XTI Aerospace acquires Drone Nerds to expand U.S. vertical flight and drone capabilities

Summary Points:

• XTI Aerospace acquired Drone Nerds for about $40 million.
• The deal expands XTI’s UAS and vertical flight portfolio for commercial and defense markets.
• The partnership supports U.S. efforts to strengthen domestic drone manufacturing.

ENGLEWOOD, Colo. - XTI Aerospace Inc. has acquired Drone Nerds LLC, an American drone distributor and service provider, in a deal valued at about $40 million. XTI, which is based in Englewood, Colo., says the acquisition strengthens the company's position in the unmanned aircraft systems (UAS) and vertical flight markets.

XTI develops vertical flight technologies and the TriFan 600 next-generation vertical takeoff and landing (VTOL) aircraft for commercial and defense applications. The company said the acquisition expands its recurring revenue base and operational footprint.

Drone Nerds, based in Miami, generated more than $100 million in revenue in 2024 and reported over $55 million in revenue through June 2025.

Related: AVX Aircraft and XTI Aerospace team to develop TriFan 600 vertical lift aircraft

Immediately following the acquisition, XTI closed a $25 million private placement investment with Unusual Machines Inc. in Buffalo, N.Y., a strategic investor that manufactures and sells drone components across multiple brands. XTI issued 25,000 shares of Series 10 Convertible Preferred Stock at $1,000 per share, convertible into common stock at $1.492 per share pending shareholder approval under Nasdaq rules. XTI expects to seek that approval before year-end.

"The acquisition of Drone Nerds is a foundational step as we advance our strategy to build the most comprehensive portfolio of vertical flight and UAS capabilities in the industry," said Scott Pomeroy, CEO of XTI. "The addition of Drone Nerds significantly expands XTI’s scale, recurring revenue base, and near-term operating footprint."

Drone Nerds brings a broad portfolio of UAS hardware, software, and systems design expertise for corporate and consumer operations. The total purchase price includes $20 million in cash, $11.9 million in promissory notes, and $9.7 million in equity consideration. The latter can be exchanged for about 6.5 million XTI common shares in May 2026, representing 19.9 percent of XTI’s outstanding stock before the acquisition.

Allan Evans, CEO of Unusual Machines, said the transaction aligns with U.S. policy efforts to bolster domestic drone manufacturing. "Drone Nerds has an unprecedented opportunity to define the entire domestic drone landscape over the next few years as the U.S. intensifies its ban on Chinese drone companies," Evans said. "We are demonstrating our confidence in XTI’s strategy by our investment as we collectively build the American aerospace ecosystem."