The metaverse-focused arm has lost $83.6 billion over the last five years

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Meta's Reality Labs division reported $2.2 billion in revenue but $19.2 billion in operational losses for fiscal year 2025, marking an 8.3% increase in losses year-over-year. Since its 2020 inception, Reality Labs has accumulated $83.6 billion in losses against $11.8 billion in total revenue. CEO Mark Zuckerberg announced a strategic shift toward glasses and wearables, plans to bring Horizon to mobile platforms, and expects FY25 to represent peak losses before gradual reduction. The company recently closed three VR studios and cut 10% of Reality Labs staff as part of this pivot toward AI-integrated wearables.

Meta's Reality Labs division generated $2.2bn, lost $19.2bn in FY25