Sentences and paragraphs of META's Risk Factors and MD&A, 10-K Jan 29, 2026 against 10-K Jan 30, 2025.
Each links to the text at sec.gov.
RewordedRisk Factors
We incur significant expenses in operating our business, and we expect our expenses to continue to increase in the future as we continue to invest in new and unproven technologies, including AI and machine learning, as we broaden our user base, as users increase the amount and types of content they consume and the data they share with us, for example with respect to video, as we develop and implement new products, as we market new and existing products and promote our brands, as we continue to expand our technical infrastructure, as we continue to invest in new and unproven technologies, including AI and machine learning, and as we continue our efforts to focus on privacy, safety, security, and content and advertising review and enforcement.
Read it in 10-K Jan 29, 2026 at sec.gov ↗
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RewordedRisk Factors
Other A number of U.S. state privacy laws, such as the Texas Data Privacy and Security Act, the Colorado Privacy Act, and the Oregon Consumer Privacy Act, are introducing laws have introduced additional rights for users and could result in restrictions on our use of signals from third-party apps and websites through certain browser- and device-based universal opt-out mechanisms.
Read it in 10-K Jan 29, 2026 at sec.gov ↗
RewordedRisk Factors
Legislative proposals As a result of legislative proposals, new laws, and evolving interpretation of existing laws in Europe, Asia-Pacific, Latin America, and other jurisdictions may also jurisdictions, we are also, and expect to continue to be, subject us to new requirements relating to allegedly fraudulent or illegal activities by third parties on our platform, which could continue to cause us to incur significant compliance costs or make changes to our products or business practices, and could subject us to additional fines and penalties or liability for losses to users or other third parties in such transactions.
Read it in 10-K Jan 29, 2026 at sec.gov ↗
RewordedRisk Factors
We As a result of these or other factors, our Reality Labs strategy and investments may not be successful in our Reality Labs strategy and investments, the foreseeable future, or at all, which could adversely affect our business, reputation, or financial results.
Read it in 10-K Jan 29, 2026 at sec.gov ↗
RewordedRisk Factors
The tax laws applicable to our business, including the laws of the United States and other jurisdictions, are subject to interpretation and certain jurisdictions are aggressively interpreting their laws in new ways in an effort to raise additional tax revenue from companies such as Meta. interpretation.
Read it in 10-K Jan 29, 2026 at sec.gov ↗
RewordedMD&A
Our effective tax rate in the future will depend upon the proportion between the following items and income before provision for income taxes: the effects of changes in tax law, changes in valuation allowance due to the effects of CAMT, U.S. tax benefits from foreign-derived intangible income, tax effects from share-based compensation, research tax credit, tax effects from capital losses not expected to be utilized, settlement of tax contingency items, and tax effects of changes in our business, and the effects of changes in tax law. business.
Read it in 10-K Jan 29, 2026 at sec.gov ↗
RewordedMD&A
These increases were partially offset by $39.23 $72.22 billion of capital expenditures, including which includes purchases of property and equipment and principal payments on finance leases, our leases; $31.57 billion of capital returns of $35.20 billion for repurchases of our Class A common stock and payments of dividends and dividend equivalents, and $13.77 equivalents; $18.40 billion of taxes paid related to net share settlement of employee restricted stock unit (RSU) awards. awards; and $18.33 billion of purchases of non-marketable equity investments.
Read it in 10-K Jan 29, 2026 at sec.gov ↗
RewordedMD&A
Cash used in financing activities during 2024 2025 mostly consisted of $30.13 $26.25 billion for repurchases of our Class A common stock, $5.07 billion of payments of dividends and dividend equivalents, and $13.77 $18.40 billion of taxes paid related to net share settlement of RSUs, and $5.32 billion of payments of dividends and dividend equivalents, partially offset by $10.43 $29.91 billion of net proceeds from the issuance of additional the Notes in August 2024. November 2025.
Read it in 10-K Jan 29, 2026 at sec.gov ↗
RewordedMD&A
For example, in response to regulatory developments in Europe, we announced our plans to change the legal basis for behavioral advertising on Facebook and Instagram in the European Union, European Economic Area, and Switzerland from "legitimate interests" to "consent," and began offering users in the region a "subscription for no ads" alternative.
Read it in 10-K Jan 29, 2026 at sec.gov ↗
RewordedMD&A
While we saw improvement in business and macroeconomic conditions in recent periods, continued We are currently subject to increased business, macroeconomic, and geopolitical uncertainty remains, uncertainty, including as a result of volatility around international trade, which could impact our financial results in future periods.
Read it in 10-K Jan 29, 2026 at sec.gov ↗
RewordedMD&A
The increase was primarily mainly due to higher operational expenses related to our data centers and technical infrastructure, mostly from higher which included decreases in the depreciation expense. growth rate due to an extension in the useful lives of servers and network assets, effective January 1, 2025.
Read it in 10-K Jan 29, 2026 at sec.gov ↗
RewordedMD&A
The increase in costs and expenses was mainly primarily due to increases in operational expenses related to our data centers and technical infrastructure, mostly from higher depreciation expense and employee compensation, partially offset by lower restructuring infrastructure costs, costs associated with partner arrangements, and legal-related costs.
Read it in 10-K Jan 29, 2026 at sec.gov ↗
RewordedMD&A
Our provision for income taxes in 2024 decreased $27 million 2025 increased $17.17 billion or 207% compared to 2023, 2024, primarily due to a decrease an increase in the effective tax rate, offset by an increase in income before provision for income taxes. rate.
Read it in 10-K Jan 29, 2026 at sec.gov ↗
RewordedMD&A
See Note 8 5 — Non-Marketable Equity Investments, Note 7 — Leases, Note 10 — Long-term Debt, Note 12 11 — Commitments and Contingencies, Note 13 12 — Stockholders' Equity, and Note 15 14 — Income Taxes in the notes to the consolidated financial statements included in Part II, Item 8, and "Legal Proceedings" contained in Part I, Item 3 of this Annual Report on Form 10-K for additional information regarding leases, debt, contractual commitments and contingencies, capital return program, and taxes, respectively. information.
Read it in 10-K Jan 29, 2026 at sec.gov ↗
RewordedMD&A
The higher employee compensation was mainly primarily from a 13% an 8% growth in employee headcount from 2023 2024 to 2024 2025 in engineering and other technical functions supporting our continued investment and an increase in our family of products and Reality Labs. share-based compensation expense.
Read it in 10-K Jan 29, 2026 at sec.gov ↗
RewordedMD&A
We currently anticipate that our available funds and cash flow from operations and financing activities will be sufficient to meet our operational cash needs and fund our cash commitments for investing and financing activities, including investments in infrastructure and AI initiatives, share repurchases and dividend payments for at least as well as any return of capital to stockholders over the next 12 months and thereafter for the foreseeable future.
Read it in 10-K Jan 29, 2026 at sec.gov ↗
RewordedMD&A
Cost of revenue 18 18 19 22 Research and development 29 27 29 30 Marketing and sales 6 7 9 13 General and administrative 6 6 8 10 Total costs and expenses 59 58 65 75 Income from operations 41 42 35 25 Interest and other income (expense), income, net 1 1 — 1 Income before provision for income taxes 43 43 35 25 Provision for income taxes 13 5 6 5 Net income 30% 38% 29% 20%
Read it in 10-K Jan 29, 2026 at sec.gov ↗