XTEND, Quantum Systems Team Up for European NATO Customer

Israeli robotics company XTEND and German defense technology firm Quantum Systems have announced a partnership to develop and deliver integrated solutions for autonomous missions in defense, homeland security and public safety. Under the agreement, XTEND’s robotic systems and autonomy capabilities will be integrated into Quantum Systems’ MOSAIC UXS software environment.

According to the companies, the integration will enable a broad range of unmanned systems to operate together across the full mission cycle, from intelligence gathering and target detection to the coordination of multiple drones and robotic platforms and, ultimately, mission execution or strike operations. The partnership is already supporting a joint autonomous systems program for a customer in a European NATO member state. The customer’s identity, the program’s scope and the systems involved were not disclosed.

The program may be related to the multi-year contract worth up to $15 million that XTEND announced in August with the defense ministry of a European NATO member state. That contract included approximately $4.5 million in orders during its first year. However, the companies have not explicitly linked the two announcements.

Founded in 2015 and headquartered in Munich, Quantum Systems has evolved from a drone manufacturer into a multi-domain autonomous systems company. It employs more than 1,700 people across eight countries and develops aircraft, ground robots, counter-drone systems, sensors, and command-and-control software. In July 2026, the company completed a $1.2 billion funding round at a valuation of approximately $8 billion, backed by investors including Airbus.

Its best-known platform is the Vector AI, a vertical takeoff and landing drone designed for medium-range intelligence, surveillance and reconnaissance missions. The company also offers the Twister for short-range reconnaissance, the Reliant for long-range missions and the Trinity for mapping applications. At the same time, it is expanding into ground vehicles and drone interception systems.

Quantum Systems has a particularly strong presence in the European defense market. Its systems are supplied to Ukraine, partly with support from the German government, and the company has expanded its production capacity in Germany, Ukraine, Romania, the United Kingdom and the Baltic states.

In July, Quantum Systems also joined Project Conexus, a consortium that includes Oracle, Esri and Janes. The group is developing a common software environment designed to connect sensors, intelligence, decision-making systems and operational assets used by NATO militaries.

At the heart of Quantum Systems’ strategy is MOSAIC UXS, a mission management and command-and-control platform that connects drones, robots, sensors and effectors from different manufacturers within a single operational environment. The platform consolidates incoming sensor data, produces a shared operational picture and enables missions to be planned and coordinated across multiple domains.

XTEND’s XOS operating system will be integrated into this infrastructure. XOS enables drones and robots to operate in complex environments by combining autonomous capabilities with human supervision.

In practice, a Quantum Systems drone could detect a target from a distance and relay the information through MOSAIC. A platform controlled through XOS could then be deployed to approach the target, inspect it or carry out the mission. The companies also aim to simplify the user interface and allow new operators to achieve operational proficiency within days.

For XTEND, the partnership could help transform XOS from an operating system used primarily across its own product portfolio into an operational layer within the broader ecosystem of one of Europe’s leading defense drone companies.

XTEND Advances to Next Stage of Pentagon’s Drone Dominance Initiative

By Yohai Schwiger

Israeli drone technology company XTEND has advanced to Gauntlet II of the U.S. Department of Defense’s Drone Dominance program after being selected as one of just 19 companies from an initial field of 49 participants. During the next phase, scheduled for August at Fort Carson, Colorado, the company will demonstrate its STRIKER drone system while proving its ability to manufacture and deliver operational systems at industrial scale—a critical milestone toward participating in one of the Pentagon’s most ambitious drone procurement efforts.

The announcement, however, represents more than another achievement for XTEND. Drone Dominance provides a window into how the U.S. military is reshaping its approach to drone acquisition. Drawing lessons from the wars in Ukraine and the Middle East, the Pentagon is rebuilding America’s drone industrial base around a new principle: battlefield advantage depends not only on superior technology, but also on the ability to produce it rapidly and in large quantities.

Not Another Development Program—A Manufacturing Revolution

For years, the United States relied on sophisticated and expensive unmanned systems developed over lengthy, multi-year programs costing hundreds of millions of dollars. Recent conflicts have demonstrated that this model no longer matches the pace of modern warfare.

Small, inexpensive drones have become among the most influential weapons on today’s battlefield. They are affordable, easy to operate, rapidly upgradeable, and can be manufactured in volumes far beyond those of traditional weapon systems.

Against this backdrop, the Department of Defense launched Drone Dominance, an initiative designed to rapidly identify promising companies, evaluate their technologies, and transition them into military suppliers within months rather than years. The program is estimated to be worth roughly $1 billion and is expected to lead to procurement of tens of thousands of drones over the coming years.

Unlike traditional defense competitions, the Pentagon is no longer selecting only the best-performing drone. Participants must also demonstrate rapid manufacturing capability, resilient supply chains, scalable serial production, and the ability to evolve from innovative startups into reliable industrial suppliers.

A Test of Industry, Not Just Technology

The program’s first phase took place at Camp Grayling, Michigan, where the U.S. Army evaluated drone performance across a range of operational scenarios during both day and night.

The 19 companies advancing to Gauntlet II now face a fundamentally different challenge. Rather than showcasing prototypes, they must prove that their systems are ready for mass production, can be delivered quickly and at scale, and meet the demanding standards of the U.S. defense supply chain.

In effect, this is a test of industrial capability as much as technological innovation.

The Finalists Tell the Story

The shortlist combines established defense contractors with a new generation of drone companies. Alongside well-known names such as AeroVironment, Kratos, and Teal Drones are younger firms including Neros, Ascent AeroSystems, Ukraine’s General Cherry, and Israel’s XTEND.

The composition of the finalists reflects a broader shift in Pentagon thinking. Rather than relying primarily on traditional defense primes, the Department of Defense is increasingly looking to companies specializing in tactical drones, autonomy, and technologies developed at the pace demanded by rapidly evolving battlefields.

It is also notable that although the initiative aims to strengthen America’s domestic manufacturing base, several of the selected technologies originate abroad. XTEND is the only Israeli company to reach Gauntlet II, joined by firms with Ukrainian and European roots. The message is clear: the Pentagon wants manufacturing to take place in the United States but is willing to source innovation from anywhere in the world.

Lessons From Recent Battlefields

Russia’s invasion of Ukraine served as the primary catalyst for the Pentagon’s strategic shift. The conflict demonstrated how inexpensive FPV drones, produced in the thousands, could reshape the battlefield and inflict significant damage even on forces equipped with advanced and costly weapons.

More recently, the confrontation with Iran highlighted another critical challenge. Large-scale drone and missile attacks forced the United States and its allies to employ interceptors costing hundreds of thousands—or even millions—of dollars apiece. Beyond their high cost, these conflicts exposed how quickly interceptor inventories can be depleted while replacement production remains comparatively slow.

As a result, the Pentagon is seeking not only more capable drones but also platforms that can be manufactured rapidly, at scale, and at relatively low cost. The emphasis is shifting toward serial production, autonomy, resilience against electronic warfare, and the ability to replenish depleted inventories quickly.

For XTEND, advancing to Gauntlet II represents more than another technological milestone. The company already supplies systems to U.S. defense organizations, but Drone Dominance could position it within a much broader effort to build the next generation of drone suppliers for the U.S. military.

More broadly, the program illustrates a profound shift in American defense strategy: in the age of drones, military superiority is measured not only by the performance of individual systems, but also by the industrial capacity to manufacture thousands of them rapidly, affordably, and at the pace demanded by modern attritional warfare.

ParaZero Deepens Defense Shift with XTEND Partnership

[Image credit: ParaZero]

By Yohai Schwiger

A collaboration between two Israeli drone companies is targeting the defense market: ParaZero has announced a strategic partnership with XTEND, under which XTEND will integrate ParaZero’s Net Pod into its Scorpio 1000 interceptor drone. The system deploys a net designed to capture hostile drones and is embedded as the interception mechanism within XTEND’s platform.

The combination of XTEND’s fast, semi-autonomous drone with ParaZero’s capture capability is designed to deliver a non-destructive counter-drone solution. Instead of destroying a target, the interceptor drone pursues it and captures it using a net. This so-called “soft-kill” approach is particularly suited for urban environments and sensitive infrastructure, where kinetic interception could cause collateral damage.

First order likely tied to partnership

The Net Pod is a compact interception module that includes a deployable net and a rapid-launch mechanism. It operates without explosives, using pressurized gas to propel the net forward. Upon deployment, the net opens within a fraction of a second, with weighted edges allowing it to spread and envelop the target drone. The net entangles the propellers, disrupting flight and causing the drone to lose lift and fall. Its lightweight, modular design enables integration across multiple platforms, including interceptor drones, without significantly impacting performance.

The partnership was announced in late March. Just days later, ParaZero reported an order worth over $650,000 from a “Tier-1 international drone interception company,” including a commitment to purchase at least 2,000 Net Pod units. While the customer was not disclosed, the timing, product type, and reference to platform integration strongly suggest XTEND — potentially marking the first commercial execution of the partnership.

The Net Pod is part of ParaZero’s broader DefendAir system, a multi-layered counter-drone solution that includes ground-based detection (such as radar and sensors), command-and-control systems, interceptor drones, and handheld tools. Within the XTEND partnership, ParaZero supplies only the Net Pod component, delivered under an OEM model that allows integration into third-party platforms.

From civilian safety to defense growth

The latest move reflects a broader transformation at ParaZero. Founded in 2014, the company initially focused on drone safety systems, developing parachute solutions (SafeAir) to prevent crashes in populated areas. It later expanded into precision airdrop systems (DropAir). Today, ParaZero is increasingly focused on the defense market, particularly counter-drone technologies.

In a recent shareholder letter, the company’s CEO described 2025 as a “transformational year,” stating that ParaZero is “positioning itself as a Tier-1 defense provider and focusing on execution and sales in the defense market.” Financial results reflect a company in transition: revenue reached approximately $1.05 million in 2025 (up about 12%), while net losses widened and operating expenses increased significantly. At the same time, ParaZero reported approximately $1.28 million in orders early in 2026 — exceeding its full-year 2025 revenue.

In recent months, ParaZero has announced multiple business developments, including partnerships with drone companies, orders from defense customers in Israel and abroad, distribution agreements in Europe, and live demonstrations for NATO-related stakeholders — all part of an effort to establish a foothold in the growing counter-UAS market.

ParaZero is listed on the NASDAQ with a market capitalization of roughly $20 million, reflecting its early-stage position. The company went public in July 2023 at a valuation of around $50 million, and its stock has since lost nearly 70% of its value.

From Drones to Command: XTEND Software Integrates into Lockheed Martin’s U.S. Military C2 Stack

Lockheed Martin has announced a collaboration between its advanced development arm, Skunk Works, and Israeli drone manufacturer XTEND, aimed at integrating XTEND’s XOS operating system into Skunk Works’ MDCX command-and-control platform. As part of the partnership, the two companies conducted an operational pilot in which a large drone carried a smaller drone into the operational area, deployed it for a tactical mission, and enabled seamless control of both platforms through a single system operated by one user. The demonstration underscores a fundamental shift in how modern militaries design and operate unmanned systems on the battlefield.

To understand the significance of the move, it must be viewed in the broader context of the Pentagon’s evolving command-and-control doctrine. In recent years, the U.S. Department of Defense has been advancing the JADC2 concept—short for Joint All-Domain Command and Control—designed to connect all branches of the military, across all domains, into a single, continuous command network. The core idea is that every sensor, of any type, can contribute to a shared operational picture, enabling rapid decision-making and coordinated action even in contested environments marked by jamming and electronic warfare.

Skunk Works plays a central role in translating such concepts into operational systems. As Lockheed Martin’s advanced innovation and development division, it operates as a semi-autonomous unit and has been responsible for breakthrough defense technologies for decades. In recent years, Skunk Works has expanded its focus beyond platforms and airframes toward software, artificial intelligence, and command-and-control layers that connect multiple systems into a single coordinated force.

XTEND as a Tactical Control Layer: Linking Large and Small Drones

Skunk Works’ MDCX platform is designed as a multi-domain command-and-control layer that integrates sensors, manned and unmanned platforms, and diverse data sources into a single interface. MC-MDCX—the configuration into which XTEND’s operating system was integrated—is specifically intended to manage platforms from different categories, such as a large drone and a small tactical drone, within a single mission flow, without requiring control to be handed off between operators.

This is where XTEND comes in. While the company is best known as a manufacturer of tactical drones, its core technology lies not in the airframe itself but in the operating system developed to control it. XTEND’s XOS is designed to enable intuitive and precise control of tactical drones in complex operational environments, while reducing operator cognitive load and shortening training time. Accordingly, the collaboration with Lockheed Martin is primarily focused on software rather than on a specific drone platform, and on how this tactical control layer integrates into broader command-and-control architectures.

XTEND’s XOS is integrated within Skunk Works’ MDCX command-and-control platform, which serves as the top-level control layer in Lockheed Martin’s multi-domain C2 experiments. Within this framework, XOS functions as the operating layer for the small tactical drone, creating a continuous interface between the operation of the larger aerial platform and the deployment of the smaller drone. The integration allows a single operator to manage transitions between platforms within the same mission context, without switching between separate systems or losing operational awareness—reducing cognitive burden and minimizing real-time points of failure.

The operational need to combine large and small drones has become increasingly evident in recent years. Small drones are inexpensive, precise, and difficult to detect, but limited in range and endurance. Larger drones can travel long distances, loiter for extended periods, and serve as carrier platforms, but are more expensive and more conspicuous. Combining the two enables deep penetration and the deployment of low-cost, precise effectors at the right place and time—provided the command-and-control system can support such integration.

Another Layer in a Deepening Relationship with the U.S. Military

While Skunk Works remains an innovation laboratory rather than a full-scale acquisition program, a successful maturation of the concept could eventually see XTEND’s control system embedded at the heart of U.S. military command-and-control architectures. In this context, the collaboration with Lockheed Martin represents another step in XTEND’s deepening ties with the U.S. military, which already makes extensive use of the company’s solutions. XTEND supplies the U.S. Army with thousands of drones, operates a manufacturing facility in the United States, and is developing advanced capabilities for the simultaneous control of multiple drones, in line with the military’s transition toward autonomous and multi-platform formations.

The fact that Lockheed Martin—one of the Pentagon’s most significant defense contractors—is integrating XTEND’s software layer into an advanced command-and-control platform points to a deeper level of integration between the company’s Israeli-developed technology and the U.S. operational ecosystem, as well as alignment with the emerging drone strategy of the U.S. Army.

Xtend to Develop AI-Enabled One-Way Attack Drone Swarm for the U.S. DoW

Israeli drone maker Xtend has secured a multi-million-dollar contract from the U.S. Department of War (DoW) to develop and supply One-Way Attack (OWA) drones — single-use loitering munitions designed to strike a target and detonate on impact. The new system will be the first operational solution of its kind globally that enables a single operator to command and deploy a coordinated swarm of disposable attack drones. Production will take place at Xtend’s Tampa, Florida facility, inaugurated only a few months ago and now serving as the company’s main U.S. manufacturing hub.

Under the contract, Xtend will deliver the drones as a complete combat kit, including a command-and-control station, interchangeable payload and sensor modules, onboard safety systems, batteries, and field-ready accessories. The system is built around dual-comms resilience — a fiber-optic tether combined with hardened RF — ensuring precise, zero-latency control even in heavy electronic-warfare conditions. This architecture is designed to preserve continuity of mission and maintain control despite jamming attempts or signal degradation.

Because the drones carry explosive payloads, Xtend places strong emphasis on safety mechanisms, particularly the Electronic Safe-and-Arm Device (ESAD). This unit ensures the warhead cannot arm or ignite until all authorized conditions are met — a certified firing command, sensor verification, and proper flight parameters. The U.S. configuration incorporates a High-Voltage ESAD, an electronic ignition system designed to prevent accidental detonation caused by low-voltage electrical noise, adding another layer of controlled, deliberate activation.

Despite being single-use munitions, the new platform will support coordinated swarm operation: multiple drones flown and managed simultaneously by one operator. This represents a major innovation in the OWA domain, enabling complex battle formations such as saturating enemy defenses, distributing tasks across multiple drones, and striking several targets at once. In this concept, the operational advantage comes not from any individual drone, but from the swarm acting as an integrated unit.

“This is the world’s first operational system that enables a single operator to remotely command and deploy swarms of AI-enabled tactical drones,” said Xtend Co-Founder and CEO Aviv Shapira. “After years of real-world combat deployments across five war zones, this is not a prototype or experiment — it’s a battle-proven system, built on lessons learned, that provides warfighters with reach and an unmatched tactical overmatch.”

The award comes as the U.S. military undertakes its most ambitious drone-procurement initiative to date. As recently reported by Reuters, the United States plans to acquire one million drones over the next two to three years, a dramatic increase from its current annual procurement rate of roughly 50,000. The shift reflects deep lessons from the Russia-Ukraine war and the central role drones now play in modern combat.

Within this broader transformation, the new program positions Xtend among a small group of companies worldwide developing AI-driven OWA systems with true operational swarm capability.

Xtend Inaugurates Drone Manufacturing Facility in the U.S.

Xtend, a Tel Aviv-based drone company, inaugurated a new production facility this week in Tampa, Florida. The plant spans 8,000 square meters and is located near MacDill Air Force Base, home to the headquarters of U.S. Special Operations Command (SOCOM), one of Xtend’s primary clients. The new facility has the capacity to produce several thousand drones per year across all of the company’s models and is expected to employ several dozen workers. Xtend also has the option to double the plant’s size in the future.

Production at the site is already underway, fulfilling an order placed in 2023 by the U.S. Department of Defense for hundreds of drones manufactured by Xtend. CEO Aviv Shapira told Tampa Bay’s Channel 13 that the proximity to SOCOM is no coincidence, noting that “SOCOM was our first client, and it remains the company’s largest customer since day one.”

The facility will serve as Xtend’s main manufacturing hub, supporting growing demand not only from U.S. defense agencies but also from NATO member states. “This will be a production arm capable of fulfilling orders worldwide,” said co-founder Rubi Liani in a statement to Techtime. Initially, the factory will focus on producing drones already ordered by the U.S. Department of Defense. Later on, it will expand to manufacture key components such as communication modules, motors, and controllers, which will be supplied to other drone manufacturers operating in the U.S.

During the inauguration ceremony, company representatives highlighted the plant’s importance for U.S. national security, aligning with the federal government’s current strategy to strengthen domestic supply chains. “We are not just building drones—we are building capabilities, resilience, and trust. This is a major milestone for Xtend in the United States,” said Shapira. The company also emphasized the strong support it received from local authorities in establishing the facility.

Xtend’s portfolio includes three drone models, all of which have been ordered by the U.S. Department of Defense. The Wolverine is a tactical multi-mission drone equipped with advanced surveillance and maneuvering capabilities, as well as a robotic arm that can lift and remove suspicious objects without destabilizing the drone. The Griffone is a lightweight interceptor drone, weighing just one kilogram, designed to neutralize small- to medium-sized drones. It can hover up to five kilometers away, reach speeds of 130 kilometers per hour, and intercept targets using a ramming arm. It is also compatible with external command and control systems.

The third model, Xtender, is a micro-tactical drone designed for operations in complex urban environments. Its unique capability lies in entering buildings, gathering intelligence, and exiting the scene undetected. The combination of these three platforms enables a wide range of mission profiles to be executed seamlessly from end to end.

All three drones are operated remotely via Xtend’s proprietary operating system, which allows users to control the drones using simple hand gestures—even during complex maneuvering. For example, to instruct a drone to enter a specific window or remove an explosive device, the operator simply points at the location and issues the command. The user interface leverages gaming and virtual reality technologies, giving the operator the sensation of seeing through the “eyes” of the drone. Thanks to this intuitive system, even untrained users can learn to operate the drones after just a few hours or days of instruction.

[In the photo: from the inauguration ceremony. Source: Xtend]

Xtend to acquire Singapore-based Performance Rotors

Performance Rotors, founded in 2016, develops small, innovative aerial drone solutions designed for inspection missions. The company focuses on monitoring oil and gas infrastructure and the maritime inspection of containers and cargo ships. Together with thermal and visual sensors, the company’s flagship product, Raven, is equipped with ultrasonic depth detectors (UTG/UTM), providing high-resolution depth images. In addition, due to its small size – 12×16 in – the drone can fly in narrow spaces and is GPS-independent.

One of the strategic investors and also a client of Performance Rotors is the Dutch Royal Vopak, which specializes in storing and maintaining materials for the chemicals, shipping, gas, and oil industries. Although based in Singapore, an international maritime trade hub, Performance Rotor’s activity spans Asia, Europe, and the U.S, and its clients carry out projects in the oil, gas, infrastructure, and shipping markets. 

Xtend developed  operating system for drones operators, that enables anyone to efficiently operate the drone, even on complicated maneuvering missions, with short hours or days of training. In addition, the interface is based on gaming and VR technologies and gives the operator a sense of watching events through the eyes of the drone.

Thus, for instance, to command the drone to enter a building through a specific window or move out an explosive device, the operator is required to point the window in the building or mark towards the explosive device and order the operation. The IDF already uses this system and successfully intercepts thousands of incendiary balloons and kites in the Gaza Envelope. In addition, the company signed a contract last year for delivering more than 100 drones to the US Army, and it currently develops new solutions for the IDF and the US Ministry of Defense.

Xtend also owns a drone line branded Wolverine, mainly used for battlefield missions such as removing explosive loads, entering buildings, and leading troops. However, Xtend is primarily a software company, and its flagship product is the operating system.

[Picture above: by Xtend]