Facebook parent company Meta has released its latest earnings report, and while the company made many billions of dollars in profit, not every business unit at the technology giant is profitable.
The company's Reality Labs division--which comprises virtual and augmented reality consumer hardware, software, and content--continued to be a sore spot for Meta. For the quarter that ended on December 31, Reality Labs recorded revenue of $955 million, down from $1.083 billion during the same period last year. Income for the quarter was non-existent--Reality Labs posted quarterly loss of $6.021 billion.
For the full year, Reality Labs pulled in revenue of $2.207 billion, which was an increase from the previous year's $2.146 billion. However, the increased revenue did not lead to increased profit. Instead, Reality Labs booked a $19.193 billion loss for the full year, compared to a loss of $17.729 billion during the previous year.
Although Reality Labs continues to be an ongoing miss for Meta, the company's other divisions are putting up strong numbers. Altogether, Meta posted $200.966 billion in revenue for the full year, with a profit of $60.458 billion. Meta ended 2025 with 78,865 employees, up 6% year-over-year.
Looking to the current fiscal year, Meta said Reality Labs will continue to lose money, with operating losses expected to remain similar to what they were in 2025.
In related news, Meta recently made drastic cuts to its Reality Labs division, shutting down the studios behind Deadpool VR, Asgard's Wrath 2, and Resident Evil 4 VR. The company also is said to have canceled a planned sequel to Batman: Arkham Shadow.
Meta's stock price, which closed at $668 on January 28, surged by more than 9% in after-hours trading following the company's outperformance against its earnings projections. JP Morgan recently raised its price target for Meta stock to $825 based in part on the company's strong revenue outlook. The company is heavily investing in artificial intelligence systems going forward, saying during the earnings briefing that it may spend as much as $135 billion on AI build-out in 2026 alone.
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The company's Reality Labs division--which comprises virtual and augmented reality consumer hardware, software, and content--continued to be a sore spot for Meta. For the quarter that ended on December 31, Reality Labs recorded revenue of $955 million, down from $1.083 billion during the same period last year. Income for the quarter was non-existent--Reality Labs posted quarterly loss of $6.021 billion.
For the full year, Reality Labs pulled in revenue of $2.207 billion, which was an increase from the previous year's $2.146 billion. However, the increased revenue did not lead to increased profit. Instead, Reality Labs booked a $19.193 billion loss for the full year, compared to a loss of $17.729 billion during the previous year.
Although Reality Labs continues to be an ongoing miss for Meta, the company's other divisions are putting up strong numbers. Altogether, Meta posted $200.966 billion in revenue for the full year, with a profit of $60.458 billion. Meta ended 2025 with 78,865 employees, up 6% year-over-year.
Looking to the current fiscal year, Meta said Reality Labs will continue to lose money, with operating losses expected to remain similar to what they were in 2025.
In related news, Meta recently made drastic cuts to its Reality Labs division, shutting down the studios behind Deadpool VR, Asgard's Wrath 2, and Resident Evil 4 VR. The company also is said to have canceled a planned sequel to Batman: Arkham Shadow.
Meta's stock price, which closed at $668 on January 28, surged by more than 9% in after-hours trading following the company's outperformance against its earnings projections. JP Morgan recently raised its price target for Meta stock to $825 based in part on the company's strong revenue outlook. The company is heavily investing in artificial intelligence systems going forward, saying during the earnings briefing that it may spend as much as $135 billion on AI build-out in 2026 alone.
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