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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)

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3 months ended: Sep 30, 2026 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 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of revenue -20.69 -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 79.31% 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 -31.04 -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 -5.16 -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 -23.00 -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 20.10% 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 0.02 -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 20.13% 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 -4.86 -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 15.26% 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: 2026-09-30), 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 strategic reallocation of resources over the analyzed period, characterized by a significant increase in long-term technical investment and a disciplined reduction in customer acquisition costs. While gross profitability remained resilient, operating margins experienced substantial volatility, reflecting shifts in the cost structure and periodic spikes in administrative expenses.

Gross Profitability and Cost of Revenue
Gross margins remained generally stable, typically fluctuating between 78% and 82%. A notable contraction occurred in the fourth quarter of 2022, where gross profit dipped to 74.08% due to a rise in the cost of revenue to 25.92%. However, a recovery followed, with margins stabilizing above 81% for much of 2023 through mid-2025, before a slight decline to 79.31% by September 2026.
Operating Expense Trends
Research and development (R&D) expenditures show a consistent upward trend, increasing from approximately 20% of revenue in early 2021 to a peak of 35.62% in June 2026. This indicates a sustained increase in the intensity of technical investment. In contrast, marketing and sales expenses underwent a steady decline, dropping from a range of 11-13% in 2021 to approximately 5% by late 2026, suggesting improved organic growth or increased efficiency in user acquisition.
General and Administrative (G&A) Volatility
G&A expenses exhibited significant instability. After fluctuating between 1.5% and 13% for several years, there was a sharp and substantial increase to 23% of revenue in September 2026. This outlier suggests a one-time operational event or a significant restructuring cost during that period.
Operating and Net Profitability
Operating income margins followed a cyclical pattern, declining from 43.48% in early 2021 to a low of 19.89% in December 2022. A strong recovery occurred through 2023 and 2024, peaking at 48.29% in September 2024. However, this margin compressed again to 20.10% by September 2026, primarily driven by the surge in G&A and R&D costs.
Taxation and Net Income Anomalies
Net income generally tracked with operating performance, but experienced two significant anomalies. In September 2025, net income plummeted to 5.29% despite strong operating results, caused by an exceptional tax provision of 36.99% of revenue. Conversely, March 2026 saw a tax benefit of 8.92%, which contributed to a net income peak of 47.54%.

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