Scottsdale – November 05, 2026 -- Axon (Nasdaq: AXON) is investing an additional $1.2 billion in drone maker Skydio at a $5.2 billion pre-money valuation, adding about 20% to its fully diluted ownership. The deal also makes Axon the exclusive distributor of Skydio drones for public safety in the U.S. and Canada.
Investment mixes cash and Axon stock, with primary and secondary components
The roughly $1.2 billion consists of cash and Axon stock, subject to final transaction terms. It includes primary capital to Skydio and purchases of shares from existing Skydio shareholders. A portion of the cash is earmarked as growth capital to speed innovation, expand Skydio's product portfolio and bring new drone capabilities to customers faster.
The transactions are expected to close in the fourth quarter of 2026 and the first quarter of 2027, subject to customary closing conditions.
Skydio expects about $1 billion in bookings this fiscal year
Skydio's business is growing rapidly and the company expects approximately $1 billion in total bookings in its current fiscal year. Axon estimates the total addressable market for Drone as First Responder (DFR) at approximately $13 billion in the U.S. and Canada alone, as thousands of agencies begin to evaluate and deploy the technology.
Skydio DFR docks now cover 28 million Americans within two miles
Skydio serves more than 1,500 public safety customers. More than 28 million Americans live within two miles of a Skydio DFR dock. At agencies deploying Skydio DFR, priority response times have fallen by as much as 65%. Drones arrive before officers on roughly 80% of the calls where they are deployed.
The expanded agreement builds on an existing partnership that already brings Skydio drones to U.S. public safety agencies and extends Axon's DFR program.
Axon CEO Smith ties exclusive rights to a wider lead in public safety drones
Axon founder and CEO Rick Smith said that "within a decade, millions of drones will be working across America." He said exclusive channel rights will widen Axon's lead in public safety drones, while Skydio remains free to move fast on aerial robotics.
Skydio CEO Adam Bry said the investment strengthens the company's ability to accelerate its technology roadmap and scale its public safety business. Skydio, founded in 2014 and headquartered in San Mateo, California, counts more than 4,000 agencies and organizations across the U.S. among its customers, as well as the armed forces of 32 allied nations.
Axon flags the risk that closing is delayed or does not occur, which could damage the commercial relationship between the two companies.