Analysis of Reportable Segments
Meta Platforms Inc. operates in 2 segments: Family of Apps (FoA) and Reality Labs (RL).
Segment Profit Margin
Meta Platforms Inc., profit margin by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Family of Apps (FoA) | 51.55% | 53.65% | 47.27% | 37.27% | 49.24% |
| Reality Labs (RL) | -869.64% | -826.14% | -850.21% | -635.34% | -448.24% |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Segment profit margins exhibit markedly different trends across the reported periods. The Family of Apps segment demonstrates a fluctuating, yet generally improving, profitability, while the Reality Labs segment consistently operates at a substantial loss.
- Family of Apps (FoA) Profit Margin
- The Family of Apps segment experienced a decrease in profit margin from 49.24% in 2021 to 37.27% in 2022. A subsequent recovery is observed, with margins increasing to 47.27% in 2023 and further to 53.65% in 2024. The segment’s profitability then slightly decreased to 51.55% in 2025, though remaining above the 2021 level. This suggests a period of initial pressure followed by successful margin expansion, with a minor pullback in the most recent reported year.
- Reality Labs (RL) Profit Margin
- The Reality Labs segment consistently reports negative profit margins across the entire period. The losses widened considerably from -448.24% in 2021 to -635.34% in 2022, and continued to deteriorate, reaching -850.21% in 2023. While the margin improved slightly to -826.14% in 2024, it further declined to -869.64% in 2025. This indicates a sustained and increasing level of losses within this segment, despite ongoing investment.
- Comparative Segment Performance
- A significant divergence in performance is apparent between the two segments. The Family of Apps segment generates substantial profits, while the Reality Labs segment represents a consistent drain on overall company profitability. The magnitude of the losses in Reality Labs far outweighs the profit margin observed in Family of Apps, suggesting a considerable resource allocation towards a currently unprofitable venture.
The trend for the Family of Apps segment indicates successful adaptation and margin management, while the Reality Labs segment’s continued losses warrant ongoing scrutiny and evaluation of its long-term viability and strategic alignment.
Segment Profit Margin: Family of Apps (FoA)
Meta Platforms Inc.; Family of Apps (FoA); segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Income (loss) from operations | 102,469) | 87,109) | 62,871) | 42,661) | 56,946) |
| Revenue | 198,759) | 162,355) | 133,006) | 114,450) | 115,655) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 51.55% | 53.65% | 47.27% | 37.27% | 49.24% |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment profit margin = 100 × Income (loss) from operations ÷ Revenue
= 100 × 102,469 ÷ 198,759 = 51.55%
The Family of Apps segment demonstrated fluctuating performance between 2021 and 2025. Operational income and revenue both experienced initial declines, followed by substantial growth over the analyzed period. However, the segment profit margin exhibited a more moderate trajectory, with periods of contraction and expansion.
- Operational Income
- Income from operations decreased from US$56,946 million in 2021 to US$42,661 million in 2022, representing a significant decline. Subsequently, operational income rebounded strongly, reaching US$62,871 million in 2023, US$87,109 million in 2024, and further increasing to US$102,469 million in 2025. This indicates a recovery and sustained growth in the segment’s profitability.
- Revenue
- Revenue experienced a slight decrease from US$115,655 million in 2021 to US$114,450 million in 2022. Similar to operational income, revenue then increased considerably, reaching US$133,006 million in 2023, US$162,355 million in 2024, and US$198,759 million in 2025. The revenue trend mirrors the operational income trend, suggesting a strong correlation between sales and profitability.
- Segment Profit Margin
- The segment profit margin decreased from 49.24% in 2021 to 37.27% in 2022, coinciding with the decline in operational income. A recovery was observed in 2023, with the margin increasing to 47.27%. Further improvement occurred in 2024, reaching 53.65%, before settling at 51.55% in 2025. While the margin recovered from its 2022 low, it did not fully return to the 2021 level, suggesting potential shifts in cost structure or pricing strategies.
The period between 2022 and 2025 demonstrates a clear turnaround in the segment’s financial performance. While revenue and operational income have surpassed their 2021 levels, the segment profit margin, although improving, remains below its prior peak. Continued monitoring of the margin is warranted to assess the sustainability of the recent growth and identify potential areas for optimization.
Segment Profit Margin: Reality Labs (RL)
Meta Platforms Inc.; Reality Labs (RL); segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Income (loss) from operations | (19,193) | (17,729) | (16,120) | (13,717) | (10,193) |
| Revenue | 2,207) | 2,146) | 1,896) | 2,159) | 2,274) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | -869.64% | -826.14% | -850.21% | -635.34% | -448.24% |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment profit margin = 100 × Income (loss) from operations ÷ Revenue
= 100 × -19,193 ÷ 2,207 = -869.64%
The financial performance of the Reality Labs segment demonstrates a consistent pattern of operational losses and negative profit margins over the five-year period. Both income (loss) from operations and segment profit margin exhibit unfavorable trends, indicating increasing financial strain within this segment.
- Income (loss) from operations
- Income (loss) from operations consistently reflects a loss, with the absolute value of the loss increasing each year. Starting at a loss of US$10,193 million in 2021, the loss expanded to US$19,193 million by 2025. This represents a cumulative increase in operational losses of approximately 88% over the period.
- Revenue
- Revenue from the Reality Labs segment initially decreased from US$2,274 million in 2021 to US$1,896 million in 2023. However, a modest recovery is observed in 2024 and 2025, with revenue reaching US$2,146 million and US$2,207 million respectively. Despite this recent increase, revenue remains below the level achieved in 2021.
- Segment profit margin
- The segment profit margin is significantly negative throughout the observed period, and the magnitude of the negative margin has increased substantially. Beginning at -448.24% in 2021, the margin deteriorated to -869.64% in 2025. While a slight improvement was noted in 2024 (-826.14%), the overall trend is definitively downward, indicating a widening gap between revenue and operational costs. The consistently large negative margin suggests that the segment’s cost structure significantly outweighs its revenue generation.
The combination of declining operational income and a consistently negative and worsening segment profit margin suggests that the Reality Labs segment is a substantial drain on overall company profitability. While revenue has shown some recent signs of recovery, it has not been sufficient to offset the increasing operational losses and improve the segment’s financial performance.
Revenue
Meta Platforms Inc., revenue by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Family of Apps (FoA) | 198,759) | 162,355) | 133,006) | 114,450) | 115,655) |
| Reality Labs (RL) | 2,207) | 2,146) | 1,896) | 2,159) | 2,274) |
| Total | 200,966) | 164,501) | 134,902) | 116,609) | 117,929) |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Overall revenue demonstrates a consistent upward trajectory from 2021 through 2025. However, this growth is primarily driven by one segment, while the other exhibits comparatively limited performance. A detailed examination of the segment-level revenue reveals distinct patterns.
- Family of Apps (FoA)
- Revenue from the Family of Apps segment experienced a slight decrease between 2021 and 2022, declining from US$115,655 million to US$114,450 million. Following this, the segment exhibited robust growth, increasing to US$133,006 million in 2023, US$162,355 million in 2024, and reaching US$198,759 million in 2025. This represents a substantial acceleration in revenue generation within this segment over the latter portion of the analyzed period.
- Reality Labs (RL)
- Revenue from the Reality Labs segment decreased from US$2,274 million in 2021 to US$2,159 million in 2022, and further to US$1,896 million in 2023. A modest recovery was observed in 2024, with revenue reaching US$2,146 million, followed by a slight increase to US$2,207 million in 2025. While showing some stabilization, the Reality Labs segment’s revenue remains significantly lower than its 2021 level and contributes a relatively small proportion to overall revenue.
- Total Revenue Composition
- The Family of Apps segment consistently represents the vast majority of total revenue throughout the period. In 2021, it accounted for approximately 98.1% of total revenue. This proportion remained high in subsequent years, indicating a strong reliance on this segment for overall financial performance. The Reality Labs segment’s contribution to total revenue remains comparatively small, fluctuating between approximately 1.9% and 2.0% over the analyzed timeframe.
The observed trends suggest a growing dependence on the Family of Apps segment for revenue generation. While the Reality Labs segment shows signs of stabilization, its contribution to overall revenue remains limited. Continued monitoring of both segments is recommended to assess the sustainability of the current growth patterns and the potential for diversification of revenue streams.
Income (loss) from operations
Meta Platforms Inc., income (loss) from operations by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Family of Apps (FoA) | 102,469) | 87,109) | 62,871) | 42,661) | 56,946) |
| Reality Labs (RL) | (19,193) | (17,729) | (16,120) | (13,717) | (10,193) |
| Total | 83,276) | 69,380) | 46,751) | 28,944) | 46,753) |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The financial performance of reportable segments exhibits distinct trends over the five-year period. Income from operations for the Family of Apps segment demonstrates a notable recovery and growth, while Reality Labs consistently reports operating losses that are increasing in magnitude. Total income from operations reflects the combined performance of these segments.
- Family of Apps (FoA)
- Income from operations for the Family of Apps segment decreased from US$56,946 million in 2021 to US$42,661 million in 2022. However, a strong upward trend is then observed, with income increasing to US$62,871 million in 2023, US$87,109 million in 2024, and further to US$102,469 million in 2025. This indicates a substantial recovery and continued expansion in profitability for this segment.
- Reality Labs (RL)
- Reality Labs consistently reports losses from operations throughout the period. The loss increased from US$10,193 million in 2021 to US$13,717 million in 2022, and continued to widen to US$16,120 million in 2023, US$17,729 million in 2024, and US$19,193 million in 2025. This demonstrates a consistent pattern of increasing operating losses for this segment.
- Total Income (Loss) from Operations
- Total income from operations decreased significantly from US$46,753 million in 2021 to US$28,944 million in 2022, largely influenced by the decline in FoA income and the continued losses from Reality Labs. A recovery begins in 2023, with total income reaching US$46,751 million, and continues through 2024 (US$69,380 million) and 2025 (US$83,276 million). This recovery is driven by the strong performance of the Family of Apps segment, partially offsetting the losses from Reality Labs.
The divergence in performance between the two segments is significant. While the Family of Apps segment demonstrates robust growth, the Reality Labs segment continues to require substantial investment and does not yet generate a profit. The overall trend in total income from operations is heavily influenced by the relative performance of these two segments.