Summary
Meta Platforms, Inc. reported strong top-line growth in its third quarter of 2025, with total revenue increasing by 26% year-over-year to $51.24 billion. This growth was primarily driven by a significant increase in advertising revenue, up 26%, reflecting both a 14% rise in ad impressions and a 10% increase in average price per ad. The Family of Apps (FoA) segment continues to be the primary revenue driver, with a 26% increase in revenue, while the Reality Labs (RL) segment also showed substantial growth, up 74% year-over-year, though it continues to operate at a significant loss. Despite robust revenue growth, Meta's net income saw a substantial decrease to $2.71 billion from $15.69 billion in the prior year's quarter. This decline is largely attributable to a one-time income tax charge of $15.93 billion related to the enactment of the "One Big Beautiful Bill Act" (OBBBA). Excluding this charge, operational performance remained strong, with income from operations increasing by 18% to $20.53 billion. The company's cash position remains healthy at $44.45 billion in cash, cash equivalents, and marketable securities, though this represents a decrease from the prior year due to significant capital expenditures and capital returns.
Financial Highlights
50 data points| Revenue | $51.24B |
| Cost of Revenue | $9.21B |
| Gross Profit | $42.04B |
| R&D Expenses | $15.14B |
| Operating Expenses | $30.71B |
| Operating Income | $20.54B |
| Net Income | $2.71B |
| EPS (Basic) | $1.08 |
| EPS (Diluted) | $1.05 |
| Shares Outstanding (Basic) | 2.52B |
| Shares Outstanding (Diluted) | 2.57B |
Key Highlights
- 1Total revenue increased 26% year-over-year to $51.24 billion, driven by a 26% rise in advertising revenue.
- 2Family of Apps (FoA) revenue grew 26% to $50.77 billion, while Reality Labs (RL) revenue increased 74% to $470 million.
- 3Income from operations rose 18% to $20.53 billion, demonstrating strong underlying business performance.
- 4Net income decreased to $2.71 billion from $15.69 billion due to a $15.93 billion tax charge related to the "One Big Beautiful Bill Act" (OBBBA).
- 5Daily Active People (DAP) across Meta's Family of Apps increased by 8% year-over-year to 3.54 billion.
- 6Capital expenditures were substantial at $19.37 billion for the quarter, reflecting ongoing investments in infrastructure and AI.
- 7The company repurchased $3.16 billion of its Class A common stock and paid $1.33 billion in dividends and dividend equivalents.