AX
AXON
Latest · Mar 31, 2026
Quarter ended Mar 31, 2026 · FY2026 Q1

Axon Enterprise, Inc. stock research

Axon Enterprise (AXON) Free Cash Flow — Quarter Ended Mar 31, 2026

Revenue was higher than both the prior quarter and the same quarter last year, but operating cash flow turned negative, resulting in negative free cash flow and a negative free cash flow margin. The cash conversion weakened sharply from the prior quarter, which had strong positive cash generation.

Free cash flow takeaway

A quick read on the company's cash generation and what it means for investors.

Revenue was higher than both the prior quarter and the same quarter last year, but operating cash flow turned negative, resulting in negative free cash flow and a negative free cash flow margin. The cash conversion weakened sharply from the prior quarter, which had strong positive cash generation.

  • Revenue increased while operating cash flow declined from positive to negative, causing free cash flow to be negative. Capital expenditure was lower than the prior quarter, but the negative operating cash flow more than offset that reduction.
  • Compared to the prior quarter, operating cash flow and free cash flow both weakened significantly, with free cash flow margin turning from positive to negative. Versus the year-ago quarter, revenue was higher but operating cash flow was lower, while free cash flow dropped from near break-even to negative.

FCF snapshot

Quarterly and TTM cash-flow metrics with the minimum valuation context.

TTM free cash flow

$19.5M

Trailing twelve-month free cash flow.

Quarter free cash flow

-$54.6M

Free cash flow in the selected fiscal quarter.

Operating cash flow

-$31.5M

Cash generated by operations before capital spending.

CapEx

$23.1M

Capital spending and related asset purchases.

FCF margin

-6.8%

The share of revenue converted into free cash flow.

TTM FCF yield

0.0%

TTM FCF divided by market capitalization.

Cash flow trend

A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.

PeriodRevenueOperating CFCapExFCFFCF margin
2025-06-30$668.5M-$91.7M$23.0M-$114.7M-17.2%
2025-09-30$710.6M$60.0M$26.6M$33.4M4.7%
2025-12-31$796.7M$217.2M$61.8M$155.4M19.5%
2026-03-31$807.3M-$31.5M$23.1M-$54.6M-6.8%

Cash conversion quality

Checks that separate high-quality free cash flow from accounting noise or working-capital timing.

FCF / net income-32.3%Shows whether accounting earnings convert into cash.
CapEx / revenue2.9%Lower capital intensity usually supports FCF margin.
Net cash-$1.3BCash and equivalents minus total debt.

Recent events shaping cash flow

Near-term business events that help explain the free cash flow result.

Watch

Operating cash flow reversal

Revenue grew compared to the prior quarter and the year-ago quarter, yet operating cash flow moved from a positive level to a negative figure. This shift was the primary factor behind the negative free cash flow and negative margin.

Negative free cash flow reduces the company's cash balance, as reflected in the decline in cash and cash equivalents and short-term investments from the prior quarter end.

What the cash flow says

How to interpret the company's free cash flow beyond the headline number.

Revenue increased while operating cash flow declined from positive to negative, causing free cash flow to be negative. Capital expenditure was lower than the prior quarter, but the negative operating cash flow more than offset that reduction.

Compared to the prior quarter, operating cash flow and free cash flow both weakened significantly, with free cash flow margin turning from positive to negative. Versus the year-ago quarter, revenue was higher but operating cash flow was lower, while free cash flow dropped from near break-even to negative.

Operating cash flow has swung to negative; monitor whether it returns to positive in the next quarter.

Valuation context

A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.

Market capitalization$44.1BUsed as the denominator for FCF yield.
TTM FCF yield0.0%TTM free cash flow divided by market capitalization.
EV / TTM FCF2326.5xA quick valuation bridge, not a full DCF.

Peer context

Free cash flow quality is easier to read against related public companies.

AX
AXON

Axon Enterprise, Inc.

FCF margin

-6.8%

FCF yield

0.0%