Skip to content
Drone Authority
Drone news desk
DevelopingPublic safetyIndustry3 min read

Axon to invest another $1.2 billion in Skydio and become its exclusive public safety distributor in the U.S. and Canada

Axon says the deal takes its fully diluted stake in Skydio to 37%, at a $5.2 billion pre-money valuation. The first purchase closed November 5, and Axon expects the rest in the fourth quarter and the first quarter of 2027. The same day, Axon said about $130 million in federal Dedrone counter-drone revenue has dropped out of its 2026 outlook.

By

What changed: Update and correction, November 6, 2026: This story said the transactions had not closed. Axon's Form 8-K, filed November 5, says the first one closed that day, so we corrected those lines. Axon bought 25 million non-voting Series G preferred shares from Skydio at $10.19617 a share, about $254.9 million. It pays half in cash and half in Axon stock, and the stock comes after the tender offer settles. The filing says that offer will start within ten business days, for up to 68,451,508 more shares at the same price. Axon expects to pay about 60% cash overall, about $720 million. It expects its stake to go from about 15% on September 30 to about 37% fully diluted once the deal is done. On the November 5 earnings call, Axon President Joshua Isner said federal procurement is moving "a bit slower around funding and election cycles." He put the three Dedrone deployments at about $130 million of revenue and $200 million of bookings. He said that if some are done before December 31, Axon will treat them as upside. The 8-K and the call do not say what happens to a deal an agency already has directly with Skydio.

Collage of Skydio Dock installations at public-safety, industrial, and infrastructure sites (Skydio file image)
Collage of Skydio Dock installations at public-safety, industrial, and infrastructure sites (Skydio file image). Image: Skydio

Decision brief

If you run a police or fire drone program in the U.S. or Canada, Axon says it will be the exclusive distributor for Skydio in public safety. Neither Axon document says what happens to an agreement an agency already holds directly with Skydio, so ask your Skydio or Axon representative.

Investment
$1.2 billion

Cash and Axon stock, subject to final terms, per Axon

Axon's stake
37%

Fully diluted, per Axon's shareholder letter

Remaining closings
Q4 2026 and Q1 2027

First purchase closed November 5; the rest are subject to customary closing conditions

The deal

Axon says the deal takes its Skydio stake to 37%.

Axon announced on November 5 an additional $1.2 billion investment in Skydio, the drone maker based in San Mateo, California. The release says the agreement adds about 20% to Axon's fully diluted ownership at a $5.2 billion pre-money valuation. Axon's shareholder letter, published the same day, says the deal takes that ownership to 37% and calls it the largest single investment in the company's history.

The channel

Axon says it will be Skydio's only public safety distributor in the U.S. and Canada.

The release says Axon "will also become" Skydio's exclusive distributor for public safety in the U.S. and Canada. The letter says Axon "is also now" that distributor. Adam Bry, Skydio's CEO, said in the release that the deal makes Axon "our exclusive channel for U.S. and Canadian public safety." Rick Smith, Axon's CEO, said "Skydio stays free to move fast." Neither document says what happens to an agreement an agency already holds directly with Skydio.

Drone first responder programsOur running ledger of city programs, with several Skydio programs and an Axon contract.St. Louis police drone rulesA city whose new program flies BRINC drones, approved this week.

The closing

One purchase has closed, and the rest have two windows.

The first purchase closed on November 5, according to Axon's Form 8-K. Axon says the roughly $1.2 billion is a mix of cash and Axon stock, subject to final terms. Part of it is primary capital for Skydio, and part buys shares from existing Skydio shareholders. Axon expects the remaining transactions to close in the fourth quarter of 2026 and the first quarter of 2027, subject to customary closing conditions.

Company figures

The numbers Axon reports for Skydio.

The other numbers are company figures. The release says Skydio serves more than 1,500 public safety customers and that more than 28 million Americans live within two miles of a Skydio first responder dock. It says priority response times have dropped by as much as 65% at agencies using the program, and that drones arrive before officers on roughly 80% of calls where they are deployed. It also says Skydio expects about $1 billion in total bookings in its current fiscal year, and it gives Axon's estimate of a $13 billion market for drone first response in the U.S. and Canada.

Skydio's dock countSkydio's July report of 1,070 docks and 4 million flights.

Counter-drone

$130 million in federal Dedrone revenue leaves the 2026 outlook.

The letter also carries news on counter-drone sales. Axon says three large federal Dedrone deployments, about $130 million of revenue, are no longer expected in 2026: one for $30 million that had been expected in the third quarter, and two totaling $100 million that had been expected in the fourth. Axon now expects full-year revenue growth of about 30%, down from its earlier 32% to 34%, and says the cut reflects those deployments. The letter calls the $30 million deployment a matter of timing. It does not name the agencies.

Local police counter-drone authorityThe rule that lets qualified state and local agencies seek counter-drone authority.

Source file

Verify the reporting

Continue on Drone Authority

Put the report to work

    Continue this beat

    More public safety reporting

    Follow public safety

    Editorial standard. Claims are tied to the sources on this page. Material corrections are logged publicly and can be sent to corrections@droneauthority.org.

    How the news desk works