Axon reports Q1 2026 revenue of $807 million, up 34% year over year

SCOTTSDALE, Ariz., May 6, 2026 /PRNewswire/ —

• Software & Services revenue grows 35% to $355 million; AI merchandise up over 700% year over year
• Counter-drone product revenue up over 300% year over year
• Net earnings of $169 million helps non-GAAP internet earnings of $133 million and Adjusted EBITDA of $202 million
• Raises full-year revenue outlook to a spread of 30% to 32% annual development and maintains 25.5% Adjusted EBITDA margin
• Expects full-year working money circulation of over $600 million and free money circulation of roughly $450 million

Fellow shareholders,

Axon entered 2026 with robust momentum, delivering document quarterly revenue and marking our ninth consecutive quarter of 30%+ development. This efficiency was pushed by sturdy demand throughout our ecosystem of merchandise, together with TASER 10, Axon Body 4, counter-drone, real-time operations and synthetic intelligence (AI). Underpinning these outcomes is our continued funding in innovation alongside robust, constant profitability, with first quarter revenue development of 34%, internet earnings margin of 21% and an Adjusted EBITDA margin of 25%.

Software & Services revenue continued to drive development, contributing $355 million, up 35% year over year. Adoption of our newest software program choices amongst current clients supported internet revenue retention of 125%, whereas we expanded our buyer base throughout worldwide, corrections, U.S. federal and enterprise markets. Annual recurring revenue reached $1.5 billion, rising 35% year over year.

Connected Devices revenue elevated 33% year over year to $453 million. TASER 10 and Axon Body 4 proceed to see robust demand as clients scale deployments, driving TASER and Personal Sensors development of 19% and 23%, respectively. Platform Solutions accelerated total development, contributing $111 million and growing 95% year over year. This efficiency displays robust adoption of counter-drone methods, which stay within the early levels of adoption throughout a big market alternative, with a number of main occasions and catalysts to drive additional adoption on the horizon.

Our outcomes exceeded expectations and assist an elevated outlook for the year. We now anticipate revenue development within the vary of 30% to 32%, up from 27% to 30% beforehand, and proceed to anticipate an Adjusted EBITDA margin of roughly 25.5%. The sections that observe spotlight our latest product improvements, monetary efficiency and up to date outlook for 2026.

Select Highlights

In April, Axon launched a collection of improvements throughout our product ecosystem at our annual consumer convention, additional enhancing the worth of our AI Era Plan and broader platform. These improvements transcend connecting information — they allow customers to grasp and act on it in actual time. Axon Vision and Axon Guardian are two examples, together with new abilities and expanded accessibility for Axon Assistant throughout units inside a CJIS-compliant atmosphere.

At the identical time, our tempo of innovation is extending our attain into adjoining buyer segments, together with justice, corrections and enterprise. Draft One, for instance, is increasing into healthcare. Dedrone is additional driving curiosity with enterprise clients trying to defend main occasions, vital infrastructure and datacenters, whereas introducing us to new worldwide alternatives. Brief One and new improvements inside Axon Justice are additionally advancing our capabilities throughout judicial workflows.

The Next Wave of Advancements in Axon AI

Axon Vision

Axon Vision transforms dwell digital camera feeds into actionable intelligence by figuring out outlined circumstances — equivalent to bodily altercations, unauthorized entry and medical emergencies — as they happen. Built on laptop imaginative and prescient fashions embedded inside Fusus, Axon Vision is designed to detect exercise, not people. It doesn’t use facial recognition, and all alerts require human evaluate earlier than motion is taken.

Axon Vision additionally represents an necessary step in our enlargement into new buyer verticals. Initial rollout will give attention to enterprise and corrections environments, the place clients already function mounted video methods that may be leveraged to enhance security and transparency. Early use circumstances embrace figuring out indicators of medical emergencies or escalating battle, enabling employees to reply earlier than conditions deteriorate. Field trials are focused for mid-2026, with normal availability anticipated in early This fall 2026.

Axon Guardian

Every day, officers face conditions that may escalate with out warning — usually with out sufficient time to name for assist. Axon Guardian is designed to function an extra set of eyes and ears, constantly monitoring for indicators of escalation, malicious exercise or misery. By leveraging instruments already on the scene, together with body-worn and fleet cameras, Guardian extends real-time AI immediately into the sector. When a possible menace is recognized, alerts are triggered for the officer, supervisor or dispatcher to evaluate and reply with acceptable assist. 

Guardian will launch with two core capabilities. On physique cameras, escalation detection will analyze audio in actual time to determine verbal indicators of rising rigidity and might mechanically provoke a name for help by way of Axon Fusus. Over time, this functionality will develop to incorporate AI-generated summaries alongside dwell streams, considerably broadening what the system can acknowledge. On fleet cameras, officers will have the ability to activate a sentinel mode that scans for exercise across the patrol automobile, offering extra consciousness throughout duties equivalent to site visitors stops or report writing and alerting officers if people method unexpectedly.

In take a look at evaluation of historic interplay information, Guardian escalation detection would have recognized an escalation throughout an incident that resulted in a non-fatal capturing — minutes earlier than the officer known as for backup. Our imaginative and prescient is to determine patterns that sign when a scenario might flip harmful, bringing extra assist into the loop earlier. As the mannequin continues to be taught, alert accuracy improves, serving to improve officer security with every use.

Axon Assistant

Axon Assistant has expanded considerably past its authentic voice-enabled capabilities on Axon Body 4. It now operates as a CJIS-compliant AI interface out there by way of voice or chat throughout the Axon platform — together with body-worn units, cell functions, Axon Evidence and real-time operations instruments. This creates a seamless expertise throughout units, permitting queries to persist throughout workflows inside a safe, compliant atmosphere. Axon Assistant will proceed to develop to extra subject units, together with main smartwatch integrations later this year.

Axon Assistant has exceeded a million makes use of within the subject, with its utility persevering with to develop. This year we’re including abilities equivalent to CAD call-for-service lookups and automobile lookups. Upcoming capabilities additionally embrace dwell 911 name monitoring, safe AI internet search and deeper utility integration — all delivered inside a tightly managed safety framework.

Over time, our imaginative and prescient is for Axon Assistant to function inside a totally unified information atmosphere via Axon Gravity — our daring, multi-year imaginative and prescient to make Axon the world’s largest repository of AI-enhanced public security information. This effort is designed to handle one of probably the most persistent challenges in public security: enabling officers to entry the knowledge they want, once they want it, in a single place.

Form One

Form One was initially launched as half of the AI Era Plan to scale back the time spent finishing types and different paperwork past the usual police report. During growth, we acknowledged that the burden of getting into correct data into structured fields — usually repeatedly — extends far past conventional legislation enforcement workflows.

This perception led us to develop the design right into a extra complete answer, purpose-built to assist the completion of just about any kind of type utilizing data already out there. The result’s Form One, now out there as a common browser extension that brings Axon’s AI workflows past our ecosystem to a variety of use circumstances. Information could be mechanically sourced from current information and recordsdata, then reviewed, verified and enhanced immediately inside the browser via voice or textual content interactions.

Brief One and Axon Justice

Accelerating justice stays central to our mission. The judicial workflow is commonly the place case momentum slows — from reviewing hours of footage to figuring out key particulars and shutting documentation gaps. Brief One addresses this by compressing hours of video evaluate into minutes via AI-powered summarization, enhancing each effectivity and accuracy by guaranteeing vital data is surfaced shortly and persistently.

Building on this basis, we launched AI Case Compass, which makes use of AI to attach folks, places and autos throughout a case whereas figuring out report gaps earlier than supervisor evaluate. Auto-Intel additional enhances this workflow by extracting key particulars — equivalent to names, descriptions and timestamps — immediately from physique digital camera footage with no guide enter required.

Together, these instruments prolong Axon’s position past proof seize into the intelligence and evaluate layer, serving to speed up how circumstances are constructed, reviewed and resolved.

“Axon’s customers are being asked to do more with greater transparency and higher expectations. We are breaking down information barriers and providing a secure, compliant foundation to help prevent harm, accelerate justice and protect life in the communities our customers serve.” — Rick Smith, Axon Founder and CEO

Dedrone & Drone as First Responder (DFR)

Counter-drone and Drone as First Responder have been amongst Axon’s fastest-growing classes within the first quarter. Adoption continues to speed up — as we speak, we estimate a DFR mission launches roughly each 30 seconds within the United States. Looking forward, the just lately handed Safer Skies Act introduces $250 million in federal grants and authorizes native companies to detect, observe and mitigate drone threats, additional strengthening adoption. We proceed to take a position on this class to increase our management place.

We just lately launched Dedrone C2, the following evolution of the Dedrone platform. C2 represents a major step ahead throughout three dimensions: first, meaningfully improved sensor fusion expertise that delivers stronger detection outcomes throughout any mixture of {hardware} sensors; second, seamlessly built-in mitigation administration — a vital functionality as public security companies achieve expanded entry to mitigation instruments underneath Safer Skies; and third, expanded integrations with a rising vary of third-party sensors and effectors. Like Fusus, Dedrone is designed as a versatile, open platform that allows clients to construct the very best end-to-end answer for his or her wants, regardless of current infrastructure.

Sky Carrier rounds out our event-ready functionality stack — a compact, transportable answer designed for large-scale occasions and dynamic deployment eventualities. It combines Dedrone, Fusus, Starlink and rapid-launch plane right into a quickly deployable system, making a differentiated providing forward of main international occasions such because the World Cup and different large-scale gatherings within the United States in 2026 and past.

Taken collectively, these improvements replicate Axon’s continued execution in opposition to our imaginative and prescient of a linked working system for public security. From TASER units and physique cameras to counter-drone platforms and AI-powered software program, our ecosystem is changing into extra succesful, extra linked and extra useful with every new product. The breadth of innovation this quarter displays that ambition — and the monetary outcomes that observe exhibit its influence.

Q1 2026 Summary Results

Quarterly revenue of $807 million grew 34% year over year, exceeding our expectations, pushed by development in Software & Services and Platform Solutions. All main product classes delivered double-digit development, reflecting sturdy demand throughout our solution-oriented ecosystem.

Total firm gross margin of 59.1% decreased 150 foundation factors year over year and elevated 120 foundation factors sequentially. Excluding non-GAAP changes, adjusted gross margin of 61.6% decreased 200 foundation factors year over year and elevated 50 foundation factors sequentially. The year over year decline in gross margin was primarily pushed by international tariffs, in addition to stronger combine from Dedrone and elevated skilled providers prices associated to product deployments.

Operating earnings of $29 million elevated $38 million year over year, pushed by larger revenue and working leverage.

• COGS of $330 million, or 40.9% of revenue, included $11 million in stock-based compensation expense.
• SG&A expense of $259 million, or 32.1% of revenue, included $67 million in stock-based compensation expense.
• R&D expense of $189 million, or 23.4% of revenue, included $57 million in stock-based compensation expense.

Net earnings of $169 million (21.0% internet earnings margin), or $2.05 per diluted share, elevated from $88 million (14.6% internet earnings margin) year over year, pushed by larger working earnings and different earnings. Non-GAAP internet earnings of $133 million (16.5% non-GAAP internet earnings margin), or $1.61 per diluted share, elevated from $119.8 million (19.9% non-GAAP internet earnings margin), or $1.47 per diluted share, primarily pushed by larger revenue.

Adjusted EBITDA of $202 million (25.0% Adjusted EBITDA margin) elevated 30% year over year, pushed by larger revenue and partially offset by continued funding in R&D and decrease gross margin.

Operating money circulation was an outflow of $32 million, in comparison with an influx of $26 million within the prior year, primarily pushed by elevated stock investments to assist our quickly rising Dedrone enterprise and better curiosity expense. Operating money outflow drove free money outflow of $55 million, down modestly year over year and according to our expectations for Q1 given seasonality of fee and bonus funds. We proceed to anticipate robust constructive free money circulation for the total year.

As of March 31, 2026, Axon had $731 million in money, money equivalents and short-term investments and excellent senior notes with a principal quantity of $1.8 billion, leading to a internet debt place of $1.0 billion, down $907 million sequentially, primarily pushed by acquisitions and investments.

Detailed definitions of our non-GAAP monetary measures and warning on the use of non-GAAP measures are included later on this letter.

Financial commentary by section

Software & Services

• Software & Services revenue grew 35% year over year, primarily pushed by new customers and elevated adoption of premium software program choices by current clients. Within Software & Services, AI Era Plan product revenue, which incorporates the AI Era Plan and standalone merchandise, equivalent to Draft One and Axon Assistant, was up over 700% year over year.
• Software & Services gross margin of 72.4% decreased from 74.2% year over year. Excluding non-GAAP changes, adjusted gross margin of 75.8% decreased from 77.7%. The lower in gross margin was primarily pushed by larger skilled service prices related to product deployments. Software-only gross margin continued to exceed 80%.

Connected Devices

• Connected Devices revenue grew 33% year over year, pushed by robust demand throughout merchandise. Platform Solutions accelerated total development, growing 95% year over year, pushed by Dedrone, which elevated 300% year over year. TASER 10 and Axon Body 4 supported TASER and Personal Sensors development of 19% and 23%, respectively.
• Connected Devices gross margin of 48.7% decreased from 50.1% year over year and elevated from 46.6% quarter over quarter. Excluding non-GAAP changes, adjusted gross margin of 50.4% decreased from 52.8% year over year and elevated from 49.3% quarter over quarter. The year over year decline was primarily pushed by international tariffs, in addition to elevated combine from quickly scaling Dedrone merchandise.

Forward-Looking Operating Metrics

• Annual recurring revenue grew 35% year over year to $1.5 billion, pushed by adoption of premium software program choices and new customers of our cloud merchandise.
• Net revenue retention was 125% within the quarter, reflecting our skill to ship extra worth to clients over time with de minimis attrition. We drive adoption of our cloud software program options via built-in subscription plans that embrace a range of premium software program choices. This Software-as-a-Service (SaaS) metric excludes the {hardware} portion of buyer subscriptions and is normalized to account for phased buyer deployments all through the year.
• Future contracted bookings grew 44% year over year to $14.3 billion. This operational metric tracks complete unfulfilled contracted bookings for services and products, together with remaining efficiency obligations in addition to contracts with sure termination or different clauses that aren’t in any other case included in remaining efficiency obligations. We anticipate to satisfy between 20% and 25% of this steadiness over the following 12 months and customarily anticipate the rest to be fulfilled over the next ten years.

2026 Outlook

The following forward-looking statements replicate Axon’s expectations as of May 6, 2026 and are topic to dangers and uncertainties. Please confer with “Forward-Looking Statements” beneath for extra data.

• 2026 Revenue: Axon expects full-year 2026 revenue development in a spread of 30% to 32%, a rise from 27% to 30% beforehand.

• 2026 Adjusted EBITDA: Axon expects full-year 2026 Adjusted EBITDA margin of 25.5%, according to prior margin steerage.
  • We present Adjusted EBITDA steerage, slightly than internet earnings steerage, because of the inherent problem of forecasting sure sorts of bills and positive aspects equivalent to earnings tax bills and positive aspects or losses on marketable securities and strategic investments, which have an effect on internet earnings however not Adjusted EBITDA. We are unable to fairly estimate the influence of such bills, which may very well be materials, on internet earnings. Accordingly, we don’t present a reconciliation of projected internet earnings to projected Adjusted EBITDA.

• 2026 Stock-based compensation: Axon expects full-year 2026 stock-based compensation bills to be roughly $590 million to $620 million, according to prior steerage.
  • Full-year 2026 stock-based compensation expense consists of roughly $230 million associated to the broad-based Employee XSP and the CEO Performance Award, primarily inside SG&A and R&D. These performance-based incentive packages are tied to inventory worth, operational, and time-based necessities.

• 2026 CapEx: Axon expects 2026 CapEx to be within the vary of $160 million to $190 million. Our 2026 capital expenditure plans embrace long-term R&D funding initiatives, continued capability enlargement, international facility build-outs and new product growth prices. Expected capital expenditures don’t embrace prices associated to investments in a brand new headquarters.

Quarterly convention name and webcast
We will host our Q1 2026 earnings convention name webinar on Wednesday, May 6 at 2:00 p.m. PT / 5:00 p.m. ET

The webcast can be out there by way of a hyperlink on Axon’s investor relations web site at https://investor.axon.com or could be accessed immediately by way of https://axon.zoom.us/j/92722647497

Statistical Definitions
Annual recurring revenue: Annual recurring revenue is a efficiency indicator that administration believes offers extra visibility into the expansion of our revenue generated by our highest margin, recurring providers. Annual recurring revenue needs to be seen independently of revenue and deferred revenue as a result of it’s an working measure and isn’t meant to be mixed with or to exchange GAAP revenue or deferred revenue, as they are often impacted by contract begin and finish dates and renewal charges. Annual recurring revenue just isn’t meant to be a alternative or forecast of revenue or deferred revenue. We calculate annual recurring revenue as month-to-month recurring license, integration, guarantee and storage revenue, annualized.

Net revenue retention: Dollar-based internet revenue retention is a vital metric to measure our skill to retain and develop {our relationships} with current clients. We calculate it because the software program, digital camera and TASER guarantee subscription and assist revenue from a base set of company clients from which we generated Axon Cloud subscription and guarantee revenue within the final month of 1 / 4 divided by the software program and digital camera guarantee subscription and assist revenue from the year-ago month of that very same buyer base. This calculation consists of high-margin guarantee revenue however purposely excludes the lower-margin {hardware} subscription element of the client contracts, as it’s meant to be a SaaS metric that we use to observe the well being of the recurring revenue enterprise we’re constructing. This calculation additionally excludes the implied month-to-month revenue contribution of clients that have been added because the year-ago quarter, and subsequently excludes the profit of new buyer acquisition. The metric consists of clients, if any, that terminated through the annual interval, and subsequently, this metric is inclusive of buyer churn. This metric is downwardly adjusted to account for the impact of phased deployments — that means that, for the year-ago interval, we take into account the entire contractually obligated implied month-to-month revenue quantity, slightly than month-to-month revenue quantities that may have been in truth smaller on a GAAP foundation because of the buyer not having but absolutely deployed their Axon answer. For extra data relative to our revenue recognition insurance policies, please reference our filings with the Securities and Exchange Commission (SEC).

Future contracted bookings: This operational metric tracks our complete unfulfilled contracted bookings, together with remaining efficiency obligations, along with contracts with sure termination or different clauses that exclude them from remaining efficiency obligations. Total future contracted bookings for services and products symbolize complete orders that the Company has obtained and never but carried out. Beginning in Q3 2025, we have now up to date future contracted bookings to incorporate cumulative gross bookings, together with quantities related to third-party agent preparations, the place we might solely acknowledge the online portion anticipated to be paid on behalf of our clients as revenue. The influence of this modification in historic durations was decided to be immaterial, so historic quantities haven’t been recast. The quantities related to third-party agent preparations not acknowledged can be eradicated from future contracted bookings upon success. This operational metric is topic to vary based mostly on future occasions, together with terminations for comfort, the execution of optionally available durations or different contract modifications or cancellations. This operational metric could also be distinctive to the Company, as it might be completely different from equally titled operational metrics utilized by different firms. As such, the presentation of this operational metric might not improve the comparability of the Company’s outcomes to the outcomes of different firms.

Supplementary Non-GAAP Measures
To complement the Company’s monetary outcomes offered in accordance with GAAP, we current the non-GAAP monetary measures of EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, adjusted gross margin, non-GAAP internet earnings, non-GAAP diluted earnings per share, free money circulation and adjusted free money circulation. The Company’s administration makes use of these non-GAAP monetary measures in evaluating the Company’s efficiency compared to prior durations. We imagine that each administration and buyers profit from referring to those non-GAAP monetary measures in assessing its efficiency, and when planning and forecasting our future durations. A reconciliation of GAAP to the non-GAAP monetary measures is offered beneath.

Beginning within the quarterly interval ended March 31, 2026, we up to date the calculation of Adjusted EBITDA to exclude all elements of different earnings (loss), internet — primarily leading to incremental changes for overseas forex alternate positive aspects and losses, internet and costs incurred associated to our Credit Agreement, as we don’t take into account these changes to be consultant of our core working outcomes. For all comparable prior durations offered, our adjustment for different earnings (loss), internet doesn’t embrace the above incremental objects, because the influence of this modification on historic durations was decided to be de minimis. Accordingly, different earnings (loss), internet for all comparable prior durations has not been recast and solely displays adjustment for the impacts of internet realized and unrealized positive aspects on strategic investments and marketable securities, internet realized positive aspects on beforehand held minority pursuits acquired in enterprise mixtures and debt inducement expense.

Furthermore, starting within the quarterly interval ended March 31, 2026, we up to date the calculation of non-GAAP Net Income and non-GAAP Diluted Earnings per Share to exclude amortization expense incurred associated to acquired intangible property. Management’s estimates and assumptions type the premise for figuring out allocation quantities, that are topic to amortization. Since the portion of the acquisition worth assigned to intangible property together with the corresponding amortization interval can differ significantly from one acquisition to a different, we don’t take into account this exercise to be consultant of our core ongoing operations. For all comparable prior durations offered, non-GAAP Net Income and non-GAAP Diluted Earnings per Share have been recast, together with the respective earnings tax results.

• EBITDA (most comparable GAAP measure: Net earnings) – Earnings earlier than curiosity expense, funding curiosity earnings, earnings taxes, depreciation and amortization.
• Adjusted EBITDA (most comparable GAAP measure: Net earnings) – Earnings earlier than curiosity expense; funding curiosity earnings; earnings taxes; depreciation; amortization; all elements of different earnings (loss), internet, which is primarily comprised of honest worth changes and earnings or losses associated to strategic investments and marketable securities, debt inducement expense related to the early repurchase of a portion of our 2027 Notes, overseas forex alternate positive aspects and losses, internet, and costs incurred associated to our Credit Agreement; noncash stock-based compensation expense; transaction and integration prices associated to strategic investments and acquisitions, together with the change in honest worth of contingent consideration preparations; non-recurring severance prices, together with worker money funds, fairness, and associated advantages; prices (or subsequent recoveries of prior prices) associated to sure authorized or regulatory issues we take into account outdoors of our core working actions; mark-to-market changes on our non-qualified deferred compensation liabilities; payroll taxes associated to Employee XSP vesting; losses incurred because of this of the disposal, abandonment, and impairment of property, tools and intangible property, internet; and stock step-up amortization associated to acquisitions.
• Adjusted EBITDA margin (most comparable GAAP measure: Net earnings margin) – Adjusted EBITDA as a share of internet gross sales.
• Adjusted gross margin (most comparable GAAP measure: Gross margin) – Gross margin earlier than noncash stock-based compensation expense; amortization of acquired intangible property; non-recurring severance prices, together with worker money funds, fairness, and associated advantages; and stock step-up amortization associated to acquisitions.
• Non-GAAP internet earnings (most comparable GAAP measure: Net earnings) – Net earnings excluding honest worth changes and earnings or losses associated to strategic investments and marketable securities; the prices of noncash stock-based compensation expense; amortization of acquired intangible property; transaction and integration prices associated to strategic investments and acquisitions, together with the change in honest worth of contingent consideration preparations; non-recurring severance prices, together with worker money funds, fairness, and associated advantages; prices (or subsequent recoveries of prior prices) associated to sure authorized or regulatory issues we take into account outdoors of our core working actions; payroll taxes associated to Employee XSP vesting; debt inducement expense related to the early repurchase of a portion of our 2027 Notes; and stock step-up amortization associated to acquisitions. The Company tax-effects non-GAAP changes utilizing the blended statutory federal and state tax charges for every interval offered.
• Non-GAAP diluted earnings per share (most comparable GAAP measure: Earnings per share) – Measure of Company’s non-GAAP internet earnings divided by the weighted common quantity of diluted frequent shares excellent through the interval offered.
• Free money circulation (most comparable GAAP measure: Cash circulation from working actions) – Cash flows offered by working actions minus purchases of property and tools.
• Adjusted free money circulation (most comparable GAAP measure: Cash circulation from working actions) – Free money circulation, excluding the online influence of investments in our new Scottsdale, Arizona campus and bond premium amortization.
  • We imagine that free money circulation and adjusted free money circulation excluding the influence of bond premium amortization and internet campus funding are non-GAAP measures which are helpful to buyers and administration to guage the Company’s skill to generate money. These non-GAAP measures may also be used to guage the Company’s skill to generate money circulation from operations and the influence that this money circulation has on the Company’s liquidity.

Caution on Use of Non-GAAP Measures
Although these non-GAAP monetary measures usually are not according to GAAP, administration believes buyers will profit by referring to those non-GAAP monetary measures when assessing the Company’s working outcomes, in addition to when forecasting and analyzing future durations. However, administration acknowledges that:

• these non-GAAP monetary measures are restricted of their usefulness and needs to be thought-about solely as a complement to the Company’s GAAP monetary measures;
• these non-GAAP monetary measures shouldn’t be thought-about in isolation from, or as an alternative choice to, the Company’s GAAP monetary measures;
• these non-GAAP monetary measures shouldn’t be thought-about to be superior to the Company’s GAAP monetary measures; and
• these non-GAAP monetary measures weren’t ready in accordance with GAAP or underneath a complete set of guidelines or rules proposed by a 3rd celebration.

Further, these non-GAAP monetary measures could also be distinctive to the Company, as they could be completely different from equally titled non-GAAP monetary measures utilized by different firms. As such, this presentation of non-GAAP monetary measures might not improve the comparability of the Company’s outcomes to the outcomes of different firms.

About Axon
Axon (Nasdaq: AXON) is the worldwide chief in public security expertise, relentlessly innovating to guard extra lives in additional locations. Founder-led since 1993, Axon started with a mission to reimagine battle in legislation enforcement and has grown into a world firm serving everybody who takes on the accountability of public security, enterprise safety, and nationwide safety — from first responders and governments to firms, frontline employees, and communities. Our trusted community connects TASER power units, cameras and sensors together with body-worn, mounted and in-car cameras, drones and robotics, digital proof and information administration, real-time operations, immersive coaching, productiveness instruments, and AI-driven capabilities and insights. Designed to work seamlessly collectively, these options create a linked image of security that helps defend folks and locations with higher pace, readability, and accountability.

Non-Axon emblems are property of their respective homeowners.

Axon, Axon Assistant, Axon AI, AI Era Plan, Axon Body, Axon Evidence, Axon Fusus, Axon Justice, Axon Solution, Axon Vision, Brief One, Dedrone, Draft One, TASER, TASER 10, the Filled Bolt inside Circle Logo and the Delta Logo are emblems of Axon Enterprise, Inc., some of that are registered within the United States and different nations. For extra data, go to www.axon.com/legal. All rights reserved.

Forward-looking Statements
Forward-looking statements on this letter embrace, with out limitation, statements relating to: proposed services and products and associated growth efforts and actions; expectations about the marketplace for our present and future services and products, together with statements associated to our consumer base and buyer profiles; methods and developments regarding subscription plan packages and revenues; statements associated to just lately accomplished acquisitions; our expectations concerning the future implementation of new methods associated to synthetic intelligence; the timing and realization of future contracted revenue; the success of bookings; the timing of product cargo and supply; methods and developments, together with the quantities and advantages of R&D investments; the sufficiency of our liquidity and monetary sources; expectations about buyer habits; statements regarding projections, predictions, expectations, estimates or forecasts as to our enterprise, monetary and operational outcomes and future financial efficiency, together with our outlook for 2026 full year revenue, stock-based compensation expense, Adjusted EBITDA, Adjusted EBITDA margin, and capital expenditures; statements of administration’s methods, objectives and aims and different comparable expressions; in addition to the final word decision of monetary assertion objects requiring vital accounting estimates, together with these set forth in our Annual Report on Form 10‑Okay for the year ended December 31, 2025 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026. Such statements give our present expectations or forecasts of future occasions; they don’t relate strictly to historic or present info. Words equivalent to “may,” “will,” “should,” “could,” “would,” “predict,” “potential,” “continue,” “expect,” “anticipate,” “future,” “intend,” “plan,” “believe,” “estimate,” and comparable expressions, in addition to statements in future tense, determine forward-looking statements. However, not all forward-looking statements include these figuring out phrases.

We can not assure that any forward-looking assertion can be realized, though we imagine we have now been prudent in our plans and assumptions. Achievement of future outcomes is topic to dangers, uncertainties and doubtlessly inaccurate assumptions. The following necessary elements might trigger precise outcomes to vary materially from these within the forward-looking statements: our publicity to cancellations of authorities contracts attributable to non-appropriation clauses, train of a cancellation clause or non-exercise of contractually optionally available durations; the flexibility of legislation enforcement companies to acquire funding, together with based mostly on tax revenues; our skill to design, introduce and promote new merchandise, providers or options; our skill to defend in opposition to litigation and defend our mental property, and the ensuing prices of this exercise; our skill to win bids via the open bidding course of for governmental companies; our skill to handle our provide chain and keep away from manufacturing delays, shortages and impacts to anticipated gross margins; the impacts of inflation, macroeconomic circumstances and international occasions; the influence of catastrophic occasions or public well being emergencies; the influence of stock-based compensation expense, impairment expense and earnings tax expense on our monetary outcomes; buyer buy habits, together with adoption of our software program as a service supply mannequin; detrimental media publicity or sentiment relating to our merchandise; the influence of varied elements on projected gross margins; defects in, or misuse of, our merchandise; modifications within the prices of product elements and labor; loss of buyer information, a breach of safety or an prolonged outage, together with by our third-party cloud-based storage suppliers; publicity to worldwide operational dangers; delayed money collections and attainable credit score losses attributable to our subscription mannequin; modifications in authorities laws within the United States and in overseas markets, particularly associated to the classification of our merchandise by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives; our skill to combine acquired companies; the influence of declines within the honest values or impairment of our investments, together with our strategic investments; our skill to draw and retain key personnel; litigation or inquiries and associated time and prices; our skill to remediate the fabric weak point in our inner controls; and counterparty dangers regarding money balances held in extra of federally insured limits. Many occasions past our management might decide whether or not outcomes we anticipate can be achieved. Should identified or unknown dangers or uncertainties materialize, or ought to underlying assumptions show inaccurate, precise outcomes might differ materially from previous outcomes and people anticipated, estimated or projected. You ought to bear this in thoughts as you take into account forward-looking statements. These elements are meant as cautionary statements for buyers inside the that means of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Readers can discover them underneath the heading “Risk Factors” in our Annual and Quarterly Reports, and buyers ought to confer with them. You ought to perceive that it isn’t attainable to foretell or determine all such elements. Consequently, you shouldn’t take into account any such checklist to be a whole set of all potential dangers or uncertainties.

Except as required by legislation, we undertake no obligation to publicly replace forward-looking statements, whether or not because of this of new data, future occasions or in any other case. You are suggested, nonetheless, to seek the advice of any additional disclosures we make on associated topics in our Form 8-Okay, 10‑Q and 10‑Okay reports to the SEC. Our filings with the SEC could also be accessed on the SEC’s web site at www.sec.gov.

CONTACT:

Investor Relations
Axon Enterprise, Inc.
IR@axon.com

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