Axon Enterpri

Reinvestment in R&D and go-to-market has compounded product breadth and bookings, which we applaud. However, 2025 capital allocation included 1.75 billion dollars of new senior notes, roughly 0.7 million shares sold via ATM, and total stock-based compensation of about 634 million dollars that materially diluted owners.

Strategic M&A has been active: Fusus in 2024, Prepared closed late 2025, and Carbyne closed in Q1 2026, extending Axon into 911 and NG911 call handling. These deals are strategically coherent and broaden the moat, but elevate integration and execution risk.

We would prefer a path to lower SBC intensity and targeted buybacks once FCF conversion returns to plan.