Income StatementBalance SheetCash FlowSegments
AAX

Axon Enterprise, Inc. Business Segments

Business, geographic, and product segment breakdowns

Axon Enterprise, Inc. generates $3.0B in annual revenue across 2 key segments: Connected Devices ($1.7B), and Software and Services ($1.3B). The company-wide operating margin is -0.81%. Based on the Q1 2026 filing.

Connected Devices (TTM)$1.7BSoftware and Services (TTM)$1.3B
Latest FilingQ1 2026
Report Date2026-05-07
Market Cap$31.3B
P/E Ratio151.90
ROE6.76%

Products & Services

Net Sales

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Software and Services$244.9M$262.7M$292.2M$305.2M$342.5M$354.5M
TASER$268.9M$195.5M$216.2M$238.0M$264.2M$232.9M
Platform Solutions$44.7M$57.0M$67.3M$60.8M$80.9M$111.2M
Personal Sensors$85.2M$88.4M$92.8M$106.7M$109.1M$108.8M

Cost of Sales

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Product$164.7M$170.2M$193.5M$203.2M$242.4M$232.2M
Service$61.4M$67.7M$71.3M$80.1M$93.0M$97.9M

Geographic

MetricQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Net Sales$98.7M$74.3M$131.2M$116.7M$152.4M$160.8M
Concentration risk (as a percentage)—12.0%20.0%16.0%—20.0%

Business Segments

Adjusted gross margin

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Software and Services$260.9M$204.1M$230.6M$234.3M$262.6M$268.6M
Connected Devices$172.4M$180.1M$192.4M$211.1M$223.9M$228.3M

Cost of Sales

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Connected Devices$167.2M$170.2M$193.5M$203.2M$242.4M-$232.2M
Software and Services$341.6M$67.7M$71.3M$80.1M$93.0M-$97.9M

D&A

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Connected Devices$7.7M$9.3M$8.3M$9.2M$11.4M$11.8M
Software and Services$8.5M$4.0M$4.1M$4.3M$6.7M$8.0M

Foreign currency translation adjustments

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Software and Services-$548.0K$1.6M$1.3M$662.0K$18.0K-$443.0K
Connected Devices—$119.0K$264.0K-$102.0K$7.0K-$21.0K

Goodwill

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Software and Services$710.2M$709.2M$710.7M$722.1M$1.3B$1.8B
Connected Devices$46.7M$46.6M$51.5M$51.2M$51.2M$51.2M
TASER Devices$2.9M———$0.0—

Goodwill acquired

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Software and Services$175.4M$153.1M$153.1M$153.1M$153.1M$524.7M
Connected Devices—$1.2M$1.2M$1.2M$1.2M$0.0

Goodwill, Measurement Period Adjustment

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Software and Services$119.8K$2.5M-$228.0K$4.8M$0.0$82.0K
Connected Devices—$160.0K$125.0K$161.0K$0.0$0.0

Net Sales

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Connected Devices$330.2M$340.9M$376.4M$405.4M$454.2M$452.8M
Software and Services$352.2M$262.7M$292.2M$305.2M$342.5M$354.5M

Other segment items

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Software and Services$24.1M$9.0M$9.7M$9.2M$13.0M$12.0M
Connected Devices$9.4M$9.4M$9.6M$8.9M$12.1M$7.7M

Provisions for inventory

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Connected Devices$5.6M$846.0K$995.0K$1.7M$499.0K$937.0K
Software and Services$12.1M$0.0$0.0$0.0$0.0$0.0

Reallocation of goodwill from Segment Realignment

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Connected Devices—$11.7M$11.7M$11.7M$11.7M—
Software and Sensors—-$188.5M-$188.5M-$188.5M-$188.5M—
Software and Services—$177.5M$177.5M$177.5M$177.5M—
TASER Devices—-$713.3K-$713.3K-$713.3K-$713.3K—

Stock-based compensation expense

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Connected Devices$7.5M$7.5M$7.6M$7.6M$8.7M$5.8M
Software and Services$17.4M$5.4M$5.0M$5.1M$6.4M$4.7M

Warranty reserve expense

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Connected Devices$732.0K$3.8M$3.0M$2.6M$2.3M$3.1M
Software and Services$849.0K$0.0$0.0$0.0$0.0$0.0