Axon Enterprise (AXON) 10-Q 9 Aug 22 2022 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2022	Aug. 05, 2022
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Entity File Number	001-16391
Entity Registrant Name	Axon Enterprise, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	86-0741227
Entity Address, Address Line One	17800 North 85th Street
Entity Address, City or Town	Scottsdale
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85255
City Area Code	480
Local Phone Number	991-0797
Title of 12(b) Security	Common Stock, $0.00001 Par Value
Trading Symbol	AXON
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		71,077,807
Entity Central Index Key	0001069183
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 212,815	$ 356,332
Marketable securities	45,900	72,180
Short-term investments	118,514	14,510
Accounts and notes receivable, net of allowance of $1,927 and $2,203 as of June 30, 2022 and December 31, 2021, respectively	379,672	320,819
Contract assets, net	196,754	180,421
Inventory	154,297	108,688
Prepaid expenses and other current assets	61,839	56,540
Total current assets	1,169,791	1,109,490
Property and equipment, net	157,916	138,457
Deferred tax assets, net	100,548	127,193
Intangible assets, net	13,934	15,470
Goodwill	45,004	43,592
Long-term investments	24,925	31,232
Long-term notes receivable, net	8,992	11,256
Long-term contract assets, net	28,240	29,753
Strategic investments	281,691	83,520
Other long-term assets	100,982	98,247
Total assets	1,932,023	1,688,210
Current liabilities:
Accounts payable	60,689	32,220
Accrued liabilities	100,980	103,707
Current portion of deferred revenue	253,185	265,591
Customer deposits	11,330	10,463
Other current liabilities	6,787	6,540
Total current liabilities	432,971	418,521
Deferred revenue, net of current portion	269,477	185,721
Liability for unrecognized tax benefits	7,692	3,797
Long-term deferred compensation	5,517	5,679
Deferred tax liability, net	1	811
Long-term lease liabilities	18,210	20,440
Other long-term liabilities	4,504	5,392
Total liabilities	738,372	640,361
Commitments and contingencies (Note 13)
Stockholders' equity:
Preferred stock, $0.00001 par value; 25,000,000 shares authorized; no shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively
Common stock, $0.00001 par value; 200,000,000 shares authorized; 71,077,699 and 70,896,856 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively	1	1
Additional paid-in capital	1,139,086	1,095,229
Treasury stock at cost, 20,220,227 shares as of June 30, 2022 and December 31, 2021	(155,947)	(155,947)
Retained earnings	215,716	109,883
Accumulated other comprehensive income (loss)	(5,205)	(1,317)
Total stockholders' equity	1,193,651	1,047,849
Total liabilities and stockholders' equity	$ 1,932,023	$ 1,688,210

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Allowance on accounts receivable	$ 1,927	$ 2,203
Preferred stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Preferred stock, shares authorized (in shares)	25,000,000	25,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	71,077,699	70,896,856
Common stock, shares outstanding (in shares)	71,077,699	70,896,856
Treasury stock, shares (in shares)	20,220,227	20,220,227

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Net sales	$ 285,613	$ 218,795	$ 542,039	$ 413,814
Cost of sales	111,650	80,866	212,337	152,532
Gross margin	173,963	137,929	329,702	261,282
Operating expenses:
Sales, general and administrative	95,005	177,662	185,134	304,259
Research and development	57,547	53,952	105,963	100,970
Total operating expenses	152,552	231,614	291,097	405,229
Income (loss) from operations	21,411	(93,685)	38,605	(143,947)
Interest and other income, net	47,026	41,841	102,325	42,426
Income (loss) before provision for income taxes	68,437	(51,844)	140,930	(101,521)
Provision for (benefit from) income taxes	17,475	(4,727)	35,097	(6,487)
Net income (loss)	$ 50,962	$ (47,117)	$ 105,833	$ (95,034)
Net income (loss) per common and common equivalent shares:
Basic (in dollars per share)	$ 0.72	$ (0.72)	$ 1.49	$ (1.47)
Diluted (in dollars per share)	$ 0.71	$ (0.72)	$ 1.46	$ (1.47)
Weighted average number of common and common equivalent shares outstanding:
Basic (in shares)	71,040	65,166	70,995	64,604
Diluted (in shares)	72,283	65,166	72,316	64,604
Net income (loss)	$ 50,962	$ (47,117)	$ 105,833	$ (95,034)
Foreign currency translation adjustments	(2,166)	(369)	(3,238)	(368)
Unrealized losses on available-for-sale investments	(161)		(650)
Comprehensive income (loss)	48,635	(47,486)	101,945	(95,402)
Product
Net sales	200,051	156,427	376,255	297,313
Cost of sales	87,502	65,301	166,854	123,917
Service
Net sales	85,562	62,368	165,784	116,501
Cost of sales	$ 24,148	$ 15,565	$ 45,483	$ 28,615

UNAUDITED CONDENSED CONSOLIDA_2

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common stock	Additional Paid-in Capital	Treasury Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total
Beginning balance at Dec. 31, 2020	$ 1	$ 962,159	$ (155,947)	$ 169,901	$ 141	$ 976,255
Beginning balance (in shares) at Dec. 31, 2020	63,766,555		20,220,227
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under employee plans, net		(7,045)				(7,045)
Issuance of common stock under employee plans, net (in shares)	906,536
Stock-based compensation		89,610				89,610
Net income (loss)				(47,917)		(47,917)
Foreign currency translation adjustments					1	1
Other comprehensive (loss) income, net					1
Ending balance at Mar. 31, 2021	$ 1	1,044,724	$ (155,947)	121,984	142	1,010,904
Ending balance (in shares) at Mar. 31, 2021	64,673,091		20,220,227
Beginning balance at Dec. 31, 2020	$ 1	962,159	$ (155,947)	169,901	141	976,255
Beginning balance (in shares) at Dec. 31, 2020	63,766,555		20,220,227
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)						(95,034)
Foreign currency translation adjustments						(368)
Ending balance at Jun. 30, 2021	$ 1	1,179,005	$ (155,947)	74,867	(227)	1,097,699
Ending balance (in shares) at Jun. 30, 2021	65,674,346		20,220,227
Beginning balance at Mar. 31, 2021	$ 1	1,044,724	$ (155,947)	121,984	142	1,010,904
Beginning balance (in shares) at Mar. 31, 2021	64,673,091		20,220,227
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under employee plans, net		(3,268)				(3,268)
Issuance of common stock under employee plans, net (in shares)	1,001,255
Stock-based compensation		137,549				137,549
Net income (loss)				(47,117)		(47,117)
Foreign currency translation adjustments					(369)	(369)
Other comprehensive (loss) income, net					(369)
Ending balance at Jun. 30, 2021	$ 1	1,179,005	$ (155,947)	74,867	(227)	1,097,699
Ending balance (in shares) at Jun. 30, 2021	65,674,346		20,220,227
Beginning balance at Dec. 31, 2021	$ 1	1,095,229	$ (155,947)	109,883	(1,317)	1,047,849
Beginning balance (in shares) at Dec. 31, 2021	70,896,856		20,220,227
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock		(70)				(70)
Issuance of common stock under employee plans, net		(1,388)				(1,388)
Issuance of common stock under employee plans, net (in shares)	99,802
Stock-based compensation		25,088				25,088
Net income (loss)				54,871		54,871
Other comprehensive (loss) income, net					(1,561)	(1,561)
Ending balance at Mar. 31, 2022	$ 1	1,118,859	$ (155,947)	164,754	(2,878)	1,124,789
Ending balance (in shares) at Mar. 31, 2022	70,996,658		20,220,227
Beginning balance at Dec. 31, 2021	$ 1	1,095,229	$ (155,947)	109,883	(1,317)	1,047,849
Beginning balance (in shares) at Dec. 31, 2021	70,896,856		20,220,227
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)						105,833
Foreign currency translation adjustments						(3,238)
Ending balance at Jun. 30, 2022	$ 1	1,139,086	$ (155,947)	215,716	(5,205)	1,193,651
Ending balance (in shares) at Jun. 30, 2022	71,077,699		20,220,227
Beginning balance at Mar. 31, 2022	$ 1	1,118,859	$ (155,947)	164,754	(2,878)	1,124,789
Beginning balance (in shares) at Mar. 31, 2022	70,996,658		20,220,227
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock		(4)				(4)
Issuance of common stock under employee plans, net		(931)				(931)
Issuance of common stock under employee plans, net (in shares)	81,041
Stock-based compensation		21,162				21,162
Net income (loss)				50,962		50,962
Foreign currency translation adjustments						(2,166)
Other comprehensive (loss) income, net					(2,327)	(2,327)
Ending balance at Jun. 30, 2022	$ 1	$ 1,139,086	$ (155,947)	$ 215,716	$ (5,205)	$ 1,193,651
Ending balance (in shares) at Jun. 30, 2022	71,077,699		20,220,227

UNAUDITED CONDENSED CONSOLIDA_3

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash flows from operating activities:
Net income (loss)	$ 105,833	$ (95,034)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	11,965	8,582
Purchase accounting adjustments to goodwill	58
Loss on disposal and abandonment of intangible assets	48	130
Loss on disposal and impairment of property and equipment, net	189	43
Gain on strategic investments and marketable securities, net	(103,836)	(40,855)
Stock-based compensation	46,250	227,159
Deferred income taxes	26,050	(6,889)
Unrecognized tax benefits	3,895	47
Bond amortization	301	3,110
Noncash lease expense	3,279	2,650
Provision for expected credit losses	183	62
Change in assets and liabilities:
Accounts and notes receivable and contract assets	(80,247)	(3,988)
Inventory	(47,109)	(1,848)
Prepaid expenses and other assets	(2,688)	(13,320)
Accounts payable, accrued and other liabilities	24,569	(10,381)
Deferred revenue	74,600	25,647
Net cash provided by operating activities	63,340	95,115
Cash flows from investing activities:
Purchases of investments	(108,240)	(238,288)
Proceeds from call / maturity of investments	9,473	294,814
Exercise of warrants of strategic investments	(6,555)
Proceeds from sale of strategic investments		14,546
Purchases of property and equipment	(29,847)	(24,031)
Proceeds from disposal of property and equipment	91	48
Purchases of intangible assets	(104)	(143)
Strategic investments	(61,500)	(20,500)
Business acquisition, net of cash acquired	(2,104)
Net cash provided (used) in investing activities	(198,786)	26,446
Cash flows from financing activities:
Net proceeds from equity offering	(74)
Income and payroll tax payments for net-settled stock awards	(2,319)	(10,312)
Net cash used in financing activities	(2,393)	(10,312)
Effect of exchange rate changes on cash and cash equivalents	(3,910)	(319)
Net increase (decrease) in cash and cash equivalents	(141,749)	110,930
Cash and cash equivalents and restricted cash, beginning of period	356,438	155,551
Cash and cash equivalents and restricted cash, end of period	$ 214,689	$ 266,481

UNAUDITED CONDENSED CONSOLIDA_4

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - Supplemental - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Supplemental disclosures:
Cash and cash equivalents	$ 212,815	$ 266,372
Restricted cash (Note 1)	1,874	109
Total cash, cash equivalents and restricted cash shown in the statements of cash flows	214,689	266,481
Cash paid for income taxes, net of refunds	2,289	5,295
Non-cash transactions
Property and equipment purchases in accounts payable and accrued liabilities	$ 2,009	$ 571

Organization and Summary of Sig

Organization and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2022
Organization and Summary of Significant Accounting Policies
Organization and Summary of Significant Accounting Policies	Note 1 - Organization and Summary of Significant Accounting Policies Axon Enterprise, Inc. (“Axon,” the “Company,” "we," or "us") is a market-leading provider of law enforcement technology solutions. Our core mission is to protect life. We fulfill that mission through developing hardware and software products that advance the long term objectives of a) obsoleting the bullet, b) reducing social conflict, and c) enabling a fair and effective justice system. Our headquarters in Scottsdale, Arizona houses our executive management, sales, marketing, certain engineering, manufacturing, finance and other administrative support functions. Our global software hub is located in Seattle, Washington, and we also have subsidiaries and / or offices located in Australia, Canada, Finland, France, Germany, Hong Kong, India, Italy, the Netherlands, the United Kingdom, and Vietnam. The accompanying unaudited condensed consolidated financial statements include the accounts of Axon Enterprise, Inc. and our subsidiaries. All material intercompany accounts, transactions, and profits have been eliminated. Basis of Presentation and Use of Estimates These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC. Certain information related to our organization, significant accounting policies and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) has been condensed or omitted. The accounting policies followed in the preparation of these unaudited condensed consolidated financial statements are consistent with those followed in our annual consolidated financial statements for the year ended December 31, 2021, as filed on Form 10-K, with the exception of our adoption of certain accounting pronouncements which we describe below. In the opinion of management, these unaudited condensed consolidated financial statements contain all material adjustments, consisting only of normal recurring adjustments, necessary to fairly state our financial position, results of operations and cash flows for the periods presented and the presentations and disclosures herein are adequate when read in conjunction with our Form 10-K for the year ended December 31, 2021. The results of operations for the three months and six months ended June 30, 2022 are not necessarily indicative of the results to be expected for the full year (or any other period). Significant estimates and assumptions in these unaudited condensed consolidated financial statements include: ● product warranty reserves, ● inventory valuation, ● revenue recognition, ● reserve for expected credit loss, ● valuation of goodwill, intangible and long-lived assets, ● valuation of strategic investments, ● recognition, measurement and valuation of current and deferred income taxes, ● stock-based compensation, and ● recognition and measurement of contingencies and accrued litigation expense. ​ Actual results could differ materially from those estimates. Segment Information Our operations are comprised of two reportable segments: the manufacture and sale of conducted electrical devices ("CEDs"), batteries, accessories, extended warranties and other products and services (the “TASER” segment); and the development, manufacture, and sale of software and sensors, which includes the sale of devices, wearables, applications, cloud and mobile products, and services (collectively, the “Software and Sensors” segment). In both segments, we report sales of products and services. Service revenue in both segments includes sales related to Axon Evidence. In the Software and Sensors segment, service revenue also includes other recurring cloud-hosted software revenue and related professional services. Collectively, this revenue is sometimes referred to as "Axon Cloud revenue." Reportable segments are determined based on discrete financial information reviewed by our Chief Executive Officer who is our chief operating decision maker ("CODM"). We organize and review operations based on products and services, and currently there are no operating segments that are aggregated. We perform an analysis of our reportable segments at least annually. Additional information related to our business segments is summarized in Note 15. Geographic Information and Major Customers / Suppliers For the three and six months ended June 30, 2022, no individual country outside the U.S. represented more than 10% of total net sales. Individual sales transactions in the international market are generally larger and occur more intermittently than in the domestic market due to the profile of our customers. For the three and six months ended June 30, 2022, no customer represented more than 10% of total net sales. At June 30, 2022 and December 31, 2021, no customer represented more than 10% of the aggregate balance of accounts and notes receivable and contract assets. We currently purchase both off the shelf and custom components, including, but not limited to, finished circuit boards, injection-molded plastic components, small machined parts, custom cartridge components, electronic components, and off the shelf sub-assemblies from suppliers located in the U.S., Canada, China, Republic of Korea, Malaysia, Mexico, Taiwan, and Vietnam. We may source from other countries as well. Although we currently obtain many of these components from single source suppliers, we own the injection molded component tooling, most of the designs, and the test fixtures used in their production for all custom components. As a result, we believe we could obtain alternative suppliers in most cases. Although we have experienced supply chain disruptions relating to materials and port constraints, we have remained focused on closely managing our supply chain. We continue to bolster our strategic relationships in our supply chain, identifying secondary/alternate sourcing, adjusting build plans accordingly, and building in logistic modes in support of our increasing demand while working to minimize disruption to customers. We acquire most of our components on a purchase order basis and do not currently have significant long-term purchase contracts with most component suppliers. Income per Common Share Basic income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the periods presented. Diluted income per share reflects the potential dilution from outstanding stock options and unvested restricted stock units. The calculation of the weighted average number of shares outstanding and earnings per share are as follows (in thousands except per share data): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ Six Months Ended June 30, ​ 2022 2021 2022 2021 Numerator for basic and diluted earnings per share: ​ ​ ​ ​ Net income (loss) ​ $ 50,962 ​ $ (47,117) ​ $ 105,833 ​ $ (95,034) Denominator: ​ ​ ​ ​ Weighted average shares outstanding ​ 71,040 ​ 65,166 ​ 70,995 ​ 64,604 Dilutive effect of stock-based awards ​ 1,243 ​ — ​ 1,321 ​ — Diluted weighted average shares outstanding ​ 72,283 ​ 65,166 ​ 72,316 ​ 64,604 Anti-dilutive stock-based awards excluded ​ 2,991 ​ 10,537 ​ 2,912 ​ 8,950 Net income (loss) per common share: ​ ​ ​ ​ ​ ​ Basic ​ $ 0.72 ​ $ (0.72) ​ $ 1.49 ​ $ (1.47) Diluted ​ $ 0.71 ​ $ (0.72) ​ $ 1.46 ​ $ (1.47) ​ ​ Standard Warranties We warranty our CEDs, Axon cameras and certain related accessories from manufacturing defects on a limited basis for a period of one year after purchase and, thereafter, will repair or replace any defective unit for a fee. Estimated costs for the standard warranty are charged to cost of products sold when revenue is recorded for the related product. Future warranty costs are estimated based on historical data related to warranty claims and this rate is applied to current product sales. Historically, reserve amounts have been increased if management becomes aware of a component failure or other issue that could result in larger than anticipated warranty claims from customers. The warranty reserve is reviewed quarterly to verify that it sufficiently reflects the remaining warranty obligations based on the anticipated expenditures over the balance of the warranty obligation period, and adjustments are made when actual warranty claim experience differs from estimates. The warranty reserve is included in accrued liabilities on the accompanying condensed consolidated balance sheets. Changes in our estimated product warranty liabilities were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, ​ 2022 ​ 2021 Balance, beginning of period ​ $ 2,822 ​ $ 769 Utilization of reserve ​ (1,574) ​ (481) Warranty expense ​ 380 ​ 613 Balance, end of period ​ $ 1,628 ​ $ 901 ​ Fair Value Measurements and Financial Instruments We use the fair value framework that prioritizes the inputs to valuation techniques for measuring financial assets and liabilities measured on a recurring basis and for non-financial assets and liabilities when these items are re-measured. Fair value is considered to be the exchange price in an orderly transaction between market participants, to sell an asset or transfer a liability at the measurement date. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are: ● Level 1 – Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. ● Level 2 – Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques. ● Level 3 – Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect our own assumptions about inputs that market participants would use in pricing an asset or liability. We have cash equivalents and investments, which at June 30, 2022 and December 31, 2021 were comprised of money market funds, commercial paper, corporate bonds, municipal bonds, U.S. Government agency bonds, and U.S. Treasury bills. See additional disclosure regarding the fair value of our cash equivalents and investments in Note 3. Included in the balance of other long-term assets as of June 30, 2022 and December 31, 2021 was $4.2 million and $5.3 million, respectively, related to corporate-owned life insurance policies which are used to fund our deferred compensation plan. We determine the fair value of insurance contracts by obtaining the cash surrender value of the contracts from the issuer, a Level 2 valuation technique. ​ We have an investment in marketable securities, for which c hanges in fair value are recorded in the condensed consolidated statement of operations as unrealized gain or (loss) on marketable securities, which is included in interest and other income, net. ​ We have strategic investments in six unconsolidated affiliates as of June 30, 2022. The estimated fair value of the investments was determined based on Level 3 inputs. In determining the estimated fair value of our strategic investments in privately held companies, we utilize observable data available to us as discussed further in Note 7. ​ Our financial instruments also include accounts and notes receivable, accounts payable and accrued liabilities. Due to the short-term nature of these instruments, their fair values approximate their carrying values on the condensed consolidated balance sheet. Restricted Cash Restricted cash balances as of June 30, 2022 were $1.9 million primarily related to funds held in an international bank account securing a guarantee and funds held in an international bank account for a country in which we are required to maintain a minimum balance to operate. Approximately $1.8 million was included in prepaid expenses and other current assets on our condensed consolidated balance sheet, with the remainder included in other long-term assets Valuation of Goodwill, Intangibles and Long-lived Assets We evaluate whether events and circumstances have occurred that indicate the remaining estimated useful life of long-lived assets and identifiable intangible assets, excluding goodwill and intangible assets with indefinite useful lives, may warrant revision or that the remaining balance of these assets may not be recoverable. Such circumstances could include, but are not limited to, a change in the product mix, a change in the way products are created, produced or delivered, or a significant change in the way products are branded and marketed. In performing the review for recoverability, we estimate the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. The amount of the impairment loss, if impairment exists, is calculated based on the excess of the carrying amounts of the assets over their estimated fair value computed using discounted cash flows. We do not amortize goodwill and intangible assets with indefinite useful lives; rather such assets are required to be tested for impairment at least annually or sooner whenever events or changes in circumstances indicate that the assets may be impaired. We perform our annual goodwill and intangible asset impairment tests in the fourth quarter of each year. Recently Issued Accounting Guidance Recently Adopted Accounting Pronouncements In November 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2021-10, Government Assistance (Topic 832). The guidance improves the transparency of government assistance accounting as it requires business entities to disclose transactions that involve government assistance received if the transactions were accounted for by applying a grant or contribution accounting model by analogy. The ASU is effective for annual periods beginning after December 15, 2021. We adopted ASU 2021-10 on January 1, 2022 and will apply the disclosure requirement prospectively to all transactions within the scope of the amendments that are reflected in the financial statements at the date of the initial application along with new transactions that are entered into after the date of initial application. Adoption of this ASU did not have a material impact on our consolidated financial statements. Reclassification of Prior Year Presentation Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications are not material and had no effect on the reported results of operations.

Revenues

Revenues	6 Months Ended
	Jun. 30, 2022
Revenues
Revenues	Note 2 - Revenues Nature of Products and Services The following tables present our revenues by primary product and service offering (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, 2022 ​ Three Months Ended June 30, 2021 ​ ​ ​ Software and ​ ​ ​ ​ Software and ​ ​ ​ ​ TASER ​ Sensors ​ Total ​ TASER ​ Sensors ​ Total TASER 7 ​ $ 53,440 ​ $ — ​ $ 53,440 ​ $ 28,128 ​ ​ — ​ $ 28,128 TASER X26P ​ 12,339 ​ — ​ 12,339 ​ 9,569 ​ ​ — ​ 9,569 TASER X2 ​ 4,534 ​ — ​ 4,534 ​ 16,145 ​ ​ — ​ 16,145 TASER Consumer devices ​ 1,687 ​ — ​ 1,687 ​ 1,701 ​ ​ — ​ 1,701 Cartridges ​ 49,845 ​ — ​ 49,845 ​ 46,678 ​ ​ — ​ 46,678 Axon Body ​ — ​ 27,468 ​ 27,468 ​ — ​ ​ 19,927 ​ 19,927 Axon Flex ​ — ​ 621 ​ 621 ​ — ​ ​ 1,088 ​ 1,088 Axon Fleet ​ — ​ 15,881 ​ 15,881 ​ — ​ ​ 5,247 ​ 5,247 Axon Dock ​ — ​ 5,849 ​ 5,849 ​ — ​ ​ 5,509 ​ 5,509 Axon Evidence and cloud services ​ 3,720 ​ 81,911 ​ 85,631 ​ 1,702 ​ ​ 60,367 ​ 62,069 Extended warranties ​ 7,459 ​ 12,498 ​ 19,957 ​ 5,857 ​ ​ 8,149 ​ 14,006 Other ​ 2,562 ​ 5,799 ​ 8,361 ​ 2,748 ​ ​ 5,980 ​ 8,728 Total ​ $ 135,586 ​ $ 150,027 ​ $ 285,613 ​ $ 112,528 ​ $ 106,267 ​ $ 218,795 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, 2022 ​ Six Months Ended June 30, 2021 ​ ​ ​ Software and ​ ​ ​ ​ Software and ​ ​ ​ ​ TASER ​ Sensors ​ Total ​ TASER ​ Sensors ​ Total TASER 7 ​ $ 103,506 ​ $ — ​ $ 103,506 ​ $ 62,119 ​ ​ — ​ $ 62,119 TASER X26P ​ 21,818 ​ — ​ 21,818 ​ 19,532 ​ ​ — ​ 19,532 TASER X2 ​ 8,153 ​ — ​ 8,153 ​ 28,923 ​ ​ — ​ 28,923 TASER Pulse ​ 3,383 ​ — ​ 3,383 ​ 3,906 ​ ​ — ​ 3,906 Cartridges ​ 87,670 ​ — ​ 87,670 ​ 77,096 ​ ​ — ​ 77,096 Axon Body ​ — ​ 57,176 ​ 57,176 ​ — ​ ​ 39,683 ​ 39,683 Axon Flex ​ — ​ 1,950 ​ 1,950 ​ — ​ ​ 1,993 ​ 1,993 Axon Fleet ​ — ​ 29,701 ​ 29,701 ​ — ​ ​ 9,010 ​ 9,010 Axon Dock ​ — ​ 13,329 ​ 13,329 ​ — ​ ​ 12,429 ​ 12,429 Axon Evidence and cloud services ​ 6,737 ​ 161,850 ​ 168,587 ​ 3,098 ​ ​ 112,661 ​ 115,759 Extended warranties ​ 14,138 ​ 21,559 ​ 35,697 ​ 11,503 ​ ​ 15,649 ​ 27,152 Other ​ 4,541 ​ 6,528 ​ 11,069 ​ 5,350 ​ ​ 10,862 ​ 16,212 Total ​ $ 249,946 ​ $ 292,093 ​ $ 542,039 ​ $ 211,527 ​ $ 202,287 ​ $ 413,814 ​ The following table presents our revenues disaggregated by geography (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ ​ Six Months Ended June 30, ​ ​ 2022 ​ ​ 2021 ​ ​ 2022 ​ 2021 United States $ 228,446 80 % ​ $ 164,908 75 % ​ $ 442,660 82 % $ 325,294 79 % Other countries ​ 57,167 20 ​ ​ 53,887 25 ​ ​ 99,379 18 ​ 88,520 21 ​ Total ​ $ 285,613 100 % ​ $ 218,795 100 % ​ $ 542,039 100 % $ 413,814 100 % ​ Contract Balances The following table presents our contract assets, contract liabilities and certain information related to these balances as of and for the six months ended June 30, 2022 (in thousands): ​ ​ ​ ​ ​ ​ June 30, 2022 Contract assets, net ​ $ 224,994 Contract liabilities (deferred revenue) ​ 522,662 Revenue recognized in the period from: ​ Amounts included in contract liabilities at the beginning of the period ​ 172,675 ​ Contract liabilities (deferred revenue) consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2022 ​ December 31, 2021 ​ Current Long-Term Total Current Long-Term Total Warranty: ​ ​ ​ ​ ​ ​ TASER ​ $ 16,038 ​ $ 18,222 ​ $ 34,260 ​ $ 21,257 ​ $ 4,766 ​ $ 26,023 Software and Sensors ​ 19,736 ​ 22,078 ​ 41,814 ​ 23,175 ​ 18,137 ​ 41,312 ​ ​ 35,774 ​ 40,300 ​ 76,074 ​ 44,432 ​ 22,903 ​ 67,335 Hardware: ​ ​ ​ ​ ​ ​ TASER ​ 26,579 ​ 20,016 ​ 46,595 ​ 12,944 ​ 28,727 ​ 41,671 Software and Sensors ​ 47,149 ​ 94,855 ​ 142,004 ​ 34,862 ​ 81,223 ​ 116,085 ​ ​ 73,728 ​ 114,871 ​ 188,599 ​ 47,806 ​ 109,950 ​ 157,756 Services: ​ ​ ​ ​ ​ ​ TASER ​ 3,102 ​ 6,555 ​ 9,657 ​ 2,701 ​ 3,482 ​ 6,183 Software and Sensors ​ 140,581 ​ 107,751 ​ 248,332 ​ 170,652 ​ 49,386 ​ 220,038 ​ ​ ​ 143,683 ​ ​ 114,306 ​ ​ 257,989 ​ ​ 173,353 ​ ​ 52,868 ​ ​ 226,221 Total ​ $ 253,185 ​ $ 269,477 ​ $ 522,662 ​ $ 265,591 ​ $ 185,721 ​ $ 451,312 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2022 ​ December 31, 2021 ​ Current Long-Term Total Current Long-Term Total TASER ​ $ 45,719 ​ $ 44,793 ​ $ 90,512 ​ $ 36,902 ​ $ 36,975 ​ $ 73,877 Software and Sensors ​ 207,466 ​ 224,684 ​ 432,150 ​ 228,689 ​ 148,746 ​ 377,435 Total ​ $ 253,185 ​ $ 269,477 ​ $ 522,662 ​ $ 265,591 ​ $ 185,721 ​ $ 451,312 ​ Remaining Performance Obligations As of June 30, 2022, we had approximately $3.33 billion of remaining performance obligations, which included both recognized contract liabilities as well as amounts that will be invoiced and recognized in future periods. The remaining performance obligations are limited only to arrangements that meet the definition of a contract under Topic 606 as of June 30, 2022. We expect to recognize between 15% - 20% of this balance over the next twelve months, and generally expect the remainder to be recognized over the following ten years, subject to risks related to delayed deployments, budget appropriation or other contract cancellation clauses.

Cash, Cash Equivalents and Inve

Cash, Cash Equivalents and Investments	6 Months Ended
	Jun. 30, 2022
Cash, Cash Equivalents and Investments
Cash, Cash Equivalents and Investments	Note 3 - Cash, Cash Equivalents and Investments The following tables summarize our cash, cash equivalents, marketable securities, and available-for-sale investments at June 30, 2022 and December 31, 2021 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of June 30, 2022 ​ ​ ​ Gross Gross ​ ​ Cash and ​ ​ ​ ​ ​ ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ ​ ​ ​ Cash ​ Marketable ​ Short-Term ​ Long-Term ​ ​ Cost ​ Gains ​ Losses ​ Fair Value ​ Equivalents ​ Securities ​ Investments ​ Investments Cash ​ $ 155,582 ​ $ — ​ $ — ​ $ 155,582 ​ ​ $ 155,582 ​ $ — ​ $ — ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 1: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds ​ 43,550 ​ ​ — ​ — ​ 43,550 ​ ​ 43,550 ​ — ​ — ​ ​ — Agency bonds ​ 26,601 ​ ​ 5 ​ (2) ​ 26,604 ​ ​ 8,484 ​ — ​ 18,120 ​ ​ — Treasury bills ​ ​ 28,390 ​ ​ — ​ ​ (24) ​ ​ 28,366 ​ ​ ​ — ​ ​ — ​ ​ 22,690 ​ ​ 5,676 Marketable securities ​ ​ 90,000 ​ ​ — ​ ​ (44,100) ​ ​ 45,900 ​ ​ — ​ 45,900 ​ — ​ ​ — Subtotal ​ 188,541 ​ ​ 5 ​ (44,126) ​ 144,420 ​ ​ ​ 52,034 ​ ​ 45,900 ​ ​ 40,810 ​ ​ 5,676 Level 2: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ State and municipal obligations ​ ​ 5,814 ​ ​ 1 ​ ​ (35) ​ ​ 5,780 ​ ​ ​ — ​ ​ — ​ ​ 4,257 ​ ​ 1,523 Corporate bonds ​ ​ 57,609 ​ ​ 11 ​ ​ (1,027) ​ ​ 56,593 ​ ​ ​ 5,199 ​ ​ — ​ ​ 33,668 ​ ​ 17,726 Commercial paper ​ ​ 39,779 ​ ​ — ​ ​ — ​ ​ 39,779 ​ ​ ​ — ​ ​ — ​ ​ 39,779 ​ ​ — Subtotal ​ ​ 103,202 ​ ​ 12 ​ ​ (1,062) ​ ​ 102,152 ​ ​ ​ 5,199 ​ ​ — ​ ​ 77,704 ​ ​ 19,249 Total ​ $ 447,325 ​ $ 17 ​ $ (45,188) ​ $ 402,154 ​ ​ $ 212,815 ​ $ 45,900 ​ $ 118,514 ​ $ 24,925 ​ As of June 30, 2022, we had $86.7 million of investments with unrealized losses. ​ During the year ended December 31, 2021, we acquired 9,000,000 shares of common stock of Cellebrite DI Ltd (“CLBT”) with a fair value of $90.0 million. The CLBT common stock is recorded as marketable securities in the accompanying condensed consolidated balance sheets and its fair value is adjusted every reporting period. Changes in fair value are recorded in the condensed consolidated statement of operations as unrealized gain or (loss) on marketable securities, which is included in interest and other income, net. During the three and six months ended June 30, 2022, we recorded an unrealized loss on marketable securities of $11.7 million and $ 26.3 million, respectively, relating to CLBT. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2021 ​ ​ ​ Gross Gross ​ ​ Cash and ​ ​ ​ ​ ​ ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ ​ ​ ​ Cash ​ Marketable ​ Short-Term ​ Long-Term ​ ​ Cost ​ Gains ​ Losses ​ Fair Value ​ Equivalents ​ Securities ​ Investments ​ Investments Cash ​ $ 353,488 ​ $ — ​ $ — ​ $ 353,488 ​ ​ $ 353,488 ​ $ — ​ $ — ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 1: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds ​ 2,844 ​ ​ — ​ — ​ 2,844 ​ ​ 2,844 ​ — ​ — ​ ​ — Agency bonds ​ 10,700 ​ ​ 4 ​ — ​ 10,704 ​ ​ — ​ — ​ 10,704 ​ ​ — Marketable securities ​ ​ 90,000 ​ ​ — ​ ​ (17,820) ​ ​ 72,180 ​ ​ — ​ 72,180 ​ — ​ ​ — Subtotal ​ 103,544 ​ ​ 4 ​ (17,820) ​ 85,728 ​ ​ ​ 2,844 ​ ​ 72,180 ​ ​ 10,704 ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 2: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ State and municipal obligations ​ ​ 2,570 ​ ​ — ​ ​ (5) ​ ​ 2,565 ​ ​ ​ — ​ ​ — ​ ​ 1,400 ​ ​ 1,165 Corporate bonds ​ ​ 32,748 ​ ​ 1 ​ ​ (276) ​ ​ 32,473 ​ ​ ​ — ​ ​ — ​ ​ 2,406 ​ ​ 30,067 Subtotal ​ ​ 35,318 ​ ​ 1 ​ ​ (281) ​ ​ 35,038 ​ ​ ​ — ​ ​ — ​ ​ 3,806 ​ ​ 31,232 Total ​ $ 492,350 ​ $ 5 ​ $ (18,101) ​ $ 474,254 ​ ​ $ 356,332 ​ $ 72,180 ​ $ 14,510 ​ $ 31,232 ​

Expected Credit Losses

Expected Credit Losses	6 Months Ended
	Jun. 30, 2022
Expected Credit Losses
Expected Credit Losses	Note 4 - Expected Credit Losses We are exposed to credit losses primarily through sales of products and services. Our expected loss allowance methodology for accounts receivable, notes receivable, and contract assets is developed using historical collection experience, published or estimated credit default rates for entities that represent our customer base, current and future economic and market conditions and a review of the current status of customers' trade accounts receivables. Additionally, specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. Our monitoring activities include account reconciliation, dispute resolution, payment confirmation, consideration of customers' financial condition and macroeconomic conditions. Balances are written off when determined to be uncollectible. ​ We review receivables for U.S. and international customers separately to better reflect different published credit default rates and economic and market conditions. ​ The following table provides a roll-forward of the allowance for expected credit losses that is deducted from the amortized cost basis of accounts receivable, notes receivable, and contract assets to present the net amount expected to be collected (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, 2022 ​ ​ United States ​ Other countries ​ Total Balance, beginning of period ​ $ 3,171 ​ $ 178 ​ $ 3,349 Provision for expected credit losses ​ ​ (50) ​ ​ 233 ​ ​ 183 Amounts written off charged against the allowance ​ ​ (396) ​ ​ - ​ ​ (396) Other, including foreign currency translation ​ - ​ (3) ​ (3) Balance, end of period ​ $ 2,725 ​ $ 408 ​ $ 3,133 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ 2022 ​ 2021 Accounts receivable and notes receivable, current ​ $ 1,927 ​ $ 2,203 Contract assets, net ​ 1,058 ​ 1,010 Long-term notes receivable, net of current portion ​ 148 ​ 136 Total allowance for expected credit losses on customer receivables ​ $ 3,133 ​ $ 3,349 ​

Inventory

Inventory	6 Months Ended
	Jun. 30, 2022
Inventory
Inventory	Note 5 - Inventory Inventories are stated at the lower of cost, determined on the first-in, first-out (“FIFO”) basis, or net realizable value, net of an inventory valuation allowance. We use a standard cost methodology to determine the cost basis for its inventories. Costs include allocations for materials, labor, and overhead. All variances between actual costs and standard costs are apportioned to inventory and cost of goods sold based upon inventory turnover. We evaluate inventory on a quarterly basis for obsolete or slow-moving items to ascertain if the recorded allowance is reasonable and adequate. Additional provisions are made to reduce excess, obsolete or slow-moving inventories to their net realizable value. ​ Inventory consisted of the following at June 30, 2022 and December 31, 2021 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2022 December 31, 2021 Raw materials ​ $ 50,995 ​ $ 38,267 Finished goods ​ 103,302 ​ 70,421 Total inventory ​ $ 154,297 ​ $ 108,688 ​

Property and Equipment

Property and Equipment	6 Months Ended
	Jun. 30, 2022
Property and Equipment
Property and Equipment	Note 6 – Property and Equipment ​ Property and equipment consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Estimated ​ ​ ​ ​ ​ ​ ​ Useful Life June 30, 2022 December 31, 2021 Land ​ N/A ​ $ 51,612 ​ $ 54,868 Land held for sale ​ N/A ​ ​ 3,173 ​ ​ — Building and leasehold improvements ​ 3-39 years ​ ​ 26,745 ​ ​ 25,712 Production equipment ​ 3-5 years ​ 54,879 ​ 54,090 Computers, equipment and software ​ 3-5 years ​ 21,338 ​ 15,343 Furniture and office equipment ​ 3-5 years ​ 7,407 ​ 6,838 Vehicles ​ 5 years ​ 3,624 ​ 2,932 Website development costs ​ 3 years ​ 204 ​ 204 Capitalized internal-use software development costs ​ 3-5 years ​ 13,994 ​ 11,996 Construction-in-process ​ N/A ​ 42,904 ​ 25,258 Total cost ​ ​ ​ 225,880 ​ 197,241 Less: Accumulated depreciation ​ ​ ​ (67,964) ​ (58,784) Property and equipment, net ​ ​ $ 157,916 ​ $ 138,457 ​ During the three months ended June 30, 2022, we reclassified a plat of land as held for sale which we anticipate dedicating to the City of Scottsdale pursuant to our existing public infrastructure reimbursement development agreement. Construction-in-process includes $21.2 million and $12.4 million related to the development of our new campus at June 30, 2022 and December 31, 2021, respectively.

Strategic Investments

Strategic Investments	6 Months Ended
	Jun. 30, 2022
Strategic Investments
Strategic Investments	Note 7 - Strategic Investments Strategic investments include investments in a number of non-public technology-driven companies. We account for strategic investments under the Accounting Standards Codification (“ASC”) 321 measurement alternative for equity securities without readily determinable fair values, as there are no quoted market prices for the investments. The investments are measured at cost less impairment, adjusted for observable price changes and are assessed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. ​ In conjunction with certain of our strategic investments, we have the ability to commit additional capital over time through warrants and call options; for some investments, the exercisability and exercise prices are conditional on the achievement of certain performance metrics. The following tables provide a roll-forward of the balance of strategic investments (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, 2022 ​ Six Months Ended June 30, 2021 ​ Strategic investments Warrants ​ Call options Total Strategic investments Warrants ​ Total Balance, beginning of period ​ $ 80,775 ​ $ 2,745 ​ $ — ​ $ 83,520 ​ $ 9,500 ​ $ 2,211 ​ $ 11,711 Investments ​ ​ 45,160 ​ ​ — ​ ​ 16,340 ​ ​ 61,500 ​ ​ 20,500 ​ ​ — ​ ​ 20,500 Observable price changes (1) ​ ​ 41,502 ​ ​ 28,539 ​ ​ — ​ ​ 70,041 ​ ​ 40,321 ​ ​ 534 ​ ​ 40,855 Exercises ​ ​ 96,719 ​ ​ (30,089) ​ ​ — ​ ​ 66,630 ​ ​ — ​ ​ — ​ ​ — Sales ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ (14,546) ​ ​ — ​ ​ (14,546) Balance, end of period ​ $ 264,156 ​ $ 1,195 ​ $ 16,340 ​ $ 281,691 ​ $ 55,775 ​ $ 2,745 ​ $ 58,520 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Inception to date ​ Strategic investments Warrants ​ Call options Total Investments ​ $ 97,728 ​ $ 2,588 ​ $ 16,340 ​ $ 116,656 Observable price changes (1) ​ ​ 84,255 ​ ​ 28,696 ​ ​ — ​ ​ 112,951 Exercises ​ ​ 96,719 ​ ​ (30,089) ​ ​ — ​ ​ 66,630 Sales ​ ​ (14,546) ​ ​ — ​ ​ — ​ ​ (14,546) Balance, end of period ​ $ 264,156 ​ $ 1,195 ​ $ 16,340 ​ $ 281,691 ​ (1) Includes a realized gain of $12.3 million for the six months ended June 30, 2021. During the three months ended June 30, 2022, we made minority, non-controlling investments in Dedrone, Inc., Fusus, Inc., and DroneSense, Inc. for $25.0 million, $21.0 million, and $15.0 million, respectively. We were also issued warrants that give us the ability to purchase additional preferred stock, and call options to acquire all of the outstanding equity for each of these investments. During the six months ended June 30, 2022, certain of our strategic investees issued new equity to us and/or other investors. These events represented observable price changes for our existing investments and related warrants, resulting in a net unrealized gain of $70.0 million. In addition, we exercised warrants in one of our strategic investees for a total exercise price of $6.6 million, resulting in an unrealized gain of $60.1 million that was recognized in earnings for the quarter ended June 30, 2022. The estimated fair value of the investments were calculated using valuation techniques that included both observable and unobservable inputs. This estimated fair value reflects a value that was lower than the issue per share of the new equity issued by the strategic investees because of different characteristics of the newly issued equity instruments compared to our existing investments. The valuation techniques included both Level 2 and Level 3 inputs as defined by ASC Topic 820.

Accrued Liabilities

Accrued Liabilities	6 Months Ended
	Jun. 30, 2022
Accrued Liabilities
Accrued Liabilities	Note 8 - Accrued Liabilities Accrued liabilities consisted of the following at June 30, 2022 and December 31, 2021 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2022 December 31, 2021 Accrued salaries, benefits and bonus ​ $ 53,360 ​ $ 62,425 Accrued professional, consulting and lobbying fees ​ 6,907 ​ 7,152 Accrued warranty expense ​ 1,628 ​ 2,822 Accrued income and other taxes ​ 6,420 ​ 3,736 Accrued inventory in transit ​ ​ 9,625 ​ ​ 9,945 Other accrued expenses ​ 23,040 ​ 17,627 Accrued liabilities ​ $ 100,980 ​ $ 103,707 ​

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2022
Income Taxes
Income Taxes	Note 9 - Income Taxes We file income tax returns for federal purposes and in many states, as well as in multiple foreign jurisdictions. Our tax filings remain subject to examination by applicable tax authorities for a certain length of time, generally three to four years, but can be up to ten years in some jurisdictions following the tax year to which these filings relate. We have been previously notified that an income tax audit may commence for Axon Public Safety Southeast Asia LLC, our entity in Vietnam; however, there has been no audit activity to date. Deferred Tax Assets Net deferred income tax assets at June 30, 2022, primarily include R&D tax credits, stock-based compensation expense, deferred revenue, accruals and reserves, R&D capitalization, net of amortization and net operating losses, partially offset by accelerated depreciation expense, unrealized investment gains, and valuation allowance reserve. Our total net deferred tax assets at June 30, 2022 were $100.5 million. In preparing our condensed consolidated financial statements, management assesses the likelihood that its deferred tax assets will be realized from future taxable income. In evaluating our ability to recover our deferred income tax assets, management considers all available positive and negative evidence, including our operating results, ongoing tax planning and forecasts of future taxable income on a jurisdiction by jurisdiction basis. A valuation allowance is established if it is determined that it is more likely than not that some portion or all of the net deferred tax assets will not be realized. Management exercises significant judgment in determining our provision for income taxes, our deferred tax assets and liabilities, and our future taxable income for purposes of assessing our ability to utilize any future tax benefit from our deferred tax assets. As of June 30, 2022, management continues to believe the positive evidence from projected future earnings outweighs the negative evidence and a valuation allowance is not needed. We have concluded that a valuation allowance is necessary against unrealized investment losses and related costs incurred in connection with certain investments. Additionally, we do have Arizona R&D tax credits expiring unutilized each year; therefore, management has concluded that it is more likely than not that our Arizona R&D deferred tax asset will not be realized, and a valuation allowance has been recorded against this net asset. In Australia, we have determined that sufficient deferred tax liabilities will reverse in order to realize all assets except one long-lived intangible where there is not an expectation that the asset may be realized. Therefore, we continue to recognize a partial valuation allowance for Australia. We complete R&D tax credit studies for each year that an R&D tax credit is claimed for federal and state income tax purposes. Management has made the determination that it is more likely than not that the full benefit of the R&D tax credit will not be sustained on examination and recorded a liability for unrecognized tax benefits of $19.6 million as of June 30, 2022. Should the unrecognized benefit of $19.6 million be recognized, our effective tax rate would be favorably impacted. Approximately $10.9 million of the unrecognized tax benefit associated with R&D credits has been netted against the R&D deferred tax asset. Effective Tax Rate Our overall effective tax rate for the six months ended June 30, 2022, after discrete period adjustments, was 24.9%. Before discrete adjustments, the tax rate was 26.0%, which differs from the federal statutory rate, primarily due to the impact of R&D tax credits offset by the executive compensation limitation under Internal Revenue Code ("IRC") Section 162(m) and an increase in valuation allowance and unrecognized tax benefits, on projected pre-tax income for the year. The effective tax rate was favorably impacted by a $1.6 million discrete tax benefit primarily associated with windfalls related to stock-based compensation for restricted stock units (“RSUs”) and performance stock units (“PSUs”) that vested during the six months ended June 30, 2022.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2022
Stockholders' Equity
Stockholders' Equity	Note 10 - Stockholders’ Equity Performance-based stock awards We have issued performance-based stock options and performance-based RSUs, the vesting of which is generally contingent upon the achievement of certain performance criteria related to our operating performance, as well as successful and timely development and market acceptance of future product introductions. In addition, certain of the performance RSUs have additional service requirements subsequent to the achievement of the performance criteria. Compensation expense is recognized over the requisite service period, which is defined as the longest explicit, implicit or derived service period based on management’s estimate of the probability of the performance criteria being satisfied, adjusted at each balance sheet date. For both service-based and performance-based RSUs, we account for forfeitures as they occur as a reduction to stock-based compensation expense and additional paid-in-capital. For performance-based options with a vesting schedule based entirely on the attainment of both performance and market conditions, stock-based compensation expense is recognized for each pair of performance and market conditions over the longer of the expected achievement period of the performance and market conditions, beginning at the point in time that the relevant performance condition is considered probable of achievement. The fair value of such awards is estimated on the grant date using Monte Carlo simulations. CEO Performance Award On May 24, 2018, our stockholders approved the Board of Directors’ grant of 6,365,856 stock option awards to Patrick W. Smith, our CEO (the “CEO Performance Award”). The CEO Performance Award consists of 12 vesting tranches with a vesting schedule based entirely on the attainment of both operational goals (performance conditions) and market capitalization goals (market conditions), assuming continued employment either as the CEO or as both Executive Chairman and Chief Product Officer and service through each attainment date. Each of the 12 vesting tranches of the CEO Performance Award have a 10-year contractual term and will vest upon certification by the Compensation Committee of the Board of Directors that both (i) the market capitalization goal for such tranche, which begins at $2.5 billion for the first tranche and increases by increments of $1.0 billion thereafter, and (ii) any one of the following eight operational goals focused on revenue or eight operational goals focused on Adjusted EBITDA have been met for the previous four consecutive fiscal quarters. Adjusted EBITDA for purposes of the CEO Performance Award ("Adjusted EBITDA (CEO Performance Award)") is defined as net income (loss) attributable to common stockholders before interest expense, interest and other income (such as dividends) earned on investments in marketable securities, provision (benefit) for income taxes, depreciation and amortization, and stock-based compensation expense. ​ ​ ​ ​ ​ ​ ​ ​ Revenue Goal (1) (in thousands) ​ Achievement Status ​ Adjusted EBITDA (in thousands) ​ Achievement Status Goal #1, $710,058 ​ Achieved ​ Goal #1, $125,000 ​ Achieved Goal #2, $860,058 ​ Achieved ​ Goal #2, $155,000 ​ Achieved Goal #3, $1,010,058 ​ Probable ​ Goal #3, $175,000 ​ Achieved Goal #4, $1,210,058 ​ Probable ​ Goal #4, $190,000 ​ Achieved Goal #5, $1,410,058 ​ Not Applicable ​ Goal #5, $200,000 ​ Achieved Goal #6, $1,610,058 ​ Not Applicable ​ Goal #6, $210,000 ​ Achieved Goal #7, $1,810,058 ​ Not Applicable ​ Goal #7, $220,000 ​ Achieved Goal #8, $2,010,058 ​ Not Applicable ​ Goal #8, $230,000 ​ Achieved (1) In connection with the business acquisition that was completed during the three months ended September 30, 2018, the revenue goals were adjusted for the acquiree’s Target Revenue, as defined in the CEO Performance Award agreement. Stock-based compensation expense associated with the CEO Performance Award is recognized over the longer of the expected achievement period for each pair of market capitalization and operational goals, beginning at the point in time when the relevant operational goal is considered probable of being met. The probability of meeting an operational goal and the expected achievement point in time for meeting a probable operational goal are based on a subjective assessment of our forward-looking financial projections, taking into consideration statistical analysis. Even though no tranches of the CEO Performance Award vest unless a market capitalization and a matching operational goal are both achieved, stock-based compensation expense is recognized when an operational goal is considered probable of achievement regardless of whether a market capitalization goal is actually achieved. Stock-based compensation represents a non-cash expense and is recorded in sales, general, and administrative operating expense on our consolidated statements of operations and comprehensive income. The first ten market capitalization goals have been achieved as of June 30, 2022. As of June 30, 2022, 5.3 million stock options have been certified by the Compensation Committee and vested. As twelve operational goals have been achieved or are considered probable of achievement, we recorded stock-based compensation expense of $236.0 million related to the CEO Performance Award from the grant date through June 30, 2022. The number of stock options that would vest related to the remaining unvested tranches is approximately 1.1 million shares. As of June 30, 2022, we had $9.9 million of total unrecognized stock-based compensation expense for the performance goals that were considered probable of achievement, which will be recognized over a weighted-average period of 1.1 years eXponential Stock Performance Plan On February 12, 2019, our shareholders approved the 2019 Stock Incentive Plan (the “2019 Plan”), which was adopted by the Board of Directors to reserve a sufficient number of shares to facilitate our eXponential Stock Performance Plan (“XSPP”) and grants of eXponential Stock Units (“XSUs”) under the plan. Initial awards under the plan were granted in January 2019, with additional employee awards granted since that date. The XSUs are grants of Restricted Stock Units (“RSUs”), each with a term of approximately nine years, that vest in 12 equal tranches. Each of the 12 tranches will vest upon certification by the Compensation Committee of the Board of Directors that both (i) the market capitalization goal for such tranche, which begins at $2.5 billion for the first tranche and increases by increments of $1.0 billion thereafter, and (ii) any one of eight operational goals focused on revenue or eight operational goals focused on Adjusted EBITDA (CEO Performance Award) have been met for the previous four consecutive fiscal quarters. Beginning with the quarter ended June 30, 2021, new XSU grants are divided into a reduced number of tranches depending on employee eligibility and current market capitalization attainment. The XSPP contains an anti-dilution provision incorporated into the plan based on shareholder feedback, which affects the calculation of the market capitalization goals in the plan. The plan defines a maximum number of shares outstanding that may be used in the calculation of the market capitalization goals (the “XSU Maximum”). If the actual number of shares outstanding exceeds the XSU Maximum guardrail, then the lower pre-defined number of shares in the XSU Maximum, rather than the higher actual number of shares outstanding, is used to calculate market capitalization for the determination of the market capitalization goals in the XSPP, which, together with the operational goals, determines whether XSUs vest for participating employees. The XSU Maximum is defined as the actual number of shares outstanding on the original XSU grant date of January 2, 2019, increased by a 3% annual rate over the term of the XSPP and by shares issued upon the exercise of CEO Performance Award options. The XSU Maximum is also adjusted for acquisitions, spin-offs or other changes in the number of outstanding shares of common stock, if such changes have a corresponding adjustment on the market capitalization goals. New shares issued for any other reasons, including shares issued upon vesting of XSUs, RSUs, and Performance Stock Units (“PSUs”) as well as shares issued to raise capital through equity issuances or in other transactions, do not increase the XSU Maximum. The market capitalization and operational goals are identical to the CEO Performance Award, but a different number of shares is used to calculate the market capitalization goals if shares outstanding exceed the XSU Maximum. Additionally, because the grant date is different than that of the CEO Performance Award, the measurement period for market capitalization is not identical. As of June 30, 2022, actual shares outstanding exceeded the XSU Maximum. Accordingly, market capitalization as calculated for the purposes of achieving additional goals uses the lower XSU Maximum share amount rather than actual shares outstanding. The first nine market capitalization goals have been achieved as of June 30, 2022. The tenth market capitalization goal has not yet been attained, though the related operational goal was achieved as of September 30, 2021. As all twelve operational goals have been achieved or are considered probable of achievement, we recorded stock-based compensation expense of $180.8 million related to the XSU awards from their respective grant dates through June 30, 2022. The number of XSU awards that would vest related to the remaining three tranches is approximately 1.2 million shares. As of June 30, 2022, we had $14.8 million of total unrecognized stock-based compensation expense, which will be recognized over a weighted-average period of 1.6 years. Restricted Stock Units The following table summarizes RSU activity for the six months ended June 30, 2022 (number of units and aggregate intrinsic value in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Weighted Average Aggregate ​ ​ Units ​ Grant-Date Fair Value ​ Intrinsic Value Units outstanding, beginning of year 1,115 ​ $ 133.40 ​ Granted 324 ​ 121.16 ​ Released (170) ​ 77.07 ​ Forfeited (103) ​ 137.01 ​ Units outstanding, end of period 1,166 ​ 137.85 ​ $ 108,680 ​ Aggregate intrinsic value represents our closing stock price on the last trading day of the period, which was $93.17 multiplied by the number of RSUs outstanding. As of June 30, 2022, there was $118.2 million in unrecognized compensation costs related to RSUs under our stock plans for shares that are expected to vest. We expect to recognize the cost related to the RSUs over a weighted average period of 2.1 years. RSUs are released when vesting requirements are met. Certain RSUs that vested in the six months ended June 30, 2022 were net-share settled such that we withheld shares to cover the employees’ tax obligation for the applicable income and other employment taxes, and remitted the cash to the appropriate taxing authorities. Total shares withheld related to RSUs were approximately seven thousand and had a value of $0.9 million on their respective vesting dates as determined by the closing stock price on such dates. Payments for the employees’ tax obligations are reflected as a financing activity within the condensed consolidated statements of cash flows. We record a liability for the tax withholding to be paid by us as a reduction to additional paid-in capital. Performance Stock Units The following table summarizes PSU activity, inclusive of XSUs, for the six months ended June 30, 2022 (number of units and aggregate intrinsic value in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Weighted Average Aggregate ​ ​ Units ​ Grant-Date Fair Value ​ Intrinsic Value Units outstanding, beginning of year 1,499 ​ $ 39.86 ​ Granted 88 ​ 114.78 ​ Released (33) ​ 118.08 ​ Forfeited (166) ​ 28.78 ​ Units outstanding, end of period 1,388 ​ 44.06 ​ $ 129,308 ​ Aggregate intrinsic value represents our closing stock price on the last trading day of the period, which was $93.17 per share, multiplied by the number of PSUs outstanding. As of June 30, 2022, there was $23.7 million in unrecognized compensation costs related to PSUs under our stock plans for shares that are expected to vest. We expect to recognize the cost related to the PSUs over a weighted average period of 1.6 years. PSUs are released when vesting requirements are met. As of June 30, 2022, the performance criteria had been met for approximately twenty thousand of the 1.4 million PSUs outstanding. Certain PSUs that vested in the six months ended June 30, 2022 were net-share settled such that we withheld shares to cover the employees’ tax obligation for the applicable income and other employment taxes, and remitted the cash to the appropriate taxing authorities. Total shares withheld related to PSUs were approximately twelve thousand and had a value of $1.4 million on their respective vesting dates as determined by the closing stock price on such dates. Payments for the employees’ tax obligations are reflected as a financing activity within the condensed consolidated statements of cash flows. We record a liability for the tax withholding to be paid by us as a reduction to additional paid-in capital. Stock Option Activity The following table summarizes stock option activity for the six months ended June 30, 2022 (number of units and aggregate intrinsic value in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ Weighted ​ Average ​ ​ ​ ​ ​ Number ​ Average ​ Remaining ​ ​ ​ ​ ​ of ​ Exercise ​ Contractual ​ Aggregate ​ ​ Options ​ Price ​ Life (years) ​ Intrinsic Value Options outstanding, beginning of year 2,438 ​ $ 28.58 ​ Granted — ​ — ​ Exercised — ​ — ​ Expired / terminated — ​ — ​ ​ Options outstanding, end of period 2,438 ​ 28.58 5.66 ​ $ 157,468 Options exercisable, end of period 1,377 ​ 28.58 5.66 ​ 88,939 ​ Aggregate intrinsic value represents the difference between the exercise price of the underlying stock option awards and the closing market price of our common stock of $93.17 on June 30, 2022. There were no options exercised for the six months ended June 30, 2022. As of June 30, 2022, total options outstanding included 1.1 million unvested performance-based stock options, which relate to the CEO Performance Award and are probable of achievement. Stock-based Compensation Expense The following table summarizes the composition of stock-based compensation expense for the three months ended June 30, 2022 and 2021 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ Six Months Ended June 30, ​ 2022 2021 2022 2021 Cost of products sold and services delivered ​ $ 1,066 ​ $ 1,838 ​ $ 2,174 ​ $ 3,327 Sales, general and administrative expenses ​ 8,610 ​ 114,089 ​ 21,592 ​ 185,104 Research and development expenses ​ 11,486 ​ 21,622 ​ 22,484 ​ 38,728 Total stock-based compensation expense ​ $ 21,162 ​ $ 137,549 ​ $ 46,250 ​ $ 227,159 ​ Stock Incentive Plan In May 2022, our shareholders approved the Axon Enterprise, Inc. 2022 Stock Incentive Plan (the “2022 Plan”) authorizing an additional 2.5 million shares, plus remaining available shares under prior plans, for issuance under the new plan. Combined with the 2019 Plan and other legacy stock incentive plans, there are 3.4 million shares available for grant as of June 30, 2022. Stock Inducement Plan In September 2019, our Board of Directors adopted the Axon Enterprise, Inc. 2019 Stock Inducement Plan (the “2019 Inducement Plan”) pursuant to which we reserved 500,000 shares of common stock for issuance under the Inducement Plan. In accordance with Rule 5635(c)(4) and Rule 5635(c)(3) of the Nasdaq Listing Rules, awards under the Inducement Plan may only be made to individuals not previously employed by us (or following such individuals’ bona fide periods of non-employment by us), as an inducement material to the individuals’ entry into employment with us. The terms and conditions of the 2019 Inducement Plan are substantially similar to our stockholder-approved 2019 Plan and 2022 Plan. On April 6, 2022, we granted 29,507 shares from the 2019 Inducement Plan to new employees who joined the Company as a result of an acquisition. As of June 30, 2022, there were less than one hundred shares available for grant under the 2019 Inducement Plan. Stock Repurchase Plan In February 2016, our Board of Directors authorized a stock repurchase program to acquire up to $50.0 million of our outstanding common stock subject to stock market conditions and corporate considerations. During the three months ended June 30, 2022 and 2021, no common shares were purchased under the program. As of June 30, 2022, $16.3 million remains available under the plan for future purchases. Any future purchases will be discretionary. At-the-Market equity offering During the year ended December 31, 2021, we sold 577,956 shares of our common stock under our "at-the-market" equity offering program (the “ATM”). We generated approximately $107.6 million in aggregate gross proceeds from sales under the ATM. Aggregate net proceeds from the ATM were $105.4 million after deducting related expenses, including commissions to the sales agent of $1.6 million and issuance costs of $0.5 million. We may sell up to a total of 3.0 million shares of our common stock under the ATM. The ATM expires on April 20, 2024. We intend to use the net proceeds from this offering for general corporate purposes, which may include, among other things, providing capital to satisfy a portion of the tax obligations related to the vesting and settlement of stock compensation awards granted to our executive officers and other employees under our stock incentive plans, to support our growth, and to acquire or invest in product lines, products, services, technologies or facilities.

Line of Credit

Line of Credit	6 Months Ended
	Jun. 30, 2022
Line of Credit.
Line of Credit	Note 11 - Line of Credit We have a $50.0 million unsecured revolving line of credit with a domestic bank, of which $20.0 million is available for letters of credit. The credit agreement matures on December 31, 2023 and has an accordion feature which allows for an increase in the total line of credit up to $100.0 million, subject to certain conditions, including the availability of additional bank commitments. At June 30, 2022 and December 31, 2021, there were no borrowings under the line. Under the terms of the line of credit, available borrowings are reduced by outstanding letters of credit. As of June 30, 2022, we had letters of credit outstanding of approximately $6.5 million under the facility and available borrowing of $43.5 million, excluding amounts available under the accordion feature. Advances under the line of credit bear interest at LIBOR plus 1.0 to 1.5% per year determined in accordance with a pricing grid based on our funded debt to earnings before interest, taxes, depreciation and amortization ("EBITDA") ratio. We are required to comply with a maximum funded debt to EBITDA ratio of no greater than 2.50 to 1.00 based upon a trailing four fiscal quarter period. At June 30, 2022, our funded debt to EBITDA ratio was 0.00 to 1.00.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2022
Commitments and Contingencies.
Commitments and Contingencies	Note 12 - Commitments and Contingencies Data Storage Renewal Commitment ​ In June 2022, we entered into a purchase agreement for cloud hosting with a six year term beginning July 1, 2022. The purchase agreement includes a total commitment of $425.0 million. ​ Product Litigation As a manufacturer of weapons and other law enforcement tools used in high-risk field environments, we are often the subject of products liability litigation concerning the use of our products. We are currently named as a defendant in three lawsuits in which the plaintiffs allege either wrongful death or personal injury in situations in which a TASER CED was used by law enforcement officers in connection with arrests or training. While the facts vary from case to case, these product liability claims typically allege defective product design, manufacturing, and/or failure to warn. They seek compensatory and sometimes punitive damages, often in unspecified amounts. ​ We continue to aggressively defend all product litigation. As a general rule, it is our policy not to settle suspect injury or death cases. Exceptions are sometimes made where the settlement is strategically beneficial to us. Due to the confidential nature of our litigation strategy and the confidentiality agreements that are executed in the event of a settlement, we do not identify or comment on specific settlements by case or amount. Based on current information, we do not believe that the outcome of any such legal proceeding will have a material effect on our financial position, results of operations, or cash flows. We are self-insured for the first $5.0 million of any product claim made after 2014. No judgment or settlement has ever exceeded this amount in any products case. We continue to maintain product liability insurance coverage, including an insurance policy fronting arrangement, above our self-insured retention with various limits depending on the policy period. ​ The litigation information in this note is current through the date of these financial statements. ​ U.S. Federal Trade Commission Litigation The U.S. Federal Trade Commission (“FTC”) filed an administrative enforcement action in January 2020 regarding our May 2018 acquisition of an insolvent body worn camera competitor, Vievu LLC. The FTC alleges the merger was anticompetitive and adversely affected the BWC and digital evidence management market for “large metropolitan police departments,” which we deny. The administrative hearing remains stayed pending our federal court constitutional challenges to the FTC’s structure and administrative processes. Even if we ultimately are required to divest Vievu and other assets, any such result will not interfere with our ability to meet contractual obligations or implement our solutions. ​ Prior to the FTC’s enforcement action, we sued the FTC in federal court in the District of Arizona for declaratory and injunctive relief alleging the FTC’s structure and administrative processes violate Article II of the U.S. Constitution and our Fifth Amendment rights to due process and equal protection. The district court dismissed the action, without prejudice, for lack of jurisdiction. The Ninth Circuit affirmed in a split decision but granted our motion to stay the appellate mandate pending the filing of its petition for certiorari with the U.S. Supreme Court. On January 24, 2022, the Supreme Court granted our petition. Merits briefing is now in process with oral argument set for November 7, 2022. The FTC’s administrative case will remain stayed pending resolution of the Supreme Court proceedings. ​ In parallel to these matters, we are evaluating strategic alternatives to litigation, which we might pursue if determined to be in the best interests of shareholders and customers. This could include a divestiture of the Vievu entity and/or related assets and the licensure of certain intellectual and other intangible property. While we continue to believe the acquisition of Vievu was lawful and a benefit to Vievu’s customers, the cost, risk and distraction of protracted litigation merit consideration of settlement if achievable on terms agreeable to the FTC and Axon. ​ General From time to time, we are notified that we may be a party to a lawsuit or that a claim is being made against us. It is our policy to not disclose the specifics of any claim or threatened lawsuit until the summons and complaint are actually served on us. After carefully assessing the claim, and assuming we determine that we are not at fault or we disagree with the damages or relief demanded, we vigorously defend any lawsuit filed against us. We record a liability when losses are deemed probable and reasonably estimable. When losses are deemed reasonably possible but not probable, we determine whether it is possible to provide an estimate of the ​ Based on our assessment of outstanding litigation and claims as of June 30, 2022, we have determined that it is not reasonably possible that these lawsuits will individually, or in the aggregate, materially affect our results of operations, financial condition or cash flows. However, the outcome of any litigation is inherently uncertain and there can be no assurance that any expense, liability or damages that may ultimately result from the resolution of these matters will be covered by our insurance or will not be in excess of amounts recognized or provided by insurance coverage and will not have a material adverse effect on our operating results, financial condition or cash flows. ​ Off-Balance Sheet Arrangements Under certain circumstances, we use letters of credit and surety bonds to guarantee our performance under various contracts, principally in connection with the installation and integration of Axon cameras and related technologies. Certain of our letters of credit and surety bonds have stated expiration dates with others being released as the contractual performance terms are completed. At June 30, 2022, we had outstanding letters of credit of $6.5 million that are expected to expire throughout 2023. We also had outstanding letters of credit of $0.4 million that do not draw against our credit facility. The outstanding letters of credit that do not draw against our credit facility are expected to expire in May 2023. Additionally, we had $21.1 million of outstanding surety bonds at June 30, 2022, with $3.1 million expiring in 2022, $7.5 million expiring in 2023 and the remaining $10.5 million expiring in 2024.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (loss)	6 Months Ended
	Jun. 30, 2022
Accumulated Other Comprehensive Income (loss).
Accumulated Other Comprehensive Income (loss)	Note 13 – Accumulated Other Comprehensive Income (loss) The following tables reflect the changes in accumulated other comprehensive income (loss), net of tax (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized Gains (Losses) ​ ​ ​ ​ ​ ​ ​ ​ ​ on Available-for-Sale ​ ​ Foreign Currency ​ ​ ​ ​ ​ Investments ​ ​ Translation ​ Total Balance, December 31, 2021 ​ $ (207) ​ $ (1,110) ​ $ (1,317) Other comprehensive loss ​ ​ (489) ​ ​ (1,072) ​ ​ (1,561) Balance, March 31, 2022 ​ $ (696) ​ $ (2,182) ​ $ (2,878) Other comprehensive loss ​ ​ (161) ​ ​ (2,166) ​ ​ (2,327) Balance, June 30, 2022 ​ $ (857) ​ $ (4,348) ​ $ (5,205) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized Gains (Losses) ​ ​ ​ ​ ​ ​ ​ ​ ​ on Available-for-Sale ​ ​ Foreign Currency ​ ​ ​ ​ ​ Investments ​ ​ Translation ​ Total Balance, December 31, 2020 ​ $ — ​ $ 141 ​ $ 141 Other comprehensive income ​ ​ — ​ ​ 1 ​ ​ 1 Balance, March 31, 2021 ​ $ — ​ $ 142 ​ $ 142 Other comprehensive loss ​ ​ — ​ ​ (369) ​ ​ (369) Balance, June 30, 2021 ​ $ — ​ $ (227) ​ $ (227) ​

Employee Benefit Plans

Employee Benefit Plans	6 Months Ended
	Jun. 30, 2022
Employee Benefit Plans
Employee Benefit Plans	Note 14 - Employee Benefit Plans We have a defined contribution 401(k) plan for eligible employees, which is qualified under Sections 401(a) and 401(k) of the Internal Revenue Code of 1986, as amended. Employees are entitled to make tax-deferred contributions of up to the maximum amount allowed by law of their eligible compensation. Contributions to the plan are made by both the employee and us. Our contributions to the 401(k) plan are based on the level of employee contributions and are immediately vested. Future matching contributions to the plans are at our sole discretion. We also sponsor defined contribution plans in Australia, Canada, Finland, and the United Kingdom. Our matching contributions for all defined contribution plans were $2.3 million and $1.8 million for the three months ended June 30, 2022 and 2021, respectively, and $5.4 million and $3.8 million for the six months ended June 30, 2022 and 2021, respectively.

Segment Data

Segment Data	6 Months Ended
	Jun. 30, 2022
Segment Data
Segment Data	Note 15 - Segment Data Our operations are comprised of two reportable segments: the TASER segment and the Software and Sensors segment. Information relative to our reportable segments was as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, 2022 ​ Three Months Ended June 30, 2021 ​ ​ ​ ​ ​ Software and ​ ​ ​ ​ ​ ​ ​ Software and ​ ​ ​ ​ TASER Sensors Total TASER Sensors Total Net sales from products ​ $ 131,721 ​ $ 68,330 ​ $ 200,051 ​ $ 110,637 ​ $ 45,790 ​ $ 156,427 Net sales from services ​ 3,865 ​ 81,697 ​ 85,562 ​ 1,891 ​ 60,477 ​ 62,368 Net sales ​ 135,586 ​ 150,027 ​ 285,613 ​ 112,528 ​ 106,267 ​ 218,795 Cost of product sales ​ 48,463 ​ 39,039 ​ 87,502 ​ 37,701 ​ 27,600 ​ 65,301 Cost of service sales ​ — ​ 24,148 ​ 24,148 ​ 145 ​ 15,420 ​ 15,565 Cost of sales ​ 48,463 ​ 63,187 ​ 111,650 ​ 37,846 ​ 43,020 ​ 80,866 Gross margin ​ $ 87,123 ​ $ 86,840 ​ $ 173,963 ​ $ 74,682 ​ $ 63,247 ​ $ 137,929 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Research and development ​ $ 13,316 ​ $ 44,231 ​ $ 57,547 ​ $ 12,313 ​ $ 41,639 ​ $ 53,952 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, 2022 ​ Six Months Ended June 30, 2021 ​ ​ ​ ​ ​ Software and ​ ​ ​ ​ ​ ​ ​ Software and ​ ​ ​ ​ TASER Sensors Total TASER Sensors Total Net sales from products ​ $ 242,875 ​ $ 133,380 ​ $ 376,255 ​ $ 207,939 ​ ​ 89,374 ​ $ 297,313 Net sales from services ​ 7,071 ​ 158,713 ​ 165,784 ​ 3,588 ​ 112,913 ​ 116,501 Net sales ​ 249,946 ​ 292,093 ​ 542,039 ​ 211,527 ​ 202,287 ​ 413,814 Cost of product sales ​ 89,088 ​ 77,766 ​ 166,854 ​ 70,646 ​ 53,271 ​ 123,917 Cost of service sales ​ — ​ 45,483 ​ 45,483 ​ 145 ​ 28,470 ​ 28,615 Cost of sales ​ 89,088 ​ 123,249 ​ 212,337 ​ 70,791 ​ 81,741 ​ 152,532 Gross margin ​ $ 160,858 ​ $ 168,844 ​ $ 329,702 ​ $ 140,736 ​ $ 120,546 ​ $ 261,282 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Research and development ​ $ 23,212 ​ $ 82,751 ​ $ 105,963 ​ $ 21,556 ​ $ 79,414 ​ $ 100,970 ​

Organization and Summary of S_2

Organization and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2022
Organization and Summary of Significant Accounting Policies
Basis of Presentation and Use of Estimates	Basis of Presentation and Use of Estimates These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC. Certain information related to our organization, significant accounting policies and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) has been condensed or omitted. The accounting policies followed in the preparation of these unaudited condensed consolidated financial statements are consistent with those followed in our annual consolidated financial statements for the year ended December 31, 2021, as filed on Form 10-K, with the exception of our adoption of certain accounting pronouncements which we describe below. In the opinion of management, these unaudited condensed consolidated financial statements contain all material adjustments, consisting only of normal recurring adjustments, necessary to fairly state our financial position, results of operations and cash flows for the periods presented and the presentations and disclosures herein are adequate when read in conjunction with our Form 10-K for the year ended December 31, 2021. The results of operations for the three months and six months ended June 30, 2022 are not necessarily indicative of the results to be expected for the full year (or any other period). Significant estimates and assumptions in these unaudited condensed consolidated financial statements include: ● product warranty reserves, ● inventory valuation, ● revenue recognition, ● reserve for expected credit loss, ● valuation of goodwill, intangible and long-lived assets, ● valuation of strategic investments, ● recognition, measurement and valuation of current and deferred income taxes, ● stock-based compensation, and ● recognition and measurement of contingencies and accrued litigation expense. ​ Actual results could differ materially from those estimates.
Segment Information	Segment Information Our operations are comprised of two reportable segments: the manufacture and sale of conducted electrical devices ("CEDs"), batteries, accessories, extended warranties and other products and services (the “TASER” segment); and the development, manufacture, and sale of software and sensors, which includes the sale of devices, wearables, applications, cloud and mobile products, and services (collectively, the “Software and Sensors” segment). In both segments, we report sales of products and services. Service revenue in both segments includes sales related to Axon Evidence. In the Software and Sensors segment, service revenue also includes other recurring cloud-hosted software revenue and related professional services. Collectively, this revenue is sometimes referred to as "Axon Cloud revenue." Reportable segments are determined based on discrete financial information reviewed by our Chief Executive Officer who is our chief operating decision maker ("CODM"). We organize and review operations based on products and services, and currently there are no operating segments that are aggregated. We perform an analysis of our reportable segments at least annually. Additional information related to our business segments is summarized in Note 15.
Geographic Information and Major Customers / Suppliers	Geographic Information and Major Customers / Suppliers For the three and six months ended June 30, 2022, no individual country outside the U.S. represented more than 10% of total net sales. Individual sales transactions in the international market are generally larger and occur more intermittently than in the domestic market due to the profile of our customers. For the three and six months ended June 30, 2022, no customer represented more than 10% of total net sales. At June 30, 2022 and December 31, 2021, no customer represented more than 10% of the aggregate balance of accounts and notes receivable and contract assets. We currently purchase both off the shelf and custom components, including, but not limited to, finished circuit boards, injection-molded plastic components, small machined parts, custom cartridge components, electronic components, and off the shelf sub-assemblies from suppliers located in the U.S., Canada, China, Republic of Korea, Malaysia, Mexico, Taiwan, and Vietnam. We may source from other countries as well. Although we currently obtain many of these components from single source suppliers, we own the injection molded component tooling, most of the designs, and the test fixtures used in their production for all custom components. As a result, we believe we could obtain alternative suppliers in most cases. Although we have experienced supply chain disruptions relating to materials and port constraints, we have remained focused on closely managing our supply chain. We continue to bolster our strategic relationships in our supply chain, identifying secondary/alternate sourcing, adjusting build plans accordingly, and building in logistic modes in support of our increasing demand while working to minimize disruption to customers. We acquire most of our components on a purchase order basis and do not currently have significant long-term purchase contracts with most component suppliers.
Income per Common Share	Income per Common Share Basic income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the periods presented. Diluted income per share reflects the potential dilution from outstanding stock options and unvested restricted stock units. The calculation of the weighted average number of shares outstanding and earnings per share are as follows (in thousands except per share data): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ Six Months Ended June 30, ​ 2022 2021 2022 2021 Numerator for basic and diluted earnings per share: ​ ​ ​ ​ Net income (loss) ​ $ 50,962 ​ $ (47,117) ​ $ 105,833 ​ $ (95,034) Denominator: ​ ​ ​ ​ Weighted average shares outstanding ​ 71,040 ​ 65,166 ​ 70,995 ​ 64,604 Dilutive effect of stock-based awards ​ 1,243 ​ — ​ 1,321 ​ — Diluted weighted average shares outstanding ​ 72,283 ​ 65,166 ​ 72,316 ​ 64,604 Anti-dilutive stock-based awards excluded ​ 2,991 ​ 10,537 ​ 2,912 ​ 8,950 Net income (loss) per common share: ​ ​ ​ ​ ​ ​ Basic ​ $ 0.72 ​ $ (0.72) ​ $ 1.49 ​ $ (1.47) Diluted ​ $ 0.71 ​ $ (0.72) ​ $ 1.46 ​ $ (1.47) ​ ​
Standard Warranties	Standard Warranties We warranty our CEDs, Axon cameras and certain related accessories from manufacturing defects on a limited basis for a period of one year after purchase and, thereafter, will repair or replace any defective unit for a fee. Estimated costs for the standard warranty are charged to cost of products sold when revenue is recorded for the related product. Future warranty costs are estimated based on historical data related to warranty claims and this rate is applied to current product sales. Historically, reserve amounts have been increased if management becomes aware of a component failure or other issue that could result in larger than anticipated warranty claims from customers. The warranty reserve is reviewed quarterly to verify that it sufficiently reflects the remaining warranty obligations based on the anticipated expenditures over the balance of the warranty obligation period, and adjustments are made when actual warranty claim experience differs from estimates. The warranty reserve is included in accrued liabilities on the accompanying condensed consolidated balance sheets. Changes in our estimated product warranty liabilities were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, ​ 2022 ​ 2021 Balance, beginning of period ​ $ 2,822 ​ $ 769 Utilization of reserve ​ (1,574) ​ (481) Warranty expense ​ 380 ​ 613 Balance, end of period ​ $ 1,628 ​ $ 901
Fair Value Measurements and Financial Instruments	Fair Value Measurements and Financial Instruments We use the fair value framework that prioritizes the inputs to valuation techniques for measuring financial assets and liabilities measured on a recurring basis and for non-financial assets and liabilities when these items are re-measured. Fair value is considered to be the exchange price in an orderly transaction between market participants, to sell an asset or transfer a liability at the measurement date. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are: ● Level 1 – Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. ● Level 2 – Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques. ● Level 3 – Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect our own assumptions about inputs that market participants would use in pricing an asset or liability. We have cash equivalents and investments, which at June 30, 2022 and December 31, 2021 were comprised of money market funds, commercial paper, corporate bonds, municipal bonds, U.S. Government agency bonds, and U.S. Treasury bills. See additional disclosure regarding the fair value of our cash equivalents and investments in Note 3. Included in the balance of other long-term assets as of June 30, 2022 and December 31, 2021 was $4.2 million and $5.3 million, respectively, related to corporate-owned life insurance policies which are used to fund our deferred compensation plan. We determine the fair value of insurance contracts by obtaining the cash surrender value of the contracts from the issuer, a Level 2 valuation technique. ​ We have an investment in marketable securities, for which c hanges in fair value are recorded in the condensed consolidated statement of operations as unrealized gain or (loss) on marketable securities, which is included in interest and other income, net. ​ We have strategic investments in six unconsolidated affiliates as of June 30, 2022. The estimated fair value of the investments was determined based on Level 3 inputs. In determining the estimated fair value of our strategic investments in privately held companies, we utilize observable data available to us as discussed further in Note 7. ​ Our financial instruments also include accounts and notes receivable, accounts payable and accrued liabilities. Due to the short-term nature of these instruments, their fair values approximate their carrying values on the condensed consolidated balance sheet.
Restricted Cash	Restricted Cash Restricted cash balances as of June 30, 2022 were $1.9 million primarily related to funds held in an international bank account securing a guarantee and funds held in an international bank account for a country in which we are required to maintain a minimum balance to operate. Approximately $1.8 million was included in prepaid expenses and other current assets on our condensed consolidated balance sheet, with the remainder included in other long-term assets
Valuation of Goodwill, Intangibles and Long-lived Assets	Valuation of Goodwill, Intangibles and Long-lived Assets We evaluate whether events and circumstances have occurred that indicate the remaining estimated useful life of long-lived assets and identifiable intangible assets, excluding goodwill and intangible assets with indefinite useful lives, may warrant revision or that the remaining balance of these assets may not be recoverable. Such circumstances could include, but are not limited to, a change in the product mix, a change in the way products are created, produced or delivered, or a significant change in the way products are branded and marketed. In performing the review for recoverability, we estimate the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. The amount of the impairment loss, if impairment exists, is calculated based on the excess of the carrying amounts of the assets over their estimated fair value computed using discounted cash flows. We do not amortize goodwill and intangible assets with indefinite useful lives; rather such assets are required to be tested for impairment at least annually or sooner whenever events or changes in circumstances indicate that the assets may be impaired. We perform our annual goodwill and intangible asset impairment tests in the fourth quarter of each year.
Recently Issued Accounting Guidance	Recently Issued Accounting Guidance Recently Adopted Accounting Pronouncements In November 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2021-10, Government Assistance (Topic 832). The guidance improves the transparency of government assistance accounting as it requires business entities to disclose transactions that involve government assistance received if the transactions were accounted for by applying a grant or contribution accounting model by analogy. The ASU is effective for annual periods beginning after December 15, 2021. We adopted ASU 2021-10 on January 1, 2022 and will apply the disclosure requirement prospectively to all transactions within the scope of the amendments that are reflected in the financial statements at the date of the initial application along with new transactions that are entered into after the date of initial application. Adoption of this ASU did not have a material impact on our consolidated financial statements.
Reclassification of Prior Year Presentation	Reclassification of Prior Year Presentation Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications are not material and had no effect on the reported results of operations.

Organization and Summary of S_3

Organization and Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2022
Organization and Summary of Significant Accounting Policies
Schedule of weighted average number of shares outstanding and earnings per share	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ Six Months Ended June 30, ​ 2022 2021 2022 2021 Numerator for basic and diluted earnings per share: ​ ​ ​ ​ Net income (loss) ​ $ 50,962 ​ $ (47,117) ​ $ 105,833 ​ $ (95,034) Denominator: ​ ​ ​ ​ Weighted average shares outstanding ​ 71,040 ​ 65,166 ​ 70,995 ​ 64,604 Dilutive effect of stock-based awards ​ 1,243 ​ — ​ 1,321 ​ — Diluted weighted average shares outstanding ​ 72,283 ​ 65,166 ​ 72,316 ​ 64,604 Anti-dilutive stock-based awards excluded ​ 2,991 ​ 10,537 ​ 2,912 ​ 8,950 Net income (loss) per common share: ​ ​ ​ ​ ​ ​ Basic ​ $ 0.72 ​ $ (0.72) ​ $ 1.49 ​ $ (1.47) Diluted ​ $ 0.71 ​ $ (0.72) ​ $ 1.46 ​ $ (1.47)
Summary of changes in our estimated warranty reserve	Changes in our estimated product warranty liabilities were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, ​ 2022 ​ 2021 Balance, beginning of period ​ $ 2,822 ​ $ 769 Utilization of reserve ​ (1,574) ​ (481) Warranty expense ​ 380 ​ 613 Balance, end of period ​ $ 1,628 ​ $ 901

Revenues (Tables)

Revenues (Tables)	6 Months Ended
	Jun. 30, 2022
Revenues
Summary of Revenue by Product and Service Offering and Geography	The following tables present our revenues by primary product and service offering (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, 2022 ​ Three Months Ended June 30, 2021 ​ ​ ​ Software and ​ ​ ​ ​ Software and ​ ​ ​ ​ TASER ​ Sensors ​ Total ​ TASER ​ Sensors ​ Total TASER 7 ​ $ 53,440 ​ $ — ​ $ 53,440 ​ $ 28,128 ​ ​ — ​ $ 28,128 TASER X26P ​ 12,339 ​ — ​ 12,339 ​ 9,569 ​ ​ — ​ 9,569 TASER X2 ​ 4,534 ​ — ​ 4,534 ​ 16,145 ​ ​ — ​ 16,145 TASER Consumer devices ​ 1,687 ​ — ​ 1,687 ​ 1,701 ​ ​ — ​ 1,701 Cartridges ​ 49,845 ​ — ​ 49,845 ​ 46,678 ​ ​ — ​ 46,678 Axon Body ​ — ​ 27,468 ​ 27,468 ​ — ​ ​ 19,927 ​ 19,927 Axon Flex ​ — ​ 621 ​ 621 ​ — ​ ​ 1,088 ​ 1,088 Axon Fleet ​ — ​ 15,881 ​ 15,881 ​ — ​ ​ 5,247 ​ 5,247 Axon Dock ​ — ​ 5,849 ​ 5,849 ​ — ​ ​ 5,509 ​ 5,509 Axon Evidence and cloud services ​ 3,720 ​ 81,911 ​ 85,631 ​ 1,702 ​ ​ 60,367 ​ 62,069 Extended warranties ​ 7,459 ​ 12,498 ​ 19,957 ​ 5,857 ​ ​ 8,149 ​ 14,006 Other ​ 2,562 ​ 5,799 ​ 8,361 ​ 2,748 ​ ​ 5,980 ​ 8,728 Total ​ $ 135,586 ​ $ 150,027 ​ $ 285,613 ​ $ 112,528 ​ $ 106,267 ​ $ 218,795 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, 2022 ​ Six Months Ended June 30, 2021 ​ ​ ​ Software and ​ ​ ​ ​ Software and ​ ​ ​ ​ TASER ​ Sensors ​ Total ​ TASER ​ Sensors ​ Total TASER 7 ​ $ 103,506 ​ $ — ​ $ 103,506 ​ $ 62,119 ​ ​ — ​ $ 62,119 TASER X26P ​ 21,818 ​ — ​ 21,818 ​ 19,532 ​ ​ — ​ 19,532 TASER X2 ​ 8,153 ​ — ​ 8,153 ​ 28,923 ​ ​ — ​ 28,923 TASER Pulse ​ 3,383 ​ — ​ 3,383 ​ 3,906 ​ ​ — ​ 3,906 Cartridges ​ 87,670 ​ — ​ 87,670 ​ 77,096 ​ ​ — ​ 77,096 Axon Body ​ — ​ 57,176 ​ 57,176 ​ — ​ ​ 39,683 ​ 39,683 Axon Flex ​ — ​ 1,950 ​ 1,950 ​ — ​ ​ 1,993 ​ 1,993 Axon Fleet ​ — ​ 29,701 ​ 29,701 ​ — ​ ​ 9,010 ​ 9,010 Axon Dock ​ — ​ 13,329 ​ 13,329 ​ — ​ ​ 12,429 ​ 12,429 Axon Evidence and cloud services ​ 6,737 ​ 161,850 ​ 168,587 ​ 3,098 ​ ​ 112,661 ​ 115,759 Extended warranties ​ 14,138 ​ 21,559 ​ 35,697 ​ 11,503 ​ ​ 15,649 ​ 27,152 Other ​ 4,541 ​ 6,528 ​ 11,069 ​ 5,350 ​ ​ 10,862 ​ 16,212 Total ​ $ 249,946 ​ $ 292,093 ​ $ 542,039 ​ $ 211,527 ​ $ 202,287 ​ $ 413,814 ​ The following table presents our revenues disaggregated by geography (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ ​ Six Months Ended June 30, ​ ​ 2022 ​ ​ 2021 ​ ​ 2022 ​ 2021 United States $ 228,446 80 % ​ $ 164,908 75 % ​ $ 442,660 82 % $ 325,294 79 % Other countries ​ 57,167 20 ​ ​ 53,887 25 ​ ​ 99,379 18 ​ 88,520 21 ​ Total ​ $ 285,613 100 % ​ $ 218,795 100 % ​ $ 542,039 100 % $ 413,814 100 %
Contract with Customer, Assets and Liabilities	The following table presents our contract assets, contract liabilities and certain information related to these balances as of and for the six months ended June 30, 2022 (in thousands): ​ ​ ​ ​ ​ ​ June 30, 2022 Contract assets, net ​ $ 224,994 Contract liabilities (deferred revenue) ​ 522,662 Revenue recognized in the period from: ​ Amounts included in contract liabilities at the beginning of the period ​ 172,675 ​ Contract liabilities (deferred revenue) consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2022 ​ December 31, 2021 ​ Current Long-Term Total Current Long-Term Total Warranty: ​ ​ ​ ​ ​ ​ TASER ​ $ 16,038 ​ $ 18,222 ​ $ 34,260 ​ $ 21,257 ​ $ 4,766 ​ $ 26,023 Software and Sensors ​ 19,736 ​ 22,078 ​ 41,814 ​ 23,175 ​ 18,137 ​ 41,312 ​ ​ 35,774 ​ 40,300 ​ 76,074 ​ 44,432 ​ 22,903 ​ 67,335 Hardware: ​ ​ ​ ​ ​ ​ TASER ​ 26,579 ​ 20,016 ​ 46,595 ​ 12,944 ​ 28,727 ​ 41,671 Software and Sensors ​ 47,149 ​ 94,855 ​ 142,004 ​ 34,862 ​ 81,223 ​ 116,085 ​ ​ 73,728 ​ 114,871 ​ 188,599 ​ 47,806 ​ 109,950 ​ 157,756 Services: ​ ​ ​ ​ ​ ​ TASER ​ 3,102 ​ 6,555 ​ 9,657 ​ 2,701 ​ 3,482 ​ 6,183 Software and Sensors ​ 140,581 ​ 107,751 ​ 248,332 ​ 170,652 ​ 49,386 ​ 220,038 ​ ​ ​ 143,683 ​ ​ 114,306 ​ ​ 257,989 ​ ​ 173,353 ​ ​ 52,868 ​ ​ 226,221 Total ​ $ 253,185 ​ $ 269,477 ​ $ 522,662 ​ $ 265,591 ​ $ 185,721 ​ $ 451,312 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2022 ​ December 31, 2021 ​ Current Long-Term Total Current Long-Term Total TASER ​ $ 45,719 ​ $ 44,793 ​ $ 90,512 ​ $ 36,902 ​ $ 36,975 ​ $ 73,877 Software and Sensors ​ 207,466 ​ 224,684 ​ 432,150 ​ 228,689 ​ 148,746 ​ 377,435 Total ​ $ 253,185 ​ $ 269,477 ​ $ 522,662 ​ $ 265,591 ​ $ 185,721 ​ $ 451,312

Cash, Cash Equivalents and In_2

Cash, Cash Equivalents and Investments (Tables)	6 Months Ended
	Jun. 30, 2022
Cash, Cash Equivalents and Investments
Summary of Cash, Cash Equivalents, Marketable Securities, and Available-for-Sale Investments	The following tables summarize our cash, cash equivalents, marketable securities, and available-for-sale investments at June 30, 2022 and December 31, 2021 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of June 30, 2022 ​ ​ ​ Gross Gross ​ ​ Cash and ​ ​ ​ ​ ​ ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ ​ ​ ​ Cash ​ Marketable ​ Short-Term ​ Long-Term ​ ​ Cost ​ Gains ​ Losses ​ Fair Value ​ Equivalents ​ Securities ​ Investments ​ Investments Cash ​ $ 155,582 ​ $ — ​ $ — ​ $ 155,582 ​ ​ $ 155,582 ​ $ — ​ $ — ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 1: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds ​ 43,550 ​ ​ — ​ — ​ 43,550 ​ ​ 43,550 ​ — ​ — ​ ​ — Agency bonds ​ 26,601 ​ ​ 5 ​ (2) ​ 26,604 ​ ​ 8,484 ​ — ​ 18,120 ​ ​ — Treasury bills ​ ​ 28,390 ​ ​ — ​ ​ (24) ​ ​ 28,366 ​ ​ ​ — ​ ​ — ​ ​ 22,690 ​ ​ 5,676 Marketable securities ​ ​ 90,000 ​ ​ — ​ ​ (44,100) ​ ​ 45,900 ​ ​ — ​ 45,900 ​ — ​ ​ — Subtotal ​ 188,541 ​ ​ 5 ​ (44,126) ​ 144,420 ​ ​ ​ 52,034 ​ ​ 45,900 ​ ​ 40,810 ​ ​ 5,676 Level 2: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ State and municipal obligations ​ ​ 5,814 ​ ​ 1 ​ ​ (35) ​ ​ 5,780 ​ ​ ​ — ​ ​ — ​ ​ 4,257 ​ ​ 1,523 Corporate bonds ​ ​ 57,609 ​ ​ 11 ​ ​ (1,027) ​ ​ 56,593 ​ ​ ​ 5,199 ​ ​ — ​ ​ 33,668 ​ ​ 17,726 Commercial paper ​ ​ 39,779 ​ ​ — ​ ​ — ​ ​ 39,779 ​ ​ ​ — ​ ​ — ​ ​ 39,779 ​ ​ — Subtotal ​ ​ 103,202 ​ ​ 12 ​ ​ (1,062) ​ ​ 102,152 ​ ​ ​ 5,199 ​ ​ — ​ ​ 77,704 ​ ​ 19,249 Total ​ $ 447,325 ​ $ 17 ​ $ (45,188) ​ $ 402,154 ​ ​ $ 212,815 ​ $ 45,900 ​ $ 118,514 ​ $ 24,925 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2021 ​ ​ ​ Gross Gross ​ ​ Cash and ​ ​ ​ ​ ​ ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ ​ ​ ​ Cash ​ Marketable ​ Short-Term ​ Long-Term ​ ​ Cost ​ Gains ​ Losses ​ Fair Value ​ Equivalents ​ Securities ​ Investments ​ Investments Cash ​ $ 353,488 ​ $ — ​ $ — ​ $ 353,488 ​ ​ $ 353,488 ​ $ — ​ $ — ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 1: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds ​ 2,844 ​ ​ — ​ — ​ 2,844 ​ ​ 2,844 ​ — ​ — ​ ​ — Agency bonds ​ 10,700 ​ ​ 4 ​ — ​ 10,704 ​ ​ — ​ — ​ 10,704 ​ ​ — Marketable securities ​ ​ 90,000 ​ ​ — ​ ​ (17,820) ​ ​ 72,180 ​ ​ — ​ 72,180 ​ — ​ ​ — Subtotal ​ 103,544 ​ ​ 4 ​ (17,820) ​ 85,728 ​ ​ ​ 2,844 ​ ​ 72,180 ​ ​ 10,704 ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 2: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ State and municipal obligations ​ ​ 2,570 ​ ​ — ​ ​ (5) ​ ​ 2,565 ​ ​ ​ — ​ ​ — ​ ​ 1,400 ​ ​ 1,165 Corporate bonds ​ ​ 32,748 ​ ​ 1 ​ ​ (276) ​ ​ 32,473 ​ ​ ​ — ​ ​ — ​ ​ 2,406 ​ ​ 30,067 Subtotal ​ ​ 35,318 ​ ​ 1 ​ ​ (281) ​ ​ 35,038 ​ ​ ​ — ​ ​ — ​ ​ 3,806 ​ ​ 31,232 Total ​ $ 492,350 ​ $ 5 ​ $ (18,101) ​ $ 474,254 ​ ​ $ 356,332 ​ $ 72,180 ​ $ 14,510 ​ $ 31,232

Expected Credit Losses (Tables)

Expected Credit Losses (Tables)	6 Months Ended
	Jun. 30, 2022
Expected Credit Losses
Schedule of roll-forward of allowance for credit losses	The following table provides a roll-forward of the allowance for expected credit losses that is deducted from the amortized cost basis of accounts receivable, notes receivable, and contract assets to present the net amount expected to be collected (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, 2022 ​ ​ United States ​ Other countries ​ Total Balance, beginning of period ​ $ 3,171 ​ $ 178 ​ $ 3,349 Provision for expected credit losses ​ ​ (50) ​ ​ 233 ​ ​ 183 Amounts written off charged against the allowance ​ ​ (396) ​ ​ - ​ ​ (396) Other, including foreign currency translation ​ - ​ (3) ​ (3) Balance, end of period ​ $ 2,725 ​ $ 408 ​ $ 3,133
Schedule of allowance for expected credit losses for each type of customer receivable	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ 2022 ​ 2021 Accounts receivable and notes receivable, current ​ $ 1,927 ​ $ 2,203 Contract assets, net ​ 1,058 ​ 1,010 Long-term notes receivable, net of current portion ​ 148 ​ 136 Total allowance for expected credit losses on customer receivables ​ $ 3,133 ​ $ 3,349

Inventory (Tables)

Inventory (Tables)	6 Months Ended
	Jun. 30, 2022
Inventory
Inventory	Inventory consisted of the following at June 30, 2022 and December 31, 2021 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2022 December 31, 2021 Raw materials ​ $ 50,995 ​ $ 38,267 Finished goods ​ 103,302 ​ 70,421 Total inventory ​ $ 154,297 ​ $ 108,688

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2022
Property and Equipment
Summary of Property and Equipment	Property and equipment consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Estimated ​ ​ ​ ​ ​ ​ ​ Useful Life June 30, 2022 December 31, 2021 Land ​ N/A ​ $ 51,612 ​ $ 54,868 Land held for sale ​ N/A ​ ​ 3,173 ​ ​ — Building and leasehold improvements ​ 3-39 years ​ ​ 26,745 ​ ​ 25,712 Production equipment ​ 3-5 years ​ 54,879 ​ 54,090 Computers, equipment and software ​ 3-5 years ​ 21,338 ​ 15,343 Furniture and office equipment ​ 3-5 years ​ 7,407 ​ 6,838 Vehicles ​ 5 years ​ 3,624 ​ 2,932 Website development costs ​ 3 years ​ 204 ​ 204 Capitalized internal-use software development costs ​ 3-5 years ​ 13,994 ​ 11,996 Construction-in-process ​ N/A ​ 42,904 ​ 25,258 Total cost ​ ​ ​ 225,880 ​ 197,241 Less: Accumulated depreciation ​ ​ ​ (67,964) ​ (58,784) Property and equipment, net ​ ​ $ 157,916 ​ $ 138,457

Strategic Investments (Tables)

Strategic Investments (Tables)	6 Months Ended
	Jun. 30, 2022
Strategic Investments
Schedule of Roll-Forward of Strategic Investments	The following tables provide a roll-forward of the balance of strategic investments (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, 2022 ​ Six Months Ended June 30, 2021 ​ Strategic investments Warrants ​ Call options Total Strategic investments Warrants ​ Total Balance, beginning of period ​ $ 80,775 ​ $ 2,745 ​ $ — ​ $ 83,520 ​ $ 9,500 ​ $ 2,211 ​ $ 11,711 Investments ​ ​ 45,160 ​ ​ — ​ ​ 16,340 ​ ​ 61,500 ​ ​ 20,500 ​ ​ — ​ ​ 20,500 Observable price changes (1) ​ ​ 41,502 ​ ​ 28,539 ​ ​ — ​ ​ 70,041 ​ ​ 40,321 ​ ​ 534 ​ ​ 40,855 Exercises ​ ​ 96,719 ​ ​ (30,089) ​ ​ — ​ ​ 66,630 ​ ​ — ​ ​ — ​ ​ — Sales ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ (14,546) ​ ​ — ​ ​ (14,546) Balance, end of period ​ $ 264,156 ​ $ 1,195 ​ $ 16,340 ​ $ 281,691 ​ $ 55,775 ​ $ 2,745 ​ $ 58,520 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Inception to date ​ Strategic investments Warrants ​ Call options Total Investments ​ $ 97,728 ​ $ 2,588 ​ $ 16,340 ​ $ 116,656 Observable price changes (1) ​ ​ 84,255 ​ ​ 28,696 ​ ​ — ​ ​ 112,951 Exercises ​ ​ 96,719 ​ ​ (30,089) ​ ​ — ​ ​ 66,630 Sales ​ ​ (14,546) ​ ​ — ​ ​ — ​ ​ (14,546) Balance, end of period ​ $ 264,156 ​ $ 1,195 ​ $ 16,340 ​ $ 281,691 ​ (1) Includes a realized gain of $12.3 million for the six months ended June 30, 2021.

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	6 Months Ended
	Jun. 30, 2022
Accrued Liabilities
Schedule of Accrued liabilities	Accrued liabilities consisted of the following at June 30, 2022 and December 31, 2021 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2022 December 31, 2021 Accrued salaries, benefits and bonus ​ $ 53,360 ​ $ 62,425 Accrued professional, consulting and lobbying fees ​ 6,907 ​ 7,152 Accrued warranty expense ​ 1,628 ​ 2,822 Accrued income and other taxes ​ 6,420 ​ 3,736 Accrued inventory in transit ​ ​ 9,625 ​ ​ 9,945 Other accrued expenses ​ 23,040 ​ 17,627 Accrued liabilities ​ $ 100,980 ​ $ 103,707

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2022
Stockholders' Equity
Equity Compensation Goals	​ ​ ​ ​ ​ ​ ​ ​ Revenue Goal (1) (in thousands) ​ Achievement Status ​ Adjusted EBITDA (in thousands) ​ Achievement Status Goal #1, $710,058 ​ Achieved ​ Goal #1, $125,000 ​ Achieved Goal #2, $860,058 ​ Achieved ​ Goal #2, $155,000 ​ Achieved Goal #3, $1,010,058 ​ Probable ​ Goal #3, $175,000 ​ Achieved Goal #4, $1,210,058 ​ Probable ​ Goal #4, $190,000 ​ Achieved Goal #5, $1,410,058 ​ Not Applicable ​ Goal #5, $200,000 ​ Achieved Goal #6, $1,610,058 ​ Not Applicable ​ Goal #6, $210,000 ​ Achieved Goal #7, $1,810,058 ​ Not Applicable ​ Goal #7, $220,000 ​ Achieved Goal #8, $2,010,058 ​ Not Applicable ​ Goal #8, $230,000 ​ Achieved (1) In connection with the business acquisition that was completed during the three months ended September 30, 2018, the revenue goals were adjusted for the acquiree’s Target Revenue, as defined in the CEO Performance Award agreement.
Summary of Restricted Stock Unit Activity	The following table summarizes RSU activity for the six months ended June 30, 2022 (number of units and aggregate intrinsic value in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Weighted Average Aggregate ​ ​ Units ​ Grant-Date Fair Value ​ Intrinsic Value Units outstanding, beginning of year 1,115 ​ $ 133.40 ​ Granted 324 ​ 121.16 ​ Released (170) ​ 77.07 ​ Forfeited (103) ​ 137.01 ​ Units outstanding, end of period 1,166 ​ 137.85 ​ $ 108,680
Summary of Performance Stock Unit Activity	The following table summarizes PSU activity, inclusive of XSUs, for the six months ended June 30, 2022 (number of units and aggregate intrinsic value in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Weighted Average Aggregate ​ ​ Units ​ Grant-Date Fair Value ​ Intrinsic Value Units outstanding, beginning of year 1,499 ​ $ 39.86 ​ Granted 88 ​ 114.78 ​ Released (33) ​ 118.08 ​ Forfeited (166) ​ 28.78 ​ Units outstanding, end of period 1,388 ​ 44.06 ​ $ 129,308
Summary of the Company's Stock Options Activity	The following table summarizes stock option activity for the six months ended June 30, 2022 (number of units and aggregate intrinsic value in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ Weighted ​ Average ​ ​ ​ ​ ​ Number ​ Average ​ Remaining ​ ​ ​ ​ ​ of ​ Exercise ​ Contractual ​ Aggregate ​ ​ Options ​ Price ​ Life (years) ​ Intrinsic Value Options outstanding, beginning of year 2,438 ​ $ 28.58 ​ Granted — ​ — ​ Exercised — ​ — ​ Expired / terminated — ​ — ​ ​ Options outstanding, end of period 2,438 ​ 28.58 5.66 ​ $ 157,468 Options exercisable, end of period 1,377 ​ 28.58 5.66 ​ 88,939
Reported Share-Based Compensation	The following table summarizes the composition of stock-based compensation expense for the three months ended June 30, 2022 and 2021 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ Six Months Ended June 30, ​ 2022 2021 2022 2021 Cost of products sold and services delivered ​ $ 1,066 ​ $ 1,838 ​ $ 2,174 ​ $ 3,327 Sales, general and administrative expenses ​ 8,610 ​ 114,089 ​ 21,592 ​ 185,104 Research and development expenses ​ 11,486 ​ 21,622 ​ 22,484 ​ 38,728 Total stock-based compensation expense ​ $ 21,162 ​ $ 137,549 ​ $ 46,250 ​ $ 227,159

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (loss) (Tables)	6 Months Ended
	Jun. 30, 2022
Accumulated Other Comprehensive Income (loss).
Summary of changes in accumulated other comprehensive income (loss), net of tax	The following tables reflect the changes in accumulated other comprehensive income (loss), net of tax (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized Gains (Losses) ​ ​ ​ ​ ​ ​ ​ ​ ​ on Available-for-Sale ​ ​ Foreign Currency ​ ​ ​ ​ ​ Investments ​ ​ Translation ​ Total Balance, December 31, 2021 ​ $ (207) ​ $ (1,110) ​ $ (1,317) Other comprehensive loss ​ ​ (489) ​ ​ (1,072) ​ ​ (1,561) Balance, March 31, 2022 ​ $ (696) ​ $ (2,182) ​ $ (2,878) Other comprehensive loss ​ ​ (161) ​ ​ (2,166) ​ ​ (2,327) Balance, June 30, 2022 ​ $ (857) ​ $ (4,348) ​ $ (5,205) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized Gains (Losses) ​ ​ ​ ​ ​ ​ ​ ​ ​ on Available-for-Sale ​ ​ Foreign Currency ​ ​ ​ ​ ​ Investments ​ ​ Translation ​ Total Balance, December 31, 2020 ​ $ — ​ $ 141 ​ $ 141 Other comprehensive income ​ ​ — ​ ​ 1 ​ ​ 1 Balance, March 31, 2021 ​ $ — ​ $ 142 ​ $ 142 Other comprehensive loss ​ ​ — ​ ​ (369) ​ ​ (369) Balance, June 30, 2021 ​ $ — ​ $ (227) ​ $ (227)

Segment Data (Tables)

Segment Data (Tables)	6 Months Ended
	Jun. 30, 2022
Segment Data
Summary of Operational Information Relative to the Company's Reportable Segments	Information relative to our reportable segments was as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, 2022 ​ Three Months Ended June 30, 2021 ​ ​ ​ ​ ​ Software and ​ ​ ​ ​ ​ ​ ​ Software and ​ ​ ​ ​ TASER Sensors Total TASER Sensors Total Net sales from products ​ $ 131,721 ​ $ 68,330 ​ $ 200,051 ​ $ 110,637 ​ $ 45,790 ​ $ 156,427 Net sales from services ​ 3,865 ​ 81,697 ​ 85,562 ​ 1,891 ​ 60,477 ​ 62,368 Net sales ​ 135,586 ​ 150,027 ​ 285,613 ​ 112,528 ​ 106,267 ​ 218,795 Cost of product sales ​ 48,463 ​ 39,039 ​ 87,502 ​ 37,701 ​ 27,600 ​ 65,301 Cost of service sales ​ — ​ 24,148 ​ 24,148 ​ 145 ​ 15,420 ​ 15,565 Cost of sales ​ 48,463 ​ 63,187 ​ 111,650 ​ 37,846 ​ 43,020 ​ 80,866 Gross margin ​ $ 87,123 ​ $ 86,840 ​ $ 173,963 ​ $ 74,682 ​ $ 63,247 ​ $ 137,929 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Research and development ​ $ 13,316 ​ $ 44,231 ​ $ 57,547 ​ $ 12,313 ​ $ 41,639 ​ $ 53,952 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, 2022 ​ Six Months Ended June 30, 2021 ​ ​ ​ ​ ​ Software and ​ ​ ​ ​ ​ ​ ​ Software and ​ ​ ​ ​ TASER Sensors Total TASER Sensors Total Net sales from products ​ $ 242,875 ​ $ 133,380 ​ $ 376,255 ​ $ 207,939 ​ ​ 89,374 ​ $ 297,313 Net sales from services ​ 7,071 ​ 158,713 ​ 165,784 ​ 3,588 ​ 112,913 ​ 116,501 Net sales ​ 249,946 ​ 292,093 ​ 542,039 ​ 211,527 ​ 202,287 ​ 413,814 Cost of product sales ​ 89,088 ​ 77,766 ​ 166,854 ​ 70,646 ​ 53,271 ​ 123,917 Cost of service sales ​ — ​ 45,483 ​ 45,483 ​ 145 ​ 28,470 ​ 28,615 Cost of sales ​ 89,088 ​ 123,249 ​ 212,337 ​ 70,791 ​ 81,741 ​ 152,532 Gross margin ​ $ 160,858 ​ $ 168,844 ​ $ 329,702 ​ $ 140,736 ​ $ 120,546 ​ $ 261,282 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Research and development ​ $ 23,212 ​ $ 82,751 ​ $ 105,963 ​ $ 21,556 ​ $ 79,414 ​ $ 100,970

Organization and Summary of S_4

Organization and Summary of Significant Accounting Policies - Narrative (Details) $ in Millions	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2022 USD ($) country customer	Jun. 30, 2022 USD ($) customer item segment country	Dec. 31, 2021 USD ($) customer
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of reportable segments | segment		2
Warranty period		1 year
Cash surrender value of corporate-owned life insurance policies	$ 4.2	$ 4.2	$ 5.3
Investments in number of unconsolidated affiliates | item		6
Restricted cash balance	1.9	$ 1.9	$ 0.1
Prepaid Expenses and Other Current Assets
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Restricted cash balance	1.8	1.8
Other Noncurrent Assets
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Restricted cash balance	$ 0.1	$ 0.1
Net Sales | Geographic Concentration Risk
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of countries outside the U.S. representing more than 10% of total net sales | country	0	0
Net Sales | Customer Concentration Risk
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of major customers | customer	0	0
Accounts and notes receivable and contract assets | Customer Concentration Risk
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of major customers | customer		0	0

Organization and Summary of S_5

Organization and Summary of Significant Accounting Policies - Weighted Average Number of Shares Outstanding and Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Numerator for basic and diluted earnings per share:
Net income (loss)	$ 50,962	$ 54,871	$ (47,117)	$ (47,917)	$ 105,833	$ (95,034)
Denominator:
Weighted average shares outstanding (in shares)	71,040		65,166		70,995	64,604
Dilutive effect of stock-based awards (in shares)	1,243				1,321
Diluted weighted average shares outstanding (in shares)	72,283		65,166		72,316	64,604
Anti-dilutive stock-based awards excluded (in shares)	2,991		10,537		2,912	8,950
Earnings (loss) per share
Basic (in dollars per share)	$ 0.72		$ (0.72)		$ 1.49	$ (1.47)
Diluted (in dollars per share)	$ 0.71		$ (0.72)		$ 1.46	$ (1.47)

Organization and Summary of S_6

Organization and Summary of Significant Accounting Policies - Summary of Changes in Estimated Warranty Reserve (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Movement in Standard and Extended Product Warranty
Balance, beginning of period	$ 2,822	$ 769
Utilization of reserve	(1,574)	(481)
Warranty expense	380	613
Balance, end of period	$ 1,628	$ 901

Revenues - Revenues By Products

Revenues - Revenues By Products And Service Offerings (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	$ 285,613	$ 218,795	$ 542,039	$ 413,814
TASER 7
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	53,440	28,128	103,506	62,119
TASER X26P
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	12,339	9,569	21,818	19,532
TASER X2
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	4,534	16,145	8,153	28,923
TASER Pulse
Disaggregation of Revenue [Line Items]
Revenue from contract with customers			3,383	3,906
TASER Consumer devices
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	1,687	1,701
Cartridges
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	49,845	46,678	87,670	77,096
Axon Body
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	27,468	19,927	57,176	39,683
Axon Flex
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	621	1,088	1,950	1,993
Axon Fleet
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	15,881	5,247	29,701	9,010
Axon Dock
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	5,849	5,509	13,329	12,429
Axon Evidence and cloud services
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	85,631	62,069	168,587	115,759
Extended warranties
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	19,957	14,006	35,697	27,152
Other
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	8,361	8,728	11,069	16,212
TASER
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	135,586	112,528	249,946	211,527
TASER | TASER 7
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	53,440	28,128	103,506	62,119
TASER | TASER X26P
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	12,339	9,569	21,818	19,532
TASER | TASER X2
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	4,534	16,145	8,153	28,923
TASER | TASER Pulse
Disaggregation of Revenue [Line Items]
Revenue from contract with customers			3,383	3,906
TASER | TASER Consumer devices
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	1,687	1,701
TASER | Cartridges
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	49,845	46,678	87,670	77,096
TASER | Axon Evidence and cloud services
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	3,720	1,702	6,737	3,098
TASER | Extended warranties
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	7,459	5,857	14,138	11,503
TASER | Other
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	2,562	2,748	4,541	5,350
Software and Sensors
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	150,027	106,267	292,093	202,287
Software and Sensors | Axon Body
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	27,468	19,927	57,176	39,683
Software and Sensors | Axon Flex
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	621	1,088	1,950	1,993
Software and Sensors | Axon Fleet
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	15,881	5,247	29,701	9,010
Software and Sensors | Axon Dock
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	5,849	5,509	13,329	12,429
Software and Sensors | Axon Evidence and cloud services
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	81,911	60,367	161,850	112,661
Software and Sensors | Extended warranties
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	12,498	8,149	21,559	15,649
Software and Sensors | Other
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	$ 5,799	$ 5,980	$ 6,528	$ 10,862

Revenues - Revenues By Geograph

Revenues - Revenues By Geographic Area (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	$ 285,613,000	$ 218,795,000	$ 542,039,000	$ 413,814,000
United States
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	228,446,000	164,908,000	442,660,000	325,294,000
Other countries
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	$ 57,167,000	$ 53,887,000	99,379,000	88,520,000
Revenue from Contract with Customer | Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue from contract with customers			$ 100	$ 100
Concentration risk (as a percentage)	100%	100%
Revenue from Contract with Customer | Geographic Concentration Risk | United States
Disaggregation of Revenue [Line Items]
Concentration risk (as a percentage)	80%	75%	82%	79%
Revenue from Contract with Customer | Geographic Concentration Risk | Other countries
Disaggregation of Revenue [Line Items]
Concentration risk (as a percentage)	20%	25%	18%	21%

Revenues - Contract Assets, Con

Revenues - Contract Assets, Contract Liabilities (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Revenues
Contract assets, net	$ 224,994
Contract liabilities (deferred revenue)	522,662	$ 451,312
Revenue recognized in the period from:
Amounts included in contract liabilities at the beginning of the period	$ 172,675

Revenues - Schedule Of Contract

Revenues - Schedule Of Contract Liabilities - Deferred revenue (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Disaggregation of Revenue [Line Items]
Current	$ 253,185	$ 265,591
Long-Term	269,477	185,721
Total	522,662	451,312
TASER
Disaggregation of Revenue [Line Items]
Current	45,719	36,902
Long-Term	44,793	36,975
Total	90,512	73,877
Software and Sensors
Disaggregation of Revenue [Line Items]
Current	207,466	228,689
Long-Term	224,684	148,746
Total	432,150	377,435
Warranty
Disaggregation of Revenue [Line Items]
Current	35,774	44,432
Long-Term	40,300	22,903
Total	76,074	67,335
Warranty | TASER
Disaggregation of Revenue [Line Items]
Current	16,038	21,257
Long-Term	18,222	4,766
Total	34,260	26,023
Warranty | Software and Sensors
Disaggregation of Revenue [Line Items]
Current	19,736	23,175
Long-Term	22,078	18,137
Total	41,814	41,312
Hardware
Disaggregation of Revenue [Line Items]
Current	73,728	47,806
Long-Term	114,871	109,950
Total	188,599	157,756
Hardware | TASER
Disaggregation of Revenue [Line Items]
Current	26,579	12,944
Long-Term	20,016	28,727
Total	46,595	41,671
Hardware | Software and Sensors
Disaggregation of Revenue [Line Items]
Current	47,149	34,862
Long-Term	94,855	81,223
Total	142,004	116,085
Services
Disaggregation of Revenue [Line Items]
Current	143,683	173,353
Long-Term	114,306	52,868
Total	257,989	226,221
Services | TASER
Disaggregation of Revenue [Line Items]
Current	3,102	2,701
Long-Term	6,555	3,482
Total	9,657	6,183
Services | Software and Sensors
Disaggregation of Revenue [Line Items]
Current	140,581	170,652
Long-Term	107,751	49,386
Total	$ 248,332	$ 220,038

Revenues - Revenue Performance

Revenues - Revenue Performance Obligations (Details) $ in Millions	Jun. 30, 2022 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 3,330
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	10 years
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation to be recognized in the next twelve months (as a percentage)	15%
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation to be recognized in the next twelve months (as a percentage)	20%
Revenue, remaining performance obligation, expected timing of satisfaction, period	12 months

Cash, Cash Equivalents and In_3

Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021
Restricted Cash and Cash Equivalents Items [Line Items]
Amortized Cost	$ 447,325	$ 447,325	$ 492,350
Gross Unrealized Gains	17	17	5
Gross Unrealized Losses	(45,188)	(45,188)	(18,101)
Fair Value	402,154	402,154	474,254
Cash and Cash Equivalents	212,815	212,815	356,332
Marketable Securities	45,900	45,900	72,180
Short-Term Investments	118,514	118,514	14,510
Long-Term Investments	24,925	24,925	31,232
Cash and cash equivalents	212,815	212,815	356,332	$ 266,372
Short-term investments	118,514	118,514	14,510
Long-term investments	24,925	24,925	31,232
Fair value of available for sale investments with unrealized losses	86,700	86,700
Share Purchase Agreement with Cellebrite DI Ltd.
Restricted Cash and Cash Equivalents Items [Line Items]
Marketable securities, unrealized gain (loss)	(11,700)	(26,300)
Common stock | Share Purchase Agreement with Cellebrite DI Ltd.
Restricted Cash and Cash Equivalents Items [Line Items]
Marketable Securities			$ 90,000
Investment owned, shares held			9,000,000
Fair Value, Inputs, Level 1
Restricted Cash and Cash Equivalents Items [Line Items]
Amortized Cost	188,541	188,541	$ 103,544
Gross Unrealized Gains	5	5	4
Gross Unrealized Losses	(44,126)	(44,126)	(17,820)
Fair Value	144,420	144,420	85,728
Cash and Cash Equivalents	52,034	52,034	2,844
Marketable Securities	45,900	45,900	72,180
Short-Term Investments	40,810	40,810	10,704
Long-Term Investments	5,676	5,676
Fair Value, Inputs, Level 2
Restricted Cash and Cash Equivalents Items [Line Items]
Amortized Cost	103,202	103,202	35,318
Gross Unrealized Gains	12	12	1
Gross Unrealized Losses	(1,062)	(1,062)	(281)
Fair Value	102,152	102,152	35,038
Cash and Cash Equivalents	5,199	5,199
Short-Term Investments	77,704	77,704	3,806
Long-Term Investments	19,249	19,249	31,232
Cash
Restricted Cash and Cash Equivalents Items [Line Items]
Amortized Cost	155,582	155,582	353,488
Fair Value	155,582	155,582	353,488
Cash and Cash Equivalents	155,582	155,582	353,488
Money market funds | Fair Value, Inputs, Level 1
Restricted Cash and Cash Equivalents Items [Line Items]
Amortized Cost	43,550	43,550	2,844
Fair Value	43,550	43,550	2,844
Cash and Cash Equivalents	43,550	43,550	2,844
Agency bonds | Fair Value, Inputs, Level 1
Restricted Cash and Cash Equivalents Items [Line Items]
Amortized Cost	26,601	26,601	10,700
Gross Unrealized Gains	5	5	4
Gross Unrealized Losses	(2)	(2)
Fair Value	26,604	26,604	10,704
Cash and Cash Equivalents	8,484	8,484
Short-Term Investments	18,120	18,120	10,704
Treasury bills | Fair Value, Inputs, Level 1
Restricted Cash and Cash Equivalents Items [Line Items]
Amortized Cost	28,390	28,390
Gross Unrealized Losses	(24)	(24)
Fair Value	28,366	28,366
Short-Term Investments	22,690	22,690
Long-Term Investments	5,676	5,676
Marketable securities | Fair Value, Inputs, Level 1
Restricted Cash and Cash Equivalents Items [Line Items]
Amortized Cost	90,000	90,000	90,000
Gross Unrealized Losses	(44,100)	(44,100)	(17,820)
Fair Value	45,900	45,900	72,180
Marketable Securities	45,900	45,900	72,180
State and municipal obligations | Fair Value, Inputs, Level 2
Restricted Cash and Cash Equivalents Items [Line Items]
Amortized Cost	5,814	5,814	2,570
Gross Unrealized Gains	1	1
Gross Unrealized Losses	(35)	(35)	(5)
Fair Value	5,780	5,780	2,565
Short-Term Investments	4,257	4,257	1,400
Long-Term Investments	1,523	1,523	1,165
Corporate bonds | Fair Value, Inputs, Level 2
Restricted Cash and Cash Equivalents Items [Line Items]
Amortized Cost	57,609	57,609	32,748
Gross Unrealized Gains	11	11	1
Gross Unrealized Losses	(1,027)	(1,027)	(276)
Fair Value	56,593	56,593	32,473
Cash and Cash Equivalents	5,199	5,199
Short-Term Investments	33,668	33,668	2,406
Long-Term Investments	17,726	17,726	$ 30,067
Commercial paper | Fair Value, Inputs, Level 2
Restricted Cash and Cash Equivalents Items [Line Items]
Amortized Cost	39,779	39,779
Fair Value	39,779	39,779
Short-Term Investments	$ 39,779	$ 39,779

Expected Credit Losses (Details

Expected Credit Losses (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	$ 3,349
Provision for expected credit losses	183
Amounts written off charged against the allowance	(396)
Other, including foreign currency translation	(3)
Balance, end of period	3,133
United States
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	3,171
Provision for expected credit losses	(50)
Amounts written off charged against the allowance	(396)
Balance, end of period	2,725
Other countries
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	178
Provision for expected credit losses	233
Other, including foreign currency translation	(3)
Balance, end of period	$ 408

Expected Credit Losses - Type O

Expected Credit Losses - Type Of Customer Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Expected Credit Losses
Accounts receivable and notes receivable, current	$ 1,927	$ 2,203
Contract assets, net	1,058	1,010
Long-term notes receivable, net of current portion	148	136
Total allowance for expected credit losses on customer receivables	$ 3,133	$ 3,349

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Inventory
Raw materials	$ 50,995	$ 38,267
Finished goods	103,302	70,421
Total inventory	$ 154,297	$ 108,688

Property and Equipment - Summar

Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Total cost	$ 225,880	$ 197,241
Less: Accumulated depreciation	(67,964)	(58,784)
Property and equipment, net	157,916	138,457
Land held for sale
Property, Plant and Equipment [Line Items]
Total cost	3,173
Land
Property, Plant and Equipment [Line Items]
Total cost	51,612	54,868
Building and leasehold improvements
Property, Plant and Equipment [Line Items]
Total cost	$ 26,745	25,712
Building and leasehold improvements | Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	3 years
Building and leasehold improvements | Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	39 years
Production equipment
Property, Plant and Equipment [Line Items]
Total cost	$ 54,879	54,090
Production equipment | Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	3 years
Production equipment | Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	5 years
Computers, equipment and software
Property, Plant and Equipment [Line Items]
Total cost	$ 21,338	15,343
Computers, equipment and software | Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	3 years
Computers, equipment and software | Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	5 years
Furniture and office equipment
Property, Plant and Equipment [Line Items]
Total cost	$ 7,407	6,838
Furniture and office equipment | Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	3 years
Furniture and office equipment | Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	5 years
Vehicles
Property, Plant and Equipment [Line Items]
Estimated Useful Life	5 years
Total cost	$ 3,624	2,932
Website development costs
Property, Plant and Equipment [Line Items]
Estimated Useful Life	3 years
Total cost	$ 204	204
Capitalized internal-use software development costs
Property, Plant and Equipment [Line Items]
Total cost	$ 13,994	11,996
Capitalized internal-use software development costs | Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	3 years
Capitalized internal-use software development costs | Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	5 years
Construction-in-process
Property, Plant and Equipment [Line Items]
Total cost	$ 42,904	25,258
New campus development
Property, Plant and Equipment [Line Items]
Total cost	$ 21,200	$ 12,400

Strategic Investments (Details)

Strategic Investments (Details) - USD ($) $ in Thousands	6 Months Ended		28 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022
Equity Securities without Readily Determinable Fair Value [Line Items]
Balance, beginning of period	$ 83,520	$ 11,711
Investments	61,500	20,500	$ 116,656
Observable price changes	70,041	40,855	112,951
Exercises	66,630		66,630
Sales		(14,546)	(14,546)
Balance, end of period	281,691	58,520	281,691
Investment in unconsolidated affiliate	281,691	58,520	281,691
Unrealized gain on observable price changes	70,000
Exercise price of warrants	6,600
Unrealized gains on warrants exercised	60,100
Realized gain on sale of investment		12,300
Dedrone, Inc
Equity Securities without Readily Determinable Fair Value [Line Items]
Balance, end of period	25,000		25,000
Investment in unconsolidated affiliate	25,000		25,000
Fusus, Inc.
Equity Securities without Readily Determinable Fair Value [Line Items]
Balance, end of period	21,000		21,000
Investment in unconsolidated affiliate	21,000		21,000
DroneSense, Inc
Equity Securities without Readily Determinable Fair Value [Line Items]
Balance, end of period	15,000		15,000
Investment in unconsolidated affiliate	15,000		15,000
Strategic investments
Equity Securities without Readily Determinable Fair Value [Line Items]
Balance, beginning of period	80,775	9,500
Investments	45,160	20,500	97,728
Observable price changes	41,502	40,321	84,255
Exercises	96,719		96,719
Sales		(14,546)	(14,546)
Balance, end of period	264,156	55,775	264,156
Investment in unconsolidated affiliate	264,156	55,775	264,156
Warrants
Equity Securities without Readily Determinable Fair Value [Line Items]
Balance, beginning of period	2,745	2,211
Investments			2,588
Observable price changes	28,539	534	28,696
Exercises	(30,089)		(30,089)
Balance, end of period	1,195	2,745	1,195
Investment in unconsolidated affiliate	1,195	$ 2,745	1,195
Call options
Equity Securities without Readily Determinable Fair Value [Line Items]
Investments	16,340		16,340
Balance, end of period	16,340		16,340
Investment in unconsolidated affiliate	$ 16,340		$ 16,340

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Accrued Liabilities
Accrued salaries, benefits and bonus	$ 53,360	$ 62,425
Accrued professional, consulting and lobbying fees	6,907	7,152
Accrued warranty expense	1,628	2,822	$ 901	$ 769
Accrued income and other taxes	6,420	3,736
Accrued inventory in transit	9,625	9,945
Other accrued expenses	23,040	17,627
Accrued liabilities	$ 100,980	$ 103,707

Income Taxes (Details)

Income Taxes (Details) $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($)
Income Taxes
Deferred tax assets, net	$ 100.5
Liability for unrecognized tax benefits	19.6
Research and development tax credit studies	$ 10.9
Effective tax rate (as a percentage)	24.90%
Effective tax rate, before discrete period adjustment (as a percentage)	26%
Discrete tax benefit, stock-based compensation	$ 1.6

Stockholders' Equity - CEO Perf

Stockholders' Equity - CEO Performance Award - Additional Information (Details) $ in Thousands		6 Months Ended	49 Months Ended
	May 24, 2018 USD ($) tranche item shares	Jun. 30, 2022 USD ($) shares	Jun. 30, 2022 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Market capitalization goal for such tranche	$ 2,500,000
Market capitalization goal increment	$ 1,000,000
Recorded share-based compensation expense			$ 236,000
Number of awards expected to vest | shares		1,100,000	1,100,000
Revenue goal number 1		$ 710,058	$ 710,058
Revenue goal number 2		860,058	860,058
Revenue goal number 3		1,010,058	1,010,058
Revenue goal number 4		1,210,058	1,210,058
Revenue goal number 5		1,410,058	1,410,058
Revenue goal number 6		1,610,058	1,610,058
Revenue goal number 7		1,810,058	1,810,058
Revenue goal number 8		2,010,058	2,010,058
Adjusted EBITDA goal number 1		125,000	125,000
Adjusted EBITDA goal number 2		155,000	155,000
Adjusted EBITDA goal number 3		175,000	175,000
Adjusted EBITDA goal number 4		190,000	190,000
Adjusted EBITDA goal number 5		200,000	200,000
Adjusted EBITDA goal number 6		210,000	210,000
Adjusted EBITDA goal number 7		220,000	220,000
Adjusted EBITDA goal number 8		$ 230,000	230,000
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance shares authorized (in shares) | shares	6,365,856
Number of options vested | shares		5,300,000
Weighted average period over which costs are recognized		1 year 1 month 6 days
CEO Performance Award
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation cost related to unvested stock option awards, probable of achievement		$ 9,900	$ 9,900
Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of vesting tranches of share-based awards | tranche	12
Vesting period	10 years
Number of performance goals, revenue | item	8
Number of performance goals, adjusted EBITDA | item	8

Stockholders' Equity - eXponent

Stockholders' Equity - eXponential Stock Performance Plan (Details) shares in Millions, $ in Millions			6 Months Ended	41 Months Ended	49 Months Ended
	Feb. 12, 2019 USD ($) tranche item	May 24, 2018 USD ($)	Jun. 30, 2022 USD ($) shares	Jun. 30, 2022 USD ($) shares	Jun. 30, 2022 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Market capitalization goal for such tranche		$ 2,500
Market capitalization goal increment		$ 1,000
Recorded share-based compensation expense					$ 236
Number of awards expected to vest | shares			1.1	1.1	1.1
eXponential Stock Units | 2019 eXponential Stock Performance Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period	9 years
Number of vesting tranches of share-based awards | tranche	12
Market capitalization goal for such tranche	$ 2,500
Number of performance goals, revenue | item	8
Number of performance goals, adjusted EBITDA | item	8
Market capitalization goal increment	$ 1,000
Anti-dilution provision, maximum shares growth rate per year			3%
Recorded share-based compensation expense				$ 180.8
Number of awards expected to vest | shares			1.2	1.2	1.2
Unrecognized stock-based compensation expense			$ 14.8	$ 14.8	$ 14.8
Weighted average period over which costs are recognized			1 year 7 months 6 days

Stockholders' Equity - Summary

Stockholders' Equity - Summary of RSU and PSU Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($) $ / shares shares
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Number of Units outstanding, beginning of year (in shares) | shares	1,115
Number of Units, Granted (in shares) | shares	324
Number of Units, Released (in shares) | shares	(170)
Number of Units, Forfeited (in shares) | shares	(103)
Number of Units outstanding, end of period (in shares) | shares	1,166
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted Average Grant Date Fair Value, Units outstanding, beginning of year (in dollars per share) | $ / shares	$ 133.40
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | $ / shares	121.16
Weighted Average Grant Date Fair Value, Released (in dollars per share) | $ / shares	77.07
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share) | $ / shares	137.01
Weighted Average Grant Date Fair Value, Units outstanding, end of period (in dollars per share) | $ / shares	$ 137.85
Aggregate intrinsic value at end of period | $	$ 108,680
Performance Stock Units (PSUs)
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Number of Units outstanding, beginning of year (in shares) | shares	1,499
Number of Units, Granted (in shares) | shares	88
Number of Units, Released (in shares) | shares	(33)
Number of Units, Forfeited (in shares) | shares	(166)
Number of Units outstanding, end of period (in shares) | shares	1,388
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted Average Grant Date Fair Value, Units outstanding, beginning of year (in dollars per share) | $ / shares	$ 39.86
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | $ / shares	114.78
Weighted Average Grant Date Fair Value, Released (in dollars per share) | $ / shares	118.08
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share) | $ / shares	28.78
Weighted Average Grant Date Fair Value, Units outstanding, end of period (in dollars per share) | $ / shares	$ 44.06
Aggregate intrinsic value at end of period | $	$ 129,308

Stockholders' Equity - RSU and

Stockholders' Equity - RSU and PSU - Additional Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	6 Months Ended		49 Months Ended
	Jun. 30, 2022	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recorded share-based compensation expense				$ 236,000
Tax payments, for net share settlement of share based award		$ 2,319	$ 10,312
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate intrinsic value price per share (in dollars per share)	$ 93.17	$ 93.17		$ 93.17
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate intrinsic value price per share (in dollars per share)	$ 93.17	$ 93.17		$ 93.17
Unrecognized stock-based compensation expense	$ 118,200	$ 118,200		$ 118,200
Weighted average period over which costs are recognized		2 years 1 month 6 days
Number of shares vested		170
Number of units outstanding (in shares)	1,166	1,166		1,166	1,115
Shares withheld, for net share settlement of share based award (in shares)	7
Tax payments, for net share settlement of share based award		$ 900
Performance Stock Units (PSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate intrinsic value price per share (in dollars per share)	$ 93.17	$ 93.17		$ 93.17
Unrecognized stock-based compensation expense	$ 23,700	$ 23,700		$ 23,700
Weighted average period over which costs are recognized		1 year 7 months 6 days
Performance criteria had been met (in shares)		20
Number of shares vested		33
Number of units outstanding (in shares)	1,388	1,388		1,388	1,499
Shares withheld, for net share settlement of share based award (in shares)	12
Tax payments, for net share settlement of share based award		$ 1,400

Stockholders' Equity - Summar_2

Stockholders' Equity - Summary of the Company's Stock Options Activity (Details) - Stock Options $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2022 USD ($) $ / shares shares	Jun. 30, 2022 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Number of options, Options outstanding, beginning of year (in shares)		2,438
Number of options, Exercised (in shares)	0
Number of options, Options outstanding, end of year (in shares)	2,438	2,438
Number of options, Options exercisable, end of period (in shares)	1,377	1,377
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Weighted average exercise price, Options outstanding, beginning of year (in dollars per share) | $ / shares		$ 28.58
Weighted average exercise price, Options outstanding, end of period (in dollars per share) | $ / shares	$ 28.58	28.58
Weighted average exercise price, Options exercisable, end of period (in dollars per share) | $ / shares	$ 28.58	$ 28.58
Weighted average remaining contractual life, Options outstanding, end of period		5 years 7 months 28 days
Weighted average remaining contractual life, Options exercisable, end of period		5 years 7 months 28 days
Aggregate intrinsic value, Options outstanding, end of period | $	$ 157,468	$ 157,468
Aggregate intrinsic value, Options exercisable, end of period | $	$ 88,939	$ 88,939

Stockholders' Equity - Stock Op

Stockholders' Equity - Stock Option Activity - Additional Information (Details) - $ / shares shares in Thousands	3 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate intrinsic value price per share (in dollars per share)	$ 93.17
Stock options exercised (in shares)	0
Number of options outstanding (in shares)	2,438	2,438
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options outstanding (in shares)	1,100

Stockholders' Equity - Reported

Stockholders' Equity - Reported Share-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 21,162	$ 137,549	$ 46,250	$ 227,159
Cost of products sold and services delivered
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	1,066	1,838	2,174	3,327
Sales, general and administrative expenses
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	8,610	114,089	21,592	185,104
Research and development expenses
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 11,486	$ 21,622	$ 22,484	$ 38,728

Stockholders' Equity - Stock Re

Stockholders' Equity - Stock Repurchase Plan - Additional Information (Details) - USD ($)		3 Months Ended
	Apr. 06, 2022	Jun. 30, 2022	Jun. 30, 2021	May 31, 2022	Sep. 30, 2019	Feb. 29, 2016
2022 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance (in shares)				2,500,000
Shares available for grant under the plan (in shares)		3,400,000
2016 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding common stock repurchase program authorized amount (up to)						$ 50,000,000
Shares repurchased during period (in shares)		0	0
Remaining authorized repurchase amount		$ 16,300,000
2019 Inducement Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance (in shares)					500,000
Shares granted	29,507
2019 Inducement Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant under the plan (in shares)		100

Stockholders' Equity - At-the-M

Stockholders' Equity - At-the-Market equity offering - Additional Information (Details) - ATM Offering $ in Millions	12 Months Ended
	Dec. 31, 2021 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of common stock (in shares) | shares	577,956
Gross proceeds	$ 107.6
Net proceeds	105.4
Commissions	1.6
Stock issuance costs	$ 0.5
Maximum number of common stock shares to be sold | shares	3,000,000

Line of Credit (Details)

Line of Credit (Details) $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Debt Instrument [Line Items]
Maximum ratio of total liabilities to tangible net worth	2.50
Line of Credit
Debt Instrument [Line Items]
Accordion feature allowing for increase in borrowing capacity	$ 100
Letters of credit outstanding amount	6.5
Available borrowing under letter of credit	43.5
Line of credit borrowings	$ 0	$ 0
EBITDA ratio	0
Line of Credit | Unsecured Revolving Line of Credit
Debt Instrument [Line Items]
Total availability under line of credit agreement	$ 50
Line of Credit | Letter of Credit
Debt Instrument [Line Items]
Available borrowing under letter of credit	$ 20
Minimum | Line of Credit | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument basis spread on variable rate (as a percentage)	1%
Maximum | Line of Credit | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument basis spread on variable rate (as a percentage)	1.50%

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	1 Months Ended	6 Months Ended
	Jun. 30, 2022 USD ($) lawsuit	Jun. 30, 2022 USD ($) lawsuit
Loss Contingencies [Line Items]
Number of lawsuits against Company | lawsuit	3	3
Amount self-insured for any product claim		$ 5
Line of Credit
Loss Contingencies [Line Items]
Letters of credit outstanding amount	$ 6.5	6.5
Outstanding letters of credit and bank guarantees not drawn against credit facility	$ 0.4	0.4
Data Storage
Loss Contingencies [Line Items]
Purchase agreement term	6 years
Purchase obligation	$ 425	425
Surety Bond
Loss Contingencies [Line Items]
Bonds outstanding	21.1	21.1
Expire throughout 2023 | Surety Bond
Loss Contingencies [Line Items]
Letters of credit outstanding amount	6.5	6.5
Expiring in 2022 | Surety Bond
Loss Contingencies [Line Items]
Bonds outstanding	3.1	3.1
Expiring in 2023 | Surety Bond
Loss Contingencies [Line Items]
Bonds outstanding	7.5	7.5
Expiring in 2024 | Surety Bond
Loss Contingencies [Line Items]
Bonds outstanding	$ 10.5	$ 10.5

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021
Accumulated other comprehensive income (loss):
Beginning balance	$ 1,124,789	$ 1,047,849	$ 1,010,904	$ 976,255
Other comprehensive income (loss)	(2,327)	(1,561)
Ending balance	1,193,651	1,124,789	1,097,699	1,010,904
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss):
Beginning balance	(2,878)	(1,317)	142	141
Other comprehensive income (loss)	(2,327)	(1,561)	(369)	1
Ending balance	(5,205)	(2,878)	(227)	142
Unrealized Gains (Losses) on Available-for-Sale Investments
Accumulated other comprehensive income (loss):
Beginning balance	(696)	(207)
Other comprehensive income (loss)	(161)	(489)
Ending balance	(857)	(696)
Foreign Currency Translation
Accumulated other comprehensive income (loss):
Beginning balance	(2,182)	(1,110)	142	141
Other comprehensive income (loss)	(2,166)	(1,072)	(369)	1
Ending balance	$ (4,348)	$ (2,182)	$ (227)	$ 142

Employee Benefit Plans (Details

Employee Benefit Plans (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Employee Benefit Plans
Defined contribution plan, cost	$ 2.3	$ 1.8	$ 5.4	$ 3.8

Segment Data (Details)

Segment Data (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) segment	Jun. 30, 2021 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments of company | segment			2
Net sales	$ 285,613	$ 218,795	$ 542,039	$ 413,814
Cost of sales	111,650	80,866	212,337	152,532
Gross margin	173,963	137,929	329,702	261,282
Research and development	57,547	53,952	105,963	100,970
TASER
Segment Reporting Information [Line Items]
Net sales	135,586	112,528	249,946	211,527
Cost of sales	48,463	37,846	89,088	70,791
Gross margin	87,123	74,682	160,858	140,736
Research and development	13,316	12,313	23,212	21,556
Software and Sensors
Segment Reporting Information [Line Items]
Net sales	150,027	106,267	292,093	202,287
Cost of sales	63,187	43,020	123,249	81,741
Gross margin	86,840	63,247	168,844	120,546
Research and development	44,231	41,639	82,751	79,414
Product
Segment Reporting Information [Line Items]
Net sales	200,051	156,427	376,255	297,313
Cost of sales	87,502	65,301	166,854	123,917
Product | TASER
Segment Reporting Information [Line Items]
Net sales	131,721	110,637	242,875	207,939
Cost of sales	48,463	37,701	89,088	70,646
Product | Software and Sensors
Segment Reporting Information [Line Items]
Net sales	68,330	45,790	133,380	89,374
Cost of sales	39,039	27,600	77,766	53,271
Service
Segment Reporting Information [Line Items]
Net sales	85,562	62,368	165,784	116,501
Cost of sales	24,148	15,565	45,483	28,615
Service | TASER
Segment Reporting Information [Line Items]
Net sales	3,865	1,891	7,071	3,588
Cost of sales		145		145
Service | Software and Sensors
Segment Reporting Information [Line Items]
Net sales	81,697	60,477	158,713	112,913
Cost of sales	$ 24,148	$ 15,420	$ 45,483	$ 28,470