AXON ENTERPRISE, INC.AXON
AXON ENTERPRISE, INC. Revenue Disclosure
Revenues
Nature of Products and Services
The following tables present our revenues by primary product and service offering and reportable segment (in thousands). All periods presented reflect the impact of the Segment Realignment discussed in Note 1.
| Year Ended December 31, 2025 | Year Ended December 31, 2024 | ||||||||||||||||||||||||||||||||||
| Connected Devices | Software and Services | Total | Connected Devices | Software and Services | Total | ||||||||||||||||||||||||||||||
TASER (1) | $ | 913,883 | $ | — | $ | 913,883 | $ | 750,141 | $ | — | $ | 750,141 | |||||||||||||||||||||||
Personal Sensors (2) | 397,035 | — | 397,035 | 316,938 | — | 316,938 | |||||||||||||||||||||||||||||
Platform Solutions (3) | 265,946 | — | 265,946 | 154,213 | — | 154,213 | |||||||||||||||||||||||||||||
| Software and Services | — | 1,202,672 | 1,202,672 | — | 861,234 | 861,234 | |||||||||||||||||||||||||||||
| Total | $ | 1,576,864 | $ | 1,202,672 | $ | 2,779,536 | $ | 1,221,292 | $ | 861,234 | $ | 2,082,526 | |||||||||||||||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||
| Connected Devices | Software and Services | Total | |||||||||||||||
TASER (1) | $ | 573,158 | $ | — | $ | 573,158 | |||||||||||
Personal Sensors (2) | 242,625 | — | 242,625 | ||||||||||||||
Platform Solutions (3) | 148,219 | — | 148,219 | ||||||||||||||
| Software and Services | — | 596,697 | 596,697 | ||||||||||||||
| Total | $ | 964,002 | $ | 596,697 | $ | 1,560,699 | |||||||||||
(1)'TASER' includes TASER handles, cartridges, and related extended warranties.
(2)'Personal Sensors' primarily includes body cameras and accessories, signal sidearm, and related extended warranties.
(3)'Platform Solutions' primarily includes fleet in-car video, interview room, fixed cameras, drones and counter-drone equipment, virtual reality training hardware, and related extended warranties.
The following table presents our revenues disaggregated by geography (in thousands):
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||
| United States | $ | 2,305,012 | 83 | % | $ | 1,775,194 | 85 | % | $ | 1,335,516 | 86 | % | |||||||||||||||||||||||
| Other countries | 474,524 | 17 | 307,332 | 15 | 225,183 | 14 | |||||||||||||||||||||||||||||
| Total | $ | 2,779,536 | 100 | % | $ | 2,082,526 | 100 | % | $ | 1,560,699 | 100 | % | |||||||||||||||||||||||
Contract Balances
As of December 31, 2025 and December 31, 2024, our contract assets, net were $760.9 million and $487.8 million, respectively. During the year ended December 31, 2025, our contract assets balance increased by $273.1 million, or 56.0%, primarily due to increased sales under subscription plans. As of December 31, 2025 and December 31, 2024, our contract liabilities (deferred revenue) were $1,074.6 million and $973.6 million, respectively. During the year ended December 31, 2025, our contract liabilities balance increased by $101.0 million, or 10.4%, primarily due to increased subscription invoicing in advance of fulfilling performance obligations to customers.
During the years ended December 31, 2025 and 2024, and 2023, we recognized revenue of $682.4 million, $499.7 million, and $358.0 million, respectively, from the beginning contract liabilities balance as of December 31, 2024, 2023 and 2022 respectively.
Remaining Performance Obligations
As of December 31, 2025, we had approximately $9.9 billion of remaining performance obligations, which included both recognized contract liabilities as well as amounts that will be invoiced and recognized in future periods. The remaining performance obligations are limited only to arrangements that meet the definition of a contract under ASC 606 as of December 31, 2025. We currently expect to recognize approximately 20% - 25% of this balance over the next 12 months, and expect the remainder to be substantially recognized over the following ten years, subject to risks related to delayed deployments, budget appropriation or other contract cancellation clauses.
Costs to Obtain a Contract
We recognize an asset for the incremental costs of obtaining a contract with a customer, which consist primarily of sales commissions. As of December 31, 2025 and 2024, our assets for costs to obtain contracts were as follows (in thousands):
| December 31, 2025 | December 31, 2024 | ||||||||||
Current deferred commissions (1) | $ | 86,614 | $ | 59,025 | |||||||
Deferred commissions, net of current portion (2) | 245,900 | 154,894 | |||||||||
| $ | 332,514 | $ | 213,919 | ||||||||
(1)Current deferred commissions are included within prepaid expenses and other current assets on the consolidated balance sheets.
(2)Deferred commissions, net of current portion, are included in other long-term assets on the consolidated balance sheets.
During the years ended December 31, 2025, 2024, and 2023, we recognized $65.9 million, $50.8 million, and $34.1 million, respectively, of amortization related to deferred commissions. These costs are recorded within SG&A expenses in the consolidated statements of operations and comprehensive income.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Mar 6, 2017 | |
| 2015 | Mar 7, 2016 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.