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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on AXON

Breaking News: Axon Enterprise Inc saw its stock rebound after a 10% drop on Tuesday, with at least three Wall Street analysts issuing bullish notes. The company is facing a legal battle over its headquarters and recently hosted Axon Week. The rebound occurs amid a volatile market, with traders watching if the strength can persist. No recent earnings release was mentioned. Analysts at various firms have issued positive notes on the stock, recommending a buy. One firm has a hold recommendation but specific names were not provided.

1.c. Company Highlights

2. Axon Delivers Strong Q4 and Full-Year Results, Driven by Robust Bookings and Revenue Growth

Axon's Q4 revenue grew 39% year-over-year to $797 million, with Software and Services revenue increasing 40% year-over-year to $343 million. The company's adjusted gross margin was 61.1%, and adjusted EBITDA grew 46% year-over-year to $206 million. The actual EPS came out at $2.15, beating estimates of $1.6. The strong financial performance was driven by robust bookings, with full-year bookings reaching $7 billion, a 40% increase from last year.

Publication Date: Feb -26

📋 Highlights
  • 2025 Full-Year Bookings: Surpassed $7 billion, a 40% year-over-year increase, with Q4 bookings up 50% to $2.5 billion.
  • AI Era Plan Performance: Generated $750 million in bookings (10% of total), with new AI and Fusus product bookings tripling to $1 billion compared to 2024.
  • Q4 Revenue Growth: Revenue rose 39% Y/Y to $797 million, driven by 40% growth in Software & Services ($343 million) and strong Connected Devices & TASER sales.
  • 2028 Revenue Target: Aims to double revenue to $6 billion, with adjusted EBITDA margin expanding to 28% from 25.5% in 2025, reflecting long-term margin improvement.
  • New Market Opportunities: 9-figure federal, corrections, retail, and healthcare contracts, plus a 125% net retention rate (NRR) and 30% of customers on premium plans (OSP) highlight ecosystem stickiness.

Bookings and Revenue Growth

The company's bookings growth was driven by strong demand for its new products, including AI and Fusus, which totaled over $1 billion, nearly triple the amount in 2024. The AI Era plan accounted for approximately $750 million in bookings, about 10% of the total. The company's revenue growth is expected to continue, with guidance for 2026 expecting revenue growth of 27-30% year-over-year. Analysts estimate next year's revenue growth at 29.3%, which is in line with the company's guidance.

Valuation Metrics

Axon's valuation metrics indicate a high-growth company with a strong market position. The company's P/S Ratio is 14.77, and EV/EBITDA is 171.24, indicating a premium valuation. However, the company's strong revenue growth and expanding margins justify the premium. The company's ROE is 4.32%, and ROIC is 0.02%, indicating a relatively low return on equity and invested capital.

Growth Prospects

Axon's growth prospects are driven by its strong product pipeline, including new categories and technologies. The company is well-positioned to capitalize on the growing demand for AI-powered solutions in the public safety and security markets. With a strong team and supportive shareholders, the company is well-positioned for future growth. As Josh Isner mentioned, the company sees a lot of runway in its new product portfolio, including ALPR and Vehicle Intelligence, with a pipeline in the 9 figures.

Innovation and Expansion

The company is focused on driving innovation and expansion, with a strong pipeline of new products and technologies. The company's AI Era Plan is seeing strong adoption, with customers often buying it in tandem with other capabilities. Axon's customer success team is focused on driving adoption of new products, and the company is excited about the future of AI adoption amongst its customers.

3. NewsRoom

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Why Axon Stock Bounced Back After Falling 10% Yesterday

Apr -08

Source: fool.com

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Axon Stock Is Rebounding Today: What's Happening?

Apr -08

Source: benzinga.com

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Axon Stock Plunged on Tuesday. Is This a Buying Opportunity?

Apr -08

Source: fool.com

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Axon Tackles Public Safety's Data Overload With Three New AI Tools

Apr -07

Source: prnewswire.com

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Head to Head Contrast: Teledyne Technologies (NYSE:TDY) vs. Axon Enterprise (NASDAQ:AXON)

Apr -07

Source: defenseworld.net

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Axon Enterprise (AXON) Ascends But Remains Behind Market: Some Facts to Note

Mar -31

Source: zacks.com

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AppLovin: Axon Keeps Getting Smarter

Mar -31

Source: seekingalpha.com

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Axon Enterprise (AXON) Falls More Steeply Than Broader Market: What Investors Need to Know

Mar -30

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.55%)

6. Segments

Software and Sensors

Expected Growth: 10.93%

Axon Enterprise's Software and Sensors segment growth of 10.93% is driven by increasing demand for digital evidence management, body-worn cameras, and sensor-enabled devices. Growing adoption of cloud-based solutions, expansion into new markets, and strategic partnerships also contribute to the segment's growth.

TASER

Expected Growth: 9.95%

TASER's 9.95% growth driven by increasing demand for non-lethal law enforcement solutions, expansion into new markets, and growing adoption of Axon's body-worn cameras and Evidence.com software. Strong brand recognition, strategic partnerships, and continuous innovation in AI-powered public safety technology also contribute to the segment's growth.

7. Detailed Products

TASER Conducted Electrical Weapons (CEWs)

A non-lethal weapon used by law enforcement to incapacitate dangerous individuals, while minimizing the risk of serious injury or death.

Axon Body 3 Camera

A rugged, waterproof, and Wi-Fi enabled body-worn camera designed for law enforcement and public safety professionals.

Axon Fleet 3 In-Car Video System

A rugged, high-definition in-car video system designed for law enforcement vehicles, providing a clear and reliable video recording of traffic stops and other incidents.

Evidence.com

A cloud-based digital evidence management system that allows agencies to securely store, manage, and share digital evidence.

Axon Records

A cloud-based records management system that allows agencies to manage and analyze incident reports, officer activity, and other data.

8. Axon Enterprise, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Axon Enterprise, Inc. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the evolving nature of the industry.

Bargaining Power Of Customers

Axon Enterprise, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often critical to its customers' operations, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

Axon Enterprise, Inc. relies on a few key suppliers for critical components, which gives these suppliers some bargaining power. However, the company's size and scale of operations mitigate this risk to some extent.

Threat Of New Entrants

The barriers to entry in Axon Enterprise, Inc.'s industry are relatively high, including significant capital expenditures and regulatory hurdles. This limits the threat of new entrants.

Intensity Of Rivalry

Axon Enterprise, Inc. operates in a highly competitive industry with several established players, leading to intense rivalry. The company must continually innovate and improve its products to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 29.76%
Debt Cost 3.95%
Equity Weight 70.24%
Equity Cost 8.48%
WACC 7.13%
Leverage 42.36%

11. Quality Control: Axon Enterprise, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Huntington Ingalls

A-Score: 5.8/10

Value: 4.5

Growth: 4.2

Quality: 5.1

Yield: 4.0

Momentum: 10.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Woodward

A-Score: 5.1/10

Value: 0.9

Growth: 6.9

Quality: 6.6

Yield: 0.0

Momentum: 9.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Textron

A-Score: 4.9/10

Value: 4.7

Growth: 5.9

Quality: 5.1

Yield: 0.0

Momentum: 5.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
BWXT

A-Score: 4.9/10

Value: 0.9

Growth: 6.3

Quality: 5.4

Yield: 2.0

Momentum: 9.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
AAR

A-Score: 4.2/10

Value: 4.8

Growth: 4.8

Quality: 3.1

Yield: 0.0

Momentum: 7.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Axon Enterprise

A-Score: 3.8/10

Value: 0.0

Growth: 9.6

Quality: 5.2

Yield: 0.0

Momentum: 4.0

Volatility: 4.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

391.53$

Current Price

391.53$

Potential

-0.00%

Expected Cash-Flows