Axon (Nasdaq: AXON), the global leader in public safety technology, today announced an additional $1.2 billion investment in Skydio. The agreement, which will add approximately 20% to Axon’s fully diluted ownership in Skydio at a $5.2 billion pre-money valuation, builds on a partnership that is already bringing Skydio drones to public safety agencies across the U.S., marking a major expansion of Axon’s Drone as First Responder (DFR) program.

Axon will also become Skydio’s exclusive distributor for public safety in the U.S. and Canada. Skydio serves more than 1,500 public safety customers, and more than 28 million Americans now live within two miles of a Skydio DFR dock. At agencies deploying Skydio DFR, priority response times have been reduced by as much as 65%, with drones arriving before officers on roughly 80% of calls where they are deployed. That earlier visibility can support safer responses, help de-escalate potentially deadly situations, locate missing children and other vulnerable people, and improve outcomes when every second matters.

“Within a decade, millions of drones will be working across America. Skydio is positioned to lead in every sector they touch,” said Rick Smith, Founder and CEO of Axon. “Axon is taking a major stake in one of the most valuable categories in tech, and Skydio stays free to move fast. With exclusive channel rights, Axon will widen its lead in public safety drones as Skydio builds the future of American aerial robotics. Two companies, each the best at what it does, will build something far bigger than either could alone.”

“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. This investment strengthens our ability to accelerate our technology roadmap, scale our impact in public safety and continue advancing autonomous flight across every critical industry we serve.”

Axon estimates the total addressable market for DFR at approximately $13 billion in the U.S. and Canada alone, an opportunity fully accessible through its partnered offering as thousands of agencies begin to evaluate and deploy DFR technology. That opportunity is already translating into significant commercial momentum: Skydio’s business is seeing rapid growth and expects to achieve approximately $1 billion in total bookings in its current fiscal year.

Axon’s investment consists of approximately $1.2 billion comprised of a mix of cash and Axon stock, subject to final transaction terms. The investment includes both primary capital to Skydio and the purchase of shares from existing Skydio shareholders, with a portion of the cash consideration providing growth capital to accelerate innovation, expand Skydio’s product portfolio and bring new drone capabilities to customers faster. Axon’s larger ownership stake lets it participate in that growth. The transactions comprising the investment are expected to close in the fourth quarter of 2026 and first quarter of 2027, subject to customary closing conditions.