Axon Enterpri

Liquidity is robust, with 1.2 billion dollars cash and 505 million dollars in investments at December 31, 2025. Debt consists mainly of 1.75 billion dollars of senior notes due 2030 and 2033; the remaining 2027 convertible notes were fully redeemed or converted in February 2026. Free cash flow troughed in 2025 at 75 million dollars due to inventory and receivables timing, but management reiterated a long-term 60 percent free cash flow conversion of adjusted EBITDA as working capital normalizes.

The balance sheet can absorb investment cycles and M&A, but interest expense has risen and dilution from stock-based compensation has been significant. Net leverage is manageable given cash and recurring cash generation, yet we monitor cash deployment post-Carbyne and Prepared.