Axon Enterprise, Inc. Connected Devices — Warranty reserve expense increased by 37.3% to $3.09M in Q1 2026 compared to the prior quarter. Year-over-year, this metric declined by 18.3%, from $3.78M to $3.09M. Over 2 years (FY 2023 to FY 2025), Connected Devices — Warranty reserve expense shows an upward trend with a 20.1% CAGR. This increase may warrant attention — for this metric, lower values are generally preferred.
An increase may signal declining product quality or higher-than-expected failure rates, while a stable or decreasing trend suggests reliable product performance.
This metric captures the estimated future costs associated with honoring product warranties for hardware sold within the...
Similar to warranty accruals or product liability provisions found in the financial statements of consumer electronics and hardware manufacturers.
axon_segment_connected_devices_warranty_reserve_expense| Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $2.02M | $2.02M | $2.02M | $2.02M | $1.12M | $694.00K | $3.05M | $732.00K | $3.78M | $3.02M | $2.58M | $2.25M | $3.09M |
| QoQ Change | — | +0.0% | +0.0% | +0.0% | -44.5% | -38.0% | +339.0% | -76.0% | +416.3% | -20.2% | -14.3% | -12.9% | +37.3% |
| YoY Change | — | — | — | — | -44.5% | -65.6% | +51.2% | -63.7% | +237.7% | +334.4% | -15.2% | +207.4% | -18.3% |