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Meta Platforms Inc. (NASDAQ:META)

Common-Size Income Statement
Quarterly Data

Meta Platforms Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Jun 30, 2026 Mar 31, 2026 Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021
Revenue 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of revenue -18.63 -18.15 -18.21 -17.97 -17.87 -17.89 -18.27 -18.17 -18.70 -18.21 -19.19 -18.19 -18.58 -21.32 -25.92 -20.62 -18.01 -21.52 -18.85 -19.89 -18.57 -19.61
Gross profit 81.37% 81.85% 81.79% 82.03% 82.13% 82.11% 81.73% 81.83% 81.30% 81.79% 80.81% 81.81% 81.42% 78.68% 74.08% 79.38% 81.99% 78.48% 81.15% 80.11% 81.43% 80.39%
Research and development -35.62 -31.43 -28.61 -29.55 -27.24 -28.71 -25.17 -27.54 -26.97 -27.37 -26.22 -27.06 -29.20 -32.75 -30.38 -33.09 -30.15 -27.62 -20.93 -21.77 -20.97 -19.86
Marketing and sales -5.64 -5.16 -5.69 -5.55 -6.27 -6.52 -6.70 -6.95 -6.96 -7.03 -8.04 -8.43 -9.86 -10.63 -14.22 -13.64 -12.47 -11.87 -13.03 -12.25 -11.21 -10.86
General and administrative -9.23 -4.64 -6.17 -6.85 -5.60 -5.39 -1.57 -4.59 -9.36 -9.48 -5.71 -6.06 -13.01 -10.07 -9.59 -12.21 -10.36 -8.46 -9.82 -10.16 -6.73 -6.20
Income from operations 30.88% 40.62% 41.31% 40.07% 43.02% 41.49% 48.29% 42.75% 38.00% 37.90% 40.85% 40.26% 29.35% 25.23% 19.89% 20.44% 29.00% 30.54% 37.38% 35.93% 42.53% 43.48%
Interest and other income (expense), net -0.03 -1.99 1.02 2.20 0.20 1.95 0.39 1.16 0.66 1.00 1.06 0.80 -0.31 0.28 -0.77 -0.32 -0.60 1.38 0.35 0.49 0.50 0.48
Income before income taxes 30.85% 38.63% 42.33% 42.28% 43.21% 43.44% 48.68% 43.91% 38.66% 38.91% 41.90% 41.06% 29.04% 25.51% 19.12% 20.12% 28.40% 31.92% 37.73% 36.42% 43.03% 43.95%
(Provision) benefit for income taxes -4.78 8.92 -4.32 -36.99 -4.62 -4.11 -5.61 -5.26 -4.20 -4.98 -6.96 -7.14 -4.70 -5.58 -4.65 -4.26 -5.20 -5.17 -7.18 -4.73 -7.29 -7.66
Net income 26.07% 47.54% 38.01% 5.29% 38.59% 39.33% 43.07% 38.65% 34.46% 33.93% 34.95% 33.92% 24.34% 19.93% 14.47% 15.86% 23.20% 26.75% 30.55% 31.69% 35.75% 36.29%

Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).

The common-size income statement reveals a period of significant operational transition, characterized by a margin contraction in 2022 followed by a robust recovery in efficiency and profitability through 2024, and a shifting cost structure toward the end of the observed period.

Gross Profitability
Gross profit margins remained relatively stable, generally fluctuating between 78% and 82%. A notable decline occurred on December 31, 2022, where the margin dropped to 74.08% due to an increase in the cost of revenue to 25.92%. However, margins recovered quickly in 2023 and maintained a strengthened position above 81% through mid-2026.
Operating Expense Trends
A strategic shift in resource allocation is evident. Research and development expenses saw a substantial increase, rising from approximately 20% of revenue in early 2021 to peaks above 30% in 2022, and reaching a maximum of 35.62% by June 30, 2026. Conversely, marketing and sales expenses underwent a consistent downward trend, decreasing from a peak of 14.22% in late 2022 to approximately 5.64% by June 2026. General and administrative costs exhibited higher volatility but trended lower over the long term, dropping significantly in late 2024 before rising again in 2026.
Operating Income Performance
Operating margins experienced a V-shaped trajectory. After starting at levels above 40% in 2021, margins declined sharply throughout 2022, reaching a low of 19.89% on December 31, 2022. This was followed by a strong recovery period, with operating income as a percentage of revenue peaking at 48.29% on December 31, 2024. A subsequent contraction is observed toward the end of the period, with the margin falling to 30.88% by June 2026.
Net Income and Tax Impact
Net income patterns largely mirrored operating performance but were influenced by significant tax anomalies. While net margins were healthy throughout 2021 and recovered strongly in 2023-2024, a sharp divergence occurred on September 30, 2025, where net income plummeted to 5.29% due to a substantial tax provision of 36.99%. This was followed by a corrective spike on March 31, 2026, where a tax benefit of 8.92% contributed to a net income margin of 47.54%.

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