Meta has released its financial report for Q3 2025, revealing strong overall growth for the company but continued heavy losses for its Reality Labs division — the branch responsible for developing Quest VR headsets and Ray-Ban/Oakley AI smart glasses.
The tech giant generated $56 billion in total revenue, marking a significant 26% year-over-year increase, yet Reality Labs recorded an operating loss of $4.4 billion during the same period. This comes even as demand for Meta’s AI glasses continues to rise globally.
Reality Labs revenue climbed to $470 million in the quarter, a 74% improvement compared to $270 million last year. However, the high cost of research, development, and advanced AR/VR hardware continues to pull the division deep into losses. Reports indicate that since late 2020, the division has accumulated a staggering $70 billion deficit, making it one of Meta’s biggest financial challenges.
Meta CEO Mark Zuckerberg emphasized that strong retail demand for Quest hardware boosted Q3 results, with retailers stocking up ahead of the holiday season. Yet, CFO Susan Li warned that Q4 revenue is expected to fall year-over-year due to the launch timing of Quest 3S in 2024 and the absence of a new headset release this year.
Meta remains committed to its long-term vision of merging physical and digital experiences through immersive technologies — even if the financial strain persists in the near future.