Meta Reports Strong Quarter and More Losses in Reality Labs

Meta Platforms’ revenue grew 16% to $42.3 billion in the first quarter of 2025, surpassing analysts’ average estimate of $41.4 billion. Net income increased 35% to $16.6 billion.

Its Reality Labs division recorded an operating loss of $4.2 billion and revenue of $412 million, down 6%. CFO Susan Li Li explained that the revenue decline was due in part to lower sales for its Quest headsets, which were slightly offset by increased sales of its Ray-Ban Meta AI glasses. She said expenses at the unit were $4.6 billion, up 8%, primarily driven by higher employee compensation.

Li said Meta expects Q2 revenue of between $42.5 billion and $45.5 billion, compared with analyst estimates of $44 billion. The company boosted its 2025 capex plans to between $64 billion and $72 billion. CEO Mark Zuckerberg stated earlier this year that it planned a capex of $60 billion to $65 billion to broaden its AI infrastructure.

The CFO stated the company expects full-year expenses in the range of $113 to $118 billion, lowered from a prior outlook of $114 to $119 billion. “This updated outlook reflects additional data centre investments to support our AI efforts, as well as an increase in the expected cost of infrastructure hardware,” added Li.