After expanding their partnership, Axon has become the exclusive distributor for Skydio in the field of public safety in the United States and Canada.

Scottsdale, Arizona, November 5, 2026 / PRNewswire / -- Global public safety technology company Axon ( Nasdaq : AXON ) announced today that it will make an additional $1.2 billion investment in Skydio. According to the announcement, this agreement will increase Axon's fully diluted shareholding by approximately 20%, based on a pre-investment valuation of $5.2 billion. This agreement builds upon the existing cooperation between the two parties; currently, this collaboration has brought Skydio drones to public safety agencies across the United States and marks a significant expansion of Axon's "Drones First Response" ( Drone as First Responder , DFR ) program.

Axon will also become the exclusive distributor of Skydio in the field of public safety in the United States and Canada. Skydio serves over 1,500 public safety customers, and currently, more than 28 million people in the United States live within two miles of the Skydio DFR hangar. The announcement states that in institutions that have deployed Skydio DFR, the response time has been reduced by up to 65%; in calls involving drones, drones arrive at the scene before officers in about 80% of cases. This ability to obtain visual information on the scene earlier helps to respond more safely, assist in de-escalating potentially fatal situations, search for missing children and other vulnerable groups, and improve outcomes in times of critical urgency.

Axon Founder and CEO Rick Smith stated: "In the next decade, millions of drones will be put to work across the United States. Skydio is poised to take a leading position in every field it enters. Axon has acquired significant stakes in one of the most valuable categories in the technology sector, while Skydio can still advance freely and rapidly. With exclusive channel rights, as Skydio shapes the future of aerial robotics technology in the U.S., Axon will further expand its lead in the field of public safety drones. By doing their best in their respective areas, the two companies will jointly create a business that far exceeds what either could achieve on its own."

Skydio CEO Adam Bry stated: " Axon has always been an outstanding partner in our efforts to bring drones to American public safety customers. We are delighted to further deepen this partnership, with Axon becoming our exclusive channel in the fields of public safety in the United States and Canada. This investment enhances our ability to accelerate our technology roadmap, expand our influence in the public safety sector, and continue to drive the development of autonomous flight in the key industries we serve."

Axon It is estimated that the total service market size in the United States and Canada alone for DFR is approximately $13 billion. As thousands of organizations begin to evaluate and deploy DFR technology, this opportunity can be fully utilized through products provided by collaboration between both parties. The announcement states that this opportunity has already been transformed into significant commercial momentum: Skydio business is growing rapidly and is expected to achieve total orders of about $1 billion in the current fiscal year.

Axon indicates that the total investment amount is approximately $1.2 billion, consisting of a mix of cash and Axon shares, with the specifics still subject to the final transaction terms. This investment includes both the injection of tier one capital into Skydio and the purchase of shares from existing shareholders of Skydio; part of the cash consideration will be used as growth capital to accelerate innovation, expand the Skydio product portfolio, and bring new drone capabilities to customers more quickly. Axon states that a higher shareholding ratio will also enable them to participate in this growth. The transactions constituting this investment are expected to be completed in the fourth quarter of 2026 and the first quarter of 2027, but they still need to meet the usual delivery conditions.

About Axon

Axon ( Nasdaq : AXON ) is a global public safety technology company that provides technologies designed with the goal of "protecting lives" for state, local, federal, and international public safety agencies. As an extension of its mission, Axon's continuously expanding corporate market focuses on protecting critical infrastructure and frontline workers, covering multiple industries such as corporate security, hospitality, retail, and healthcare. Led by its founder since 1993, Axon signifies the company's commitment to creating products in a transparent and responsible manner. From TASER electroshock devices to today's interconnected hardware networks – including cameras, drones, and robots – as well as cloud software, sensors, and AI tools, Axon's ecosystem is aimed at seamlessly protecting people and premises at critical moments. To ensure that these technologies meet community expectations, Axon's independent Ethics and Fairness Advisory Committee ( EEAC ) provides guidance on the ethical, inclusive, and accountable design of its products and services.

The announcement states that trademarks other than Axon are the property of their respective owners. Axon, TASER, and Delta Logo are trademarks of Axon Enterprise, Inc. Some of these trademarks have been registered in the United States and other countries.

About Skydio

Skydio indicates that the company is the largest domestic drone manufacturer in the United States and a global leader in the field of flying robots. Skydio was established in 2014 and utilizes breakthrough autonomous technologies supported by AI to create drones that are easier to operate, safer to fly, and more capable in complex environments. The announcement states that the Skydio system has gained the trust of over 4,000 institutions and organizations in the fields of public safety and critical infrastructure in the United States, all branches of the U.S. military, as well as the armed forces of 32 allied countries. Skydio designs, assembles, and supports its products at its headquarters in San Mateo, California.

Forward-looking Statements

The announcement states that the forward-looking statements in this press release include, but are not limited to: Axon future performance, as well as the expected benefits from the proposed strategic investment; the anticipated timing and requirements for the completion of the strategic investment; the current and future business relationships between Axon and Skydio; the timing and financial impact of the strategic investment, as well as other uncertainties and contingent matters related to the aforementioned items; expectations regarding the current and future product and service markets; and similar expressions regarding management's strategy, objectives, and purposes.

The announcement states that such statements reflect the company's current expectations or forecasts for future events and do not strictly correspond to historical or current facts. Terms such as “may”, “will”, “should”, “could”, “would”, “predict”, “potential”, “continue”, “expect”, “anticipate”, “future”, “intend”, “plan”, “believe”, “estimate”, and other phrases in the future tense are typically used to identify forward-looking statements, but not all forward-looking statements will contain these terms.

Axon indicates that the company cannot guarantee that any forward-looking statements will necessarily come to fruition, despite its belief that it has been prudent in its planning and assumptions. The realization of future results is subject to risks, uncertainties, and potential inaccuracies in those assumptions.Important factors that may lead to significant differences between actual results and forward-looking statements include: the possibility that strategic investments are not completed or are completed delayed, and the resulting negative impact on the business relationships between Axon and Skydio; failure to meet the conditions for the delivery of strategic investments; negative impacts arising from announcements of strategic investments; potential litigation related to strategic investments; the risk of government contracts being cancelled due to the exercise of non-allocation clauses, cancellation clauses, or the non-exercise of optional contract terms; the ability of regulatory authorities to obtain funds, including funds based on tax revenue; the company's ability to design, launch, and sell new products, services, or features; the ability to respond to litigation and protect intellectual property rights and the associated costs; the ability to win bids in public bidding processes of government agencies; the ability to manage the supply chain and avoid production delays, shortages, and impacts on expected gross margins; the effects of inflation, macroeconomic conditions, and global events; the impact of catastrophic events or public health emergencies; the impact of stock-based incentive expenses, impairment expenses, and income tax expenses on financial results; customer purchasing behavior, including the adoption of the software as a service delivery model; negative media coverage or market sentiment surrounding the company's products; the impact of various factors on expected gross margins; product defects or misuse; changes in product components and labor costs; loss of customer data, security vulnerabilities, or prolonged interruptions, including those caused by third-party cloud storage service providers; exposure to international operational risks; delays in payment collection and potential credit losses due to subscription models; changes in government regulations in the United States and overseas markets, particularly those related to the classification of the company's products by the U.S. Alcohol, Tobacco, Firearms, and Explosives Administration; the ability to integrate acquired businesses; the impact of a decline in the fair value of investments or impairment, including strategic investments; the ability to attract and retain key personnel; litigation or investigations and the associated time and costs; and counterparty risks associated with holding cash balances exceeding federal insurance limits.

The announcement also stated that many events beyond the company's control may determine whether its expected results can be achieved. If known or unknown risks and uncertainties become a reality, or if fundamental assumptions prove to be inaccurate, the actual results may differ significantly from past results as well as expected, estimated, or projected outcomes. The company noted that these factors are intended to serve as a cautionary statement to investors and are governed by Section 21E of the revised 1934 Securities Exchange Act and Section 27A of the revised 1933 Securities Act. Readers can find relevant information under the "Risk Factors" heading in the annual and quarterly reports for the year Axon. The company also emphasized that it is not possible to predict or identify all such factors, and therefore the aforementioned list should not be considered as a comprehensive collection of all potential risks or uncertainties.

Except as required by law, Axon states that it has no obligation to publicly update forward-looking statements due to new information, future events, or other reasons. However, the company recommends that readers refer to further disclosures made on related topics in its 8-K, 10-Q, and 10-K reports; these documents can be found on the U.S. Securities and Exchange Commission's website at www.sec.gov.

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