Axon Enterprise, Inc.

Company facts

Industry

Ordnance & Accessories, (No Vehicles/Guided Missiles)

Headquarters

Scottsdale, Arizona

Most recent report

10-Q, filed Nov 6, 2026

Incorporated

Delaware

Filings on record

1,000+ filings

On EDGAR

CIK 1069183

Fiscal year ends

December

Filer status

Large accelerated filer

What to read: Sep 2026 10-Q

SECSift found 3 of 13 sections worth reading, with 1 positive, 5 notable, and 9 negative flags.

• Financial Statements (Item 1)

  Large debt raise, acquisitions, strategic investment, and big backlog detail.
  Notable

  • Remaining performance obligations of $10.2B as of Sept 30, 2026, with 20-25% expected in 12 months.
  • Issued $1.15B 0% convertible notes due 2031 in Sept 2026, net proceeds ~$1.14B after costs and $114.9M capped calls.
  • Acquired Carbyne for $551.7M cash and Prepared for $623.9M cash, adding $523M and $585M goodwill respectively.
  • Post-quarter, Axon agreed to invest up to $1.2B in Skydio, increasing ownership to ~37%, with $127.5M cash paid Nov 5, 2026.

• Management's Discussion (Item 2)

  Revenue up 28% to $909M, but gross margin fell sharply; cash from ops only $8M; $1.2B Skydio investment ahead.
  Positive

  • Revenue grew 27.8% to $908.6M in Q3 2026; net income swung to $57M from a $2.2M loss.
  Notable

  • Issued $1.15B of 2031 Notes and raised $100.3M via ATM equity offering in the nine months ended Sep 30, 2026.
  Negative

  • Gross margin fell to 56.7% from 60.1% in Q3 2026, driven by counter-drone mix and higher memory costs.
  • Committed up to $1.2B in Skydio investments, ~$720M in cash, to close Q4 2026 and Q1 2027.
  • Operating cash flow was only $8.2M for the nine months ended Sep 30, 2026, barely positive.

• Risk Factors (Item 1A)

  New debt-structure risks: 2027 warrants still outstanding after note redemption, 2031 capped calls, and covenant details.
  Negative

  • 2027 Warrants still outstanding after note redemption; could dilute stock if price exceeds strike price.
  • 2031 Capped Calls do not offset dilution for diluted EPS calculation, and counterparty actions could cause stock price fluctuations.
  • Counterparty risk: Option Counterparties are unsecured; default could reduce benefits and increase dilution.
  • Revolving credit facility requires maintaining specified financial ratios; limits on debt, liens, dividends, and asset sales.
  • Conversion of 2031 Notes could require cash payments or dilute stockholders; reclassification to current liability could reduce working capital.
  • Debt service may exceed cash flow; alternatives like asset sales or equity financing could be unfavorable or dilutive.

What changed: Sep 2026 vs. Jun 2026

About 17% of AXON's Sep 2026 10-Q is new information. 52 paragraphs were added, 167 changed, and 35 removed. Below are the most important lines SECSift identified.

• Item 1 84
• Item 2 55
• Item 1A 17
• Item 6 7
• Item 3 2
• Item 4 2