Meta Platforms (META) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $42.31B, up 16% year-over-year, driven by strong advertising and Family of Apps growth.

• Net income rose 35% to $16.64B, with diluted EPS up to $6.43.

• Family daily active people averaged 3.43B in March 2025, up 6% year-over-year.

• AI is central to strategy, driving improvements in advertising, content recommendations, business messaging, and Meta AI devices.

• Ad impressions grew 5% and average price per ad increased 10% year-over-year.

Financial highlights

• Operating income was $17.6B, with a 41% operating margin; net margin was 39%.

• Advertising revenue was $41.4B, up 16%; other revenue grew 34% to $510M.

• Reality Labs revenue declined 6% to $412M, with an operating loss of $4.21B.

• Free cash flow was $10.33B; capital expenditures were $13.69B.

• Cash, cash equivalents, and marketable securities totaled $70.23B; long-term debt was $28.83B.

Outlook and guidance

• Q2 2025 revenue expected between $42.5B and $45.5B.

• Full-year 2025 expense guidance lowered to $113B–$118B; CapEx raised to $64B–$72B, mainly for AI and infrastructure.

• Tax rate for 2025 expected at 12%–15%.

• Regulatory changes in the EU, including the DMA decision on the subscription for no ads model, could significantly impact European revenue as early as Q3 2025.

• Full-year Reality Labs operating losses are expected to increase in 2025.