Axon Enterprise said revenues for the 3 months ended September 30, 2025 were $710.6 million, an increase of $166.4 million, or 30.6%, from the prior year period. Operating loss for the quarter was $2.1 million, compared to operating income of $24.1 million in the same period of the prior year.

10-QQuarterly reportFiled Nov 5, 2025Period of report Sep 30, 2025Summary published (UTC) Oct 10, 2026

Key points

AI summary

Axon Enterprise said revenues for the 3 months ended September 30, 2025 were $710.6 million, an increase of $166.4 million, or 30.6%, from the prior year period. Operating loss for the quarter was $2.1 million, compared to operating income of $24.1 million in the same period of the prior year.
The company said net loss for the 3 months was $2.2 million, which included a $17.9 million tax provision, and the effective tax rate was 113.9%, compared to 15.8% in the prior-year period. It cited the enactment of the OBBBA as a factor in the tax rate, which resulted in a reduction of its R&D tax credit.
Axon Enterprise said Connected Devices segment revenues increased 23.6% for the 3 months, while Software and Services segment revenues increased 41.1%. Adjusted gross margin was 62.7%, down from 63.2% in the prior year period, and the company cited global tariffs and a higher mix of Platform Solutions revenue as factors.
The company said operating cash flow for the 9 months ended September 30, 2025 was a net outflow of $5.9 million, compared to a net inflow of $158.1 million in the prior year period. Net cash inflow from financing activities was $1.5 billion, which the company said included gross proceeds of $1.8 billion from the issuance of Senior Notes.

Key figures

Quarter ended September 30, 2025

Revenue: $711M
Operating income: −$2M
Net income: −$2M
EPS: −$0.03
Gross profit: $427M

From the XBRL financial data filed with the SEC · not processed by AI.

Summary

AI-written

Analysis scope · Management's discussion (MD&A)We analyzed the Management's Discussion and Analysis (MD&A) section. Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

Quarterly revenues $710.6 million, operating loss $2.1 million

Axon Enterprise said revenues for the 3 months ended September 30, 2025 were $710.6 million, an increase of $166.4 million, or 30.6%, from the prior year period. Operating loss for the quarter was $2.1 million, compared to operating income of $24.1 million in the same period of the prior year.

Source · Based on the MD&A text of the filing

Quarterly net loss $2.2 million and effective tax rate 113.9%

The company said net loss for the 3 months was $2.2 million, which included a $17.9 million tax provision, and the effective tax rate was 113.9%, compared to 15.8% in the prior-year period. It cited the enactment of the OBBBA as a factor in the tax rate, which resulted in a reduction of its R&D tax credit.

Source · Based on the MD&A text of the filing

Segment revenues and adjusted gross margin

Axon Enterprise said Connected Devices segment revenues increased 23.6% for the 3 months, while Software and Services segment revenues increased 41.1%. Adjusted gross margin was 62.7%, down from 63.2% in the prior year period, and the company cited global tariffs and a higher mix of Platform Solutions revenue as factors.

Source · Based on the MD&A text of the filing

Operating cash flow and financing activities for the 9 months

The company said operating cash flow for the 9 months ended September 30, 2025 was a net outflow of $5.9 million, compared to a net inflow of $158.1 million in the prior year period. Net cash inflow from financing activities was $1.5 billion, which the company said included gross proceeds of $1.8 billion from the issuance of Senior Notes.

Source · Based on the MD&A text of the filing

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

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