Meta Platforms(US:META)2026-01-29 00:13Financial Performance - Total revenue for 2025 was $200.97 billion, an increase of 22% compared to 2024, driven by a rise in advertising revenue[280]. - Income from operations for 2025 was $83.28 billion, a 20% increase from 2024, attributed to higher advertising revenue despite increased costs[281]. - Net income for 2025 was $60.46 billion, with diluted earnings per share (EPS) of $23.49[284]. - Total costs and expenses for 2025 were $117.69 billion, up 24% from $95.12 billion in 2024[338]. - Net income for 2025 was $60.46 billion, a decrease from $62.36 billion in 2024[338]. Revenue Breakdown - Family of Apps revenue reached $198.76 billion, up 22% from $162.36 billion in 2024, while Reality Labs revenue was $2.21 billion, a 3% increase[284]. - Advertising revenue increased by $35.54 billion, or 22%, in 2025, driven by a 12% increase in ad impressions delivered[342]. - Family of Apps revenue rose by $36.40 billion, or 22%, compared to 2024, primarily due to advertising revenue growth[341]. - Reality Labs revenue increased by $61 million, or 3%, in 2025, driven by AI glasses sales despite a decline in Meta Quest sales[344]. User Engagement - Daily active people (DAP) averaged 3.58 billion in December 2025, reflecting a 7% year-over-year increase[287]. - Worldwide Daily Active People (DAP) increased by 7% to 3.58 billion in December 2025 from 3.35 billion in December 2024[306]. - Average Revenue Per Person (ARPP) for 2025 was $57.03, reflecting a 15% increase from 2024[310]. Advertising Metrics - Ad impressions delivered across the Family of Apps increased by 12% year-over-year, and the average price per ad rose by 9%[287]. - The average price per ad is calculated as total advertising revenue divided by the number of ads delivered, with significant variations based on product type[330]. - Advertising revenue is primarily generated from displaying ads on Facebook, Instagram, Messenger, and third-party mobile applications[329]. Expenses and Costs - Cost of revenue includes expenses related to data center operations, employee compensation, and energy costs, impacting overall profitability[333]. - Research and development expenses are focused on employee compensation and technology development costs, essential for new product innovation[334]. - General and administrative expenses rose by $2.41 billion, or 25%, in 2025, mainly due to higher legal-related costs[352]. - Research and development expenses increased by $13.50 billion, or 31%, in 2025, largely due to higher employee compensation and infrastructure costs[349]. Taxation - The effective tax rate for 2025 was 30%, influenced by the One Big Beautiful Bill Act, with a potential decrease to 13% absent certain charges[287]. - The provision for income taxes in 2025 increased by $17.17 billion or 207% compared to 2024, primarily due to an increase in the effective tax rate[361]. - The effective tax rate for 2025 was 30%, up from 12% in 2024, largely influenced by the One Big Beautiful Bill Act (OBBBA)[361]. Capital Expenditures and Cash Flow - Capital expenditures for 2025 totaled $72.22 billion, with share repurchases amounting to $26.26 billion and dividends at $5.32 billion[287]. - Net cash provided by operating activities was $115.80 billion in 2025, compared to $91.33 billion in 2024[369]. - Free cash flow (FCF) for 2025 was $43.59 billion, down from $52.10 billion in 2024[378]. - The company anticipates capital expenditures of approximately $115 billion to $135 billion in 2026 to support AI efforts and core business[372]. Shareholder Returns - The company repurchased 40 million shares of Class A common stock for $26.26 billion in 2025, with $25.03 billion remaining authorized for repurchases[384]. - Total dividends paid in 2025 were $5.32 billion, with an increase in quarterly cash dividends from $0.50 to $0.525 per share[386]. Marketable Securities and Investments - Cash, cash equivalents, and marketable securities totaled $81.59 billion as of December 31, 2025, an increase of $3.78 billion from the previous year[368]. - Marketable equity securities were valued at $5.99 billion and $1.23 billion as of December 31, 2025 and 2024, respectively, with a hypothetical 10% adverse price change potentially decreasing fair value by $599 million[399]. - The carrying value of non-marketable equity investments accounted for under the measurement alternative was $20.08 billion and $6.02 billion as of December 31, 2025 and 2024, respectively[400]. - The carrying value of non-marketable equity method investments was $7.45 billion and $52 million as of December 31, 2025 and 2024, respectively[401]. Future Outlook - The company anticipates future advertising revenue growth will be driven by a combination of price increases and ad impressions delivered[342]. - The company expects to incur Corporate Alternative Minimum Tax (CAMT) beginning in 2025 due to new U.S. tax provisions[324]. - A hypothetical 100 basis point increase in market interest rates would decrease the market value of available-for-sale debt securities and cash equivalents by $711 million and $680 million as of December 31, 2025 and 2024, respectively[396].