10-KPeriod: FY2025

Meta Platforms, Inc. Annual Report, Year Ended Dec 31, 2025

Filed January 29, 2026For Securities:META

Summary

Meta Platforms, Inc. reported strong financial performance for the fiscal year ended December 31, 2025, with total revenue reaching $200.97 billion, a 22% increase year-over-year, primarily driven by advertising revenue. The company saw a 12% increase in ad impressions and a 9% increase in average price per ad. Despite increased operating expenses, particularly in research and development for AI initiatives, income from operations grew by 20% to $83.28 billion. The Reality Labs segment continued to be a significant investment area, reporting an operating loss of $19.19 billion for 2025, a slight increase from the prior year. This segment's performance reflects Meta's ongoing commitment to developing the next computing platform, with a substantial portion of expenses directed towards wearables and VR. Meta Platforms also continued its capital return program, repurchasing $26.26 billion of Class A common stock and paying $5.32 billion in dividends. The company ended the year with a strong liquidity position, holding $81.59 billion in cash, cash equivalents, and marketable securities. Regulatory and legal matters remain a significant focus, with ongoing engagement and potential impacts on operations and financial results.

Financial Highlights

52 data points
Beta

Revenue

$200.97B

82.0% Gross Margin

Net Income

$60.46B

30.1% Net Margin

EPS (Diluted)

$23.49

Total Assets

$366.02B

Cash & Equivalents

$35.87B

Free Cash Flow

$46.11B

Financial Statements
Beta
Revenue$200.97B
Cost of Revenue$36.17B
Gross Profit$164.79B
R&D Expenses$57.37B
Operating Expenses$117.69B
Operating Income$83.28B
Interest Expense$1.09B
Net Income$60.46B
EPS (Basic)$23.98
EPS (Diluted)$23.49
Shares Outstanding (Basic)2.52B
Shares Outstanding (Diluted)2.57B

Key Highlights

  • 1Total revenue grew 22% to $200.97 billion, driven by a 22% increase in advertising revenue.
  • 2Family of Apps (FoA) income from operations increased 18% to $102.47 billion, while Reality Labs (RL) reported an operating loss of $19.19 billion.
  • 3Daily active people (DAP) across Meta's Family of Apps increased 7% year-over-year to 3.58 billion on average in December 2025.
  • 4Research and development expenses increased significantly by 31% to $57.37 billion, largely due to investments in AI initiatives.
  • 5Meta repurchased $26.26 billion of its Class A common stock and paid $5.32 billion in dividends and dividend equivalents.
  • 6Cash, cash equivalents, and marketable securities stood at $81.59 billion as of December 31, 2025.
  • 7The company faces ongoing legal and regulatory challenges, including significant litigation related to data practices, privacy, and antitrust concerns.

Frequently Asked Questions

Meta Platforms reported a strong financial performance in 2025, with total revenue increasing by 22% to $200.97 billion. This growth was primarily driven by the Family of Apps segment, which saw a 22% rise in advertising revenue. Income from operations also increased by 20% to $83.28 billion, although costs and expenses rose due to significant investments in AI and infrastructure.

The Reality Labs (RL) segment reported an operating loss of $19.19 billion for 2025, an increase of 8% from the previous year. This reflects substantial ongoing investment in virtual and augmented reality technologies, including wearables and AI. Meta views RL as a long-term initiative crucial for building the next computing platform, with 70% of its 2026 operating expenses projected for wearables.

Meta faces significant risks and challenges, including intense competition in the social media and advertising markets, evolving privacy regulations (such as GDPR and new state-level laws), potential disruptions from third-party platform changes (like those from Apple and Google affecting ad targeting), and ongoing legal and regulatory scrutiny. The company is also heavily investing in AI and the metaverse, which are long-term, capital-intensive endeavors with uncertain market acceptance. Furthermore, Meta is involved in numerous significant legal proceedings that could result in substantial costs and changes to business practices.

Meta ended 2025 with a robust liquidity position, holding $81.59 billion in cash, cash equivalents, and marketable securities. The company continued its capital return program by repurchasing $26.26 billion of its Class A common stock and paying $5.32 billion in dividends and dividend equivalents. Meta also announced its intention to continue paying quarterly cash dividends.