What’s the story?
Meta’s 2025 financial results show Reality Labs operating losses widened to USD $19.19 billion, even as the division recorded a slight full-year revenue increase to USD $2.21 billion.
Why it matters
Despite multi-billion dollar losses in Reality Labs, Meta is doubling its 2026 capital expenditure to USD $135 billion to support the development of personal superintelligence.
The bigger picture
As Meta prioritizes Superintelligence Labs, the company is recalibrating Reality Labs to focus on wearables, even as quarterly revenue from the segment continues to decline.
January 29, 2026 – Meta has reported its financial results for the fourth quarter and full year ended December 31, 2025. Total company revenue for 2025 was USD $200.97 billion, with the majority generated by advertising across the company’s Family of Apps.
“We had strong business performance in 2025,” said Mark Zuckerberg, Meta founder and CEO. “I’m looking forward to advancing personal superintelligence for people around the world in 2026.”
Meta reports its financial results across two operating segments: Family of Apps and Reality Labs. The Family of Apps segment includes Facebook, Instagram, Messenger, WhatsApp, and other services, while Reality Labs covers the company’s virtual and augmented reality consumer hardware, software, and content.
For the full year 2025, Reality Labs reported revenue of just under $2.21 billion, a slight increase from the $2.15 billion recorded in 2024. However, operating losses for the division widened. The segment recorded a full-year operating loss of $19.19 billion, compared to a loss of $17.73 billion in the previous year.
In the fourth quarter of 2025, Reality Labs’ revenue was $955 million, representing a decline from the $1.08 billion reported in the same period in 2024. Operating losses for the quarter reached $6.02 billion.
Regarding the outlook for 2026, Meta’s Chief Financial Officer stated that the company expects Reality Labs operating losses to remain similar to 2025 levels. Total capital expenditures for 2026 are anticipated to be in the range of $115-135 billion. Meta noted that year-over-year growth in spending will be driven by increased investment to support its Meta Superintelligence Labs efforts and core business infrastructure.
Meta reported a total headcount of 78,865 as of December 31, 2025. However, that figure does not account for recent job cuts reported earlier this month. The company stated that employee compensation will be the second-largest contributor to expense growth in 2026, as it continues to invest in technical talent to support priority areas such as artificial intelligence (AI).
To view Meta’s full financial results for 2025, please visit the company’s investor relations website.
Image credit: Meta
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Sam is the Founder and Managing Editor of Auganix, where he has spent years immersed in the XR ecosystem, tracking its evolution from early prototypes to the technologies shaping the future of human experience. While primarily covering the latest AR and VR news, his interests extend to the wider world of human augmentation, from AI and robotics to haptics, wearables, and brain–computer interfaces.