From The Motley Fool · The Motley Fool Team · · 40s
Axon's $1.2B Skydio Investment for Public Safety
Axon invests $1.2 billion to secure 37% stake in Skydio for public safety drones.
In brief
Axon invests $1.2 billion to secure 37% stake in Skydio for public safety drones. Axon Enterprise's $1.2 billion investment in Skydio gives it exclusive U.S. and Canadian public safety drone distribution rights. Originally reported by The Motley Fool.
Axon's $1.2 Billion Skydio Investment
Axon announced a $1.2 billion investment to acquire a 37% stake in Skydio.
“So today, we announced an expanded commercial partnership with Skydio, along with an additional $1.2 billion investment that takes our fully diluted ownership to 37%.”
Federal Contract Delays Shift $130M Revenue
Federal contract delays shifted $130 million of revenue out of 2026.
“Together, they represent about $130 million of revenue and $200 million of bookings that we expected in the second half of this year.”
Software Revenue Grew 40% YoY
Software annual recurring revenue grew 40% year over year to $1.8 billion.
Inventory Purchases to Counter Supply Chain Risks
Management added over $100 million in inventory during the third quarter.
“Our inventory investment is affecting free cash flow this year, and we're actually accelerating some of that investment because we see the opportunity to get ahead of demand, especially in the Dedrone platform.”
The headline
Axon Enterprise's $1.2 billion investment in Skydio gives it exclusive U.S. and Canadian public safety drone distribution rights.
