Is the business good?
How good a business is AXON?
Axon Enterprise earns 0.40% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
0.40%
Return on invested capital · cost of capital 9.0% · 8.6 points below what the capital costs: growth destroys value
- Operating margin
- 0.74%
Operating margin · Aerospace & Defense median 9.6% · 12 months to Q2 2026
- Cash conversion
- 0.67×
Cash conversion · 0.54× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- +0.58%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | −2.1% |
| FY2021 | −19% |
| FY2022 | 7.8% |
| FY2023 | 10% |
| FY2024 | 2.8% |
| FY2025 | −2.2% |
Details›
- Gross margin12 months to Q2 2026
- 59%
- Operating margin12 months to Q2 2026
- 0.74%
- Net margin12 months to Q2 2026
- 6.2%
- Free cash flow margin
- 4.1%
- R&D as % of revenue
- 24%
- Revenue, trailing twelve months
- $3.22B
- Free cash flow, trailing twelve months
- $133M
- Net income, trailing twelve months
- $199M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 0.40%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Aerospace & Defense
Ranks #31 of 48 by Smart Score