Axon revenue jumps 33% to $2.8B in 2025

Axon Enterprise and Chewy are emerging as two distinct investment options in 2026, with Axon catering to law enforcement technology and Chewy dominating the pet supply market.

Axon provides essential hardware and software for public safety, including Tasers, body cameras, and evidence management systems, creating a sticky business model with hardware leading to long-term software subscriptions. The company expanded its reach into fire, EMS, and commercial security markets, reporting nearly $2.8 billion in revenue for FY 2025—a 33% increase from the prior year. However, net income dropped to $125 million from $377 million in 2024, highlighting scaling challenges. Axon's debt-to-equity ratio stands at 0.6x, with free cash flow at $75.1 million, though stock-based compensation significantly inflates reported cash generation.

Chewy, meanwhile, leads the digital pet supply market with a focus on recurring revenue through its Autoship subscription program. The company reported $12.6 billion in FY 2025 revenue, a 6% increase, with net income of $222.8 million and a 2% net margin. Chewy has expanded into physical services, acquiring Modern Animal and opening Chewy Vet Care clinics. As of February 2026, its debt-to-equity ratio is 1.1x, and its current ratio is 0.9x, indicating slightly more debt than shareholder equity and fewer current assets than liabilities.

Investors face a choice between Axon’s rapid growth and innovation in public safety technology and Chewy’s steady, recurring revenue in the pet supply market. Axon offers higher growth potential but with scaling challenges, while Chewy provides stability with a massive customer base and expanding services. The decision hinges on whether one prioritizes high-growth tech or predictable consumer revenue.