Meta Platforms (META) META Q3 Financial Results Summary

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Meta Platforms, Inc. (META) Q3 2025 Financial Results Summary

MENLO PARK, Calif. – October 29, 2025 – Meta Platforms, Inc. (Nasdaq: META) today reported financial results for the quarter ended September 30, 2025.

Third Quarter 2025 Financial Highlights

  • Revenue:
  • $51,242 million, an increase of 26% compared to $40,589 million in Q3 2024.

  • Revenue on a constant currency basis increased by 25%.

  • Costs and Expenses:

  • Total costs and expenses reached $30,707 million, up by 32% from $23,239 million year-over-year.

  • Income from Operations:

  • Reported at $20,535 million, reflecting an 18% increase from $17,350 million in Q3 2024.

  • Operating Margin:

  • Decreased to 40%, down from 43% year-over-year.

  • Provision for Income Taxes:

  • Increased to $18,954 million, a massive 788% rise from $2,134 million compared to the previous year’s quarter.

  • Effective Tax Rate:

  • Reported at 87%, significantly higher than 12% from Q3 2024. Without the one-time tax charge, the effective tax rate would have been 14%.

  • Net Income:

  • Decreased to $2,709 million, showing an 83% decline from $15,688 million year-over-year.

  • Diluted Earnings Per Share (EPS):

  • Reported at $1.05, a decrease of 83% from $6.03 in Q3 2024.

Provision for Income Taxes – One-Time Charge

  • A one-time, non-cash tax charge of $15.93 billion due to the implementation of the One Big Beautiful Bill Act significantly impacted financial results.

Excluding this charge:
– Net income would have been approximately $18.64 billion.
– Diluted EPS would have been $7.25.

Operational Highlights

  • Family Daily Active People (DAP):

  • Averaged 3.54 billion in September 2025, an increase of 8% year-over-year.

  • Ad Impressions:

  • Increased by 14% compared to the same period in the previous year.

  • Average Price per Ad:

  • Increased by 10% year-over-year.

  • Capital Expenditures:

  • Totaled $19.37 billion.

  • Share Repurchase and Dividends:

  • Share repurchases of Class A common stock amounted to $3.16 billion.

  • Total dividend and dividend equivalent payments were $1.33 billion.

  • Cash, Cash Equivalents, and Marketable Securities:

  • Totaled $44.45 billion as of September 30, 2025.

  • Cash Flow from Operating Activities:

  • Reported at $30.0 billion, with free cash flow of $10.62 billion.

  • Headcount:

  • Increased to 78,450, up by 8% year-over-year.

CFO Outlook Commentary

  • Expected fourth quarter revenue projected between $56 billion and $59 billion, with foreign currency impacts noted.
  • Full year 2025 expenses expected to be in the range of $116-118 billion, representing growth of 22-24% year-over-year.
  • Anticipated capital expenditures for 2025 between $70-72 billion, an increase from the previous outlook.
  • Projected tax rate for the fourth quarter anticipated to be 12-15%.

Summary

Meta Platforms, Inc. showed strong growth in revenue during Q3 2025, primarily driven by increased ad impressions and active user engagement. Despite challenges leading to a significant increase in the effective tax rate and decreased net income, the company continued to invest in share repurchases and capital expenditures. The outlook for Q4 remains optimistic, although the anticipated tax impact and variabilities in revenue streams warrant attention.

Revenue Three Months Ended September 30, 2025 2024 % Change Nine Months Ended September 30, 2025 2024 % Change
Cost of revenue $ 51,242 $ 40,589 26 % $ 141,073 $ 116,116 21 %
Research and development 9,206 7,375 25,269 21,322
Marketing and sales 15,144 11,177 40,237 31,693
General and administrative 2,845 2,822 8,581 8,107
Total costs and expenses 3,512 1,865 8,455 8,978
Income from operations 30,707 23,239 82,542 70,100
Interest and other income, net 20,535 17,350 58,531 46,016
Income before provision for income taxes 1,128 472 2,047 1,095
Provision for income taxes* 21,663 17,822 60,578 47,111
Net income 18,954 2,134 22,888 5,589
Earnings per share:
Basic $ 1.08 $ 6.20 $ 14.96 $ 16.37
Diluted $ 1.05 $ 6.03 $ 14.62 $ 15.88
Weighted-average shares used to compute earnings per share:
Basic 2,517 2,529 2,520 2,536
Diluted 2,572 2,600 2,578 2,615
Assets September 30, 2025 December 31, 2024
Current assets:
Cash and cash equivalents $ 10,187 $ 43,889
Marketable securities 34,261 33,926
Accounts receivable, net 17,297 16,994
Prepaid expenses and other current assets 11,373 5,236
Total current assets 73,118 100,045
Non-marketable equity investments 25,074 6,070
Property and equipment, net 160,270 121,346
Operating lease right-of-use assets 17,372 14,922
Goodwill 21,158 20,654
Other assets 6,852 13,017
Total assets $ 303,844 $ 276,054
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable $ 7,798 $ 7,687
Operating lease liabilities, current 2,113 1,942
Accrued expenses and other current liabilities 27,047 23,967
Total current liabilities 36,958 33,596
Operating lease liabilities, non-current 20,113 18,292
Long-term debt 28,834 28,826
Long-term income taxes 11,738 9,987
Other liabilities 12,135 2,716
Total liabilities 109,778 93,417
Commitments and contingencies
Stockholders’ equity:
Common stock and additional paid-in capital 92,330 83,228
Accumulated other comprehensive income (loss) 159 -3,097
Retained earnings 101,577 102,506
Total stockholders’ equity 194,066 182,637
Total liabilities and stockholders’ equity $ 303,844 $ 276,054

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