Axon to Invest $1.2B in Skydio, Gain Exclusive Public Safety Distribution Rights

Axon (Nasdaq: AXON) announced an additional $1.2 billion investment in drone manufacturer Skydio and an agreement to become its exclusive distributor for public safety in the U.S. and Canada, expanding the companies’ Drone as First Responder partnership.

The agreement will add approximately 20% to Axon’s fully diluted ownership in Skydio at a $5.2 billion pre-money valuation. The investment will consist of a mix of cash and Axon stock, subject to final transaction terms.

The transactions include both new capital for Skydio and purchases of shares from existing shareholders. A portion of the cash consideration will provide growth capital to expand Skydio’s product portfolio and accelerate development of new drone capabilities.

The transactions are expected to close in the fourth quarter of 2026 and first quarter of 2027, subject to customary closing conditions.

Expanding the public safety partnership

Skydio serves more than 1,500 public safety customers, and more than 28 million Americans live within two miles of a Skydio Drone as First Responder, or DFR, dock, according to the announcement.

The release reports that priority response times at agencies deploying Skydio DFR have been reduced by as much as 65%, with drones arriving before officers on roughly 80% of calls where they are deployed. The earlier visibility can help responders assess situations, support de-escalation and locate missing children and other vulnerable people.

“Axon has been an incredible partner in bringing our drones to public safety customers across the U.S.,” said Adam Bry, CEO of Skydio. “We’re excited to deepen that partnership with Axon becoming our exclusive channel for U.S. and Canadian public safety.”

Bry said the investment strengthens Skydio’s ability to accelerate its technology roadmap, expand its public safety work and advance autonomous flight across the industries it serves.

Market opportunity and growth expectations

Axon estimates the total addressable market for DFR at approximately $13 billion in the U.S. and Canada. According to the announcement, thousands of agencies are beginning to evaluate and deploy the technology.

Skydio expects to achieve approximately $1 billion in total bookings in its current fiscal year.

“Axon is taking a major stake in one of the most valuable categories in tech, and Skydio stays free to move fast,” said Rick Smith, founder and CEO of Axon. “With exclusive channel rights, Axon will widen its lead in public safety drones as Skydio builds the future of American aerial robotics.”