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Meta Reports a Strong Second Quarter Boosted by AI and Ad Innovations

July 30, 2025

Highlights

  • Q2 total revenue: $47.5 billion (+22% YoY)
  • Q2 total expenses: $27.1 billion (+12% YoY)
  • Q2 net income: $18.3 billion or $7.14 per share
  • Capital expenditures: $17 billion
  • Free cash flow: $8.5 billion
  • Q2 Family of Apps revenue: $47.1 billion (+22% YoY)
  • Q2 Family of Apps ad revenue: $46.6 billion (+21% YoY)
  • Operating income: $20.4 billion (43% operating margin)
  • Reality Labs Q2 operating loss: $4.5 billion

Meta has unveiled an impressive set of figures for its second quarter of 2025, fueled by an upsurge in advertising efficiency and innovative AI systems, marking a revenue burgeoning of 22% year-over-year to reach $47.5 billion. This marks a continued and robust growth trajectory, propelling the company's ambitions to invest heavily in AI-driven advancements.

Consolidated Financial Performance

The quarter closed with net income soaring to $18.3 billion, equivalent to $7.14 per share, underpinning a strong operational base with a noted operating margin of 43%. Expenses also climbed, reaching $27.1 billion, reflecting a 12% increase from the previous year, attributed primarily to enhanced infrastructure deployment and partner payments.

Capital expenditures leveled at $17 billion as Meta continues to commit substantial resources toward burgeoning AI capabilities and expansions in their data and network infrastructure. Notably, free cash flow was recorded at $8.5 billion, supporting continued financial robustness.

Family of Apps and Ad Revenue

Meta's Family of Apps segment stood out, generating $47.1 billion in revenue, a 22% rise. The Family of Apps ad revenue reached $46.6 billion, bolstered by a 21% increment year-over-year. The increased engagement on platforms like Facebook and Instagram, driven by improvements in AI-powered recommendation models, has attributed to this surge, enhancing the ad impression volume by 11%.

Reality Labs Challenges

However, the Reality Labs recorded a $4.5 billion operating loss amidst a modest revenue growth of 5% year-over-year. The increased sales of AI-powered glasses were dampened by a reduction in Quest sales, highlighting an area of potential volatility and needed improvement.

Investment and Stockholder Returns

In boosting shareholder value, Meta repurchased $9.8 billion in shares during the quarter and expanded its equity investments by $15.1 billion, including a focus on minority stakes in companies like Scale AI. The robust cash and marketable securities position of $47.1 billion against a debt of $28.8 billion reinforces its solid financial footing and capacity for future investment.

With a guiding beacon on expanded AI capabilities and integration across platforms, Meta's second-quarter performance reflects agile adaptations and strategic advancements propelling future prospects and shareholder value.