Meta's AR/VR Reality Labs incurred a $4.4 billion loss, which was not mitigated by its $1 billion in revenue

In its latest financial documentation for the quarter concluding on December 31, 2024, Meta disclosed a $4.97 billion deficit within its AR/VR Reality Labs division, despite garnering $1.08 billion from Meta Quest products. The full results can be seen in the report.

This division has now seen four consecutive losses, following deficits of $3.8 billion, $4.5 billion earlier, and $4.4 billion in the prior month of October 2024.

Total yearly losses for Reality Labs reached $17.7 billion, an increase from the $16.1 billion seen at the end of 2023.

CEO Mark Zuckerberg explained to investors that these losses are mainly due to ongoing research and development efforts in the Reality Labs and investments in the Metaverse, anticipating the next year to be "a pivotal year" for these projects.

Additionally, Meta signaled last month its plan for performance-related layoffs, placing 5% of its staff at risk of losing their jobs.