Axon Enterprise, Inc. — Earnings Quality Grade F
AXON · Industrials
Major red flags
Screening Summary
Management Signals
Source: SEC EDGAR 8-K Item 5.02, with exhibit links when available
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 102 days, change +6 days YoY
AR growth 42.0% vs revenue growth 33.5%
Revenue grew 33.5% but CFFO declined -48.2%
Expense Quality
Inventory 28.8% vs COGS 33.3%. Normal
CapEx growth 72.9% is >2x revenue growth 33.5%
SG&A/Gross Profit = 62.5%. Normal
Gross margin 59.7%, change +0.0pp. Stable
Cash Flow Quality
CFFO/NI = 1.70. Profits backed by cash
FCF $0.1B, FCF/NI = 0.60
Accruals ratio = -1.2%. Low accruals
Cash $1.7B covers 91% of debt $1.9B
Balance Sheet Health
Goodwill+Intangibles $1.6B = 48% of equity
Debt/EBITDA = 9.7x (>4x). Interest coverage = -0.7x (<2x). Financial stress
Other assets 49.8% vs revenue 33.5%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 2/3 years
Goodwill+Intangibles surged 68% YoY
Manipulation Score
M-Score = -2.17 (grey zone)
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25