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Axon Enterprise AXON

Axon Enterprise scores weak on business quality (4.4 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$422.89Oct 9, 2026
Business qualityWeak
Next earningsNov 2, 2026
Insiders, 90 daysQuiet

Why it matters

  1. What Axon Enterprise does

    Axon Enterprise sells tasers, body cameras, and cloud software to law enforcement agencies. These customers pay for integrated hardware and software subscriptions to manage evidence and officer safety.

  2. What it does best

    Axon locks in police departments through its Evidence.com cloud platform, yielding a gross margin of 59.4% that outpaces LHX at 25.5%. Police agencies rarely swap evidence management software once decades of video files live there.

  3. The main risk

    Interest coverage sits at 0.5x, meaning operating earnings do not fully cover interest payments. Debt obligations restrict operational flexibility if cash generation falters.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityWeak

Operating margin stands at a thin 1.7% with an FCF margin near 4.1%. Low margins drag down overall profitability as scale fails to translate into net income.

MoatWeak

A weak moat score of 3.3 reflects low operating margins and low returns on equity despite a gross margin in the top quartile at the 89th percentile, limiting true enterprise lock-in.

GrowthFast

Revenue growth hit 33.5%, placing it in the top decile of its sector at the 97th percentile, driven by surging demand for its connected hardware and software ecosystems.

Financial healthWeak

Total debt of $1.8B and interest coverage of 0.5x mean debt servicing strains current earnings, while free cash flow of $133M provides a thin cushion, making the balance sheet softer.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

No open market buys or unplanned sales by executives or directors.

Our sealed record on AXON

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is AXON a good business?

Axon Enterprise scores weak on the Cluenex quality check (4.4 of 10), measured against its own industry. Profitability is weak, moat weak, growth fast and financial health weak.

Are insiders buying AXON?

In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.

When does AXON report earnings?

Nov 2, 2026.

For members

See AXON today

  • Today's verdict on AXON, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Axon Enterprise (AXON)”, https://cluenex.com/stocks/axon/, data as of Oct 10, 2026.