adminMeta Reality Labs losses widened in FY25, even as the division brought in $2.2 billion in revenue. The metaverse-focused unit reported a $19.2 billion operating loss for the 12 months ending December 31, 2025, adding to years of investment costs. The results offer a clear snapshot of the gap between the division’s current revenue and spending.
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Meta Reality Labs losses and FY25 figures
Reality Labs revenue increased modestly year over year, while its operating loss grew at a faster rate. Here are the reported figures for the financial year:
- Revenue: $2.2 billion, up 2% year over year
- Operating loss: $19.2 billion, up 8.3% year over year
Revenue rose by $61 million compared with the previous year. When reviewing these numbers, it is useful to distinguish revenue from profit: revenue is money earned before expenses, while an operating loss reflects the shortfall after operating costs are accounted for.
Six years of investment in Reality Labs
Since Reality Labs was established in 2020, Meta has recorded a cumulative operating loss of $83.6 billion for the division. Over the same period, Reality Labs generated $11.8 billion in revenue. These figures show the scale of the unit’s investment to date, although they do not by themselves indicate how future products or services will perform.
For readers comparing annual results, the year-over-year changes provide context, but the longer-term totals are also important. A single year’s revenue or loss does not capture the full financial picture of a division built around long-term product development.
Meta’s plans for glasses, wearables and Horizon
Speaking to investors, CEO Mark Zuckerberg said the division would focus more on “glasses and wearables.” He also described goals of making Horizon successful on mobile and developing a profitable virtual reality ecosystem over the coming years.
Zuckerberg said he expected Reality Labs’ losses in 2026 to be similar to the previous year’s level, and suggested that they could represent a peak before a gradual reduction. He added that virtual reality software and Horizon could work alongside the company’s artificial intelligence investments to bring related experiences to mobile users at a wider scale.
These comments describe the company’s intended direction, rather than a guarantee of future financial results. The practical measure to watch in upcoming reports is whether revenue growth and cost reductions begin to narrow the division’s operating loss.
Studio closures and job cuts
Meta closed three virtual reality studios as part of a 10% reduction in jobs within Reality Labs earlier this month. The company said in late 2025 that it was shifting some investment away from the metaverse and toward AI glasses and wearables, citing momentum in those areas.
Some virtual reality experts have described the job cuts and studio closures as concerning in the short term. The changes may affect the division’s development priorities, so future updates on its products, staffing and financial performance will help clarify how the restructuring is progressing.
What the FY25 results indicate
In FY25, Reality Labs combined $2.2 billion in revenue with a $19.2 billion operating loss, while its cumulative loss since 2020 reached $83.6 billion. Meta Reality Labs losses, the planned emphasis on wearables and Horizon, and the pace of any future reduction in spending will be key figures and developments to monitor in subsequent financial updates.
