Update on Leo and Satellite Connectivity

Amazon's Leo constellation is nearing service launch in 3Q26, despite significant launch provider delays. While Leo faces structural headwinds compared to industry leaders, the long-term outlook remains bullish as a strategic asset.

Key Takeaways

• 1.Amazon's Leo satellite constellation faces significant launch delays but remains a bullish long-term thesis.
• 2.Leo is expected to begin consumer service in 3Q26, with cost capitalization starting in 4Q26.
• 3.Globalstar acquisition is a key step in Amazon's D2D strategy, though the company awaits further clarity on constellation design.

Table of Contents

• U.S. Internet
• How Globalstar Fits into the Picture
• Analyst(s) Certification(s)
• Important Disclosures
• Availability of Disclosures
• Primary Stocks (Ticker, Date, Price)
• Disclosure Legend
• Risk Disclosure(s)
• Disclosure(s) regarding Information Sources
• Guide to the Barclays Fundamental Equity Research Rating System
• Distribution of Ratings
• Guide to the Barclays Research Price Target
• Types of investment recommendations produced by Barclays Equity Research
• Disclosure of other investment recommendations produced by Barclays Equity Research
• Legal entities involved in producing Barclays Research