Meta CEO Mark Zuckerberg announced earlierFiscal Year 2025 Fourth Quarter Financial ReportThe company stated that although Reality Labs, which is responsible for virtual reality and metaverse businesses, lost as much as $190 billion in 2025, the overall losses were on par with last year. However, it emphasized that it will gradually reduce the scale of losses and shift its investment focus from VR to AI smart glasses.
Details of the fourth quarter financial report for fiscal year 2025
According to Meta's Q4 FY2025 financial report, the company's profit for the fourth quarter ending in 2025 reached $598.93 billion. After deducting expenses of $351.48 billion, its revenue was $247.45 billion, and its net profit was $227.68 billion. For the full fiscal year 2025, the company's profit was projected to reach $2009.66 billion. After deducting expenses of $1176.9 billion, its net profit was $832.76 billion, and its net profit was $604.58 billion.
Daily active users across services including Facebook and Instagram averaged 35.8 billion, a 7% increase compared to the same period last year. Among these, ad impressions within the app family grew by 18% in the last quarter (compared to the same period last year) and by 12% for the whole year. The average price per ad group grew by 6% in the last quarter and 9% for the whole year compared to the same period last year.
Successful weight loss? Layoffs and studio closures may be the way to increase profits.
Earlier this month, Meta laid off more than 1000 people from its Reality Labs division, closed three VR game studios, terminated its VR conferencing application, and even suspended plans to license Horizon OS to third-party head-mounted hardware.
"For Reality Labs, our future investments will be directed towards AI glasses and wearable devices, while focusing on making the Horizon platform a huge success on mobile devices and striving to make VR a profitable ecosystem," Mark Zuckerberg emphasized. He added that the current losses are the "peak," and that the losses will gradually decrease in the future.
AI glasses sales triple, becoming a new favorite.
While VR headsets have faced significant challenges in gaining traction, Meta's smart glasses have performed remarkably well. Mark Zuckerberg points out that Meta's smart glasses sales are projected to more than triple by 2025.
This further convinced Meta that "AI + glasses" is the right path to the future. Mark Zuckerberg described his vision for the next generation of AR glasses: "They will see what you see, hear what you hear, and talk to you throughout your day, offer assistance, and even generate customized UI interfaces directly in your field of vision." This is clearly paving the way for the AI "superintelligence" he envisions.
Horizon doesn't die, but transforms into an "AI-generated world".
As for the Horizon platform, which was originally the core of the metaverse, it now has a new mission: to combine generative AI.
Mark Zuckerberg gave an example: in the future, users may only need to enter a prompt to create a 3D world or game and share it with friends. Friends who see it on their Facebook feed can then directly click to interact, without necessarily wearing a VR headset; they can experience it through their mobile phones.
Mark Zuckerberg believes that bringing these experiences to billions of users via mobile phones is key to Horizon's expanding influence.
Interestingly, throughout his entire speech about the future, Mark Zuckerberg made almost no mention of the term "metaverse."
