AXON ENTERPRISE, INC.
For the period ended Mar 31, 2026. Filed May 7, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 7, 2026
What changed in Risk Factors?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-05.
0001628280-25-049143
Item 1A. Risk FactorsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0001628280-26-031542
Item 1A. Risk FactorsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
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A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (1)
Current report
As of the three months ended March 31, 2026, there have been no significant changes to the risk factors outlined in our Annual Report on Form 10-K for the year ended December 31, 2025.
Removed paragraphs (304)
Previous report
The following is only a summary of the principal risks that may materially adversely affect our business, financial condition, results of operations and cash flows. The following should be read in conjunction with the more complete discussion of the risks we face, which are set forth more fully below.
Previous report
•We substantially depend on acceptance of our products and services by law enforcement agencies throughout the world. If law enforcement agencies do not continue to purchase and use our products and services, our business prospects, operating results and financial condition will be materially adversely affected.
Previous report
•We substantially depend on sales of our CEDs, and if these products do not continue to be widely accepted, our business prospects, operating results and financial condition will be diminished.
Previous report
•If we are unable to design, introduce, sell and deploy new products or new product features successfully, our business and financial results could be adversely affected.
Previous report
•We face risks associated with rapid technological change and new competing products.
Previous report
•Our future success depends on our ability to expand sales through direct sales and distributors and our inability to increase direct sales or recruit new distributors would negatively affect our sales.
Previous report
•Negative publicity could adversely impact sales, which could cause our revenues or operating results to decline.
Previous report
•Acquisitions of, or investments in, other products, technologies or businesses could disrupt our business, dilute shareholder value, and adversely affect our operating results.
Previous report
•We may not successfully manage our growth or plan for future growth.
Previous report
•We are highly dependent on the services of our executive officers, including Patrick Smith, our Chief Executive Officer. Our failure to retain executive officers could adversely impact our business.
Previous report
•Unavailability of materials or higher costs could adversely affect our financial results.
Previous report
•Material adverse developments in domestic and global economic conditions, or the occurrence of other sufficiently disruptive world events, could materially adversely affect our revenue and results of operations.
Previous report
•If demand for our products increases, our future success will depend on our ability to manage our growth and to increase manufacturing production capacity.
Previous report
•Delays in product development schedules could adversely affect our revenues and cash flows.
Previous report
•We expend significant resources in anticipation of a sale due to our lengthy sales cycle and may receive no revenue in return.
Previous report
•If our security measures or those of our third-party providers, including cloud storage providers, are breached, resulting in unauthorized access to our and our customers’ data, it could undermine the confidence in our network, data centers and services, leading to reduced customer use of our products and services and significant legal and financial exposure and liabilities.
Previous report
•Catastrophic events could materially adversely affect our business prospects, operating results and financial condition.
Previous report
•Uncertainty in the development, deployment, and use of artificial intelligence (“AI”) in our products and services, as well as our business more broadly, could adversely affect our business and reputation.
Previous report
•Defects or disruptions in our services could impact demand for our services and subject us to substantial liability.
Previous report
•Defects in our products could reduce demand for our products or result in product recalls and result in a loss of sales, delay in market acceptance and damage to our reputation.
Previous report
•Our international operations expose us to additional risks that could harm our business prospects, operating results and financial condition.
Previous report
•We depend on our ability to attract and retain our key management, sales and technical personnel.
Previous report
•Failure to comply with federal, state, or local regulations applicable to our firearm product, the TASER 10 CED, could result in governmental actions or litigation, potentially harming our business prospects, operating results, and financial condition.
Previous report
•Failure to maintain effective internal control over financial reporting may adversely affect our ability to report our financial condition and operating results in a timely and accurate manner, which may cause investor confidence to diminish and the value of our common stock to decline.
Previous report
•Our revision and our restatement of previously issued consolidated financial statements may adversely affect investor confidence and could result in regulatory actions and stockholder litigation.
Previous report
•An increasing percentage of our revenue is derived from subscription billing arrangements that may result in delayed cash collections and may increase customer credit risk on receivables and contract assets.
Previous report
•Our gross margin depends on a number of factors, including our product mix, cost structure and acquisitions we may make, any of which could cause our gross margin to fluctuate.
Previous report
•Revenue for our Software as a Service (“SaaS”) products is recognized over multi-year contract terms, which may delay the reflection of new business in our operating results.
Previous report
•Most of our end-user customers are subject to budgetary and political constraints, which may delay or prevent sales, result in cancellations, or lead to the non-renewal of contracts.
Previous report
•The open bidding process introduces uncertainty in securing future contract awards.
Previous report
•We hold the majority of our cash balances, some of which are not insured, at three depository institutions.
Previous report
•Stock transactions may have a material, unpredictable impact on our operating results and may result in dilution to existing shareholders.
Previous report
•Our financial performance is subject to risks associated with changes in the value of the U.S. dollar versus local currencies.
Previous report
•Unanticipated changes in our effective tax rate and additional tax liabilities could adversely affect our operating results and financial condition.
Previous report
•Our revenue and operating results may fluctuate unexpectedly from quarter-to-quarter, which could impact our stock price.
Previous report
•Our profitability could suffer from declines in fair value or impairment of our investments, including our strategic investments, and could fluctuate if the fair values of our investments increase.
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