Meta Delivers Strong Q3 2025 Results with Solid Growth in Revenue and Ad Performance
Highlights
- Revenue: $51.2 billion (+26% YoY)
- Family of Apps Ad Revenue: $50.1 billion (+26% YoY)
- Reels Annual Run Rate: $50 billion
- End-to-End AI-Powered Ad Tools Annual Run Rate: $60 billion
- Net Income (excluding one-time tax charge): $18.6 billion
- EPS (excluding one-time tax charge): $7.25
- Free Cash Flow: $10.6 billion
- Video on Instagram Time Spent: up more than 30% YoY
Meta reported an impressive 26% year-over-year increase in total revenue for the third quarter of 2025, reaching $51.2 billion. This growth was largely driven by robust advertising revenue, which mirrors the advances in Meta's AI ranking systems. The Family of Apps Ad Revenue alone scored $50.1 billion, maintaining the same growth trajectory. Instagram, a cornerstone in Meta's ecosystem, also hit a significant milestone with 3 billion monthly active users, while Threads saw increasing engagement, up 10% in time spent, echoing the attractive momentum across Meta's platforms.
Continued Strength in AI and Advertising
The third quarter underscored Meta's proactivity with artificial intelligence, driving substantial increases in engagement and ad performance. Innovations in AI have led to a run rate of $60 billion for their end-to-end AI-powered ad tools. Such technological advancements also fueled a 30% rise in time spent on video content on Instagram versus the previous year. The Reels feature reflected this demand with an annual run rate surpassing $50 billion, highlighting the growing appeal of video content across Meta's platforms.
Financial Management and Forward-Thinking Investments
Operational strategies and effective financial maneuvers have allowed Meta to generate $10.6 billion in free cash flow this quarter. The exclusion of a one-time tax charge remarkably lifts their net income to $18.6 billion with an EPS of $7.25. To bolster its AI ventures, Meta is planning aggressive investments in infrastructure, emphasizing compute capacity aimed at superintelligence and new AI models. Investments in employee compensation, particularly in AI talent, and infrastructure costs are among the focal operational strategies to enhance their core services.
Meta's ability to utilize AI effectively to enhance user experience and ad monetization while managing a significant free cash flow provides a strong foundation for continued growth in the competitive tech industry.