META
Updated: 25/09/2026, 16:04:18
Meta Platforms Inc., which operated as Facebook, Inc. until its October 2021 rebranding, is a technology enterprise focused on developing innovative products that empower people globally to connect and share with their friends and family. These services are accessible across a variety of digital platforms, including mobile phones, personal computers, virtual reality devices, and wearables. The company's activities are organized into two principal divisions: the Family of Apps and Reality Labs. The Family of Apps segment encompasses well-known platforms such as: Facebook, where users can share content, participate in discussions, explore new interests, and build connections. Instagram, a vibrant community dedicated to sharing visual media like photos and videos, sending private messages, and utilizing features such as user feeds, ephemeral stories, short video reels, live streams, and integrated shopping functionalities. Messenger, a dedicated application that facilitates text, audio, and video communications, enabling individuals to communicate with their social networks, communities, and even businesses across different devices and operating systems. WhatsApp, a widely adopted and secure messaging service employed by individuals and enterprises for private communication and financial transactions. The Reality Labs division concentrates on pioneering augmented and virtual reality technologies. This segment is responsible for creating consumer-grade hardware, sophisticated software, and engaging content, all aimed at fostering a sense of connection among people, regardless of their physical location or time zone. Meta Platforms Inc. was founded in 2004 and its corporate headquarters are situated in Menlo Park, California.
No summaries found.
Reported and calculated KPIs plus operational exposure disclosed in the FY 2025 filing.
Revenue
$201.0B
FY 2025 · Reported
Net income
$60.5B
FY 2025 · Reported
Gross margin
82.0%
FY 2025 · Calculated
Free cash flow
$46.1B
FY 2025 · Calculated
R&D intensity
28.5%
FY 2025 · Calculated
Share repurchases
$26.2B
FY 2025 · Reported
Other offerings mentioned without separate sales
Area-level product sales are displayed only when the filing reports a product × geography breakdown. Regional totals are not allocated across products by estimation.
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Pins show disclosed operations. The heatmap colors the filing’s reported geographies; regional figures shade the region and are not estimates for each country.
Only locations and quantities explicitly supported by the filing are displayed. A country-level manufacturing percentage or product allocation is shown only when the source discloses it; materiality scores are never presented as production shares.
Mission and product scope
Mission to build the future of human connection; products span mobile, PCs, VR headsets, and AI glasses; vision of personal superintelligence for everyone
“Our mission is to build the future of human connection and the technology that makes it possible.”
Two reportable segments
Two segments: Family of Apps (FoA) and Reality Labs (RL)
“We report financial results for two segments: Family of Apps (FoA) and Reality Labs (RL).”
Two reportable segments
Two reportable segments: Family of Apps (FoA) and Reality Labs (RL); FoA includes Facebook, Instagram, Messenger, WhatsApp; RL includes VR/AR consumer hardware, software, and content
“We report our financial results for our two reportable segments: Family of Apps (FoA) and Reality Labs (RL). FoA includes Facebook, Instagram, Messenger, WhatsApp, and other services. RL includes our virtual and augmented reality related consumer hardware, software, and content.”
Sales and distribution channels
Majority of marketers use self-service ad platform; also global sales force working directly and through ad agencies and resellers; offices in 90+ cities
“The majority of our marketers use our self-service ad platform to launch and manage their advertising campaigns.”
Family of Apps product portfolio
FoA products: Facebook, Instagram, Messenger, Meta AI, Threads, WhatsApp (incl. WhatsApp Channels broadcast service)
“•Facebook. Facebook helps give people the power to build community and bring the world closer together.”
Reality Labs hardware and wearables portfolio
RL products: Meta Quest VR + Meta Horizon Store; Ray-Ban Meta and Oakley Meta AI glasses; Orion AR prototype; Meta Ray-Ban Display with Meta Neural Band (electromyography wrist wearable)
“In 2025, we introduced Meta Ray-Ban Display, which combines our AI glasses with an integrated display built into the lens.”
Reels monetization lower than Feed and Stories
Reels expected to continue monetizing at a lower rate than Feed and Stories
“we plan to continue to promote Reels, which we expect will continue to monetize at a lower rate than our Feed and Stories products for the foreseeable future.”
Revenue concentration in advertising
Substantially all revenue from selling advertising placements to marketers (FoA); RL generates revenue from consumer hardware products, software, and content
“Currently, we generate substantially all of our revenue from selling advertising placements on our family of apps to marketers, which is reflected in FoA.”
FY2025 segment revenue: FoA and RL
FoA revenue $198,759M (2025) vs $162,355M (2024), +22%; RL revenue $2,207M vs $2,146M, +3%; Total $200,966M vs $164,501M, +22%
“Revenue$198,759$162,35522%$2,207$2,1463%$200,966$164,50122%”
FY2025 segment operating income/loss and margins
FoA operating income $102,469M (52% margin); RL operating loss $(19,193)M; total income from operations $83,276M (41% margin), +20% YoY
“Income (loss) from operations$102,469$87,10918%$(19,193)$(17,729)(8)%$83,276$69,38020%”
Segment profitability FY2025
FoA operating income $102.47B (+18%); Reality Labs loss $(19.19)B (loss widened 8%); total income from operations $83.28B (+20%) in 2025
“Family of Apps$102,469 $87,109 $62,871 18 %39 % Reality Labs(19,193)(17,729)(16,120)(8)%(10)% Total income from operations$83,276 $69,380 $46,751 20 %48 %”
Infrastructure and third-party dependencies
Own data centers plus substantial third-party infrastructure; depends on continued availability of components, power, and network capacity
“Our ability to provide and continue to innovate our products and services depends on the continued availability of components, power, and network capacity.”
2026 capex guidance $115-135 billion for AI and core business
Anticipated capital expenditures of approximately $115 billion to $135 billion in 2026 to support AI efforts and core business (vs $69.69B PP&E purchases in 2025)
“We anticipate making capital expenditures of approximately $115 billion to $135 billion in 2026 to support our AI efforts and core business.”
Capital expenditures FY2025
Capital expenditures, including principal payments on finance leases, were $72.22 billion for the year ended December 31, 2025
“Capital expenditures, including principal payments on finance leases, were $72.22 billion for the year ended December 31, 2025.”
TikTok named as competitive threat to engagement
TikTok has reduced some users' engagement with Meta's products
“User growth and engagement are also impacted by a number of other factors, including competitive products and services, such as TikTok, that have reduced some users' engagement with our products and services”
Competitive landscape
Competes on user engagement, advertising, developers, AI (particularly frontier AI models), and consumer hardware/AR/VR
“We also compete with companies in the development and application of AI, particularly with respect to the development of frontier AI models”
AI-driven computing needs expansion
Frontier AI model efforts drove significant expansion in computing needs beyond user growth and video/VR engagement; expected to continue expanding
“Our increased efforts toward building frontier AI models have driven a significant further expansion in our computing needs”
R&D expense up 31% on AI initiatives
R&D rose 31% to $57.37B (29% of revenue) in 2025, mostly from higher employee compensation and infrastructure costs including AI initiatives; 8% engineering headcount growth
“The increase was mostly due to higher employee compensation and infrastructure costs related to research and development, including our AI initiatives.”
Frontier AI and superintelligence R&D; Llama open source
Developing next-generation AI models toward superintelligence (AI surpassing human intelligence); history of open-sourcing Llama foundation models; will train combination of open and closed models
“We are also working to develop the next generation of AI models and advance our vision to build superintelligence, which we define as AI that surpasses human intelligence.”
Significant investments in AI including generative AI and superintelligence
Significant investments in AI initiatives including generative AI and superintelligence for content recommendation, ad tools, and new products; expects significantly increased infrastructure investment
“These efforts include significant investments in AI initiatives, including generative AI and superintelligence, to, among other things, recommend relevant content across our products, enhance our advertising tools, develop new products, and develop new features for existing products. In particular, we expect our AI initiatives will require significantly increased investment in infrastructure.”
2026 key investment areas
2026 investment focus: AI, Reels/discovery engine, wearables, monetization, youth, platform integrity and community support, infrastructure capacity
“In 2026, we intend to focus on several key investment areas: AI, Reels and our discovery engine, wearables, monetization of our products and services, youth, platform integrity and community support, and infrastructure capacity.”
Reality Labs metaverse strategy risk
Metaverse strategy with significant VR/AR investments; success uncertain, dependent on profits from core business
“We expect to continue to make significant investments in virtual and augmented reality and other technologies to support these efforts, and our ability to support these efforts is dependent on generating sufficient profits from other areas of our business.”
Cost of revenue increase drivers FY2025
Cost of revenue rose 20% to $36.18B in 2025, mainly from data center/infrastructure operational expenses and partner arrangements; depreciation growth slowed by extended server/network asset useful lives
“The increase was mainly due to higher operational expenses related to our data centers and technical infrastructure, which included decreases in the depreciation growth rate due to an extension in the useful lives of servers and network assets, effective January 1, 2025.”
G&A increase from legal-related costs
G&A rose 25% to $12.15B in 2025 on higher legal-related costs (lapping a $1.55B prior-year accrual benefit); M&S up 6% on platform integrity efforts
“The increase was mainly due to higher legal-related costs, which included lapping of a $1.55 billion decrease in accrued losses for certain legal proceedings that benefited the prior year.”
Reality Labs loss drivers
RL loss widened 8% to $19.19B in 2025 on higher personnel costs, estimated losses on non-cancelable RL inventory purchase commitments, and technology development costs
“RL costs and expenses increased primarily due to increases in employee compensation and other personnel related expenses, estimated losses on non-cancelable purchase commitments for RL inventory, and technology development costs.”
Long-term debt and liquidity position
Cash, cash equivalents, and marketable securities of $81.59 billion and long-term debt of $58.74 billion as of December 31, 2025
“Cash, cash equivalents, and marketable securities were $81.59 billion as of December 31, 2025. Long-term debt was $58.74 billion as of December 31, 2025.”
Liquidity, cash flows, and November 2025 Notes issuance
Cash+securities $81.59B at YE2025; operating cash flow $115.80B; $29.91B net proceeds from November 2025 fixed-rate senior unsecured notes; $72.22B capex; $31.57B capital returns
“Cash, cash equivalents, and marketable securities were $81.59 billion as of December 31, 2025, an increase of $3.78 billion from December 31, 2024.”
RL expected to operate at a loss
RL expected to operate at a loss for the foreseeable future; support for next computing platform depends on profits from other areas
“we expect our RL segment to continue to operate at a loss for the foreseeable future”
Reels monetization and younger-user competition outlook
Reels is growing in usage but monetizes at a lower rate than Feed and Stories and is expected to continue to do so; faces competition from other products among younger users; AI-powered discovery engine has improved engagement and monetization
“while Reels is growing in usage, it monetizes at a lower rate than our Feed and Stories products and we expect it will continue to monetize at a lower rate for the foreseeable future.”
2025 operating cash flow growth drivers
Operating cash flow of $115.80B in 2025 driven by customer cash collections on revenue growth and lower cash taxes, partially offset by higher operational spending
“The increase in cash flows from operating activities during 2025 compared to 2024, was primarily due to an increase in cash collections from our customers driven by the increase in revenue and lower cash paid for income taxes, partially offset by higher operational spending.”
EU/UK digital regulation exposure
Exposure to GDPR, DMA, DSA, UK OSA, EU AI Act, and UK DMCC
“including the General Data Protection Regulation (GDPR), Digital Markets Act (DMA), Digital Services Act (DSA), UK Online Safety Act (OSA), Artificial Intelligence Act (EU AI Act), and the UK Digital Markets, Competition and Consumer Act (DMCC)”
Ad revenue concentration risk
Substantially all revenue from advertising on Facebook and Instagram; no long-term marketer commitments
“Substantially all of our revenue is currently generated from marketers advertising on Facebook and Instagram. As is common in the industry, our marketers do not have long-term advertising commitments with us.”
Ad targeting/measurement limitations from regulation and platform changes (Apple iOS, GDPR, DMA, DSA)
Advertising revenue adversely affected by reduced marketer spending due to ad targeting/measurement limitations from regulatory developments (GDPR, DSA, DMA, ePrivacy, U.S. state privacy laws) and third-party platform changes (e.g., Apple iOS 2021 changes); impact expected to continue for the foreseeable future
“Our advertising revenue has been, and we expect will continue to be, adversely affected by reduced marketer spending as a result of limitations on our ad targeting and measurement tools arising from changes to the regulatory environment and third-party mobile operating systems and browsers.”
User retention and engagement risk
User growth/engagement declines could significantly harm revenue, particularly for Facebook and Instagram
“If we fail to retain existing users or add new users, or if our users decrease their level of engagement with our products, our revenue, financial results, and business may be significantly harmed.”
EU consent model and subscription-for-no-ads in response to European regulation
In response to European regulatory developments, changing legal basis for behavioral advertising on Facebook and Instagram in EU/EEA/Switzerland from 'legitimate interests' to 'consent', offering a 'subscription for no ads' alternative and a less personalized ads option; engaging with regulators on the consent model
“we announced our plans to change the legal basis for behavioral advertising on Facebook and Instagram in the European Union, European Economic Area, and Switzerland from "legitimate interests" to "consent," and began offering users in the region a "subscription for no ads" alternative.”
Governance risk from dual class structure
Founder-CEO controls majority voting power via dual class structure
“limitations on the ability of holders of our Class A Common Stock to influence corporate matters due to the dual class structure of our common stock and the control of a majority of the voting power of our outstanding capital stock by our founder, Chairman, and Chief Executive Officer (CEO).”
Content-related regulatory fines and service restrictions in multiple geographies
Subject to content-related fines, service blocking, and compliance obligations: fines in Turkey and Russia, EU Digital Services Act (applicable as of August 2023), Irish Online Safety and Media Regulation Act, UK Online Safety Act, and ended news content availability in Canada
“we have been subject to fines and may in the future be subject to other penalties in connection with social media legislation in Turkey, and we have been subject to fines and service blocking and prohibition in Russia.”
Risk of losing Facebook/Instagram in Europe over data transfers
Risk of inability to offer Facebook and Instagram in Europe due to data transfer legal basis invalidation
“we are unable to offer a number of our most significant products and services, including Facebook and Instagram, in Europe, or are otherwise limited in our business operations, as a result of European courts invalidating the EU-U.S. DPF”
Reality Labs consumer hardware experience gap
Limited experience in consumer hardware and VR/AR may let competitors compete more effectively
“we have relatively limited experience with consumer hardware products and virtual and augmented reality technology, which may enable other companies to compete more effectively than us.”
FTC consent order compliance
Subject to FTC consent order privacy compliance requirements
“our ability to comply with regulatory and legislative privacy requirements, including our consent order with the Federal Trade Commission (FTC)”
Russia government restrictions affected user growth
Russia's prohibition of Facebook/Instagram contributed to slight user base decreases since 2022
“in connection with the war in Ukraine, access to Facebook and Instagram was restricted in Russia and these services were then prohibited by the Russian government, which contributed to slight decreases in the size of our active user base”
AI competition risk
Faces competition in AI development, particularly frontier AI models
“We also compete with companies in the development and application of AI, particularly with respect to the development of frontier AI models”
Reliance on third-party mobile platforms for hardware interoperability
Hardware products depend on third-party mobile platforms for interoperability
“some of our consumer hardware products depend on the ability to operate with third-party mobile platforms and these platforms do not necessarily provide our products with the same levels of interoperability that they provide to their own competing products.”
Innovation/disruption risk
Business characterized by innovation, rapid change, and disruptive technologies; significant competition in every aspect
“Our business is characterized by innovation, rapid change, and disruptive technologies.”
Reduced availability of data signals for ad targeting
Reduced data signal availability threatens ad targeting and measurement
“reduced availability of data signals used by our ad targeting and measurement tools”
Litigation and class action exposure
Exposed to litigation, class actions, and regulatory investigations/investigations and settlements
“litigation, including class action lawsuits”
Substantially all Meta revenue comes from selling ad placements to marketers across its family of apps.
“we generate substantially all of our revenue from selling advertising placements on our family of apps to marketers”
Substantially all revenue depends on marketer advertising on Facebook and Instagram; marketer budgets can shift without long-term commitments.
“Substantially all of our revenue is currently generated from marketers advertising on Facebook and Instagram.”
Instagram advertising, together with Facebook, accounts for substantially all of Meta's revenue.
“Substantially all of our revenue is currently generated from advertising on Facebook and Instagram.”
Substantially all of Meta's revenue is generated from advertising on Facebook and Instagram, making the company highly dependent on these products' ad monetization.
“Substantially all of our revenue is currently generated from advertising on Facebook and Instagram.”
AI investments power content ranking, discovery engine, advertiser tools, generative AI experiences, and drive expanding computing/infrastructure needs.
“Our increased efforts toward building frontier AI models have driven a significant further expansion in our computing needs”
AI initiatives drive both R&D (+31%) and planned 2026 capex of $115-135B, making AI infrastructure the dominant cost and investment driver.
“We anticipate making capital expenditures of approximately $115 billion to $135 billion in 2026 to support our AI efforts and core business.”
FoA investments of $96.29 billion and RL investments of $21.40 billion in 2025, largely headcount, data centers, and technical infrastructure driven by AI efforts.
“Our FoA investments were $96.29 billion in 2025 and include expenses relating to headcount, data centers and technical infrastructure”
Complex evolving EU/UK digital regulations could impair advertising, product delivery, and increase costs.
“complex and evolving U.S. and foreign privacy, data use, data combination, data protection, content and content moderation, competition, youth, safety, consumer protection, advertising, and other laws and regulations”
AI initiatives (including generative AI and superintelligence) drive improved content recommendation, ad targeting, and engagement, while requiring significantly increased infrastructure investment and contributing to higher costs and capex.
“we are making significant investments in artificial intelligence (AI), including generative AI, to improve our delivery, targeting, and measurement capabilities.”
The majority of marketers purchase ads via Meta's self-service platform, a core distribution channel for ad revenue.
“The majority of our marketers use our self-service ad platform to launch and manage their advertising campaigns.”
OBBBA reduced U.S. federal cash taxes via immediate expensing of domestic R&D and certain capex but triggered a $15.93B charge incl. $14.03B valuation allowance due to 15% CAMT limits; 2026 ETR guided 13-16%.
“On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was enacted, introducing several significant U.S. income tax provisions that reduced our U.S. federal cash tax payments for the remainder of 2025 and future years.”
Product delivery and innovation depend on availability of components, power, network capacity, and third-party infrastructure.
“Our ability to provide and continue to innovate our products and services depends on the continued availability of components, power, and network capacity.”
GDPR and its evolving interpretation via the Court of Justice of the European Union have impacted Meta's ability to use data signals in ad products, reducing ad targeting and measurement effectiveness and pressuring advertising revenue.
“legislative and regulatory developments such as the General Data Protection Regulation, including its evolving interpretation through decisions of the Court of Justice of the European Union, ePrivacy Directive, European Digital Services Act, Digital Markets Act, and U.S. state privacy laws have impacted our ability to use data signals in our ad products”
Apple's iOS product and data-use policy changes reduced Meta's (and other iOS developers') ability to target and measure advertising, negatively impacting marketer budgets committed to Meta, with continued negative impact expected.
“in 2021, Apple made certain changes to its products and data use policies in connection with changes to its iOS operating system that reduce our and other iOS developers' ability to target and measure advertising, which has negatively impacted, and we expect will continue to negatively impact, the size of the budgets marketers are willing to commit to us”
Meta faces significant competition in AI development, particularly frontier AI models, plus AR/VR consumer hardware competition.
“We also compete with companies in the development and application of AI, particularly with respect to the development of frontier AI models”
Invalidation of data transfer legal bases could prevent offering Facebook and Instagram in Europe, a major market.
“we are unable to offer a number of our most significant products and services, including Facebook and Instagram, in Europe... as a result of European courts invalidating the EU-U.S. DPF”
Consumer hardware depends on third-party mobile platforms that may not offer equivalent interoperability; also risks around mobile operating systems and distribution.
“some of our consumer hardware products depend on the ability to operate with third-party mobile platforms”
The EU Digital Markets Act, alongside the Digital Services Act, is cited as a regulatory development impacting Meta's ad data signals and expected to have further impact.
“European Digital Services Act, Digital Markets Act, and U.S. state privacy laws have impacted our ability to use data signals in our ad products, and an increasing number of laws have been introduced limiting or prohibiting the provision of our services to younger users.”
TikTok competition has reduced some users' engagement, threatening ad impressions that drive revenue.
“competitive products and services, such as TikTok, that have reduced some users' engagement with our products and services”
Meta has open-sourced Llama foundation models and plans a combination of open and closed model training, part of its AI strategy.
“We have a history of open-sourcing in AI, including releasing our Llama foundation models as well as other models and tools”
Competition in AI development, particularly frontier models, is a key competitive exposure; AI initiatives also drive user growth efforts.
“We also compete with companies in the development and application of AI, particularly with respect to the development of frontier AI models”
Google, as a mobile operating system and browser provider, has implemented or announced product changes limiting signal collection for ad targeting and measurement, adversely affecting Meta's advertising business.
“mobile operating system and browser providers, such as Apple and Google, have implemented product changes and/or announced plans to limit the ability of websites and application developers to collect and use these signals to target and measure advertising.”
Compliance with the FTC consent order on privacy is an ongoing regulatory obligation.
“our ability to comply with regulatory and legislative privacy requirements, including our consent order with the Federal Trade Commission (FTC)”
FX changes had an unfavorable impact on Meta's 2025 revenue; constant-currency revenue was $418M/$420M higher than actual, showing non-USD billing/settlement currency exposure.
“Changes in foreign exchange rates had an unfavorable impact on our revenue in the full year 2025 compared to the same period in 2024.”
RL generates revenue from consumer hardware, software, and content but is expected to operate at a loss for the foreseeable future, funded by FoA profits.
“RL generates revenue from sales of consumer hardware products, software, and content.”
Enacted global minimum tax legislation had no material 2025 impact, but further enactments and expiring transitional relief could raise Meta's effective tax rate and cash tax payments.
“As additional jurisdictions enact legislation, transitional relief expires, and other provisions of the global minimum tax legislation become effective, our effective tax rate and cash tax payments could increase in future years.”
Russian government prohibition of Facebook/Instagram reduced user base; geopolitical events affect accessibility.
“beginning in 2022, our user growth and engagement were adversely affected by the war in Ukraine and service restrictions imposed by the Russian government”
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