Meta Reports Second Quarter 2025 Results

Meta Platforms, Inc. (Nasdaq: META) today reported financial results for the quarter ended June 30, 2025.

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“We've had a strong quarter both in terms of our business and community,” said Mark Zuckerberg, Meta founder and CEO. “I'm excited to build personal superintelligence for everyone in the world.”

Second Quarter 2025 Financial Highlights

Three Months Ended June 30, % ChangeIn millions, except percentages and per share amounts 2025 2024Revenue $ 47,516 $ 39,071 22%Costs and expenses 27,075 24,224 12%Income from operations $ 20,441 $ 14,847 38%Operating margin 43% 38%Provision for income taxes $ 2,197 $ 1,641 34%Effective tax rate 11% 11%Net income $ 18,337 $ 13,465 36%Diluted earnings per share (EPS) $ 7.14 $ 5.16 38%

Second Quarter 2025 Operational and Other Financial Highlights

— Family daily active people (DAP)- DAP was 3.48billion on average for June 2025, an increase of 6% year-over-year.

— Ad impressions- Ad impressions delivered across our Family of Apps increased by 11% year-over-year.

— Average price per ad- Average price per ad increased by 9% year-over-year.

— Revenue- Revenue was $47.52 billion, which increased by 22% year-over-year on both a reported and constant currency basis.

— Costs and expenses- Total costs and expenses were $27.07 billion, an increase of 12% year-over-year.

— Capital expenditures- Capital expenditures, including principal payments on finance leases, were $17.01 billion.

— Capital return program- Share repurchases of our Class A common stock were $9.76 billion and total dividend and dividend equivalent payments were $1.33 billion.

— Cash, cash equivalents, and marketable securities- Cash, cash equivalents, and marketable securities were $47.07billion as of June30, 2025. Cash flow from operating activities was $25.56 billion and free cash flow was $8.55 billion.(1)

— Headcount- Headcountwas 75,945 as of June30, 2025, an increase of 7% year-over-year.

____________________________________(1) For more information on our free cash flow non-GAAP financial measure, see the sections entitled “Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Results” in this press release.

CFO Outlook Commentary

We expect third quarter 2025 total revenue to be in the range of $47.5-50.5 billion. Our guidance assumes foreign currency is an approximately 1% tailwind to year-over-year total revenue growth, based on current exchange rates. While we are not providing an outlook for fourth quarter revenue, we would expect our year-over-year growth rate in the fourth quarter of 2025 to be slower than the third quarter as we lap a period of stronger growth in the fourth quarter of 2024.

We expect full year 2025 total expenses to be in the range of $114-118 billion, narrowed from our prior outlook of $113-118 billion and reflecting a growth rate of 20-24% year-over-year.

While we are still very early in planning for next year, there are a few factors we expect will provide meaningful upward pressure on our 2026 total expense growth rate. The largest single driver of growth will be infrastructure costs, driven by a sharp acceleration in depreciation expense growth and higher operating costs as we continue to scale up our infrastructure fleet. Aside from infrastructure, we expect the second largest driver of growth to be employee compensation as we add technical talent in priority areas and recognize a full year of compensation expenses for employees hired throughout 2025. We expect these factors will result in a 2026 year-over-year expense growth rate that is above the 2025 expense growth rate.

We currently expect 2025 capital expenditures, including principal payments on finance leases, to be in the range of $66-72 billion, narrowed from our prior outlook of $64-72 billion and up approximately $30 billion year-over-year at the mid-point. While the infrastructure planning process remains highly dynamic, we currently expect another year of similarly significant capital expenditures dollar growth in 2026 as we continue aggressively pursuing opportunities to bring additional capacity online to meet the needs of our artificial intelligence efforts and business operations.

With the enactment of the new U.S. tax law, we anticipate a reduction in our U.S. federal cash tax for the remainder of the current year and future years. There are several alternative ways of implementing the provisions of the Act, which we are currently evaluating. While we estimate that the 2025 tax rate will be higher than our second quarter rate, we cannot quantify the magnitude at this time.

In addition, we continue to monitor an active regulatory landscape, including the increasing legal and regulatory headwinds in the EU that could significantly impact our business and our financial results. For example, we continue to engage with the European Commission (EC) on our Less Personalized Ads offering (LPA), which we introduced in November 2024 based on feedback from the EC in connection with the Digital Markets Act (DMA). As theEC provides further feedback on LPA, we cannot rule out that it may seek to impose further modifications to it that would result in a materially worse user and advertiser experience. This could have a significant negative impact on our European revenue, as early as later this quarter. We have appealed the EC's DMA decision but any modifications to our model may be imposed during the appeal process.

Webcast and Conference Call Information

Meta will host a conference call to discuss its results at 2:00 p.m. PT / 5:00 p.m. ET today. The live webcast of the call can be accessed at the Meta Investor Relations website at investor.atmeta.com, along with the company's earnings press release, financial tables, and slide presentation.

Following the call, a replay will be available at the same website. Transcripts of conference calls with publishing equity research analysts held today will also be posted to the investor.atmeta.com website.

Disclosure Information

Meta uses the investor.atmeta.com and meta.com/news websites as well as Mark Zuckerberg's Facebook Page (facebook.com/zuck), Instagram account (instagram.com/zuck) and Threads profile (threads.net/zuck) as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

About Meta

Meta is building the future of human connection, powered by artificial intelligence and immersive technologies. When Facebook launched in 2004, it changed the way people connect. Apps like Messenger, Instagram, and WhatsApp further empowered billions around the world. Now, Meta is moving beyond 2D screens toward experiences that foster deeper connections and unlock new possibilities.

Contacts

Investors: Kenneth Dorell investor@meta.com/ investor.atmeta.com

Press: Ashley Zandy press@meta.com/ meta.com/news

Forward-Looking Statements

This press release contains forward-looking statements regarding our future business plans and expectations. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors including: the impact of macroeconomic conditions on our business and financial results, including as a result of geopolitical events; our ability to retain or increase users and engagement levels; our reliance on advertising revenue; our dependency on data signals and mobile operating systems, networks, and standards that we do not control; changes to the content or application of third-party policies that impact our advertising practices; risks associated with new products and changes to existing products as well as other new business initiatives, including our artificial intelligence initiatives and Reality Labs efforts; our emphasis on community growth and engagement and the user experience over short-term financial results; maintaining and enhancing our brand and reputation; our ongoing privacy, safety, security, and content and advertising review and enforcement efforts; competition; risks associated with government actions that could restrict access to our products or impair our ability to sell advertising in certain countries; litigation and government inquiries; privacy, legislative, and regulatory concerns or developments; risks associated with acquisitions; security breaches; our ability to manage our scale and geographically-dispersed operations; and market conditions or other factors affecting the payment of dividends. These and other potential risks and uncertainties that could cause actual results to differ from the results predicted are more fully detailed under the caption “Risk Factors” in our Quarterly Report on Form 10-Q filed with the SEC on May 1, 2025, which is available on our Investor Relations website at investor.atmeta.com and on the SEC website at www.sec.gov. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2025. In addition, please note that the date of this press release is July 30, 2025, and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update these statements as a result of new information or future events.

For a discussion of limitations in the measurement of certain of our community metrics, see the section entitled “Limitations of Key Metrics and Other Data” in our most recent quarterly or annual report filed with the SEC.

Non-GAAP Financial Measures

To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States (GAAP), we use the following non-GAAP financial measures: revenue excluding foreign exchange effect, advertising revenue excluding foreign exchange effect, and free cash flow. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In addition, these measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures.

We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating our business.

Our non-GAAP financial measures are adjusted for the following items:

Foreign exchange effect on revenue. We translated revenue for the three and six months ended June 30, 2025 using the prior year's monthly exchange rates for our settlement or billing currencies other than the U.S. dollar, which we believe is a useful metric that facilitates comparison to our historical performance.

Purchases of property and equipment; Principal payments on finance leases. We subtract both purchases of property and equipment, and principal payments on finance leases in our calculation of free cash flow because we believe that these two items collectively represent the amount of property and equipment we need to procure to support our business, regardless of whether we procure such property or equipment with a finance lease. We believe that this methodology can provide useful supplemental information to help investors better understand underlying trends in our business. Free cash flow is not intended to represent our residual cash flow available for discretionary expenditures.

For more information on our non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures, see the “Reconciliation of GAAP to Non-GAAP Results” table in this press release.

META PLATFORMS, INC.CONDENSED CONSOLIDATED STATEMENTS OF INCOME(In millions, except per share amounts)(Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024Revenue $ 47,516 $ 39,071 $ 89,830 $ 75,527Costs and expenses:Cost of revenue 8,491 7,308 16,063 13,948Research and development 12,942 10,537 25,092 20,515Marketing and sales 2,979 2,721 5,735 5,285General and administrative 2,663 3,658 4,943 7,114Total costs and expenses 27,075 24,224 51,833 46,862Income from operations 20,441 14,847 37,997 28,665Interest and other income, net 93 259 919 624Income before provision for income taxes 20,534 15,106 38,916 29,289Provision for income taxes 2,197 1,641 3,935 3,455Net income $ 18,337 $ 13,465 $ 34,981 $ 25,834Earnings per share:Basic $ 7.28 $ 5.31 $ 13.87 $ 10.17Diluted $ 7.14 $ 5.16 $ 13.56 $ 9.86Weighted-average shares used to compute earnings pershare:Basic 2,518 2,534 2,522 2,540Diluted 2,570 2,610 2,580 2,619META PLATFORMS, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(In millions)(Unaudited) June 30, 2025 December 31, 2024AssetsCurrent assets:Cash and cash equivalents $ 12,005 $ 43,889Marketable securities 35,066 33,926Accounts receivable, net 16,561 16,994Prepaid expenses and other current assets 9,981 5,236Total current assets 73,613 100,045Non-marketable equity investments 21,988 6,070Property and equipment, net 147,039 121,346Operating lease right-of-use assets 15,662 14,922Goodwill 20,654 20,654Other assets 15,788 13,017Total assets $ 294,744 $ 276,054Liabilities and stockholders' equityCurrent liabilities:Accounts payable $ 10,271 $ 7,687Operating lease liabilities, current 1,977 1,942Accrued expenses and other current liabilities 25,057 23,967Total current liabilities 37,305 33,596Operating lease liabilities, non-current 18,751 18,292Long-term debt 28,832 28,826Long-term income taxes 12,046 9,987Other liabilities 2,740 2,716Total liabilities 99,674 93,417Commitments and contingenciesStockholders' equity:Common stock and additional paid-in capital 88,496 83,228Accumulated other comprehensive income (loss) 229 (3,097)Retained earnings 106,345 102,506Total stockholders' equity 195,070 182,637Total liabilities and stockholders' equity $ 294,744 $ 276,054META PLATFORMS, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(In millions)(Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024Cash flows from operating activitiesNet income $ 18,337 $ 13,465 $ 34,981 $ 25,834Adjustments to reconcile net income to net cash provided by operatingactivities:Depreciation and amortization 4,342 3,637 8,242 7,011Share-based compensation 4,834 4,616 8,981 8,178Deferred income taxes (1,170) (1,643) (2,163) (2,098)Unrealized loss on marketable equity securities 511 – 374 -Other (336) 35 (430) 209Changes in assets and liabilities:Accounts receivable (1,338) (1,171) 1,466 1,350Prepaid expenses and other current assets 326 (84) 686 16Other assets (190) 54 (242) (41)Accounts payable 460 250 (574) (862)Accrued expenses and other current liabilities (1,107) (497) (3,338) (1,771)Other liabilities 892 708 1,604 790Net cash provided by operating activities 25,561 19,370 49,587 38,616Cash flows from investing activitiesPurchases of property and equipment (16,538) (8,173) (29,479) (14,573)Purchases of marketable securities (7,746) (3,289) (19,509) (10,176)Sales and maturities of marketable securities 14,273 3,233 19,057 7,858Purchases of non-marketable equity investments (15,114) (7) (15,214) (7)Payments for held-for-sale assets (775) – (775) -Acquisitions of businesses and intangible assets (61) (57) (62) (129)Other investing activities 3 (5) 14 (5)Net cash used in investing activities (25,958) (8,298) (45,968) (17,032)Cash flows from financing activitiesTaxes paid related to net share settlement of equity awards (4,110) (3,208) (8,993) (6,370)Repurchases of Class A common stock (10,167) (6,299) (22,921) (21,307)Payments for dividends and dividend equivalents (1,327) (1,266) (2,656) (2,539)Principal payments on finance leases (474) (299) (1,225) (614)Other financing activities 101 (106) 323 (115)Net cash used in financing activities (15,977) (11,178) (35,472) (30,945)Effect of exchange rate changes on cash, cash equivalents, and restrictedcash 131 (152) 243 (440)equivalentsNet decrease in cash, cash equivalents, and restricted cash equivalents (16,243) (258) (31,610) (9,801)Cash, cash equivalents, and restricted cash equivalents at beginning ofthe period 30,071 33,284 45,438 42,827Cash, cash equivalents, and restricted cash equivalents at end of theperiod $ 13,828 $ 33,026 $ 13,828 $ 33,026Reconciliation of cash, cash equivalents, and restricted cashequivalents to thecondensed consolidated balance sheetsCash and cash equivalents $ 12,005 $ 32,045 $ 12,005 $ 32,045Restricted cash equivalents, included in prepaid expenses and othercurrent assets 161 100 161 100Restricted cash equivalents, included in other assets 1,662 881 1,662 881Total cash, cash equivalents, and restricted cash equivalents $ 13,828 $ 33,026 $ 13,828 $ 33,026Supplemental cash flow dataCash paid for income taxes, net $ 5,096 $ 5,929 $ 5,544 $ 6,559

Segment Results

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, augmented, and mixed reality related consumer hardware, software, and content.

The following table sets forth our segment information of revenue and income (loss) from operations:

Segment Information(In millions)(Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024Revenue:Advertising $ 46,563 $ 38,329 $ 87,955 $ 73,965Other revenue 583 389 1,093 769Family of Apps 47,146 38,718 89,048 74,734Reality Labs 370 353 782 793Total revenue $ 47,516 $ 39,071 $ 89,830 $ 75,527Income (loss) from operations:Family of Apps $ 24,971 $ 19,335 $ 46,736 $ 36,999Reality Labs (4,530) (4,488) (8,739) (8,334)Total income from operations $ 20,441 $ 14,847 $ 37,997 $ 28,665Reconciliation of GAAP to Non-GAAP Results(In millions, except percentages)(Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024GAAP revenue $ 47,516 $ 39,071 $ 89,830 $ 75,527Foreign exchange effect on 2025 revenue using 2024 rates 82 1,319Revenue excluding foreign exchange effect $ 47,598 $ 91,149GAAP revenue year-over-year change % 22% 19%Revenue excluding foreign exchange effect year-over-year change % 22% 21%GAAP advertising revenue $ 46,563 $ 38,329 $ 87,955 $ 73,965Foreign exchange effect on 2025 advertising revenue using 2024 rates 80 1,304Advertising revenue excluding foreign exchange effect $ 46,643 $ 89,259GAAP advertising revenue year-over-year change % 21% 19%Advertising revenue excluding foreign exchange effect year-over-year 22% 21%change %Net cash provided by operating activities $ 25,561 $ 19,370 $ 49,587 $ 38,616Purchases of property and equipment (16,538) (8,173) (29,479) (14,573)Principal payments on finance leases (474) (299) (1,225) (614)Free cash flow $ 8,549 $ 10,898 $ 18,883 $ 23,429

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