Meta Platforms, Inc. reported robust fourth-quarter results for 2025, driven by continued growth across its Family of Apps and strategic investments in AI and advertising technology.
According to CFO Susan Li, “Our community across the Family of Apps continues to grow, and we estimate more than 3.5 billion people used at least one of our Family of Apps on a daily basis in December.”
The segment generated $58.9 billion in revenue for the quarter, up 25% year-over-year, with advertising revenue totaling $58.1 billion, a 24% increase—or 23% on a constant currency basis.
Meta noted that ad impressions grew 18% year-over-year, driven primarily by engagement and user growth, while the average price per ad rose 6% thanks to increased advertiser demand. “Family of Apps other revenue was $801 million, up 54%, driven by WhatsApp paid messaging revenue growth as well as Meta Verified subscriptions,” Li added.
Reality Labs, Meta’s AR/VR division, generated $955 million in Q4 revenue, down 12% year-over-year. Li explained the decline: “The year-over-year decline in Reality Labs revenue is due to us lapping the introduction of Quest 3S in Q4 of 2024 as well as retail partners procuring Quest headsets during the third quarter of 2025 to prepare for the holiday season, which was recorded as revenue in Q3.”
In Q4, the total number of ad impressions served across our services increased 18%. Impression growth was healthy across all regions, driven primarily by engagement and user growth and to a lesser degree, ad load optimizations. The average price per ad increased 6% year-over-year, benefiting from increased advertiser demand, largely driven by improved ad performance: Meta CFO Susan Li
Consolidated revenue for Q4 was $59.9 billion, up 24% year-over-year, with total expenses rising 40% to $35.1 billion due to higher employee compensation, legal expenses, and infrastructure costs.
Meta ended the quarter with 78,800 employees, up 6% from last year. Operating income was $24.7 billion, representing a 41% operating margin, and net income was $22.8 billion, or $8.88 per share.
On user engagement, Meta highlighted continued momentum across its platforms. Instagram Reels watch time in the U.S. increased more than 30% year-over-year, while Facebook video consumption grew double-digits. Li noted, “The optimizations we made in Q4 drove a 7% lift in views of organic Feed and video posts on Facebook, resulting in the largest quarterly revenue impact from Facebook product launches in the past two years.” Threads also benefited from recommendation improvements, seeing a 20% lift in time spent.
Looking ahead to 2026, Meta plans to leverage large language models (LLMs) to improve personalization and content recommendations. Li said, “We have several big bets on this front, including building new model architectures from the ground up that will work on top of LLMs, leveraging the world knowledge and reasoning capabilities of an LLM to better infer people’s interests.”
The optimizations we made in Q4 drove a 7% lift in views of organic Feed and video posts on Facebook, resulting in the largest quarterly revenue impact from Facebook product launches in the past two years: Meta CFO Susan Li
AI-powered tools are also expanding across Meta’s ad products and content creation. The company reported that nearly 10% of Reels viewed each day are now created in its Edits app, “almost tripling from last quarter,” while daily active users of Meta AI media tools tripled year-over-year. On the advertising side, Meta’s GEM model and sequence learning improvements drove a 3.5% lift in ad clicks on Facebook and over 1% in conversions on Instagram.
Li noted, “The latest model roll out in Q4 is driving a 24% increase in incremental conversions versus our standard attribution model, and this product has already achieved a multi-billion dollar annual run-rate just seven months since launching.”
Business messaging and monetization efforts are also gaining traction. Click-to-message ad revenue in the U.S. grew more than 50% year-over-year, while paid messaging on WhatsApp crossed a $2 billion annual run-rate in Q4. Early adoption of Business AIs in Mexico and the Philippines now sees over 1 million weekly conversations between people and businesses.
Meta plans significant infrastructure and AI investments in 2026, with capital expenditures expected between $115 billion and $135 billion. Li emphasized, “We have significant opportunities to improve our core business in 2026. We plan to continue to prioritize investing in the business to support these opportunities, while also positioning us for an entirely new and exciting product cycle over the coming years, powered by our AI models.”
For Q1 2026, Meta anticipates revenue in the range of $53.5 billion to $56.5 billion and expects full-year operating income to exceed 2025 levels despite a substantial increase in infrastructure spending. The company continues to navigate regulatory challenges in the U.S. and EU, particularly around youth-related issues.
Li concluded, “2025 was another strong year for our company. The investments we’ve made to improve our business are continuing to drive strong growth, and we have an exciting roadmap this year to deliver new experiences and services for our global community.”
