Axon Enterprise 10-Q 2026-06-30

Filed 2026-08-06. 8 sections, 180K characters. Original on sec.gov · Markdown · JSON

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026


o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________to __________

Commission File Number: 001-16391


			Axon Enterprise, Inc.
			(Exact name of registrant as specified in its charter)


Delaware			86-0741227
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

17800 North 85th Street
Scottsdale, Arizona			85255
(Address of principal executive offices)			(Zip Code)

(1-800) 978-2737

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Common Stock, $0.00001 Par Value			AXON			The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	x	Accelerated filer	o

Non-accelerated Filer	o	Smaller reporting company	o

		Emerging growth company	o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

The number of shares of the registrant’s common stock outstanding as of July 31, 2026 was 81,237,415.

AXON ENTERPRISE, INC.

INDEX TO QUARTERLY REPORT ON FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2026


			Page
Special Note Regarding Forward-Looking Statements			ii

PART I - FINANCIAL INFORMATION			1
	Item 1. Financial Statements (unaudited)		1
		Consolidated Balance Sheets	2
		Consolidated Statements of Operations and Comprehensive Income	3
		Consolidated Statements of Stockholders’ Equity	4
		Consolidated Statements of Cash Flows	5
		Condensed Notes to Consolidated Financial Statements	6
	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		23
	Item 3. Quantitative and Qualitative Disclosures About Market Risk		36
	Item 4. Controls and Procedures		36
PART II - OTHER INFORMATION			37
	Item 1. Legal Proceedings		37
	Item 1A. Risk Factors		37
	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		37
	Item 3. Defaults Upon Senior Securities		37
	Item 4. Mine Safety Disclosures		37
	Item 5. Other Information		38
	Item 6. Exhibits		38
	SIGNATURES		39

Special Note Regarding Forward-Looking Statements

Statements contained in this Quarterly Report on Form 10-Q that are not historical are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including statements regarding our expectations, beliefs, intentions and strategies regarding the future. We intend that such forward-looking statements be subject to the safe-harbor provided by the Private Securities Litigation Reform Act of 1995. Such statements give our current expectations or forecasts of future events; they do not relate strictly to historical or current facts. Words such as “may,” “will,” “should,” “could,” “would,” “predict,” “potential,” “continue,” “expect,” “anticipate,” “future,” “intend,” “plan,” “believe,” “estimate,” and similar expressions, as well as statements in future tense, identify forward-looking statements. However, not all forward-looking statements contain these identifying words.

We cannot guarantee that any forward-looking statement will be realized, although we believe we have been prudent in our plans and assumptions. Achievement of future results is subject to risks, uncertainties and potentially inaccurate assumptions. Many events beyond our control may determine whether results we anticipate will be achieved. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could differ materially from past results and those anticipated, estimated or projected. The material factors, which could cause our actual results to differ from our forward-looking statements, are set forth in our description of risk factors included in Part I, Item 1A, “Risk Factors” in our 2025 Annual Report on Form 10-K for the year ended December 31, 2025, which should be read in conjunction with the forward-looking statements in this Quarterly Report on Form 10-Q. These factors are intended as cautionary statements for investors within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. You should understand that it is not possible to predict or identify all such factors. Consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.

Except as required by law, we undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to consult any further disclosures we make on related subjects in our Form 8-K, 10-Q and 10-K reports to the Securities and Exchange Commission (“SEC”). Our filings with the SEC may be accessed at the SEC’s website at www.sec.gov.

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

AXON ENTERPRISE, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)


	June 30, 2026		December 31, 2025
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	597,704	$	1,201,147
Short-term investments	75,703		505,417
Marketable securities	19,126		27,213
Accounts and notes receivable, net of allowance of $4,949 and $4,198 as of June 30, 2026 and December 31, 2025, respectively	768,637		777,486
Contract assets, net	750,950		582,630
Inventory	486,556		341,811
Prepaid expenses	190,682		149,800
Other current assets	115,347		127,548
Total current assets	3,004,705		3,713,052
Property and equipment, net	341,507		330,979
Deferred tax assets, net	345,500		359,803
Intangible assets, net	281,583		196,972
Goodwill	1,898,827		1,370,189
Long-term notes receivable, net	1,597		6,066
Long-term contract assets, net	296,458		178,249
Strategic investments	853,842		416,833
Other long-term assets	457,138		428,170
Total assets	$	7,481,157	$	7,000,313
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	269,957	$	139,086
Accrued liabilities	423,932		510,538
Current portion of deferred revenue	670,740		714,708
Current portion of notes payable, net	—		80,552
Customer deposits	16,477		16,156
Other current liabilities	17,131		9,107
Total current liabilities	1,398,237		1,470,147
Deferred revenue, net of current portion	385,659		359,902
Liability for unrecognized tax benefits	26,587		24,376
Long-term deferred compensation	33,094		23,675
Long-term lease liabilities	101,658		98,942
Long-term notes payable, net	1,731,817		1,730,170
Other long-term liabilities	129,568		50,443
Total liabilities	3,806,620		3,757,655
Commitments and contingencies (Note 11)
Stockholders’ equity:
Preferred stock, $0.00001 par value; 25,000,000 shares authorized; no shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively	—		—
Common stock, $0.00001 par value; 200,000,000 shares authorized, 101,510,494 shares issued and 81,235,921 shares outstanding as of June 30, 2026, and 200,000,000 shares authorized, 100,444,971 shares issued and 80,211,537 shares outstanding as of December 31, 2025	1		1
Additional paid-in capital	2,735,708		2,475,035
Treasury stock at cost, 20,274,573 shares and 20,233,434 shares as of June 30, 2026 and December 31, 2025, respectively	(180,164)		(157,242)
Retained earnings	1,135,409		936,670
Accumulated other comprehensive loss	(16,417)		(11,806)
Total stockholders’ equity	3,674,537		3,242,658
Total liabilities and stockholders’ equity	$	7,481,157	$	7,000,313

The accompanying notes are an integral part of these consolidated financial statements.

AXON ENTERPRISE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME

(in thousands, except per share data)

(unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Net sales from products	$	506,553	$	376,360	$	959,374	$	717,256
Net sales from services	397,836		292,178		752,360		554,915
Net sales	904,389		668,538		1,711,734		1,272,171
Cost of product sales	243,861		193,507		476,017		363,688
Cost of service sales	114,081		71,288		211,984		139,001
Cost of sales	357,942		264,795		688,001		502,689
Gross margin	546,447		403,743		1,023,733		769,482
Operating expenses:
Selling, general and administrative	290,982		242,212		550,075		465,721
Research and development	208,687		162,567		397,637		313,590
Total operating expenses	499,669		404,779		947,712		779,311
Income (loss) from operations	46,778		(1,036)		76,021		(9,829)
Interest income	6,815		23,253		17,426		33,857
Interest expense	(28,101)		(28,686)		(56,744)		(36,507)
Other income (loss), net	7,192		(32,414)		196,202		81,987
Income (loss) before provision for income taxes	32,684		(38,883)		232,905		69,508
Provision for (benefit from) income taxes	3,257		(75,000)		34,166		(54,589)
Net income	$	29,427	$	36,117	$	198,739	$	124,097
Net income per common and common equivalent shares:
Basic	$	0.37	$	0.46	$	2.47	$	1.60
Diluted	$	0.36	$	0.44	$	2.41	$	1.52
Weighted average number of common and common equivalent shares outstanding:
Basic	80,573		77,999		80,363		77,448
Diluted	82,541		82,062		82,518		81,782
**CONSOLIDATED STATEMENTS OF C

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition as of June 30, 2026, and results of operations for the three and six months ended June 30, 2026 and 2025, should be read in conjunction with the unaudited consolidated financial statements and related notes included in this Quarterly Report on Form 10-Q and the audited consolidated financial statements and related notes in our 2025 Annual Report on Form 10-K for the year ended December 31, 2025. The discussion includes references to non-GAAP financial measures, such as adjusted gross margin, which supplement our GAAP results by providing additional insight into our financial and operational performance. For definitions and reconciliations of these non-GAAP measures to the most directly comparable GAAP measures, refer to “Non-GAAP Measures” within this Quarterly Report on Form 10-Q. This discussion also contains forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from those anticipated in such forward-looking statements.

Overview

Axon is a technology company that provides integrated hardware and software solutions. Our products and services allow customers across the public and private sector to capture and use critical data to support fully-connected operational workflows. Our trusted network seamlessly integrates software and hardware with a range of connected devices, including TASER energy devices, cameras and sensors, drones and robotics, cloud-based evidence management, records management, real-time operations software, critical incident and emergency response systems, immersive training, and productivity tools – all enhanced by artificial intelligence.

Our revenues for the three months ended June 30, 2026 were $904.4 million, an increase of $235.9 million, or 35.3%, from the three months ended June 30, 2025. We had income from operations of $46.8 million, compared to loss from operations of $1.0 million for the same period in the prior year. Gross margin dollars increased $142.7 million reflecting consistent percentage of revenue at 60.4%, when compared to the three months ended June 30, 2025. Adjusted gross margin decreased to 62.9% for the three months ended June 30, 2026 compared to 63.3% for the same period in the prior year. The decrease in gross margin and adjusted gross margin was primarily driven by a higher mix of professional services revenue and scaling new product offerings, partially offset by tariff refunds received in the quarter. Operating expenses increased by $94.9 million, primarily reflecting increased headcount and investments in AI and other initiatives to support business growth. Net income of $29.4 million included a $3.3 million tax provision, income from strategic investments, net, of $5.7 million, and a net realized and unrealized gain of $1.1 million related to our marketable securities. Net income of $36.1 million for the three months ended June 30, 2025 included a $75.0 million tax benefit, partially offset by a noncash unrealized loss of $30.9 million related to our marketable securities.

Our revenues for the six months ended June 30, 2026 were $1.7 billion, an increase of $439.6 million, or 34.6%, from the six months ended June 30, 2025. We had income from operations of $76.0 million, compared to loss from operations of $9.8 million for the same period in the prior year. Gross margin dollars increased $254.3 million and decreased as a percentage of revenue to 59.8% from 60.5% compared to the six months ended June 30, 2025. Adjusted gross margin decreased to 62.3% for the six months ended June 30, 2026 compared to 63.4% for the same period in the prior year. The decrease in gross margin and adjusted gross margin was primarily due to a higher mix of professional services revenue and scaling new product offerings, partially offset by tariff refunds received in the quarter. Operating expenses increased by $168.4 million, primarily reflecting increased headcount and investments in AI and other initiatives to support business growth. Net income of $198.7 million included net realized and unrealized gains of $202.3 million related to our strategic investments and a $34.2 million tax provision, partially offset by a noncash unrealized loss of $4.4 million related to our marketable securities. Net income of $124.1 million for the six months ended June 30, 2025 included net realized and unrealized gains of $166.0 million related to our strategic investments and a $54.6 million tax benefit, partially offset by a noncash unrealized loss of $54.3 million related to our marketable securities and inducement expense of $28.7 million associated with the early repurchase of a portion of our 2027 Notes.

On February 20, 2026, the Supreme Court determined that tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”) were unauthorized. During the three months ended June 30, 2026, we received $47.4 million in refunds. Of this amount, $18.1 million had been previously expensed in 2025 to cost of sales and the remaining is associated with amounts primarily classified as inventory and property and equipment, net, for which the majority would have been expensed in the current year.

Results of Operations

Three Months Ended June 30, 2026 Compared to the Three Months Ended June 30, 2025

The following table presents data from our consolidated statements of operations as well as the percentage relationship to total net sales (dollars in thousands):


	Three Months Ended June 30,
	2026				2025
Net sales from products	$	506,553	56.0	%	$	376,360	56.3	%
Net sales from services	397,836		44.0		292,178		43.7
Net sales	904,389		100.0		668,538		100.0
Cost of product sales	243,861		27.0		193,507		28.9
Cost of service sales	114,081		12.6		71,288		10.7
Cost of sales	357,942		39.6		264,795		39.6
Gross margin	546,447		60.4		403,743		60.4
Operating expenses:
Selling, general and administrative	290,982		32.2		242,212		36.2
Research and development	208,687		23.1		162,567		24.4
Total operating expenses	499,669		55.3		404,779		60.6
Income (loss) from operations	46,778		5.1		(1,036)		(0.2)
Interest income	6,815		0.8		23,253		3.5
Interest expense	(28,101)		(3.1)		(28,686)		(4.3)
Other income (loss), net	7,192		0.9		(32,414)		(4.8)
Income (loss) before provision for income taxes	32,684		3.7		(38,883)		(5.8)
Provision for (benefit from) income taxes	3,257		0.4		(75,000)		(11.2)
Net income	$	29,427	3.3	%	$	36,117	5.4	%

The following table presents our revenues disaggregated by geography (dollars in thousands):


	Three Months Ended June 30,
	2026				2025
United States	$	742,307	82	%	$	537,373	80	%
Other countries	162,082		18		131,165		20
Total	$	904,389	100	%	$	668,538	100	%

International revenue increased compared to the prior year June 30, 2025 comparative period, primarily driven by increased sales in our EMEA region.

Net Sales

Net sales by product line were as follows (dollars in thousands):


	Three Months Ended June 30,								Dollar Change		Percent Change
	2026				2025
Connected Devices segment:
TASER (1)	$	261,321	28.9	%	$	216,234	32.3	%	$	45,087	20.9	%
Personal Sensors (2)	95,392		10.5		92,819		13.9		2,573		2.8
Platform Solutions (3)	149,840		16.6		67,307		10.1		82,533		122.6
Total Connected Devices segment	506,553		56.0		376,360		56.3		130,193		34.6
Total Software and Services segment	397,836		44.0		292,178		43.7		105,658		36.2
Total net sales	$	904,389	100.0	%	$	668,538	100.0	%	$	235,851	35.3	%

(1)'TASER' includes TASER handles, cartridges and related extended warranties.

(2)'Personal Sensors' primarily includes body cameras and accessories, signal sidearm, and related extended warranties.

(3)'Platform Solutions' primarily includes fleet in-car video, interview room, fixed cameras, drones and counter-drone equipment, virtual reality training hardware, and related extended warranties.

Net sales for the Connected Devices segment increased 34.6% for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase of $45.1 million in TASER is primarily driven by higher TASER 10 handle and cartridge volume. Personal Sensors increased $2.6 million on continued adoption of our newest body camera, AB4, and higher warranty revenue from more devices in the field. The $82.5 million increase in Platform Solutions is primarily driven by higher volume for counter-drone equipment.

Net sales for the Software and Services segment increased 36.2% for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase in the aggregate number of users and growing adoption of our premium solutions by existing customers drove the majority of the increase of $105.7 million.

Gross Margin

As a percentage of net sales, gross margin for the Connected Devices segment increased to 51.9% from 48.6% for the three months ended June 30, 2026 and 2025, respectively. Adjusted gross margin for the Connected Devices segment was 53.4% for the three months ended June 30, 2026, compared to 51.1% for the three months ended June 30, 2025. The increase in gross margin and adjusted gross margin was primarily driven by tariff refunds, partially offset by increased mix to counter-drone equipment.

As a percentage of net sales, gross margin for the Software and Services segment decreased to 71.3% from 75.6% for the three months ended June 30, 2026 and 2025, respectively. Adjusted gross margin for the Software and Services segment decreased to 75.1% for the three months ended June 30, 2026, compared to 78.9% for the three months ended June 30, 2025. The decrease in gross margin and adjusted gross margin was primarily driven by a higher mix of professional services revenue and scaling new product offerings.

Selling, General and Administrative Expenses

SG&A expenses were as follows (dollars in thousands):


	Three Months Ended June 30,				Dollar Change		Percent Change
	2026		2025
Total selling, general and administrative expenses	$	290,982	$	242,212	$	48,770	20.1	%
As a percentage of net sales	32.2%		36.2%

Salaries, benefits and bonus expense increased $12.0 million in comparison to the prior year June 30, 2025 comparable period, primarily attributable to an increase in headcount.

Sales and marketing expense increased $8.9 million in comparison to the prior year June 30, 2025 comparable period, primarily attributable to increased commissions.

Other SG&A expenses increased $27.9 million in comparison to the prior year June 30, 2025 comparable period, primarily driven by increased advisory expenses of $8.7 million, increased travel expenses of $5.4 million, and increased technology license expenses of $4.4 million as a result of the continued adoption of AI initiatives.

Research and Development Expenses

R&D expenses were as follows (dollars in thousands):


	Three Months Ended June 30,						Dollar Change		Percent Change
	2026			2025
Total research and development expenses	$	208,687		$	162,567		$	46,120	28.4	%
As a percentage of net sales	23.1		%	24.3		%

Salaries, benefits and bonus expense increased $20.1 million in comparison to the prior year June 30, 2025 comparable period, which was primarily attributable to an increase in headcount.

Stock-based compensation expense increased $7.2 million in comparison to the prior year June 30, 2025 comparable period, primarily driven by increased headcount.

Other R&D expenses increased $18.8 million in comparison to the prior year June 30, 2025 comparable period, primarily driven by an increase in engineering expenses of $6.2 million and an increase in technology license expenses of $5.1 million as a result of the continued adoption of AI initiatives.

Interest Income (Expense), Net

Interest income (expense), net, was as follows (in thousands):


	Three Months Ended June 30,
	2026		2025
Interest income	$	6,815	$	23,253
Interest expense	(28,101)		(28,686)
Total interest income (expense), net	$	(21,286)	$	(5,433)

Other Income (Loss), Net

Other income (loss), net, was as follows (in thousands):


	Three Months Ended June 30,
	2026		2025
Income (loss) from strategic investments, net (1)	$	5,709	$	(1,297)
Realized and unrealized gain (loss) on marketable securities, net (2)	1,075		(30,870)
Gain (loss) on foreign currency transactions, net	577		(413)
Other, net	(169)		166
Other income (loss), net	$	7,192	$	(32,414)

(1)Reflects the net realized and unrealized income (loss) associated with our strategic investments, during the three months ended June 30, 2026 and 2025, as discussed within Note 6.

(2)Reflects the net realized and unrealized gain (loss) on marketable securities, during the three months ended June 30, 2026 and 2025, as discussed within Note 3.

Provision for (Benefit from) Income Taxes

The effective tax rate was 10.0%, for the three months ended June 30, 2026, compared to 192.9% for the three months ended June 30, 2025. The decrease in effective tax rate for the quarter was primarily driven by a less favorable net tax benefit related to stock-based compensation, R&D tax credits and an increase in pre-tax book income, which reduced the relative impact of other permanent and discrete items.

Provision for (benefit from) income taxes and effective tax rates were as follows (dollars in thousands):


	Three Months Ended June 30,
	2026			2025			Change
Income before provision for income taxes	$	32,684		$	(38,883)		$	71,567
Provision for (benefit from) income taxes	$	3,257		$	(75,000)		$	78,257
Effective tax rate	10.0		%	192.9		%

Net Income

We recorded net income of $29.4 million for the three months ended June 30, 2026 compared to net income of $36.1 million for the three months ended June 30, 2025. Net income per basic share was $0.37 for the three months ended June 30, 2026 compared to $0.46 for the three months ended June 30, 2025. Net income per diluted share was $0.36 for the three months ended June 30, 2026 compared to $0.44 for the three months ended June 30, 2025.

Six Months Ended June 30, 2026 Compared to the Six Months Ended June 30, 2025

The following table presents data from our consolidated statements of operations as well as the percentage relationship to total net sales (dollars in thousands):


	Six Months Ended June 30,
	2026				2025
Net sales from products	$	959,374	56.0	%	$	717,256	56.4	%
Net sales from services	752,360		44.0		554,915		43.6
Net sales	1,711,734		100.0		1,272,171		100.0
Cost of product sales	476,017		27.8		363,688		28.6
Cost of service sales	211,984		12.4		139,001		10.9
Cost of sales	688,001		40.2		502,689		39.5
Gross margin	1,023,733		59.8		769,482		60.5
Operating expenses:
Selling, general and administrative	550,075		32.1		465,721		36.6
Research and development	397,637		23.3		313,590		24.6
Total operating expenses	947,712		55.4		779,311		61.2
Income (loss) from operations	76,021		4.4		(9,829)		(0.7)
Interest income	17,426		1.0		33,857		2.7
Interest expense	(56,744)		(3.3)		(36,507)		(2.9)
Other income, net	196,202		11.5		81,987		6.4
Income before provision for income taxes	232,905		13.6		69,508		5.5
Provision for (benefit from) income taxes	34,166		2.0		(54,589)		(4.3)
Net income	$	198,739	11.6	%	$	124,097	9.8	%

The following table presents our revenues disaggregated by geography (dollars in thousands):


	Six Months Ended June 30,
	2026				2025
United States	$	1,388,834	81	%	$	1,066,756	84	%
Other countries	322,900		19		205,415		16
Total	$	1,711,734	100	%	$	1,272,171	100	%

International revenue increased compared to the prior year June 30, 2025 comparative period, primarily driven by increased sales in our EMEA region.

Net Sales

Net sales by product line were as follows (dollars in thousands):


	Six Months Ended June 30,								Dollar Change		Percent Change
	2026				2025
Connected Devices segment:
TASER (1)	$	494,174	28.9	%	$	411,729	32.4	%	$	82,445	20.0	%
Personal Sensors (2)	204,143		11.8		181,224		14.2		22,919		12.6
Platform Solutions (3)	261,057		15.3		124,303		9.8		136,754		110.0
Total Connected Devices segment	959,374		56.0		717,256		56.4		242,118		33.8
Total Software and Services segment	752,360		44.0		554,915		43.6		197,445		35.6
Total net sales	$	1,711,734	100.0	%	$	1,272,171	100.0	%	$	439,563	34.6	%

(1)'TASER' includes TASER handles, cartridges and related extended warranties.

(2)'Personal Sensors' primarily includes body cameras and accessories, signal sidearm, and related extended warranties.

(3)'Platform Solutions' primarily includes fleet in-car video, interview room, fixed cameras, drones and counter-drone equipment, virtual reality training hardware, and related extended warranties.

Net sales for the Connected Devices segment increased 33.8% for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase of $82.4 million in TASER is primarily driven by higher TASER 10 handle and cartridge volume. Personal Sensors increased $22.9 million on continued adoption of our newest body camera, AB4, and higher warranty revenue from more devices in the field. The $136.8 million increase in Platform Solutions is primarily driven by higher volume for counter-drone equipment.

Net sales for the Software and Services segment increased 35.6% for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase in the aggregate number of users and growing adoption of our premium add-on features by existing customers drove the majority of the increase of $197.4 million.

Gross Margin

As a percentage of net sales, gross margin for the Connected Devices segment increased to 50.4% from 49.3% for the six months ended June 30, 2026 and 2025, respectively. Adjusted gross margin for the Connected Devices segment was 52.0% for the six months ended June 30, 2026, compared to 51.9% for the six months ended June 30, 2025. The increase in gross margin and adjusted gross margin was primarily driven by tariff refunds, partially offset by increased mix to counter-drone equipment.

As a percentage of net sales, gross margin for the Software and Services segment decreased to 71.8% from 75.0% for the six months ended June 30, 2026 and 2025, respectively. Adjusted gross margin for the Software and Services segment decreased to 75.4% for the six months ended June 30, 2026, compared to 78.3% for the six months ended June 30, 2025. The decrease in gross margin and adjusted gross margin was primarily driven by a higher mix of professional services revenue and scaling new product offerings.

Selling, General and Administrative Expenses

SG&A expenses were as follows (dollars in thousands):


	Six Months Ended June 30,				Dollar Change		Percent Change
	2026		2025
Total selling, general and administrative expenses	$	550,075	$	465,721	$	84,354	18.1	%
As a percentage of net sales	32.1%		36.6%

Salaries, benefits and bonus expense increased $22.8 million in comparison to the prior year June 30, 2025 comparable period, primarily attributable to an increase in headcount.

Sales and marketing expense increased $19.1 million in comparison to the prior year June 30, 2025 comparable period, primarily attributable to increased commissions.

Other SG&A expenses increased $42.4 million in comparison to the prior year June 30, 2025 comparable period, primarily attributable to increased advisory expenses of $17.8 million and increased travel expenses of $8.0 million.

Research and Development Expenses

R&D expenses were as follows (dollars in thousands):


	Six Months Ended June 30,						Dollar Change		Percent Change
	2026			2025
Total research and development expenses	$	397,637		$	313,590		$	84,047	26.8	%
As a percentage of net sales	23.2		%	24.6		%

Salaries, benefits and bonus expense increased $41.5 million in comparison to the prior year June 30, 2025 comparable period, which was primarily attributable to an increase in headcount.

Stock-based compensation expense increased $8.6 million in comparison to the prior year June 30, 2025 comparable period, partially attributable to increased headcount.

Other R&D expenses increased $33.9 million in comparison to the prior year June 30, 2025 comparable period, primarily driven by $13.0 million of increased engineering expenses and $6.5 million of increased technology license expenses as a result of the continued adoption of AI initiatives.

Interest Income (Expense), Net

Interest income (expense), net, was as follows (in thousands):


	Six Months Ended June 30,
	2026		2025
Interest income	$	17,426	$	33,857
Interest expense	(56,744)		(36,507)
Total interest income (expense), net	$	(39,318)	$	(2,650)

Other Income, Net

Other income (loss), net, was as follows (in thousands):


	Six Months Ended June 30,
	2026		2025
Income from strategic investments, net (1)	$	202,309	$	166,024
Realized and unrealized loss on marketable securities, net (2)	(4,436)		(54,270)
Loss on foreign currency transactions, net	(1,589)		(1,216)
Induced conversion of convertible debt	—		(28,666)
Other, net	(82)		115
Other income, net	$	196,202	$	81,987

(1)Reflects the net realized and unrealized income associated with our strategic investments, during the six months ended June 30, 2026 and 2025, as discussed within Note 6.

(2)Reflects the net realized and unrealized loss on marketable securities, during the six months ended June 30, 2026 and 2025, as discussed within Note 3.

Provision for Income Taxes

The effective tax rate was 14.7%, for the six months ended June 30, 2026, compared to (78.5)% for the six months ended June 30, 2025. The increase in effective tax rate for the six months ended June 30, 2026 was primarily driven by a less favorable net tax benefit related to stock-based compensation, R&D tax credits and an increase in pre-tax book income, which reduced the relative impact of other permanent and discrete items.

Provision for (benefit from) income taxes and effective tax rates were as follows (dollars in thousands):


	Six Months Ended June 30,
	2026			2025			Change
Income before provision for income taxes	$	232,905		$	69,508		$	163,397
Provision for (benefit from) income taxes	$	34,166		$	(54,589)		$	88,755
Effective tax rate	14.7		%	(78.5)		%

Net Income

We recorded net income of $198.7 million for the six months ended June 30, 2026 compared to net income of $124.1 million for the six months ended June 30, 2025. Net income per basic share was $2.47 for the six months ended June 30, 2026 compared to $1.60 for the six months ended June 30, 2025. Net income per diluted share was $2.41 for the six months ended June 30, 2026 compared to $1.52 for the six months ended June 30, 2025.

Non-GAAP Measures

We utilize certain non-GAAP financial measures such as EBITDA, adjusted EBITDA, and adjusted gross margin as defined below to enhance understanding of our financial results and related measures. We have adjusted for expenses that we believe are not indicative of our core operating results. Our management uses these non-GAAP financial measures in evaluating our operating performance. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance, and when planning and forecasting our future periods. A reconciliation of GAAP to the non-GAAP financial measures is presented below.

Beginning in the quarterly period ended March 31, 2026, we updated the calculation of Adjusted EBITDA to exclude all components of other income (loss), net – primarily resulting in incremental adjustments for foreign currency exchange gains and losses, net and fees incurred related to our Credit Agreement, as we do not consider these adjustments to be representative of our core operating results. For all comparable prior periods presented, our adjustment for other income (loss), net does not include the above incremental items, as the impact of this change on historical periods was determined to be de minimis. Accordingly, other income (loss), net for all comparable prior periods has not been recast and solely reflects adjustment for the impacts of net realized and unrealized gains on strategic investments and marketable securities, net realized gains on previously held minority interests acquired in business combinations and debt inducement expense.

Furthermore, beginning in the quarterly period ended June 30, 2026, we updated the calculation of Adjusted EBITDA and Adjusted Gross Margin to exclude additional jurisdiction-specific compensation-related taxes incurred as a direct result of Employee XSP vesting events. This update expands upon our existing adjustment, which was historically limited to payroll taxes related to Employee XSP vesting events. For all comparable prior periods presented, our adjustment does not include any incremental jurisdiction-specific compensation-related taxes, as the impact of this change on historical periods was determined to be de minimis. Accordingly, compensation taxes related to Employee XSP vesting for all comparable prior periods has not been recast and solely reflects adjustment for payroll taxes incurred.

EBITDA (most comparable GAAP measure: Net income) – Earnings before interest expense, investment interest income, income taxes, depreciation and amortization.
Adjusted EBITDA (most comparable GAAP measure: Net income) – Earnings before interest expense; investment interest income; income taxes; depreciation; amortization; all components of other income (loss), net, which is primarily comprised of fair value adjustments and income or losses related to strategic investments and marketable securities, debt inducement expense associated with the early repurchase of a portion of our 2027 Notes, foreign currency exchange gains and losses, net, and fees incurred related to our Credit Agreement; noncash stock-based compensation expense; transaction and integration costs related to strategic investments and acquisitions, including the change in fair value of contingent consideration arrangements; non-recurring severance costs, including employee cash payments, equity, and related benefits; costs (or subsequent recoveries of prior costs) related to certain legal or regulatory matters we consider outside of our core operating activities; mark-to-market adjustments on our non-qualified deferred compensation liabilities; compensation taxes related to Employee XSP vesting; and inventory step-up amortization related to acquisitions.
Adjusted gross margin (most comparable GAAP measure: Gross margin) – Gross margin before noncash stock-based compensation expense; compensation taxes related to Employee XSP vesting; amortization of acquired intangible assets; non-recurring severance costs, including employee cash payments, equity, and related benefits; and inventory step-up amortization related to acquisitions.

Although these non-GAAP financial measures are not consistent with GAAP, management believes investors will benefit by referring to these non-GAAP financial measures when assessing our operating results, as well as when forecasting and analyzing future periods. However, management recognizes that:

these non-GAAP financial measures are limited in their usefulness and should be considered only as a supplement to our GAAP financial measures;
these non-GAAP financial measures should not be considered in isolation from, or as a substitute for, our GAAP financial measures;
these non-GAAP financial measures should not be considered to be superior to our GAAP financial measures; and
these non-GAAP financial measures were not prepared in accordance with GAAP and investors should not assume that the non-GAAP financial measures presented in this Quarterly Report on Form 10-Q were prepared under a comprehensive set of rules or principles.

EBITDA and adjusted EBITDA reconcile to net income as follows (in thousands):


	Three Months Ended				Six Months Ended
	June 30, 2026		June 30, 2025		June 30, 2026		June 30, 2025
Net income	$	29,427	$	36,117	$	198,739	$	124,097
Depreciation and amortization	31,615		19,324		60,961		38,519
Interest expense	28,101		28,686		56,744		36,507
Investment interest income	(6,815)		(23,253)		(17,426)		(33,857)
Provision for (benefit from) income taxes	3,257		(75,000)		34,166		(54,589)
EBITDA	$	85,585	$	(14,126)	$	333,184	$	110,677

Non-GAAP adjustments:
Other (income) loss, net	(7,192)		32,167		(196,202)		(83,088)
Stock-based compensation expense	144,320		139,244		278,005		279,483
Transaction costs related to strategic investments and acquisitions	4,560		2,230		11,048		4,957
Compensation taxes related to Employee XSP vesting	9,417		9,782		9,532		9,782
Litigation and regulatory costs	1,886		774		3,220		2,823
Severance costs (1)	681		—		2,730		—
Non-qualified deferred compensation liability adjustments	2,767		1,561		2,137		1,561


Inventory step-up amortization	—		—		—		607
Adjusted EBITDA	$	242,024	$	171,632	$	443,654	$	326,802

(1)For the three and six months ended June 30, 2026, non-recurring severance costs of $0.7 million and $2.7 million, respectively, consisted of stock-based compensation, cash payments and employee benefits.

Adjusted gross margin reconciles to gross margin as follows (in thousands):


	Three Months Ended June 30,
	2026									2025
	Connected Devices			Software and Services			Total			Connected Devices			Software and Services			Total
Gross margin	$	262,692		$	283,755		$	546,447		$	182,853		$	220,890		$	403,743
Stock-based compensation expense	5,516			5,825			11,341			7,583			4,978			12,561
Amortization of acquired intangible assets	1,729			8,572			10,301			1,333			3,853			5,186
Compensation taxes related to Employee XSP vesting	426			633			1,059			634			854			1,488
Severance costs (1)	(25)			—			(25)			—			—			—
Adjusted gross margin	$	270,338		$	298,785		$	569,123		$	192,403		$	230,575		$	422,978
Gross margin %	51.9		%	71.3		%	60.4		%	48.6		%	75.6		%	60.4		%
Adjusted gross margin %	53.4		%	75.1		%	62.9		%	51.1		%	78.9		%	63.3		%

(1)For the three months ended June 30, 2026, non-recurring severance costs recorded to cost of service and product sales consisted of adjustments for cash payments and employee benefits.


	Six Months Ended June 30,
	2026									2025
	Connected Devices			Software and Services			Total			Connected Devices			Software and Services			Total
Gross margin	$	483,357		$	540,376		$	1,023,733		$	353,568		$	415,914		$	769,482
Stock-based compensation expense	11,291			10,553			21,844			15,059			10,389			25,448
Amortization of acquired intangible assets	3,459			15,808			19,267			2,670			7,479			10,149
Compensation taxes related to Employee XSP vesting	426			633			1,059			634			854			1,488
Severance costs (1)	121			20			141			—			—			—
Inventory step-up amortization	—			—			—			607			—			607
Adjusted gross margin	$	498,654		$	567,390		$	1,066,044		$	372,538		$	434,636		$	807,174
Gross margin %	50.4		%	71.8		%	59.8		%	49.3		%	75.0		%	60.5		%
Adjusted gross margin %	52.0		%	75.4		%	62.3		%	51.9		%	78.3		%	63.4		%

(1)For the six months ended June 30, 2026, non-recurring severance costs recorded to cost of service and product sales consisted of stock-based compensation, cash payments and employee benefits.

Liquidity and Capital Resources

Summary


	June 30, 2026		December 31, 2025		Dollar Change
Cash and cash equivalents	$	597,704	$	1,201,147	$	(603,443)
Available-for-sale investments	75,703		505,417		(429,714)
Total	$	673,407	$	1,706,564	$	(1,033,157)

Our most significant source of liquidity typically includes funds generated by operating activities and available cash and cash equivalents and short-term investments. As of June 30, 2026, we had $0.6 billion of cash and cash equivalents, a decrease of $603.4 million from December 31, 2025. As of June 30, 2026, we had $75.7 million of available-for-sale investments, a decrease of $429.7 million from December 31, 2025, primarily due to sales and maturities of available-for-sale securities during the period. Refer to Note 3 in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional details.

In addition, our Credit Agreement is available for additional working capital needs or investment opportunities. As of June 30, 2026, we had letters of credit outstanding of approximately $9.1 million under the facility and available borrowing of $290.9 million. Refer to Note 8 in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional details.

As of June 30, 2026, we have an aggregate of $1.75 billion of Senior Notes outstanding. As of June 30, 2026, none of our subsidiaries guarantee the Senior Notes. Our non-guarantor subsidiaries accounted for approximately 20% of our total revenue for the six months ended June 30, 2026, and approximately 21% and 8% of our total consolidated assets and liabilities (excluding the effect of intercompany transactions), respectively, as of June 30, 2026. Refer to Note 8 in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional details.

We believe we have access to additional financing. However, there is no assurance that such funding will be available on terms acceptable to us, or at all. We believe that our sources of funding will be sufficient to satisfy our currently anticipated cash requirements, including capital expenditures, working capital requirements, potential acquisitions or investments, income and payroll tax payments for net-settled stock awards, and other liquidity requirements through at least the next 12 months.

Going forward, we expect to continue to be an opportunistic issuer of debt securities and may issue new debt securities from time to time to fund our growth or refinance future debt maturities, among other things. In addition, from time to time, we may acquire our debt securities through open market purchases, redemptions, privately negotiated transactions, tender offers, exchange offers or otherwise, upon such terms and at such prices as we may from time to time determine, for cash or other consideration.

Cash Flows

The following table summarizes our cash flows from operating, investing and financing activities (in thousands):


	Six Months Ended June 30,				Dollar Change
	2026		2025
Operating activities	$	(11,440)	$	(65,910)	$	54,470
Investing activities	(465,762)		(1,088,749)		622,987
Financing activities	(122,618)		1,308,861		(1,431,479)
Effect of exchange rate changes on cash and cash equivalents	(3,949)		6,497		(10,446)
Net increase (decrease) in cash and cash equivalents and restricted cash	$	(603,769)	$	160,699	$	(764,468)

Operating activities

Net cash used in operating activities was $11.4 million for the six months ended June 30, 2026 compared to net cash used in operating activities of $65.9 million for the six months ended June 30, 2025. The net operating cash outflow for the six months ended June 30, 2026 includes net income of $198.7 million, a net add-back of non-cash income statement items of $176.2 million and a $386.4 million net change in operating assets and liabilities.

Primary drivers of the non-cash items include $278.7 million of stock-based compensation expense for employee equity programs and $62.8 million of depreciation and amortization, partially offset by $197.9 million in fair value adjustments for net realized and unrealized gains and losses on our strategic investments and marketable securities. The realized and unrealized gains on our strategic investments were primarily related to an observable price change for one of our investees.

The change in operating assets and liabilities includes $256.9 million of receivables and contract assets primarily due to increased sales, as well as the timing of invoicing and cash collections, $39.6 million of inventory and accounts payable primarily driven by advanced raw material purchases for TASER 10 CEDs and counter-drone equipment, and $35.3 million of deferred revenue.

Investing activities

Net cash used in investing activities was $465.8 million for the six months ended June 30, 2026 compared to $1.1 billion for the six months ended June 30, 2025. The net investing cash outflow is primarily driven by $551.6 million for business combinations, which is substantially all related to the Carbyne acquisition, $302.8 million for investment purchases, which includes $302.1 million of strategic investments purchases, and $44.2 million for purchases of property and equipment. The cash outflow was partially offset by $434.3 million of proceeds from calls, maturities and sales of available-for-sale and marketable securities investments. The decrease in net cash outflow compared to the prior period is primarily driven by reduced investments in available-for-sale securities, partially offset by the cash paid in the current year for the acquisition of Carbyne.

Financing activities

Net cash used in financing activities was $122.6 million for the six months ended June 30, 2026 compared to net cash provided by financing activities of $1.3 billion for the six months ended June 30, 2025. The financing cash outflow in the current period was primarily driven by $140.2 million of income and payroll tax payments made on behalf of employees who net-settled stock awards during the period, as well as $0.3 million which remains unpaid as of the six months ended June 30, 2026. The outflow was further driven by $81.1 million of principal payments related to the redemption of our 2027 Notes. Financing cash inflow for the period includes $100.5 million of net cash proceeds from our ATM equity offering program, considering any unpaid issuance costs as of June 30, 2026. The change in financing cash flow compared to the prior period primarily reflects gross proceeds of $1.8 billion from the Senior Note issuance, partially offset by principal payments of $407.5 million related to the induced conversion of our 2027 Notes during the six months ended June 30, 2025.

Critical Accounting Estimates

Our management’s discussion and analysis of our financial condition and results of operation is based on our consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosures. Our estimates are based on historical experience and various other assumptions that we believe to be reasonable under the circumstances, and we evaluate our estimates and assumptions on an ongoing basis. While we do not believe that a change in these estimates is reasonably likely, there can be no assurance that our actual results will not differ from these estimates.

Our critical accounting estimates are discussed in our 2025 Annual Report on Form 10-K for the fiscal year ended December 31, 2025. There have been no significant changes to these critical accounting estimates for the six months ended June 30, 2026.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Interest Rate Risk

We historically invested in various financial instruments which have consisted principally of money market accounts, certificates of deposit, and corporate and municipal bonds with a typical long-term debt rating of “A” or better by any nationally recognized statistical rating organization, denominated in U.S. dollars. All of our cash equivalents and investments are treated as “available-for-sale”. Based on investment positions as of June 30, 2026, no investments are subject to interest rate risk.

Additionally, we have access to a $300.0 million line of credit borrowing facility which bears interest at SOFR plus 1.25 to 1.75% per year determined in accordance with a pricing grid based on our net leverage ratio and consolidated interest coverage ratio. Under the terms of the line of credit, available borrowings are reduced by outstanding letters of credit, which totaled $9.1 million at June 30, 2026. At June 30, 2026, there was no amount outstanding under the line of credit, and the available borrowing under the line of credit was $290.9 million. We have not borrowed any funds under the line of credit since its inception; however, should we need to do so in the future, such borrowings could be subject to adverse or favorable changes in the underlying interest rate.

There have been no other material changes in our primary risk exposures or management of risks since the prior year.

Exchange Rate Risk

Our results of operations and cash flows are subject to fluctuations due to changes in foreign currency exchange rates, in each case compared to the U.S. dollar, related to transactions by our foreign subsidiaries. The majority of our sales to international customers are transacted in foreign currencies and therefore are subject to exchange rate fluctuations on these transactions. The cost of our products to our customers increases when the U.S. dollar strengthens against their local currency, and we may have more sales and expenses denominated in foreign currencies in future years which could increase our foreign exchange rate risk. Additionally, intercompany sales to our non-U.S. dollar functional currency international subsidiaries are transacted in U.S. dollars which could increase our foreign exchange rate risk caused by foreign currency transaction gains and losses.

To date, we have not engaged in any currency hedging activities. However, we may enter into foreign currency forward and option contracts with financial institutions to protect against foreign exchange risks associated with certain existing assets and liabilities, certain firmly committed transactions, forecasted future cash flows and net investments in foreign subsidiaries. However, we may choose not to hedge certain foreign exchange exposures for a variety of reasons, including, but not limited to, the prohibitive economic cost of hedging particular exposures. As such, fluctuations in currency exchange rates could harm our business in the future.

There have been no other material changes in our primary risk exposures or management of risks since the prior year.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our Chief Executive Officer and Chief Financial Officer are responsible for the evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q. Our disclosure controls and procedures are designed to ensure that information we are required to disclose in reports that we file or submit under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of June 30, 2026.

Remediation of Previously Identified Material Weakness

As disclosed in Part II, Item 9A of our 2025 Annual Report on Form 10-K, we previously identified a material weakness in our internal control over financial reporting related to revenue recognition for customer contracts. Specifically, the Company did not design and maintain controls to update its revenue recognition policies to reflect changes in product offerings or terms and conditions of arrangements with customers to ensure revenue was appropriately recognized and disclosed in accordance with GAAP. In response to this material weakness, we previously completed the design and implementation of control activities to i) periodically assess our revenue accounting policies, ii) make updates to the policies to reflect changes in product offerings or terms and conditions of the arrangements with customers, and iii) monitor and appropriately account for our existing and new revenue streams. During the second quarter of 2026, we completed the necessary testing of these control activities and determined they have been appropriately designed and implemented and have operated effectively for a sufficient period of time to conclude that the material weakness has been remediated as of June 30, 2026.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended June 30, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

The discussion in Note 11 to our consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q is incorporated by reference herein.

Item 1A. Risk Factors

There have been no significant changes to the risk factors outlined in our Annual Report on Form 10-K for the year ended December 31, 2025.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

None.

Item 5. Other Information

The table below describes the contracts, instructions or written plans for the purchase or sale of securities adopted or terminated by our directors or officers (as defined in Rule 16a-1(f) under the Exchange Act) during the three months ended June 30, 2026, that are intended to satisfy the affirmative defense conditions of Rule 10b5-1(c).


Name and Title	Action	Date of Termination or Adoption	Expiration Date	Aggregate Number of Securities to be Sold
Joshua Isner, President	Termination (1)	May 29, 2026	December 31, 2026	135,466	(2)
Jeffrey Kunins, Chief Product Officer and Chief Technology Officer	Adoption	May 22, 2026	December 31, 2026	15,839	(2)
Joshua Isner, President	Adoption	June 1, 2026	December 31, 2026	100,390	(2)
Isaiah Fields, Chief Legal Officer	Adoption	June 12, 2026	March 30, 2027	10,337	(2)

(1)Trading arrangement was originally adopted on March 4, 2026.

(2)Reflects the maximum number of shares to be sold, excluding the effect of shares withheld for taxes.

No other “Rule 10b5-1 trading arrangements” or “non-Rule 10b5-1 trading arrangements” (as defined by Item 408(c) of Regulation S-K) were entered into, modified, or terminated by our directors or officers during such period.

Item 6. Exhibits


3.1			Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to the Quarterly Report on Form 10-Q, filed August 9, 2022)
3.2			Bylaws, as amended and restated (incorporated by reference to Exhibit 3.2 to the Current Report on Form 8-K, filed December 21, 2023)
31.1*			Principal Executive Officer Certification pursuant to Rule 13a-14(a) or Rule 15d-14(a)
31.2*			Principal Financial Officer Certification pursuant to Rule 13a-14(a) or Rule 15d-14(a)
32**			Principal Executive Officer and Principal Financial Officer Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS*			Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH*			Inline XBRL Taxonomy Extension Schema Document
101.CAL*			Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*			Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*			Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE*			Inline XBRL Taxonomy Extension Presentation Linkbase Document
104*			The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, formatted in Inline XBRL

+Management contract or compensatory plan or arrangement

*Filed herewith

**Furnished herewith

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


AXON ENTERPRISE, INC.

Date:	August 5, 2026
		By:	/s/ PATRICK SMITH
			Chief Executive Officer
			(Principal Executive Officer)

Date:	August 5, 2026	By:	/s/ BRITTANY BAGLEY
			Chief Operating Officer and Chief Financial Officer
			(Principal Financial Officer)