Meta Platforms' Q2 Earnings and Revenues Surpass Estimates, Rise Y/Y

Core Insights - Meta Platforms (META) reported Q2 2025 earnings of $7.14 per share, exceeding the Zacks Consensus Estimate by 22.5% and reflecting a 38.4% year-over-year increase [1][8] - Revenues reached $47.52 billion, surpassing the Zacks Consensus Estimate by 5.96% and showing a 21.6% year-over-year growth [1][8] - Operating margin expanded by 500 basis points to 43%, driven by slower cost growth compared to revenue [8][9] Revenue Breakdown - Family of Apps, accounting for 99.2% of total revenues, generated $47.15 billion, a 21.8% year-over-year increase [2] - Daily Active People (DAP) for Family of Apps reached 3.48 billion, up 6.4% year over year [2] - Advertising revenues, which make up 98.8% of Family of Apps revenues, increased 21.5% year over year to $46.56 billion [4] Geographic Performance - Revenue growth by region: United States & Canada (21%), Asia-Pacific (18.7%), Europe (24%), and Rest of the World (24%) year over year [3] Advertising Metrics - Ad impressions across Family of Apps rose 11% year over year, with average ad prices increasing by 9% [5] - Impressions growth by region: Asia-Pacific (16%), Rest of the World (7%), United States & Canada (9%), and Europe (6%) [5] Cost and Expenses - Total costs and expenses increased 11.8% year over year to $27.08 billion, representing 57% of revenues, a decrease of 500 basis points year over year [6][8] - Family of Apps expenses were $22.2 billion, up 14% year over year, primarily due to higher infrastructure and headcount costs [6] Financial Position - As of June 30, 2025, cash and cash equivalents were $47.07 billion, down from $70.23 billion as of March 31, 2025 [11] - Long-term debt remained stable at $28.83 billion [11] - Free cash flow for the quarter was $8.55 billion [11] Future Guidance - Meta expects Q3 2025 revenues between $47.5 billion and $50.5 billion, with a 1% tailwind from favorable foreign exchange [12] - The Zacks Consensus Estimate for Q3 revenues is $43.33 billion, indicating a 10.9% growth year over year [13] - For 2025, total expenses are anticipated to be between $114 billion and $118 billion, reflecting a growth rate of 20-24% year over year [13]