v3.26.1
Stockholders' Equity
 6 Months Ended
Jun. 30, 2026
Equity [Abstract]  
Stockholders' Equity Stockholders’ Equity
Our stock-based compensation program includes grants of service-based restricted stock units (“RSUs”), performance-based restricted stock units (“PSUs”), and performance-based stock options (“stock options”) under the Axon Enterprise, Inc. Amended and Restated 2022 Stock Incentive Plan (the “Amended 2022 Plan”) and grants of eXponential stock units (“XSUs”) under the Axon Enterprise, Inc. Employee eXponential Stock Plan (the “Employee XSP”) and the CEO Performance Award. With the exception of the Employee XSP as discussed further below, there were no significant changes to our RSUs, PSUs and stock options during the six months ended June 30, 2026.
Employee XSP and CEO Performance Award
The Employee XSP includes an approved pool of approximately 4.5 million shares of common stock reserved for grants of XSUs to employees. Approximately 0.9 million XSUs remain available to grant to employees under this program as of June 30, 2026. A total of approximately 0.5 million XSUs were granted during the six months ended June 30, 2026. Shareholders previously approved a grant of 679,102 XSUs for the CEO Performance Award on May 10, 2024.

On January 23, 2026, the Compensation Committee of the Board of Directors approved the addition of two incremental tranches to the Employee XSP. Consistent with prior tranches, Tranches 8 and 9 are performance-based and contingent upon achievement of stock price goals, operational goals, and minimum service requirements. These three independent vesting conditions are described in the following table:
Operational Goals (1)
(in millions)
Stock Price
Goal		Minimum Service Requirement
Tranche (2)
RevenueAdj. EBITDAEmployee XSPCEO Performance AwardGoal Expiration
1$1,834 or$382 and$247.40 andJune 2025December 2028December 31, 2026
22,293 or497 and309.25 andDecember 2025December 2028December 31, 2027
32,866 or611 and386.56 andJune 2026December 2029December 31, 2028
43,583 or792 and483.20 andDecember 2026December 2029December 31, 2029
54,479 or1,035 and604.00 andJune 2027December 2030December 31, 2030
65,599 or1,347 and755.00 andDecember 2027December 2030December 31, 2031
76,999 or1,697 and943.75 andJune 2028December 2030December 31, 2032
88,753 or2,135 and1,179.69 andDecember 2029—December 31, 2033
910,940 or2,681 and1,474.61 andJune 2031—December 31, 2034

(1)    Operational goals are measured, as of any date, for the previous four consecutive fiscal quarters, beginning with the Company's first full fiscal quarter ending after the fiscal quarter in which the grant date occurred. In connection with certain acquisitions which were completed in the first quarter of 2026, the operational goals were adjusted as required by the terms of the Employee XSP and CEO Performance Award grant agreements for the respective tranches.

(2)    Tranches 1, 2, and 3 vested in June 2025, December 2025, and June 2026, respectively. As of June 30, 2026, for certain grantees, the shares acquired upon vesting of Tranche 3 remain subject to a holding period requirement under the plan, which will expire on the earlier of (i) December 31, 2030 and (ii) the date on which the subsequent tranche vests.
Stock-based Compensation Expense
The following table summarizes the composition of stock-based compensation expense for the three and six months ended June 30, 2026 and 2025 (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Cost of product and service sales$11,341 $12,561 $22,050 $25,448 
Selling, general and administrative expenses70,988 72,187 137,507 143,534 
Research and development expenses61,667 54,496 119,140 110,501 
Total stock-based compensation expense (1)
$143,996 $139,244 $278,697 $279,483 
(1)For the six months ended June 30, 2026, stock-based compensation expense included $0.7 million in non-recurring severance costs. Total non-recurring severance costs for the six months ended June 30, 2026 of $2.7 million also include $2.0 million of severance payments and employee benefits. The majority of these costs were recorded in selling, general and administrative expenses.
At-the-Market Equity Offering
We participate in an “at-the-market” equity offering program (the “ATM”), pursuant to which we are authorized to sell up to a total of approximately 2.0 million shares of our common stock.

During the three months ended June 30, 2026, we sold approximately 0.2 million shares of our common stock under our ATM. We generated approximately $101.2 million in aggregate gross proceeds from sales under the ATM. We recorded aggregate net proceeds of $100.3 million in additional paid-in capital after deducting related expenses, including commissions to the sales agent and issuance costs of $0.9 million. As of June 30, 2026, approximately $0.2 million of these costs were not yet paid.
As of June 30, 2026, there were approximately 1.0 million shares remaining. We utilize the net proceeds from this offering program for general corporate purposes, which may include providing capital to satisfy a portion of the tax obligations related to the vesting and settlement of stock compensation awards granted to our employees under our stock plans and funding ongoing strategic investments and acquisitions as we continue to expand our product ecosystem.
Stock Incentive Plan
In May 2024, our shareholders approved the Amended 2022 Plan authorizing an additional 2.2 million shares, plus remaining available shares under prior plans, for issuance under the Amended 2022 Plan. Combined with the shares of our common stock available under our legacy stock incentive plans, there are 2.6 million shares of our common stock available for grant under the Amended 2022 Plan as of June 30, 2026.