Meta Reports $51.2 Billion Revenue Amid $16 Billion Tax Charge

Meta Platforms reported a significant increase in revenue for the third quarter of 2025, reaching **$51.2 billion**, marking a **26%** rise compared to the previous year. However, the social media giant also faced a substantial one-time, non-cash income tax charge of **$15.9 billion** linked to the US tax reform known as the “One Big Beautiful Bill,” proposed during Donald Trump’s presidency.

Excluding this tax charge, Meta’s net income for the quarter, which concluded on **September 30**, would have surged to **$18.6 billion** rather than the reported **$2.7 billion**. The company expressed optimism about future tax savings, stating, “We expect a significant reduction in our US federal cash tax payments for the remainder of 2025 and future years due to the implementation of the One Big Beautiful Bill Act.”

Performance Highlights and User Engagement

Meta’s suite of applications, including Facebook, Instagram, WhatsApp, Messenger, and Threads, attracted **3.5 billion** daily active users, reflecting an **8%** year-over-year increase. Despite this growth, the company’s Reality Labs division, which encompasses its virtual and augmented reality products, reported an operating loss of **$4.4 billion** with revenue of only **$470 million** during the same period.

During a recent earnings call on **October 29**, Chief Financial Officer **Susan Li** indicated that Reality Labs’ revenue for the fourth quarter is expected to fall short of last year’s performance, primarily due to the absence of a new VR headset launch in 2025. “We’re still expecting significant year-over-year growth in AI glasses revenue in Q4 as we benefit from strong demand for the recent products that we’ve introduced,” Li noted, while acknowledging challenges related to the Quest headsets.

As of the end of the quarter, Meta held **$44.45 billion** in cash, cash equivalents, and marketable securities. The company’s workforce expanded by **8%**, reaching **78,450 employees**, partly due to hiring efforts for its Meta Superintelligence Labs (MSL) team.

Future Investments and New Initiatives

Meta anticipates total revenue for Q4 to fall between **$56 billion** and **$59 billion**. Li highlighted that capital spending in **2026** would significantly exceed that of **2025**, as Meta focuses on enhancing its computing infrastructure to support artificial intelligence initiatives.

CEO **Mark Zuckerberg** emphasized the importance of building capacity within the MSL team to prepare for future advancements in AI, stating, “I think that it’s the right strategy to aggressively front-load building capacity so that way we’re prepared for the most optimistic cases.” He added that if superintelligence arrives sooner than anticipated, Meta would be well-positioned to capitalize on the opportunities presented.

In a bid to enhance user engagement, Meta launched a new feature called **Vibes** within its Meta AI app during Q3. Zuckerberg described Vibes as the next generation of AI creation tools, allowing users to create and remix videos, add music, and share content across platforms like Instagram and Facebook Stories. He expressed enthusiasm about the growth of Vibes, noting, “Retention is looking good so far, and its usage keeps growing quickly week over week.”

Zuckerberg believes Vibes exemplifies the potential for new content types enabled by AI, asserting that there are ample opportunities for further innovative developments in the future.

In summary, while Meta navigates a challenging tax landscape, its strong revenue growth and user engagement metrics signal a robust position in the social media market, coupled with forward-looking investments in AI and content creation technologies.