Meta Reports Third Quarter 2026 Results
Announces Establishment of New Class C Common Stock MENLO PARK, Calif. – October 21, 2026 – Meta Platforms, Inc. (Nasdaq: META) today reported financial results for the quarter ended September 30, 2026.
"We hit major milestones this quarter toward delivering personal superintelligence for everyone - including launching Muse and Muse Wonder, our first frontier model," said Mark Zuckerberg, Meta founder and CEO. "Our investments are paying off, the core business is strong, and we're seeing velocity across the board."
In August 2026, we announced an agreement with 52 attorneys general to resolve litigation related to teen mental health and social media, which provides for payments of up to approximately $18.59 billion. Third quarter 2026 costs and expenses includes a $9.89 billion charge related to this agreement. Excluding this charge, the third quarter 2026:
Income from operations of $12.99 billion would have increased by $9.89 billion to $22.88 billion.
– DAP was 3.64 billion on average for September 2026, an increase of 3% year- over-year.
– Ad impressions delivered across our Family of Apps increased by 10% year-over- year.
– Revenue was $64.60 billion, an increase of 26% year-over-year on both a reported and constant currency basis.
– Total costs and expenses were $51.61 billion, an increase of 68% year-over- year. This includes the litigation charge as discussed above.
– Capital expenditures, including principal payments on finance leases, were $34.91 billion.
– Cash, cash equivalents, and marketable securities were $82.45 billion as of September 30, 2026.
– Cash flow from operating activities was $32.79 billion, and free cash flow was negative $2.12 billion. (1)
– Headcount was 66,775 as of September 30, 2026, a decrease of 15% year-over- year.
(1) For more information on our free cash flow non-GAAP financial measure, see the sections entitled "Non-GAAP Financial Measures" and "Reconciliation of GAAP to Non-GAAP Results" in this press release. 1
We expect fourth quarter 2026 total revenue to be in the range of $73-76 billion. Our guidance assumes foreign currency is an approximately 1% headwind to year-over-year total revenue growth, based on current exchange rates.
We are raising our expense outlook to incorporate the $9.9 billion charge related to legal proceedings recognized in the third quarter. We now expect full year 2026 total expenses to be in the range of $175-179 billion.
Excluding the third quarter legal charge, we continue to expect 2026 operating income to be above 2025 operating income.
At a segment level, we now expect Reality Labs losses to decline compared to 2025 to a range of $18-19 billion.
We anticipate 2026 capital expenditures, including principal payments on finance leases, to be in the range of $135-145 billion, narrowed from our prior outlook of $130-145 billion.
Absent any changes to our tax landscape, we expect our fourth quarter 2026 tax rate to be between 15-17%.
Additionally, we continue to monitor active legal and regulatory matters that could significantly impact our business and financial results. For example, we continue to see scrutiny on youth-related issues in several markets and have a number of youth-related trials scheduled in the coming months in the U.S.
Looking beyond 2026, we are still developing our budget and capacity plans for next year, but we expect to continue investing aggressively to support both our core business and emerging AI initiatives. Our current capacity and what is scheduled to come online gives us the flexibility to allocate resources across model training, core business growth, and the development and support of new products.
Our AI investments are already delivering substantial incremental advertising revenue through stronger engagement, better recommendations, and more efficient monetization. Building on this progress, our MSL investments are creating the technology and infrastructure needed to unlock significant new revenue opportunities and strengthen capabilities across the business. While these investments will take longer to generate returns than those in our core business, the breadth of monetization opportunities and internal efficiencies gives us confidence in their long-term potential.
Looking ahead, although we are not providing a full-year 2027 revenue outlook, the benefits our AI investments are delivering to the core business, combined with emerging opportunities from model advances and product launches, position us to sustain strong overall revenue growth throughout 2027.
Separately, we remain focused on improving Reality Labs profitability and expect losses to narrow next year to around $15 billion as we reallocate investment toward other priority areas, primarily AI. 2
The Board of Directors has approved the establishment of a new class of publicly listed, non-voting Class C common stock, with an effective date in January 2027.
The approval by Meta's Board follows the unanimous recommendation of a Special Committee of disinterested and independent directors, which was established by the Board to evaluate the company's capital structure. The Special Committee and the Board determined that creating this new class of stock is advisable, fair, and in the best interests of Meta and its shareholders for a number of reasons, including:
Creating a New Class of Shares for Capital Raising, Employee Compensation, Potential Acquisitions, and Other General Corporate Purposes
The scale of investment required to compete, sustain growth, expand infrastructure, and pursue new strategic initiatives amidst the AI transformation taking place in the industry is significant. The Special Committee determined this new class of common stock will provide Meta the ability to finance its growth and help the company remain a leader among fierce competition both domestic and international.
Since Meta's formation, its management team has prioritized long-term goals and value creation, and its stock price has increased by more than 1,700% since its IPO. By contrast, over the same period, the S&P 500 has increased approximately 495%. The Special Committee wants Meta to continue innovating with an emphasis on long-term growth, which the creation of the Class C stock is intended to help facilitate.
Ensuring Founder and CEO Mark Zuckerberg Continues to Lead Meta into the Next Era – The Special Committee concluded that Mr. Zuckerberg is best suited to lead Meta into its next era and beyond. They recognized that Meta's track record of significant value creation for its shareholders is in large part due to his strong leadership, unique and creative vision, and exceptional management abilities. The creation of the Class C common stock will continue the founder- led model that has driven the company's success since its inception.
Meta intends to file an amended and restated certificate of incorporation in Delaware to establish the Class C common stock, with an effective date of January 19, 2027. The Board has also declared a one-time stock dividend of one share of Class C common stock for each outstanding share of Class A common stock and Class B common stock, contingent upon, and to be paid after, the effectiveness of the amended and restated certificate of incorporation.
The record date and payment date of the stock dividend will be determined by the Board at a later date. After the payment date of the stock dividend, we expect the market price for our Class A common stock to reflect the effect of a two- for-one stock split. The stock dividend will not change the voting power of any shareholder.
The amended and restated certificate of incorporation has been approved by shareholder written consent. We have also entered into a Founder Alignment Agreement with Mr. Zuckerberg, which has terms related to his sales of Class C common stock received in the stock dividend, his service at the company, and conditions for potential future stock dividends of Class C common stock.
Meta's Class A common stock will continue to trade on Nasdaq, and we intend to qualify the Class C common stock for listing on Nasdaq upon its issuance as a result of the stock dividend. More information will be available in our Report on Form 8-K and information statement to be filed with the Securities and Exchange Commission.
Moelis & Company LLC served as independent financial advisor to the Special Committee and Morgan Stanley & Co. LLC served as financial advisor to Meta. 3
Meta will host a conference call to discuss its results at 1:30 p.m. PT / 4:30 p.m. ET today. The live webcast of the call can be accessed at the Meta Investor Relations website at investor.atmeta.com, along with the company's earnings press release, financial tables, and slide presentation.
Following the call, a replay will be available at the same website. Transcripts of conference calls with publishing equity research analysts held today will also be posted to the investor.atmeta.com website.
Meta uses the investor.atmeta.com and meta.com/news websites as well as Mark Zuckerberg's Facebook profile (facebook.com/zuck), Instagram account (instagram.com/zuck) and Threads profile (threads.net/zuck) as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
Meta is building the future of human connection, powered by artificial intelligence and immersive technologies. When Facebook launched in 2004, it changed the way people connect. Apps like Messenger, Instagram, and WhatsApp further empowered billions around the world. Now, Meta is moving toward building experiences that foster deeper connections and unlock new possibilities.
This press release contains forward-looking statements regarding our future business plans and expectations. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors including: the impact of macroeconomic conditions on our business and financial results, including as a result of geopolitical events; our ability to retain or increase users and engagement levels; our reliance on advertising revenue; our dependency on data signals and mobile operating systems, networks, and standards that we do not control; changes to the content or application of third-party policies that impact our advertising practices; risks associated with new products and changes to existing products as well as other new business initiatives, including our artificial intelligence initiatives and Reality Labs efforts; our emphasis on community growth and engagement and the user experience over short-term financial results; maintaining and enhancing our brand and reputation; our ongoing privacy, safety, security, and content and advertising review and enforcement efforts; competition; risks associated with government actions that could restrict access to our products or impair our ability to sell advertising in certain countries; litigation and government inquiries; privacy, legislative, and regulatory concerns or developments; risks associated with acquisitions; security breaches; our ability to manage our scale and geographically-dispersed operations; and market conditions or other factors affecting capital return to stockholders. These and other potential risks and uncertainties that could cause actual results to differ from the results predicted are more fully detailed under the caption "Risk Factors" in our Quarterly Report on Form 10-Q filed with the SEC on July 30, 2026, which is available on our Investor Relations website at investor.atmeta.com and on the SEC website at www.sec.gov. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2026. In addition, please note that the date of this press release is October 21, 2026, and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update these statements as a result of new information or future events.
For a discussion of limitations in the measurement of certain of our community metrics, see the section entitled "Limitations of Key Metrics and Other Data" in our most recent quarterly or annual report filed with the SEC.
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States (GAAP), we use the following non-GAAP financial measures: revenue excluding foreign exchange effect, advertising revenue excluding foreign exchange effect, and free cash flow. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In addition, these measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures.
We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating our business.
Foreign exchange effect on revenue . To calculate revenue on a constant currency basis, we translate current period revenue using the prior year's monthly exchange rates for our settlement or billing currencies other than the U.S. dollar, which we believe is a useful metric that facilitates comparison to our historical performance.
Purchases of property and equipment; Principal payments on finance leases. We subtract both purchases of property and equipment, and principal payments on finance leases in our calculation of free cash flow because we believe that these two items collectively represent the amount of property and equipment we need to procure to support our business, regardless of whether we procure such property or equipment with a finance lease. We believe that this methodology can provide useful supplemental information to help investors better understand underlying trends in our business. Free cash flow is not intended to represent our residual cash flow available for discretionary expenditures.
(1) The third quarter 2026 general and administrative expenses include a $9.89 billion charge related to the August 2026 agreement with U.S. State Attorneys General to resolve litigation related to teen mental health and social media. 6
META PLATFORMS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) (Unaudited) Assets September 30, Current assets: 2026 December 31, 2025 ────────────────────────────────────────────────────────────────────────────── Cash and cash $ 11,222 $ 35,873 equivalents Marketable 71,227 45,719 securities Accounts 22,716 19,769 receivable, net Prepaid expenses and other 14,735 7,361 current assets Total current 119,900 108,722 assets Non-marketable equity 32,624 27,524 investments Property and 253,222 176,400 equipment, net Operating lease right-of-use 26,576 20,404 assets Goodwill 23,421 24,534 Other assets 23,093 8,437 Total assets $ 478,836 $ 366,021 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 19,097 $ 8,894 Operating lease liabilities, 2,522 2,213 current Accrued expenses and other 41,392 30,729 current liabilities Total current 63,011 41,836 liabilities Operating lease liabilities, 28,651 22,940 non-current Long-term debt 80,922 58,744 Long-term income 20,521 21,005 taxes Other 13,345 4,253 liabilities Total 206,450 148,778 liabilities Commitments and contingencies Stockholders' equity: Common stock and additional 108,244 95,793 paid-in capital Accumulated other comprehensive -1,200 271 income (loss) Retained 165,342 121,179 earnings Total stockholders' 272,386 217,243 equity Total liabilities and $ 478,836 $ 366,021 stockholders' equity
We report our financial results for our two reportable segments: Family of Apps (FoA) and Reality Labs (RL). FoA includes Facebook, Instagram, Messenger, WhatsApp, and other services. RL includes our virtual and augmented reality related consumer hardware, software, and content.
The following table sets forth our segment information of revenue and income (loss) from operations:
Full text with the tables
Meta Reports Third Quarter 2026 Results
Announces Establishment of New Class C Common Stock
MENLO PARK, Calif. – October 21, 2026 – Meta Platforms, Inc. (Nasdaq: META)
today reported financial results for the quarter ended September 30, 2026.
"We hit major milestones this quarter toward delivering personal
superintelligence for everyone - including launching Muse and Muse Wonder, our
first frontier model," said Mark Zuckerberg, Meta founder and CEO. "Our
investments are paying off, the core business is strong, and we're seeing
velocity across the board."
Third Quarter 2026 Financial Highlights
In
million…
except Three
percent… Months
and per Ended
share September
amounts 30, 2026 2025 % Change
──────────────────────────────────────────────────────────────────────────────
Revenue $ 64,601 $ 51,242 26 %
Costs
and 51,613 30,707 68 %
expenses
Income
from $ 12,988 $ 20,535 -37 %
operati…
Operati… 20 % 40 %
margin
Provisi…
for $ 3,141 $ 18,954 -83 %
income
taxes
Effecti… 24 % 87 %
tax rate
Net $ 9,860 $ 2,709 264 %
income
Diluted
earnings
per $ 3.83 $ 1.05 265 %
share
(EPS)
Agreement with U.S. State Attorneys General
In August 2026, we announced an agreement with 52 attorneys general to resolve
litigation related to teen mental health and social media, which provides for
payments of up to approximately $18.59 billion. Third quarter 2026 costs and
expenses includes a $9.89 billion charge related to this agreement. Excluding
this charge, the third quarter 2026:
•
Income from operations of $12.99 billion would have increased by $9.89 billion
to $22.88 billion.
•
Diluted EPS of $3.83 would have increased by $3.57 to $7.40.
•
Effective tax rate of 24% would have decreased by 7 percentage points to 17%.
Third Quarter 2026 Operational and Other Financial Highlights
•
Family daily active people (DAP)
– DAP was 3.64 billion on average for September 2026, an increase of 3% year-
over-year.
•
Ad impressions
– Ad impressions delivered across our Family of Apps increased by 10% year-over-
year.
•
Average price per ad
– Average price per ad increased by 14% year-over-year.
•
Revenue
– Revenue was $64.60 billion, an increase of 26% year-over-year on both a
reported and constant currency basis.
•
Costs and expenses
– Total costs and expenses were $51.61 billion, an increase of 68% year-over-
year. This includes the litigation charge as discussed above.
•
Capital expenditures
– Capital expenditures, including principal payments on finance leases, were
$34.91 billion.
•
Capital return program
– Dividend and dividend equivalent payments were $1.36 billion.
•
Cash, cash equivalents, and marketable securities
– Cash, cash equivalents, and marketable securities were $82.45 billion as of
September 30, 2026.
•
Cash flow
– Cash flow from operating activities was $32.79 billion, and free cash flow was
negative $2.12 billion. (1)
•
Headcount
– Headcount was 66,775 as of September 30, 2026, a decrease of 15% year-over-
year.
____________________________________
(1) For more information on our free cash flow non-GAAP financial measure, see
the sections entitled "Non-GAAP Financial Measures" and "Reconciliation of GAAP
to Non-GAAP Results" in this press release.
1
CFO Outlook Commentary
We expect fourth quarter 2026 total revenue to be in the range of $73-76
billion. Our guidance assumes foreign currency is an approximately 1% headwind
to year-over-year total revenue growth, based on current exchange rates.
We are raising our expense outlook to incorporate the $9.9 billion charge
related to legal proceedings recognized in the third quarter. We now expect full
year 2026 total expenses to be in the range of $175-179 billion.
Excluding the third quarter legal charge, we continue to expect 2026 operating
income to be above 2025 operating income.
At a segment level, we now expect Reality Labs losses to decline compared to
2025 to a range of $18-19 billion.
We anticipate 2026 capital expenditures, including principal payments on finance
leases, to be in the range of $135-145 billion, narrowed from our prior outlook
of $130-145 billion.
Absent any changes to our tax landscape, we expect our fourth quarter 2026 tax
rate to be between 15-17%.
Additionally, we continue to monitor active legal and regulatory matters that
could significantly impact our business and financial results. For example, we
continue to see scrutiny on youth-related issues in several markets and have a
number of youth-related trials scheduled in the coming months in the U.S.
Looking beyond 2026, we are still developing our budget and capacity plans for
next year, but we expect to continue investing aggressively to support both our
core business and emerging AI initiatives. Our current capacity and what is
scheduled to come online gives us the flexibility to allocate resources across
model training, core business growth, and the development and support of new
products.
Our AI investments are already delivering substantial incremental advertising
revenue through stronger engagement, better recommendations, and more efficient
monetization. Building on this progress, our MSL investments are creating the
technology and infrastructure needed to unlock significant new revenue
opportunities and strengthen capabilities across the business. While these
investments will take longer to generate returns than those in our core
business, the breadth of monetization opportunities and internal efficiencies
gives us confidence in their long-term potential.
Looking ahead, although we are not providing a full-year 2027 revenue outlook,
the benefits our AI investments are delivering to the core business, combined
with emerging opportunities from model advances and product launches, position
us to sustain strong overall revenue growth throughout 2027.
Separately, we remain focused on improving Reality Labs profitability and expect
losses to narrow next year to around $15 billion as we reallocate investment
toward other priority areas, primarily AI.
2
Establishment of New Class C Common Stock
The Board of Directors has approved the establishment of a new class of publicly
listed, non-voting Class C common stock, with an effective date in January 2027.
The approval by Meta's Board follows the unanimous recommendation of a Special
Committee of disinterested and independent directors, which was established by
the Board to evaluate the company's capital structure. The Special Committee and
the Board determined that creating this new class of stock is advisable, fair,
and in the best interests of Meta and its shareholders for a number of reasons,
including:
•
Creating a New Class of Shares for Capital Raising, Employee Compensation,
Potential Acquisitions, and Other General Corporate Purposes
–
The scale of investment required to compete, sustain growth, expand
infrastructure, and pursue new strategic initiatives amidst the AI
transformation taking place in the industry is significant. The Special
Committee determined this new class of common stock will provide Meta the
ability to finance its growth and help the company remain a leader among fierce
competition both domestic and international.
•
Continuing to Maximize Long-Term Value for All Shareholders
–
Since Meta's formation, its management team has prioritized long-term goals and
value creation, and its stock price has increased by more than 1,700% since its
IPO. By contrast, over the same period, the S&P 500 has increased approximately
495%. The Special Committee wants Meta to continue innovating with an emphasis
on long-term growth, which the creation of the Class C stock is intended to help
facilitate.
•
Ensuring Founder and CEO Mark Zuckerberg Continues to Lead Meta into the Next
Era – The Special Committee concluded that Mr. Zuckerberg is best suited to lead
Meta into its next era and beyond. They recognized that Meta's track record of
significant value creation for its shareholders is in large part due to his
strong leadership, unique and creative vision, and exceptional management
abilities. The creation of the Class C common stock will continue the founder-
led model that has driven the company's success since its inception.
Meta intends to file an amended and restated certificate of incorporation in
Delaware to establish the Class C common stock, with an effective date of
January 19, 2027. The Board has also declared a one-time stock dividend of one
share of Class C common stock for each outstanding share of Class A common stock
and Class B common stock, contingent upon, and to be paid after, the
effectiveness of the amended and restated certificate of incorporation.
The record date and payment date of the stock dividend will be determined by the
Board at a later date. After the payment date of the stock dividend, we expect
the market price for our Class A common stock to reflect the effect of a two-
for-one stock split. The stock dividend will not change the voting power of any
shareholder.
The amended and restated certificate of incorporation has been approved by
shareholder written consent. We have also entered into a Founder Alignment
Agreement with Mr. Zuckerberg, which has terms related to his sales of Class C
common stock received in the stock dividend, his service at the company, and
conditions for potential future stock dividends of Class C common stock.
Meta's Class A common stock will continue to trade on Nasdaq, and we intend to
qualify the Class C common stock for listing on Nasdaq upon its issuance as a
result of the stock dividend. More information will be available in our Report
on Form 8-K and information statement to be filed with the Securities and
Exchange Commission.
Moelis & Company LLC served as independent financial advisor to the Special
Committee and Morgan Stanley & Co. LLC served as financial advisor to Meta.
3
Webcast and Conference Call Information
Meta will host a conference call to discuss its results at 1:30 p.m. PT / 4:30
p.m. ET today. The live webcast of the call can be accessed at the Meta Investor
Relations website at investor.atmeta.com, along with the company's earnings
press release, financial tables, and slide presentation.
Following the call, a replay will be available at the same website. Transcripts
of conference calls with publishing equity research analysts held today will
also be posted to the investor.atmeta.com website.
Disclosure Information
Meta uses the investor.atmeta.com and meta.com/news websites as well as Mark
Zuckerberg's Facebook profile (facebook.com/zuck), Instagram account
(instagram.com/zuck) and Threads profile (threads.net/zuck) as means of
disclosing material non-public information and for complying with its disclosure
obligations under Regulation FD.
About Meta
Meta is building the future of human connection, powered by artificial
intelligence and immersive technologies. When Facebook launched in 2004, it
changed the way people connect. Apps like Messenger, Instagram, and WhatsApp
further empowered billions around the world. Now, Meta is moving toward building
experiences that foster deeper connections and unlock new possibilities.
Contacts
Investors:
Rob Bevegni
investor@meta.com / investor.atmeta.com
Press:
Matt Tye
press@meta.com / meta.com/news
4
Forward-Looking Statements
This press release contains forward-looking statements regarding our future
business plans and expectations. These forward-looking statements are only
predictions and may differ materially from actual results due to a variety of
factors including: the impact of macroeconomic conditions on our business and
financial results, including as a result of geopolitical events; our ability to
retain or increase users and engagement levels; our reliance on advertising
revenue; our dependency on data signals and mobile operating systems, networks,
and standards that we do not control; changes to the content or application of
third-party policies that impact our advertising practices; risks associated
with new products and changes to existing products as well as other new business
initiatives, including our artificial intelligence initiatives and Reality Labs
efforts; our emphasis on community growth and engagement and the user experience
over short-term financial results; maintaining and enhancing our brand and
reputation; our ongoing privacy, safety, security, and content and advertising
review and enforcement efforts; competition; risks associated with government
actions that could restrict access to our products or impair our ability to sell
advertising in certain countries; litigation and government inquiries; privacy,
legislative, and regulatory concerns or developments; risks associated with
acquisitions; security breaches; our ability to manage our scale and
geographically-dispersed operations; and market conditions or other factors
affecting capital return to stockholders. These and other potential risks and
uncertainties that could cause actual results to differ from the results
predicted are more fully detailed under the caption "Risk Factors" in our
Quarterly Report on Form 10-Q filed with the SEC on July 30, 2026, which is
available on our Investor Relations website at investor.atmeta.com and on the
SEC website at www.sec.gov. Additional information will also be set forth in our
Quarterly Report on Form 10-Q for the quarter ended September 30, 2026. In
addition, please note that the date of this press release is October 21, 2026,
and any forward-looking statements contained herein are based on assumptions
that we believe to be reasonable as of this date. We undertake no obligation to
update these statements as a result of new information or future events.
For a discussion of limitations in the measurement of certain of our community
metrics, see the section entitled "Limitations of Key Metrics and Other Data" in
our most recent quarterly or annual report filed with the SEC.
Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements, which are
prepared and presented in accordance with generally accepted accounting
principles in the United States (GAAP), we use the following non-GAAP financial
measures: revenue excluding foreign exchange effect, advertising revenue
excluding foreign exchange effect, and free cash flow. The presentation of these
financial measures is not intended to be considered in isolation or as a
substitute for, or superior to, financial information prepared and presented in
accordance with GAAP. Investors are cautioned that there are material
limitations associated with the use of non-GAAP financial measures as an
analytical tool. In addition, these measures may be different from non-GAAP
financial measures used by other companies, limiting their usefulness for
comparison purposes. We compensate for these limitations by providing specific
information regarding the GAAP amounts excluded from these non-GAAP financial
measures.
We believe these non-GAAP financial measures provide investors with useful
supplemental information about the financial performance of our business, enable
comparison of financial results between periods where certain items may vary
independent of business performance, and allow for greater transparency with
respect to key metrics used by management in operating our business.
Our non-GAAP financial measures are adjusted for the following items:
Foreign exchange effect on revenue . To calculate revenue on a constant currency
basis, we translate current period revenue using the prior year's monthly
exchange rates for our settlement or billing currencies other than the U.S.
dollar, which we believe is a useful metric that facilitates comparison to our
historical performance.
Purchases of property and equipment; Principal payments on finance leases. We
subtract both purchases of property and equipment, and principal payments on
finance leases in our calculation of free cash flow because we believe that
these two items collectively represent the amount of property and equipment we
need to procure to support our business, regardless of whether we procure such
property or equipment with a finance lease. We believe that this methodology can
provide useful supplemental information to help investors better understand
underlying trends in our business. Free cash flow is not intended to represent
our residual cash flow available for discretionary expenditures.
For more information on our non-GAAP financial measures and a reconciliation of
GAAP to non-GAAP measures, see the "Reconciliation of GAAP to Non-GAAP Results"
table in this press release.
5
META
PLATF…
INC.
CONDE…
CONSO…
STATE…
OF
INCOME
(In
milli…
except
per
share
amoun…
(Unau…
Reven…
Costs
and
expen…
Cost
of
reven…
Resea…
and
devel…
Marke…
and
sales
Gener…
and
admin…
Total
costs
and
expen…
Income
from
opera…
Inter…
and
other
income
(expe…
net
Income
before
income 64,601 51,242 181,712 141,0…
taxes 13,369 9,206 34,917 25,269
Provi… 20,054 15,144 59,409 40,237
for 3,333 2,845 9,672 8,581
income 14,857 3,512 23,079 8,455
taxes Three 51,613 30,707 Nine 127,077 82,542
Net Months 12,988 20,535 Months 54,635 58,531
income Ended 13 1,128 Ended (1,126) 2,047
Earni… Septem… 13,001 21,663 Septe… 53,509 60,578
per 30, 3,141 18,954 30, 1,028 22,888
share: 2026 9,860 2025 2,709 2026 52,481 2025 37,690
──────────────────────────────────────────────────────────────────────────────
Basic $ 3.86 $ 1.08 $ 20.64 $ 14.96
Dilut… $ 3.83 $ 1.05 $ 20.44 $ 14.62
Weigh…
shares
used
to
compu…
earni…
per
share:
Basic 2,552 2,517 2,543 2,520
Dilut… 2,573 2,572 2,568 2,578
____________________________________
(1) The third quarter 2026 general and administrative expenses include a $9.89
billion charge related to the August 2026 agreement with U.S. State Attorneys
General to resolve litigation related to teen mental health and social media.
6
META PLATFORMS,
INC.
CONDENSED
CONSOLIDATED
BALANCE SHEETS
(In millions)
(Unaudited)
Assets September 30,
Current assets: 2026 December 31, 2025
──────────────────────────────────────────────────────────────────────────────
Cash and cash $ 11,222 $ 35,873
equivalents
Marketable 71,227 45,719
securities
Accounts 22,716 19,769
receivable, net
Prepaid expenses
and other 14,735 7,361
current
assets
Total current 119,900 108,722
assets
Non-marketable
equity 32,624 27,524
investments
Property and 253,222 176,400
equipment, net
Operating lease
right-of-use 26,576 20,404
assets
Goodwill 23,421 24,534
Other assets 23,093 8,437
Total assets $ 478,836 $ 366,021
Liabilities and
stockholders'
equity
Current
liabilities:
Accounts payable $ 19,097 $ 8,894
Operating lease
liabilities, 2,522 2,213
current
Accrued expenses
and other 41,392 30,729
current
liabilities
Total current 63,011 41,836
liabilities
Operating lease
liabilities, 28,651 22,940
non-current
Long-term debt 80,922 58,744
Long-term income 20,521 21,005
taxes
Other 13,345 4,253
liabilities
Total 206,450 148,778
liabilities
Commitments and
contingencies
Stockholders'
equity:
Common stock and
additional 108,244 95,793
paid-in
capital
Accumulated
other
comprehensive -1,200 271
income
(loss)
Retained 165,342 121,179
earnings
Total
stockholders' 272,386 217,243
equity
Total
liabilities and $ 478,836 $ 366,021
stockholders'
equity
7
META
PLAT…
INC.
COND…
CONS…
STAT…
OF
CASH
FLOWS
(In
mill…
(Una… Three Nine
Cash Months Months
flows Ended Ended
from Septem… Septe…
oper… 30, 30,
acti… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 9,860 $ 2,709 $ 52,481 $ 37,690
inco…
Adju…
to
reco…
net
inco…
to
net
cash
prov…
by
oper…
acti…
Depr…
and 7,154 4,963 19,509 13,205
amor…
Shar… 7,363 5,555 21,053 14,537
comp…
Defe…
inco… 2,117 19,868 3,685 17,704
taxes
Unre…
(gai…
and
loss 18 -962 1,204 -642
on
equi…
inve…
Other -329 17 -402 -359
Chan…
in
asse…
and
liab…
Acco… -999 -807 -3,272 660
rece…
Prep…
expe…
and -936 -1,033 -4,166 -348
other
curr…
asse…
Other -2,437 33 -4,973 -209
asse…
Acco… 1,596 -63 1,242 -637
paya…
Accr…
expe…
and 1,940 455 7,602 -2,883
other
curr…
liab…
Other 7,439 -736 2,910 868
liab…
Net
cash
prov… 32,786 29,999 96,873 79,586
by
oper…
acti…
Cash
flows
from
inve…
acti…
Purc…
of
prop… -33,9… -18,829 -83,055 -48,3…
and
equi…
Purc…
of -41,8… -2,840 -117,4… -22,3…
mark…
secu…
Sales
and
matu… 44,802 4,704 88,837 23,761
of
mark…
secu…
Paym…
for
non-… -874 -3,046 -2,544 -18,2…
equi…
inve…
Paym…
for -938 -1,022 -1,612 -1,797
held…
asse…
Proc…
from
data 1,037 — 1,037 —
cent…
vent…
dist…
Acqu…
of
busi… -111 -753 -584 -815
and
inta…
asse…
Other
inve… 923 -62 1,079 -48
acti…
Net
cash
used -30,9… -21,848 -114,3… -67,8…
in
inve…
acti…
Cash
flows
from
fina…
acti…
Taxes
paid
rela…
to
net -4,064 -5,135 -12,768 -14,1…
share
sett…
of
equi…
awar…
Repu…
of
Class — -3,327 — -26,2…
A
comm…
stock
Paym…
for
divi… -1,361 -1,330 -4,060 -3,986
and
divi…
equi…
Proc…
from
issu…
of — — 24,910 —
long…
debt,
net
Prin…
paym…
on -964 -545 -2,769 -1,770
fina…
leas…
Other
fina… -344 290 -2,631 613
acti…
Net
cash
prov…
by -6,733 -10,047 2,682 -45,5…
(used
in)
fina…
acti…
Effe…
of
exch…
rate
chan…
on
cash,
cash 8 9 8 252
equi…
rest…
cash,
and
rest…
cash
equi…
Net
decr…
in
cash,
cash
equi… -4,917 -1,887 -14,746 -33,4…
rest…
cash,
and
rest…
cash
equi…
Cash,
cash
equi…
rest…
cash,
and
rest… 29,271 13,828 39,100 45,438
cash
equi…
at
begi…
of
the
peri…
Cash,
cash
equi…
rest…
cash,
and
rest… $ 24,354 $ 11,941 $ 24,354 $ 11,941
cash
equi…
at
end
of
the
peri…
Reco…
of
cash,
cash
equi…
rest…
cash,
and
rest…
cash
equi…
to
the
cond…
cons…
bala…
shee…
Cash
and $ 11,222 $ 10,187 $ 11,222 $ 10,187
cash
equi…
Rest…
cash
and
rest…
cash
equi…
incl… 597 142 597 142
in
prep…
expe…
and
other
curr…
asse…
Rest…
cash
and
rest…
cash 12,535 1,612 12,535 1,612
equi…
incl…
in
other
asse…
Total
cash,
cash
equi…
rest… $ 24,354 $ 11,941 $ 24,354 $ 11,941
cash,
and
rest…
cash
equi…
Supp…
cash
flow
data
Cash
paid
for $ 927 $ 749 $ 2,926 $ 6,293
inco…
taxe…
net
8
Segment Results
We report our financial results for our two reportable segments: Family of Apps
(FoA) and Reality Labs (RL). FoA includes Facebook, Instagram, Messenger,
WhatsApp, and other services. RL includes our virtual and augmented reality
related consumer hardware, software, and content.
The following table sets forth our segment information of revenue and income
(loss) from operations:
Segme… Three Nine
Infor… Months Months
(In Ended Ended
milli… Septem… Septe…
(Unau… 30, 30,
Reven… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Adver… $ 63,061 $ 50,082 $ 177,449 $ 138,0…
Other 1,097 690 2,987 1,784
reven…
Family
of 64,158 50,772 180,436 139,8…
Apps
Reali… 443 470 1,276 1,252
Labs
Total $ 64,601 $ 51,242 $ 181,712 $ 141,0…
reven…
Income
(loss)
from
opera…
Family
of $ 17,117 $ 24,967 $ 67,410 $ 71,702
Apps
Reali… -4,129 -4,432 -12,775 -13,1…
Labs
Total
income $ 12,988 $ 20,535 $ 54,635 $ 58,531
from
opera…
9
Reco…
of
GAAP
to
Non-…
Resu…
(In
mill…
exce…
perc…
(Una…
Three Nine
Mont… Months
Ended Ended
Sept… Septe…
30, 30,
2026 2025 2026 2025
GAAP $ 64,601 $ 51,2… $ 181,… $ 141,0…
reve…
Fore…
exch…
effe…
on
2026 113 -2,3…
reve…
using
2025
rates
Reve…
excl…
fore… $ 64,714 $ 179,…
exch…
effe…
GAAP
reve…
year… 26 % 29 %
chan…
%
Reve…
excl…
fore…
exch… 26 % 27 %
effe…
year…
chan…
%
GAAP
adve… $ 63,061 $ 50,0… $ 177,… $ 138,0…
reve…
Fore…
exch…
effe…
on
2026 96 -2,3…
adve…
reve…
using
2025
rates
Adve…
reve…
excl… $ 63,157 $ 175,…
fore…
exch…
effe…
GAAP
adve…
reve… 26 % 29 %
year…
chan…
%
Adve…
reve…
excl…
fore…
exch… 26 % 27 %
effe…
year…
chan…
%
Net
cash
prov… $ 32,786 $ 29,9… $ 96,8… $ 79,586
by
oper…
acti…
Purc…
of
prop… -33,9… -18,… -83,… -48,3…
and
equi…
Prin…
paym…
on -964 -545 -2,7… -1,770
fina…
leas…
Free
cash $ -2,120 $ 10,6… $ 11,0… $ 29,508
flow
10