01—Abstract
Summary
Summary of the 10-Q filed July 31, 2025. Cited figures are marked; the original filing is the authoritative source.
Meta Platforms, Inc. (META) reported strong financial performance for the second quarter and the first half of 2025, demonstrating robust revenue growth driven by its Family of Apps (FoA) segment.
Total revenue increased by 22% year-over-year to $47.52 billiona for the quarter, and by 19% for the first six months to $89.83 billion. This growth was primarily fueled by a 21% increase in advertising revenue, attributed to higher ad impressions and an improved average price per ad. Income from operations also saw a significant uplift of 38% year-over-year for the quarter.
The company continues to invest heavily in its AI initiatives and the Reality Labs (RL) segment, which incurred an operating loss of $4.53 billionb for the quarter. Despite these investments, Meta Platforms maintained strong profitability in its core advertising business.
The company also returned substantial capital to shareholders through share repurchases and dividend payments, while managing its cash position effectively. Investors should note the ongoing legal and regulatory scrutiny, particularly concerning data privacy and competition, which could pose future risks.
02—Key points
Key Highlights
- Total revenue reached $47.52 billion for Q2 2025, a 22% increase year-over-year.
- Income from operations grew by 38% year-over-year to $20.44 billion in Q2 2025.
- Family of Apps (FoA) revenue increased by 22% year-over-year to $47.15 billion in Q2 2025.
- Reality Labs (RL) segment reported an operating loss of $4.53 billion for Q2 2025, with continued significant investments expected.
- Diluted Earnings Per Share (EPS) was $7.14 for Q2 2025.
- Capital expenditures for Q2 2025 were $17.01 billion.
- Meta Platforms repurchased $9.76 billion of its Class A common stock and paid $1.33 billion in dividends during Q2 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, Meta Platforms, Inc. kept $0.39.
- Revenue$47.52B100.0%
- Cost of revenue−$8.49B17.9%
- Gross profit$39.02B82.1%
- Operating costs−$18.58B39.1%
- Operating income$20.44B43.0%
- Interest, other & tax−$2.10B4.4%
- Net income$18.34B38.6%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed July 31, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $47.52B$39.07B | +21.6% |
| Cost of Revenue | $8.49B$7.31B | +16.2% |
| Gross Profit | $39.02B$31.76B | +22.9% |
| R&D Expenses | $12.94B$10.54B | +22.8% |
| Operating Expenses | $27.07B$24.22B | +11.8% |
| Operating Income | $20.44B$14.85B | +37.7% |
| Net Income | $18.34B$13.46B | +36.2% |
| EPS (Basic) | $7.28$5.31 | +37.1% |
| EPS (Diluted) | $7.14$5.16 | +38.4% |
| Shares Outstanding (Basic) | 2.52B2.53B | −0.6% |
| Shares Outstanding (Diluted) | 2.57B2.61B | −1.5% |
05—Questions
Frequently Asked Questions
How did Meta's revenue perform in the second quarter of 2025?
Meta Platforms reported total revenue of $47.52 billion for the second quarter of 2025, representing a significant 22% increase compared to the same period in 2024. This growth was primarily driven by its Family of Apps segment, with advertising revenue increasing by 21%.
What is the financial performance of the Reality Labs segment?
The Reality Labs segment continues to incur operating losses, reporting a loss of $4.53 billion for the second quarter of 2025. This reflects the company's ongoing significant investments in virtual, augmented, and mixed reality technologies, with continued losses expected for the full year.
How is Meta returning capital to shareholders?
During the second quarter of 2025, Meta Platforms repurchased $9.76 billion of its Class A common stock. Additionally, the company paid $1.33 billion in dividends and dividend equivalents, demonstrating a strong commitment to returning capital to shareholders.
What are the key factors impacting Meta's advertising revenue?
Meta's advertising revenue is driven by increases in ad impressions and average price per ad. The company cited ongoing improvements in ad targeting and measurement tools, along with strong demand from verticals like online commerce, as key drivers for the revenue growth. However, it also noted potential headwinds from regulatory changes and platform provider policies impacting data signals.
06—Continue