AI Takeaway
Meta Platforms delivered record revenue of $201.0B in FY2025, up 22.2% YoY, driven by strong advertising growth and expanding operating leverage, though net income dipped 3.1% to $60.5B as R&D spending surged 30.8% to $57.4B reflecting massive AI and metaverse investments.
Revenue
$200.97B
++22.17% YoY
EPS (Basic)
$23.98
-2.56% YoY
Operating Income
$83.28B
++20.03% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue reached $201.0B in FY2025, a 22.2% increase from $164.5B in FY2024, reflecting continued strength in Meta's core advertising business across Facebook, Instagram, and WhatsApp platforms. This marks the company's first year surpassing the $200B revenue milestone.
Source: Source: 10-K Income Statement (XBRL Financial Data)
R&D expenses surged 30.8% YoY to $57.4B, representing approximately 28.5% of total revenue. This acceleration reflects Meta's intensified investment in artificial intelligence infrastructure, large language models, and Reality Labs hardware and software development.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Operating cash flow grew 26.8% to $115.8B, demonstrating the underlying cash generation power of the business. However, investing cash outflows nearly doubled to -$102.0B, signaling a dramatic ramp-up in capital expenditures likely tied to AI data center buildout.
Source: Source: 10-K Cash Flow Statement (XBRL Financial Data)
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Upgrade to unlockInvesting cash outflows nearly doubled to -$102.0B in FY2025, reflecting an unprecedented CapEx cycle tied to AI infrastructure. If AI monetization does not materialize at the expected pace or scale, this capital deployment could weigh on returns and free cash flow for multiple years.
Source: Source: 10-K Cash Flow Statement (XBRL Financial Data)
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Upgrade to unlockReported EPS of $8.88 versus the $8.40 analyst consensus — a +5.7% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $200.97B | $164.5B | +22.17% |
Cost of Revenue | $36.17B | $30.16B | +19.94% |
Operating Income | $83.28B | $69.38B | +20.03% |
Net Income | $60.46B | $62.36B | -3.05% |
EPS (Basic) | $23.98 | $24.61 | -2.56% |
EPS (Diluted) | $23.49 | $23.86 | -1.55% |
R&D Expense | $57.37B | $43.87B | +30.77% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $366.02B | $276.05B | +32.59% |
Current Assets | $108.72B | $100.05B | +8.67% |
Total Liabilities | $148.78B | $93.42B | +59.26% |
Current Liabilities | $41.84B | $33.6B | +24.53% |
Stockholders' Equity | $217.24B | $182.64B | +18.95% |
Cash & Equivalents | $35.87B | $43.89B | -18.26% |
Long-Term Debt | $58.74B | $28.83B | +103.79% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $115.8B | $91.33B | +26.80% |
Investing Cash Flow | $-102B | $-47.15B | -116.34% |
Financing Cash Flow | $-20.37B | $-40.78B | +50.05% |
Dividends Paid | $5.32B | $5.07B | +4.97% |
Share Buybacks | $26.25B | $30.13B | -12.87% |
D&A | $18.62B | $15.5B | +20.12% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 41.4% | 42.2% | -0.74% |
Net Margin | 30.1% | — | — |
ROE | 27.8% | — | — |
ROA | 16.5% | — | — |
Current Ratio | $2.599 | — | — |
Debt to Equity | $0.685 | — | — |
Meta reported a strong Q1 2026 with revenue surging 33.1% YoY to $56.3B and net income jumping 60.9% to $26.8B, driven by robust advertising demand, though R&D spending soared 45.7% and long-term debt more than doubled as the company aggressively invests in AI and infrastructure.
META reported strong financial performance in Q2 FY2025 with significant growth in revenue and net income, driven by increased operational efficiency and strategic investments.
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Meta's revenue grew 22.2% year-over-year to a record $201.0B in FY2025, up from $164.5B in FY2024. This marks the first time Meta has surpassed the $200B annual revenue milestone, driven by continued strength in digital advertising across Facebook, Instagram, and WhatsApp.
Meta's net income declined 3.1% to $60.5B even as revenue hit a record $201.0B, primarily because R&D expenses surged 30.8% to $57.4B as the company aggressively invested in AI and Reality Labs. This cost growth outpaced revenue gains, compressing net margins from prior-year levels.
The key takeaways from Meta's FY2025 10-K are record revenue of $201.0B (+22.2%), record operating cash flow of $115.8B (+26.8%), and a massive AI-driven investment cycle with investing outflows nearly doubling to -$102.0B and long-term debt more than doubling to $58.7B. While the core advertising business remains highly profitable with a 41.4% operating margin, the heavy spending on AI infrastructure is weighing on net income and free cash flow.
Meta spent $57.4B on R&D in FY2025, a 30.8% increase from $43.9B in FY2024, representing approximately 28.5% of total revenue. This reflects the company's intensified focus on artificial intelligence, large language models, and its Reality Labs division.
Meta's financial health remains strong, with a current ratio of 2.60, $35.9B in cash, and record operating cash flow of $115.8B providing substantial liquidity. However, long-term debt more than doubled to $58.7B and investing outflows nearly doubled to -$102.0B, indicating the company is in a capital-intensive investment cycle that investors should monitor closely for returns on AI spending.