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Jun 30
Meta Q2 2025 Earnings Report
Meta reported strong financial results for the second quarter of 2025, with significant year-over-year growth in revenue, net income, and diluted EPS.
Key Takeaways
Meta Platforms, Inc. delivered a robust performance in Q2 2025, exceeding expectations with substantial growth across key financial metrics. Revenue increased by 22% year-over-year, driven by strong ad impressions and average price per ad. The company also saw a significant rise in net income and diluted EPS, reflecting efficient cost management and operational leverage. Mark Zuckerberg highlighted the company's progress in both business and community, expressing excitement about building personal superintelligence.
Revenue for Q2 2025 reached $47.516 billion, marking a 22% increase compared to the same period last year.
Net income surged to $18.337 billion, a 36% year-over-year increase, while diluted EPS grew by 38% to $7.14.
Family daily active people (DAP) grew by 6% year-over-year to 3.48 billion, indicating continued user engagement.
The company reported strong ad impression growth of 11% and a 9% increase in average price per ad, contributing to advertising revenue growth.
Meta
Meta
Meta Revenue by Segment
Revenue by Segment
Family of Apps Revenue
CapyFin.comReality Labs Revenue
CapyFin.com Forward Guidance
Meta provided a positive outlook for Q3 2025 revenue, expecting it to be between $47.5 billion and $50.5 billion. However, the company anticipates a slower year-over-year growth rate in Q4 2025. Full-year 2025 total expenses are narrowed to $114-118 billion, with significant upward pressure on 2026 expenses due to infrastructure costs and employee compensation. Capital expenditures for 2025 are expected to be $66-72 billion, with similar growth anticipated in 2026 for AI efforts.
Positive Outlook
- Expected Q3 2025 revenue range of $47.5-50.5 billion, indicating continued growth.
- Foreign currency is anticipated to be an approximately 1% tailwind to year-over-year total revenue growth in Q3 2025.
- Full year 2025 total expenses outlook narrowed to $114-118 billion, reflecting some cost management.
- Anticipated reduction in U.S. federal cash tax for the remainder of 2025 and future years due to new U.S. tax law.
- Continued aggressive pursuit of opportunities to bring additional capacity online for artificial intelligence efforts and business operations in 2026.
Challenges Ahead
- Year-over-year growth rate in Q4 2025 is expected to be slower than Q3 due to lapping a period of stronger growth in Q4 2024.
- Meaningful upward pressure on 2026 total expense growth rate, primarily driven by infrastructure costs and depreciation expense.
- Higher operating costs expected in 2026 as the company scales up its infrastructure fleet.
- Increased employee compensation expected in 2026 due to adding technical talent and recognizing full-year compensation for 2025 hires.
- Active regulatory landscape, including increasing legal and regulatory headwinds in the EU, could significantly impact business and financial results, potentially leading to materially worse user and advertiser experience and negative impact on European revenue as early as later this quarter.