Axon puts $1.2B into Skydio and becomes its exclusive public safety channel

The deal values Skydio at $5.2 billion before the new money and adds about 20 percentage points to Axon's fully diluted stake[1]. Axon's SEC filing says that takes it from about 15% at the end of September to about 37%, with roughly 60% of the consideration, about $720 million, paid in cash and the rest in Axon shares[2].

The investment mixes new capital for Skydio with purchases of shares from its existing investors[1]. The first piece closed on 5 November, when Axon bought 25 million Series G preferred shares for about $254.9 million, and the rest is expected to close across the fourth quarter of 2026 and the first quarter of 2027[2].

The bet is on what Axon calls Drone as First Responder, where docked drones launch to emergency calls before officers arrive. Skydio has more than 1,500 public safety customers, and more than 28 million Americans now live within two miles of a Skydio dock[1]. Axon says agencies using it have cut priority response times by as much as 65%, with drones arriving before officers on about 80% of calls where they are deployed[1].

Axon puts the market for these programmes at about $13 billion in the US and Canada alone, and says Skydio expects about $1 billion in bookings this financial year[1]. Docked Skydio drones deployed through Axon Air have more than doubled year on year, and Axon plans to tie them into its 911, Fusus, digital evidence and Dedrone airspace security products[3].

"Within a decade, millions of drones will be working across America," said Axon founder and CEO Rick Smith[1].

Skydio is the largest US-based drone maker and already sells to every branch of the US military and the forces of 32 allied nations[1]. Locking up its public safety channel gives Axon a hold on one of the fastest-growing uses of autonomous flying robots. Investors were less excited on the day: Axon shares fell about 14% in after-hours trading after it lowered its annual revenue growth forecast and missed third-quarter profit estimates, news it released alongside the deal[4].