Axon Invests $1.2 Billion in Skydio and Gains Exclusive Rights to Supply Drones to Public Safety Agencies
US company Axon, which makes police body cameras and software, has announced an additional $1.2 billion investment in drone maker Skydio. Under the deal, Axon becomes Skydio's exclusive distributor to public safety agencies in the United States and Canada.
Axon, a US company that supplies police body cameras, operations software and digital evidence management, has announced an additional $1.2 billion investment in drone maker Skydio. The two firms also agreed that Axon will become Skydio's exclusive distributor to public safety agencies in the United States and Canada. The deal expands an existing partnership and strengthens Axon's position in the market for Drone as First Responder (DFR) programs, in which drones are sent to emergency calls.
Stake rising to 37%
The investment values Skydio at $5.2 billion before the new funding. According to Axon's filing with the US Securities and Exchange Commission, its fully diluted stake in Skydio is expected to grow from about 15% to 37%. The sum includes cash and Axon stock, combining new capital for Skydio with purchases of shares from existing investors. The transactions are expected to close in stages in the fourth quarter of 2026 and the first quarter of 2027, subject to closing conditions.
Skydio expects roughly $1 billion in total bookings in its current fiscal year. Axon estimates the addressable market for DFR technology in the US and Canada at about $13 billion. The announcement followed Axon's third-quarter results, which showed record revenue of $909 million, up 28% year over year.
What exclusive distribution changes
Skydio reports more than 1,500 public safety customers and says over 28 million Americans live within two miles of a Skydio DFR dock. Agencies will be able to buy Skydio technology through Axon's sales network. The announcement does not say how the deal will affect existing Skydio distributors, integrators or customer contracts. Skydio can still serve other markets, including defense and commercial uses.
Skydio CEO Adam Bry said the investment will help accelerate the company's technology roadmap and scale its impact in public safety.
Integration with Axon's platform
Axon acquired Fusus, a real-time crime center platform, in 2024. It combines live video, location data and other information from drones, body cameras and fixed surveillance systems. Skydio drones can stream live video into Fusus. Axon Body 4 cameras support a feature called Watch Me, which lets officers request drone assistance; the alert passes through Fusus to Skydio DFR Command, where an available drone can be assigned. Drone footage can also feed into Axon's digital evidence workflow.
Axon says Skydio DFR deployments have cut priority response times by as much as 65%, with drones arriving before officers on about 80% of the calls where they are used. The figures are results reported by the companies, not performance across all DFR programs.
