Meta's Reality Labs division reported revenue of $2.2 billion and a loss of $19.2 billion in the fiscal year 2025
Meta, the company that owns Facebook, has once again reported disappointing financial results for its Reality Labs segment, which focuses on the metaverse. Despite some revenue, the division faces substantial operational losses.
Financial Overview for the Year Ending December 31, 2025
- Revenue: $2.2 billion, marking a 2% increase from the previous year
- Operating Loss: $19.2 billion, an 8.3% rise year-over-year
The past year saw Reality Labs generating $2.2 billion while incurring a $19.2 billion operating loss. Revenue increased by $61 million, or 2%, compared to the previous year, while losses rose by 8.3% in 2025.
Since its inception in 2020, Reality Labs has accumulated operational losses totaling $83.6 billion, generating only $11.8 billion during this period. CEO Mark Zuckerberg informed investors that future efforts would center on "glasses and wearables." He also emphasized plans to make Horizon successful on mobile and establish a profitable VR ecosystem.
"I anticipate that Reality Labs losses will be akin to those of last year, with 2025 likely being the peak," Zuckerberg mentioned, adding that they plan to decrease losses gradually while continuing their strategic vision.
Discussing the introduction of Horizon to mobile, Zuckerberg stated that investments in virtual reality and artificial intelligence would complement each other, enhancing the experiences offered to millions through mobile platforms.
In an effort to downsize, Meta recently shut down three VR studios, a move that followed a 10% reduction in Reality Labs staff earlier this month.
When news of these layoffs surfaced late in 2025, Meta announced plans to redirect some investments from the metaverse toward AI glasses and wearables, given their recent progress. According to VR experts, the immediate effects of these studio closures and staff cuts are concerning.