Segment Data (Tables)

12 Months Ended

Dec. 31, 2024

Information relative to our reportable segments was as follows (in thousands):


	For the year ended December 31, 2024
	TASER		Software and Sensors		Total
Net sales from products	$	763,761	$	457,531	$	1,221,292
Net sales from services	54,912		806,322		861,234
Net sales	818,673		1,263,853		2,082,526
Cost of sales	338,642		502,504		841,146
Other segment items(1)	34,937		39,130		74,067
Adjusted gross margin	$	514,968	$	800,479	$	1,315,447
Other segment items(1)					74,067
Selling, general and administrative					741,247
Research and development					441,593
Interest income, net					36,595
Other income (loss), net					286,369
Income before provision for income taxes					$	381,504

(1) Other segment items includes the adjustment for noncash stock-based compensation expense, amortization of acquired intangible assets, and inventory step-up amortization related to acquisitions to arrive at the profit measure used by the CODM


	For the year ended December 31, 2023
	TASER		Software and Sensors		Total
Net sales from products	$	577,610	$	386,392	$	964,002
Net sales from services	35,900		560,797		596,697
Net sales	613,510		947,189		1,560,699
Cost of sales	241,977		363,269		605,246
Other segment items(1)	2,235		7,504		9,739
Adjusted gross margin	$	373,768	$	591,424	$	965,192
Other segment items(1)					9,739
Selling, general and administrative					494,884
Research and development					303,719
Interest income, net					42,112
Other income (loss), net					(41,901)
Income before provision for income taxes					$	157,061

(1) Other segment items includes the adjustment for noncash stock-based compensation expense and amortization of acquired intangible assets to arrive at the profit measure used by the CODM


	For the year ended December 31, 2022
	TASER		Software and Sensors		Total
Net sales from products	$	511,057	$	286,120	$	797,177
Net sales from services	19,987		369,979		389,966
Net sales	531,044		656,099		1,187,143
Cost of sales	195,239		265,791		461,030
Other segment items(1)	1,562		5,708		7,270
Adjusted gross margin	$	337,367	$	396,016	$	733,383
Other segment items(1)					7,270
Selling, general and administrative					399,330
Research and development					233,810
Interest income, net					4,294
Other income (loss), net					98,971
Income before provision for income taxes					$	196,238

(1) Other segment items includes the adjustment for noncash stock-based compensation expense and amortization of acquired intangible assets to arrive at the profit measure used by the CODM

The following table presents supplemental information included within the measure of profit or loss, adjusted gross margin, reviewed by our CODM (in thousands). There are no other material items presented to our CODM by segment or included within adjusted gross margin for supplemental disclosure.


	Year Ended December 31, 2024							Year Ended December 31, 2023						Year Ended December 31, 2022
	TASER		S	Software and Sensors		Total		TASER		Software and Sensors		Total		TASER		Software and Sensors		Total
Depreciation and amortization	$	18,789		$	16,592	$	35,381	$	12,346	$	5,223	$	17,569	$	7,049	$	4,082	$	11,131
Significant noncash items:
Stock-based compensation expense	34,906			25,183		60,089		2,234		4,361		6,595		1,561		3,046		4,607
Provisions for inventory	4,508			12,091		16,599		3,642		752		4,394		—		—		—
Warranty reserve expense	4,743			849		5,592		7,325		737		8,062		53		145		198