Meta’s Reality Labs posts $6.02 billion loss in fourth quarter
Meta CEO Mark Zuckerberg wears Meta Ray-Ban Display glasses while giving a speech introducing the new line of smart glasses during the Meta Connect event at the company’s headquarters in Menlo Park, California, United States, on September 17, 2025.
Carlos Barria | Reuters
Meta’s Efforts to create digital worlds known as metaverses remain costly.
The company reported fourth-quarter earnings on Wednesday, saying its Reality Labs unit recorded an operating loss of $6.02 billion on sales of $955 million. Analysts expected Reality Labs to record an operating loss of $5.67 billion on $940.8 million in fourth-quarter revenue.
While Reality Labs’ losses increased 21% year-over-year this quarter, its sales increased 13% in the same period. The segment has a total operating loss of approximately $80 billion since late 2020.
“I expect Reality Labs’ losses this year to be similar to last year, and this will likely be the peak as we begin to gradually reduce our losses as we continue to execute on our vision,” Meta CEO Mark Zuckerberg said during an earnings call.
Meta laid off more than 1,000 Reality Labs employees in early January in an effort to shift resources from virtual reality to artificial intelligence and wearable devices. This includes Ray-Ban Meta smart glasses, developed in partnership with eyewear giant EssilorLuxottica. Meta has halted several VR efforts, including internal studios, leading to fears of a VR winter, CNBC reported.
Chief technology officer Andrew Bosworth He told media organizations He said last week that Meta had not halted its VR efforts but acknowledged that the market was growing more slowly than executives had hoped.
Last fall, Meta didn’t launch a new Quest VR headset, but it did introduce the AI-powered Meta Ray-Ban Display glasses, which cost $799 and come equipped with a digital display on one of the lenses.
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