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Mar 31
Meta Q1 2025 Earnings Report
Meta reported strong results for Q1 2025 with robust revenue growth and record net income.
Key Takeaways
Meta delivered a strong Q1 2025 with $42.31 billion in revenue and $16.64 billion in net income, driven by increased ad prices and ongoing user growth.
Revenue reached $42.31 billion, up from $36.46 billion a year earlier.
Net income surged to $16.64 billion, with a 41% operating margin.
Ad impressions rose 5% while average price per ad increased 10%.
Meta AI monthly actives approached 1 billion, showing major product traction.
Meta
Meta
Meta Revenue by Segment
Forward Guidance
Meta expects Q2 2025 revenue to range between $42.5B and $45.5B, with slight FX tailwinds and increased capex for AI infrastructure.
Positive Outlook
- Q2 2025 revenue guidance of $42.5B–$45.5B
- Capital expenditures raised to support AI infrastructure growth
- Strong operating cash flow of $24.03B in Q1
- Ongoing share buybacks and dividend payments indicate confidence
- Reduced tax rate guidance of 12–15% for full year
Challenges Ahead
- Reality Labs continues to report operating losses
- European Commission ruling may hurt ad revenue in EU starting Q3
- Free cash flow declined compared to prior year
- Total costs and expenses rose to $24.76B, up 9% YoY
- Increased infrastructure costs impacting capex outlook
Revenue & Expenses
Visualization of income flow from segment revenue to net income