Axon Enterprise Inc. (Nasdaq: AXON) develops an integrated public-safety technology platform connecting body cameras, TASER devices, digital evidence management, artificial intelligence, drones, counter-drone systems and emergency-response tools.
The company reported second-quarter 2026 revenue of $904 million, up 35% from a year earlier and marking its 10th consecutive quarter of revenue growth above 30%.
Software & Services revenue increased 36% to $398 million as customers added users and adopted premium products including Axon Fusus, Axon 911 and the AI Era Plan. Axon said AI Era revenue grew nearly 700%, while annual recurring revenue rose 39% to $1.6 billion and net revenue retention reached 126%.
Platform Solutions revenue increased 123% to $150 million, with Dedrone revenue surpassing $100 million. Dedrone supported all 11 U.S. stadiums used during the 2026 World Cup, along with more than 50 additional sites. Axon Body Mini also became generally available in six markets, including the United States, Canada, the United Kingdom and the European Union.
Axon said future contracted bookings increased 41% to $15.1 billion. The quarter included two nine-figure agreements with major U.S. cities, two eight-figure agreements with state corrections customers and the company’s first full-scope Axon 911 customer agreement. Future contracted bookings are an operating metric rather than recognized revenue and can change because of cancellations, optional periods or contract modifications.
Founder and CEO Rick Smith previously described the company’s approach to artificial intelligence in its first-quarter update, saying, “We are breaking down information barriers and providing a secure, compliant foundation.”
GAAP net income declined to $29 million from $36 million, primarily because the year-earlier period included a larger tax benefit. Adjusted EBITDA increased more than 40% to $242 million. Axon generated $20 million in operating cash flow but recorded a $1 million free-cash-flow outflow.
The quarter also benefited from $47 million in cash tariff refunds. As of June 30, Axon reported $685 million in cash, cash equivalents and short-term investments against $1.8 billion in outstanding senior-note principal, leaving the company with approximately $1.1 billion in net debt.
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Axon raised its expected full-year 2026 revenue growth range to 32%–34% from 30%–32% and maintained its expected adjusted EBITDA margin at approximately 25.5%. The company also expects 2026 capital expenditures of $160 million–$190 million for R&D projects, capacity expansion, global facilities and product development. These targets are forward-looking and subject to change.
Sources
- Axon Q2 2026 results and shareholder letter, Aug. 5, 2026
- Axon Q1 2026 results and Rick Smith commentary, May 6, 2026
- Axon investor relations overview
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Sources used include Axon Enterprise’s second-quarter 2026 results and shareholder letter dated Aug. 5, 2026; the company’s first-quarter 2026 update dated May 6, 2026; and Axon’s investor relations website.
Axon reported second-quarter revenue of $904 million, GAAP net income of $29 million and adjusted EBITDA of $242 million. The company generated $20 million in operating cash flow and recorded a free-cash-flow outflow of $1 million. As of June 30, 2026, Axon held $685 million in cash, cash equivalents and short-term investments and had $1.8 billion in outstanding senior-note principal. The quarter included $47 million in cash tariff refunds. Future contracted bookings are an operating metric, not recognized revenue, and may be affected by cancellations, optional periods and contract changes.
Financial and operating information is current as of June 30, 2026, while company guidance and other forward-looking information are current as of Aug. 5, 2026. No share-price or market-capitalization data was used.
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