META · 10-K · 2025A · Full report

Reality Labs Investment

Meta Platforms, Inc. · 2026-01-29 · Importance 70 · Surprise 68

Meta continued substantial, long-term investments in Reality Labs (RL) including virtual and augmented reality devices, software for social platforms, neural interfaces, and foundational technologies primarily directed at long‑term R&D that may be realized over the next decade. In 2025 RL reduced Meta’s overall operating profit by approximately $19.19 billion, and management expects 2026 RL operating losses to remain similar to 2025. The company states that its ability to support RL depends on generating sufficient profits from other areas of the business and that these investments aim to create a future computing platform with monetization opportunities across advertising, hardware, and digital goods.

Key facts

• The company expects 2026 RL operating losses to remain similar to 2025.
• Purchases of non-marketable equity investments were $18.33 billion during 2025.
• The RL segment reduced overall operating profit by approximately $19,193 million in 2025.
• RL costs and expenses increased in 2025 primarily due to increases in employee compensation and other personnel related expenses, estimated losses on non-cancelable purchase commitments for RL inventory, and technology development costs.

Impact estimates