XTI Aerospace has acquired Drone Nerds, one of the largest drone distributors and service providers in the United States. And it has closed a $25 million strategic investment from Unusual Machines, Inc., a leading manufacturer of drone components. The dual transaction marks a major milestone in XTI’s effort to expand its vertical flight and unmanned aircraft systems (UAS) portfolio.
The acquisition, finalized on November 10, 2025, brings Drone Nerds’ significant revenue base of over $100 million in 2024 and more than $55 million through the first half of 2025 into XTI’s growing aerospace ecosystem. Drone Nerds’ decade-long record of profitability and deep expertise in drone hardware, software, and enterprise UAS solutions positions XTI to scale rapidly within the emerging Vertical Economy.
The total purchase price for Drone Nerds was approximately $40 million, consisting of $20 million in cash from XTI’s reserves, $11.9 million in promissory notes (including $1.6 million in working capital adjustments), and $9.7 million in equity consideration. The equity portion will be convertible into approximately 6.5 million XTI common shares, commencing in May 2026, representing nearly 20% of XTI’s pre-acquisition shares. These shares will remain locked until November 2026. No XTI common stock was issued to Drone Nerds, Unusual Machines, or related parties at closing.
Immediately following the acquisition, XTI completed a $25 million private placement from Unusual Machines. The investment was structured as 25,000 shares of Series 10 Convertible Preferred Stock, each valued at $1,000, convertible into XTI common stock at $1.492 per share, pending shareholder approval under Nasdaq Listing Rule 5635. The company intends to seek this approval before the end of the year.
Through this acquisition, XTI gains Drone Nerds’ extensive dealer network, enterprise drone development expertise, and strategic foothold across commercial, defense, and consumer markets. The transaction strengthens XTI’s goal of creating the most comprehensive portfolio of vertical flight technologies, including its TriFan 600 aircraft and emerging drone and UAS capabilities.
ThinkEquity served as XTI’s exclusive M&A advisor for the acquisition and as placement agent for the Unusual Machines investment. Additional transaction details will be provided in a forthcoming Form 8-K filing with the U.S. Securities and Exchange Commission.
KEY QUOTES:
“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. The addition of Drone Nerds significantly expands XTI’s scale, recurring revenue base and near-term operating footprint.”
Scott Pomeroy, CEO, XTI Aerospace
“As the largest drone distributor in the United States, Drone Nerds brings deep technical expertise, broad industry reach, and strong alignment with XTI’s advanced aviation vision. We are excited about this next chapter as Drone Nerds continues to capture more and higher-margin enterprise business and we grow our influence in autonomous flight, drones-as-a-service, and first person view (FPV) immersive and dynamic drone use cases. We stand ready as an XTI company to support our expanding customer base with our unmatched sector knowledge, experience, dealer network, and service capabilities. We take pride in helping customers select secure, high-performance drone systems and software that improve operational efficiency.”
“We believe joining XTI positions Drone Nerds at the center of aviation’s next transformation. Together our solutions are aimed at enabling customers to realize meaningful cost efficiencies, as well as speed and competitive advantages that drones and unmanned flight can deliver across a variety of economic sectors from logistics and emergency response to defense, security, delivery, and energy, agriculture and infrastructure inspection. We have built a close relationship with the XTI executive team over the last several months and we are excited to support their innovative approach to advancing U.S. drone leadership consistent with the June 6, 2025, White House Executive Order on domestic drone development and the broader Vertical Economy framework.”
Jeremy Schneiderman, CEO, Drone Nerds
“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. We are excited to be a part of the Drone Nerds – XTI strategy and look forward to further strengthening our years-long relationship with Drone Nerds, and we are demonstrating our confidence in the XTI strategy by our investment as we collectively build the American aerospace ecosystem.”
Allan Evans, CEO, Unusual Machines
