Facebook parent company Meta’s Reality Labs metaverse-focused division generated $2.2 billion in revenue for the 12 months ending December 31st, 2025, but clocked up a $19.2 billion operational loss.
Revenue rose by $61 million, a 2% increase year-on-year, while losses increased 8.3% for the 2025 financial year.
In total, Meta has made an operational loss of $83.6 billion since it set up Reality Labs in 2020. By comparison, this division has generated just $11.8 billion across the same timeframe.
Speaking to investors, Meta CEO Mark Zuckerberg said that Reality Labs was going to be focusing on “glasses and wearables” moving forward. The executive also said that the division was going to be “making Horizon a massive success on mobile and making VR a profitable ecosystem over the coming years”.
“I expect Reality Labs losses this year to be similar to last year, and this will likely be the peak as we start to gradually reduce our losses going forward while continuing to execute on our vision,” he told shareholders.
Asked about bringing Horizon to mobile, Zuckerberg said that its investments in virtual reality will “pair well” with the backing it has given artificial intelligence.
“I think that the investments that we’ve done in both a lot of the virtual reality software and Horizon as well as a number of other areas around the company are actually going to pair well with these AI advances to be able to bring some of those experiences to hundreds millions and billions of people through mobile,” he said.
Meta closed three virtual reality studios as part of a 10% jobs cut the company made to its Reality Labs division earlier this month.
When it was reported that the Facebook parent was set to make these redundancies in late 2025, the firm said that it was “shifting some of our investment from the metaverse towards AI glasses and wearables, given the momentum there”.
VR experts have said that the cuts at Reality Labs, and the decision to close three studios, is “in the short term… concerning”.
