META Q3 2025 Earnings

Call Details

• Call Title: Meta Platforms, Inc. Q3 2025 Earnings Call
• Date: October 29, 2025 at 8:30 PM UTC
• Management Team:
  • Mark Zuckerberg (Chief Executive Officer)
  • Susan Li (Chief Financial Officer)
  • Kenneth Dorell (Director of Investor Relations)

Call Summary

Financial Performance

• Q3 total revenue was $51.2B, up 26% year-over-year or up 25% on a constant currency basis.
• Q3 total family of apps revenue was $50.8B, up 26% year-over-year, and family of apps ad revenue was $50.1B, up 26% or up 25% on a constant currency basis.
• Q3 consolidated total expenses were $30.7B, up 32% year-over-year, and Q3 operating income was $20.5B, representing a 40% operating margin.
• Q3 net income was $2.7B or $1.05 per share, and excluding a one-time tax charge net income would have been $18.6B or $7.25 per share.
• Q3 capital expenditures, including principal payments on finance leases, were $19.4B and free cash flow was $10.6B in the quarter.
• Family of apps other revenue was $690M, up 59% year-over-year, driven by WhatsApp paid messaging and meta-verified subscriptions.
• Reality Labs revenue was $470M, up 74% year-over-year, with retail partners stocking up on Quest headsets contributing to the year-over-year comparison.
• Ad metrics in Q3 showed impressions served up 14% year-over-year and average price per ad up 10% year-over-year.

Guidance

• Q4 2025 total revenue is expected in the range of $56B to $59B with foreign currency modeled as an approximately 1% tailwind to year-over-year revenue growth.
• The Q4 outlook reflects continued strong ad revenue growth partially offset by lower year-over-year Reality Labs revenue due to lapping Quest 3S timing and retail channel timing.
• Full year 2025 total expenses are expected to be $116B to $118B, updated from prior guidance of $114B to $118B, implying expense growth of approximately 22% to 24% year-over-year.
• 2025 capital expenditures, including principal payments on finance leases, are expected to be $70B to $72B, increased from prior guidance of $66B to $72B.
• Q4 2025 tax rate is expected to be in the 12% to 15% range, after recognizing a one-time deferred tax asset reduction that drove an 87% tax rate in Q3.
• For 2026, the company expects CapEx dollar growth to be notably larger than 2025 and total expenses to grow at a significantly faster percentage rate than in 2025, primarily driven by infrastructure and employee compensation.
• The guidance reiterated that EU regulatory actions on less personalized ads could materially impact European revenue as early as this quarter and that U.S. youth-related trials in 2026 may result in material losses.