TASER 10 CED, could result in governmental actions or litigation”

“We substantially depend on continued acceptance of our products and services by law enforcement agencies worldwide, and any reduction in demand could materially adversely affect our business.”

“Third parties often use our CED products in aggressive confrontations that may result in serious, permanent bodily injury or death.”

“Most of our end-user customers are subject to budgetary and political constraints, which may delay or prevent sales, result in cancellations, or lead to the non-renewal of contracts.”

“Balance, end of period$10,858 $8,284 $7,374”

“Recent developments in the threat landscape include the use of AI and machine learning by attackers to automate, enhance, and evade detection during cyber attacks, along with an increased number of cyber extortion and ransomware incidents.”

“the AI Act in the European Union imposes compliance requirements on a variety of AI uses by law enforcement, as well as on the companies that develop those products, including us.”

“We incurred non-recurring severance costs during the three months ended December 31, 2025 of $28.7 million”

“recommendations from the OECD for a global minimum income tax and other changes are being implemented or considered in jurisdictions where we operate.”

“In addition, retaliatory acts by foreign governments in response to Western sanctions could include cyber attacks that could directly or indirectly impact our operations.”