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.
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Revenue on a constant currency basis increased by 25%.
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Costs and Expenses:
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Total costs and expenses reached $30,707 million, up by 32% from $23,239 million year-over-year.
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Income from Operations:
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Reported at $20,535 million, reflecting an 18% increase from $17,350 million in Q3 2024.
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Operating Margin:
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Decreased to 40%, down from 43% year-over-year.
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Provision for Income Taxes:
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Increased to $18,954 million, a massive 788% rise from $2,134 million compared to the previous year’s quarter.
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Effective Tax Rate:
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Reported at 87%, significantly higher than 12% from Q3 2024. Without the one-time tax charge, the effective tax rate would have been 14%.
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Net Income:
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Decreased to $2,709 million, showing an 83% decline from $15,688 million year-over-year.
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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):
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Averaged 3.54 billion in September 2025, an increase of 8% year-over-year.
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Ad Impressions:
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Increased by 14% compared to the same period in the previous year.
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Average Price per Ad:
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Increased by 10% year-over-year.
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Capital Expenditures:
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Totaled $19.37 billion.
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Share Repurchase and Dividends:
- Share repurchases of Class A common stock amounted to $3.16 billion.
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Total dividend and dividend equivalent payments were $1.33 billion.
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Cash, Cash Equivalents, and Marketable Securities:
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Totaled $44.45 billion as of September 30, 2025.
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Cash Flow from Operating Activities:
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Reported at $30.0 billion, with free cash flow of $10.62 billion.
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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 |