Meta’s Reality Labs reports revenue of $1B, losses of $4.6B

Reality Labs notched over $1 billion in revenue during Q4 last year, up from $727 million in 2022’s Q4

article-image

Meta CEO Mark Zuckerberg | Frederic Legrand – COMEO/Shutterstock modified by Blockworks

share

Meta’s metaverse division is still raking in losses but managed to impress with revenue last quarter.

Reality Labs, the company’s metaverse-focused team, notched losses of roughly $4.6 billion, though the unit took in revenue of over $1 billion. 

To put that figure into perspective, Reality Labs reported revenue of $727 million in the same period a year earlier. 

Read more: Meta’s metaverse division bleeds $3.7B in Q2

Meta attributed the third-quarter revenue to sales of the Quest 3 — its newest virtual reality headset — during the holiday season.

For the 12-month period ending Dec. 31, the unit reported losses totaling $16.1 billion.

“We’ve made a lot of progress on our vision for advancing AI and the metaverse,” CEO Mark Zuckerberg said.

However, the company also warned in its earnings that it expects “operating losses to increase meaningfully year-over-year due to our ongoing product development efforts in augmented reality/virtual reality and our investments to further scale our ecosystem.” 

The stark warning isn’t new, with the company disclosing similar warnings in previous quarterly reports.

“We’ve invested heavily in both AI and the metaverse and will continue to do so,” Zuckerberg said on the Thursday earnings call.

Read more: It’s Vitalik’s birthday today — and he’s optimistic on crypto-AI integrations

The company reiterated last year that it will continue to focus on its metaverse vision. The company made its ambitions clear back in 2021 when it changed its name to Meta from Facebook. 

In July of last year, the CEO warned that he “can’t guarantee” that he’s ”going to be right about this bet,” but that he believes it’s the direction the world is going in.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Featured.png

Research

Helium stands at a pivotal moment in its evolution as a decentralized wireless network, balancing rapid growth, economic restructuring, and global expansion. With accelerated growth in domestic DAUs and Hotspots supporting its network, Helium is leveraging strategic partnerships and innovative proposals to scale internationally. The recent implementation of HIP 138, “Return to HNT,” has unified its token economy under HNT, simplifying participation and strengthening liquidity, while HIP 139’s phase-out of CBRS refocuses efforts on scalable Wi-Fi offload. Meanwhile, governance shifts under HIP 141 raise questions about centralization as Nova Labs consolidates control over the roadmap.

article-image

P2P Foundation founder Michel Bauwens revealed this week that Satoshi wrote him over email in the early days of Bitcoin

article-image

A Blockworks Research report looked at how Hyperliquid has maintained its hype and how it can build out its businesses

article-image

Dragonfly’s Rob Hadick discussed how the firm is approaching investments in the current market

article-image

The asset surged over the past seven days to reach its highest-ever weekly close on the SOL/ETH pair

article-image

Industry watchers note that SOL ETFs have attracted a fraction of the demand for bitcoin and ether ETFs

article-image

Tariff swings impact stock market and company outlooks, with Apple and NVidia likely to be affected by China tariffs