$AXON

TASER INTERNATIONAL INC

CIK:0001069183|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Net sales	$ 904,389	$ 668,538	$ 1,711,734	$ 1,272,171
Cost of sales	357,942	264,795	688,001	502,689
Gross margin	546,447	403,743	1,023,733	769,482
Operating expenses:
Selling, general and administrative	290,982	242,212	550,075	465,721
Research and development	208,687	162,567	397,637	313,590
Total operating expenses	499,669	404,779	947,712	779,311
Income (loss) from operations	46,778	(1,036)	76,021	(9,829)
Interest income	6,815	23,253	17,426	33,857
Interest expense	(28,101)	(28,686)	(56,744)	(36,507)
Other income (loss), net	7,192	(32,414)	196,202	81,987
Income (loss) before provision for income taxes	32,684	(38,883)	232,905	69,508
Provision for (benefit from) income taxes	3,257	(75,000)	34,166	(54,589)
Net income	$ 29,427	$ 36,117	$ 198,739	$ 124,097
Net income per common and common equivalent shares:
Basic (in dollars per share)	$ 0.37	$ 0.46	$ 2.47	$ 1.60
Diluted (in dollars per share)	$ 0.36	$ 0.44	$ 2.41	$ 1.52
Weighted average number of common and common equivalent shares outstanding:
Basic (in shares)	80,573	77,999	80,363	77,448
Diluted (in shares)	82,541	82,062	82,518	81,782
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 29,427	$ 36,117	$ 198,739	$ 124,097
Foreign currency translation adjustments	(5,147)	5,159	(4,500)	5,517
Unrealized gain (loss) on available-for-sale investments	0	73	(111)	(51)
Comprehensive income	24,280	41,349	194,128	129,563
Net sales from products
Net sales	506,553	376,360	959,374	717,256
Cost of sales	243,861	193,507	476,017	363,688
Net sales from services
Net sales	397,836	292,178	752,360	554,915
Cost of sales	$ 114,081	$ 71,288	$ 211,984	$ 139,001

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income	$ 198,739	$ 124,097
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Stock-based compensation	278,697	279,483
Gain on strategic investments and marketable securities, net	(197,873)	(111,754)
Debt inducement expense	0	28,666
Depreciation and amortization	62,824	36,610
Provision for bad debts and inventory	2,630	6,254
Deferred income taxes	11,456	(70,065)
Other noncash items	18,466	19,278
Change in assets and liabilities:
Receivables and contract assets	(256,919)	(212,833)
Inventory	(145,099)	(48,098)
Deferred revenue	(35,334)	(51,143)
Accounts payable, accrued and other liabilities	105,531	21,175
Prepaid expenses and other assets	(54,558)	(87,580)
Net cash used in operating activities	(11,440)	(65,910)
Cash flows from investing activities:
Purchases of investments	(302,844)	(1,793,862)
Business combinations, net of cash acquired	(551,593)	(3,809)
Proceeds from call, maturity, and sale of investments	434,345	756,654
Purchases of property and equipment	(44,174)	(47,815)
Other, net	(1,496)	83
Net cash used in investing activities	(465,762)	(1,088,749)
Cash flows from financing activities:
Net proceeds from equity offering	100,477	183,960
Principal payments for conversion and redemption of convertible debt	(81,110)	(407,453)
Income and payroll tax payments for net-settled stock awards	(140,192)	(192,835)
Payments to third parties for debt issuance, amendment, conversion and redemption activity	(964)	(24,735)
Proceeds from issuance of notes	0	1,750,000
Other, net	(829)	(76)
Net cash (used in) provided by financing activities	(122,618)	1,308,861
Effect of exchange rate changes on cash and cash equivalents	(3,949)	6,497
Net change in cash and cash equivalents	(603,769)	160,699
Cash and cash equivalents and restricted cash, beginning of period	1,213,393	466,763
Cash and cash equivalents and restricted cash, end of period	609,624	627,462
Supplemental disclosures:
Cash and cash equivalents	597,704	615,496
Restricted cash	11,920	11,966
Total cash, cash equivalents and restricted cash shown in the statements of cash flows	609,624	627,462
Cash paid for interest	54,124	1,204
Non-cash transactions:
Leased assets obtained in exchange for new operating lease liabilities	8,502	5,554
Property and equipment purchases in accounts payable and accrued liabilities	8,051	3,060
Expense for induced conversion of convertible debt, debt offering and revolver modification	$ 0	$ 33,725

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 597,704	$ 1,201,147
Short-term investments	75,703	505,417
Marketable securities	19,126	27,213
Accounts and notes receivable, net of allowance of $4,949 and $4,198 as of June 30, 2026 and December 31, 2025, respectively	768,637	777,486
Contract assets, net	750,950	582,630
Inventory	486,556	341,811
Prepaid expenses	190,682	149,800
Other current assets	115,347	127,548
Total current assets	3,004,705	3,713,052
Property and equipment, net	341,507	330,979
Deferred tax assets, net	345,500	359,803
Intangible assets, net	281,583	196,972
Goodwill	1,898,827	1,370,189
Long-term notes receivable, net	1,597	6,066
Long-term contract assets, net	296,458	178,249
Strategic investments	853,842	416,833
Other long-term assets	457,138	428,170
Total assets	7,481,157	7,000,313
Current liabilities:
Accounts payable	269,957	139,086
Accrued liabilities	423,932	510,538
Current portion of deferred revenue	670,740	714,708
Current portion of notes payable, net	0	80,552
Customer deposits	16,477	16,156
Other current liabilities	17,131	9,107
Total current liabilities	1,398,237	1,470,147
Deferred revenue, net of current portion	385,659	359,902
Liability for unrecognized tax benefits	26,587	24,376
Long-term deferred compensation	33,094	23,675
Long-term lease liabilities	101,658	98,942
Long-term notes payable, net	1,731,817	1,730,170
Other long-term liabilities	129,568	50,443
Total liabilities	3,806,620	3,757,655
Commitments and contingencies (Note 11)
Stockholders’ equity:
Preferred stock, $0.00001 par value; 25,000,000 shares authorized; no shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively	0	0
Common stock, $0.00001 par value; 200,000,000 shares authorized, 101,510,494 shares issued and 81,235,921 shares outstanding as of June 30, 2026, and 200,000,000 shares authorized, 100,444,971 shares issued and 80,211,537 shares outstanding as of December 31, 2025	1	1
Additional paid-in capital	2,735,708	2,475,035
Treasury stock at cost, 20,274,573 shares and 20,233,434 shares as of June 30, 2026 and December 31, 2025, respectively	(180,164)	(157,242)
Retained earnings	1,135,409	936,670
Accumulated other comprehensive loss	(16,417)	(11,806)
Total stockholders’ equity	3,674,537	3,242,658
Total liabilities and stockholders’ equity	$ 7,481,157	$ 7,000,313