Core Insights - Axon Enterprise has shown exceptional investment performance, with a $10,000 investment five years ago growing to over $41,000, and a decade-long investment nearing $300,000 [1] Group 1: Product Offerings and Revenue - Axon is well-known for its Taser and body cameras, but it also offers cloud-based software services that significantly contribute to its revenue growth [2] - The company benefits from a reliable revenue stream due to multi-year contracts with customers, resulting in a high retention rate [3] - As of Q3 2025, Axon reported annualized recurring revenue (ARR) of $1.3 billion, reflecting a 41% year-over-year increase [4] Group 2: Financial Performance - Axon has a market capitalization of $43 billion, with a current stock price of $539.67 [5] - The company has $11.4 billion in future contracted bookings, which is up 39%, indicating strong future revenue potential [6] Group 3: Business Strategy and Growth Opportunities - Axon's adaptability in its business model has allowed it to build a durable revenue base, expanding beyond single hardware offerings to a comprehensive suite of services [7] - The company is looking to expand into federal agencies, which presents an additional $12 billion market opportunity [8] - Axon is also developing new technologies, including drones and robots for law enforcement, and has acquired Carbyne to enhance the 911 system [9] Group 4: Stock Performance and Market Sentiment - Despite a 20% decline in stock price over the past year and a 40% drop from all-time highs, long-term expansion could lead to stock recovery for patient investors [10]

Core Viewpoint - Axon Enterprise, Inc. is considered a promising investment opportunity with significant upside potential despite a recent decline in share price following its fiscal Q3 2025 earnings report [1] Financial Performance - In fiscal Q3 2025, Axon reported a revenue growth of 30.57%, reaching $710.64 million, which exceeded estimates by $5.81 million [3] - The company's earnings per share (EPS) was $1.17, falling short of consensus estimates by $0.37 [3] - The financial results were adversely affected by increased costs due to US tariffs, marking the first quarter where the full impact of these tariffs was realized [3] Analyst Ratings - Jeremy Hamblin from Craig-Hallum reiterated a Buy rating on Axon without specifying a price target [2] - Andrew Sherman from TD Cowen maintained a Buy rating with a price target of $925, suggesting that the recent share price decline offers an attractive entry point for investors [2][4] Company Overview - Axon focuses on providing advanced technology solutions for law enforcement and public safety, including hardware like cameras and TASERs, as well as cloud software for managing evidence and operations [5]

Core Insights - The Carillon Eagle Mid Cap Growth Fund's third-quarter 2025 investor letter highlights a continued rally in equity markets driven by enthusiasm for AI, limited inflationary effects from tariffs, and expectations for interest rate cuts by the U.S. Federal Reserve [1] - Mid-cap stocks showed positive gains, with the Russell Midcap Growth Index increasing by 2.78%, although it underperformed the Russell Midcap® Value Index, which rose by 6.16% during the same period [1] Company Analysis: Axon Enterprise, Inc. (NASDAQ:AXON) - Axon Enterprise, Inc. manufactures conducted energy devices under the TASER brand, but its stock experienced a one-month return of -30.52% and a 52-week decline of 17.01%, closing at $524.60 with a market capitalization of $41.396 billion on November 13, 2025 [2] - Despite a robust growth quarter and positive momentum in new product development, Axon’s stock lagged after a period of outperformance, focusing on innovative solutions for law enforcement, including advancements in drones and AI-enabled technologies [3] - Axon reported $711 million in revenue for the third quarter, marking a 31% year-over-year increase, but is not among the 30 most popular stocks among hedge funds, with 62 hedge fund portfolios holding its stock at the end of the second quarter [4]

Core Insights - Wrap Technologies, Inc. has announced a two-year partnership with the Le Sueur Police Department in Minnesota to deploy BolaWrap® 150 devices and WrapTactics™ training, focusing on safety and operational outcomes [1][2][5] Group 1: Partnership Details - The Le Sueur Police Department will fully deploy BolaWrap® 150 devices and WrapTactics™, supported by a subscription-based training platform and a structured research initiative [2][4] - The partnership aims to provide measurable insights into reducing risks to officers, improving community safety, and enhancing agency performance [2][5] Group 2: Community Engagement - Le Sueur, a city with over 4,000 residents, is known for its community engagement and collaboration, making it a suitable partner for this initiative [3] - The police department's commitment to proactive community policing and officer safety is highlighted by their investment in BolaWrap® 150 devices and training [4] Group 3: Company Strategy and Technology - The collaboration reflects a growing recognition among law enforcement agencies of the need for innovative, data-driven tools in modern policing [5][8] - Wrap Technologies aims to build a robust foundation of evidence to demonstrate the effectiveness of BolaWrap® and WrapTactics™ in reducing risks and improving community relations [5][8] Group 4: Product Overview - The BolaWrap® 150 is designed to provide a non-lethal pre-escalation option for law enforcement, helping officers manage non-compliant subjects without resorting to higher-force options [7] - The device is used by over 1,000 agencies across the U.S. and in 60 countries, emphasizing its widespread acceptance and potential impact on public safety [7]

Core Insights - Axon Enterprise has been one of the best-performing stocks over the last decade, with a price increase of over 3,000% [1] - The company's earnings per share have grown by approximately 1,000% during the same period, leading to a tripling of its valuation [2] - Axon operates in the law enforcement technology sector, providing a range of products including TASERs, body cameras, and software solutions [4] Business Model - Axon's mission focuses on protecting life and making traditional firearms obsolete, expanding from TASERs to body cameras and law enforcement software [4] - The company has developed a complementary hardware and software ecosystem, similar to Apple, enhancing its product offerings and creating a strong economic moat [5] Financial Performance - In the second quarter, Axon reported a revenue increase of 33% to $669 million, marking its sixth consecutive quarter of over 30% growth [6] - The adjusted net income for the quarter was $174 million, while the GAAP net income stood at $36 million [6] Product Development - Axon continues to innovate with new product releases, including the TASER 10 and Axon Body 4, as well as introducing VR training and drone systems [7] - The recent acquisition of Prepared, an AI-powered emergency communications platform, enhances Axon's capabilities in emergency response [8]

Group 1: Intel and Semiconductor Industry - Intel's stock increased by 6.4% following reports of discussions with Apple regarding a potential stake purchase [3] - The rise in Intel's shares was also supported by Micron Technology's positive outlook for PCs and traditional servers, which are key markets for Intel [3] - Over the past month, Intel's stock has gained more than 25%, driven by significant investments from the U.S. government, SoftBank, and Nvidia [3] Group 2: Mining and Commodities - Freeport-McMoRan's shares fell by 17% after the company lowered its forecasts for quarterly copper and gold sales due to issues at its Indonesia unit [4] - The company declared force majeure at its Grasberg mine following a mud flow that blocked access and resulted in fatalities [4] Group 3: Law Enforcement Technology - Axon Enterprise's shares dropped by 10% after announcing the acquisition of Prepared, an AI-powered emergency communications platform [5] - Analysts from Needham maintained a "buy" rating on Axon stock, while Piper Sandler initiated coverage with a bullish "overweight" rating [5] Group 4: Energy Sector - Xcel Energy's shares rose by 6.7% after the company agreed to settle litigation related to the 2021 Marshall Fire for approximately $640 million [6] Group 5: Health Insurance - Centene's shares increased by 5.8% after its subsidiary Meridian Health paid $15 million in value-based care incentives, indicating improved health outcomes for Medicaid members [7] Group 6: Agricultural Chemicals - Shares of agricultural chemical companies Mosaic and CF Industries Holdings rose by 5.8% and 5.2%, respectively, following reports of bipartisan support for stabilizing fertilizer markets [9]

Company Overview - Axon Enterprise, Inc. is a technology and public safety company that designs and manufactures hardware and software solutions for law enforcement, first responders, and civilians, with a market cap of approximately $58.9 billion [1][2] Market Position - Axon has established a dominant position in law enforcement technology, showcasing its entrenched leadership and broad adoption among public safety agencies, along with significant growth potential from expanding its software and sensor ecosystem [3] Stock Performance - Currently, AXON is trading 15.1% below its 52-week high of $885.91, reached on August 5, and has declined 3.3% over the past three months, underperforming the Dow Jones Industrials Average's 9% gains during the same period [4] - Despite recent declines, AXON has delivered 26.5% returns year-to-date, outperforming the Dow Jones' 8.2% gains, and has surged 96.5% over the past 52 weeks compared to the Dow Jones' 10.6% returns [5] - AXON's stock has remained above its 200-day moving average throughout the year, indicating steady long-term strength, although the 50-day moving average has shown more volatility since mid-August [6] Challenges - Recent stock price declines are attributed to concerns over high valuation, rising costs, and the fallout from ending a partnership with Flock Safety, which has shifted from a complementary relationship to a competitive one [7]

Core Viewpoint - The City of Pavia, Italy, has adopted the BolaWrap® device for its police force, emphasizing its safety advantages over Tasers and reflecting a broader trend in law enforcement towards non-lethal alternatives [1][3][7]. Group 1: Adoption and Implementation - Pavia has purchased four BolaWrap devices and is training twelve officers for proper deployment, marking a significant shift away from Taser usage in the region [3][7]. - The decision aligns with a growing trend in Italy where law enforcement agencies are reconsidering the use of Tasers due to safety concerns following recent incidents [3][7]. Group 2: Safety and Effectiveness - The BolaWrap device allows officers to immobilize individuals without causing physical harm, thus reducing the risk of injury compared to Tasers [4][6]. - Unlike pain compliance tools, BolaWrap enables control during the pre-escalation phase, which is crucial for minimizing force and injury [6][10]. Group 3: Market Trends and Company Position - Pavia's adoption of BolaWrap reflects an increasing international demand for safe policing tools, positioning Wrap Technologies as a leader in innovative public safety solutions [8][10]. - The move underscores a trend among law enforcement agencies seeking technologies that enhance safety, reduce liability, and build public trust [7][8]. Group 4: Product Features and Training - The BolaWrap 150 employs a multi-sensory approach to manage non-compliant subjects without resorting to higher-force options, enhancing officer safety and community protection [10]. - Wrap Technologies also offers comprehensive training programs certified by the International Association of Directors of Law Enforcement Standards and Training (IADLEST) to ensure effective use of their products [10].

Financial Data and Key Metrics Changes - Operating expenses were reduced by 26% from Q1 to Q2 2025, declining to $3.3 million from $4.5 million [29] - Year-to-date operating expenses are down 14% compared to the same period last year, from $9.1 million to $7.9 million [29] - Cash flow improvements were noted, with net cash used in operations declining by $2.2 million for the first six months of 2025, down to $5 million compared to $7.2 million in the same period of 2024 [29] - Cash and cash equivalents increased by 16% to $4.2 million as of June 30, 2025, up from $3.6 million at December 31, 2024 [29] - Revenue for Q2 was $1 million, with year-to-date revenue at $1.8 million [30] Business Line Data and Key Metrics Changes - BolaWrap deployments are increasing across diverse law enforcement agencies, with strong usage reported in Colorado, North Carolina, and Canada [10] - Agencies in Florida are evaluating BolaWrap as a strategic replacement for traditional electronic control devices like TASERs [10] - The crisis intervention team in a major Floridian agency reports more frequent BolaWrap use than TASERs, indicating a shift towards safer tools [11] Market Data and Key Metrics Changes - Favorable federal regulatory changes, including the Supreme Court decision in Barnes v. Felix, are driving adoption and sales of BolaWrap [15][16] - Increased inquiries and strategic discussions with customers are being observed due to heightened awareness around safer alternatives to traditional use of force tools [17] Company Strategy and Development Direction - The company has completed its restructuring efforts and is now focused on a renewed go-to-market strategy that emphasizes pre-escalation [5][40] - The introduction of new subscription models, Wrap Ready and Wrap Plus, aims to address customer concerns regarding replacement costs and enhance value propositions [31][32] - The company is expanding into adjacent markets such as healthcare, transportation, and private security, leveraging its existing technology and partnerships [26][64] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the momentum building for Wrap Technologies, citing a sharp increase in purchase orders and positive customer feedback [4][40] - The company believes it is well-positioned to capitalize on the evolving regulatory landscape and increasing demand for safer policing tools [40] - Management highlighted the importance of training and partnerships in driving adoption and success in the market [25][52] Other Important Information - The company has applied for nearly $1 million in DOJ-funded grants to support pre-escalation tools and training [33] - A new counter UAS capability has been developed, targeting a growing market projected to reach $6.8 billion by 2030 [38] - The rebranding of the body-worn camera business line to WrapVision aims to address data sovereignty concerns and enhance product offerings [39] Q&A Session Summary Question: How do you plan to accelerate adoption among law enforcement agencies in the US and internationally? - Management noted that adoption is being driven by regulatory changes and direct engagement with departments, emphasizing the importance of training and connectivity with officers [42][45][50] Question: How do you plan to penetrate non-law enforcement sectors? - The company is already seeing interest from hospitals and correction facilities, with a focus on scaling operations and leveraging data to drive adoption [56][60][64] Question: Are there adjacent product lines or technology upgrades planned in the next eighteen months? - Management confirmed ongoing developments, including counter drone capabilities and enhancements to the body-worn camera line, indicating a strategic focus on expanding product offerings [67][70] Question: What is the status of the company's move to Virginia, and when do you expect production to ramp up? - The company has fully moved to Virginia and is prepared to scale production in response to increasing demand [76][78] Question: How do you see one-time sales versus subscription services as a portion of your revenues? - Management highlighted a strategic shift towards recurring subscription models, which are expected to provide more stable revenue streams compared to one-time sales [80][81]

Group 1 - The long-term outlook for Axon Enterprise is positive, with significant stock price appreciation following the second-quarter report [1][3] - Axon reported a 33% year-over-year revenue growth in Q2, reaching $669 million, marking the 14th consecutive quarter of growth exceeding 25% [4][5] - The company has a substantial market opportunity, with management targeting a $129 billion market, while currently generating $2.4 billion in trailing-12-month revenue [8] Group 2 - Future contracted bookings reached $10.7 billion, up 43% year-over-year, indicating strong future revenue growth potential [9][10] - Despite impressive growth, Axon's net income decreased by 12% in Q2 due to increased stock-based compensation, totaling $139 million for the quarter [11] - The stock trades at nearly 30 times sales, the highest valuation in two decades, necessitating continued robust growth to justify this valuation [15][16]