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Meta Q4 2025: Advertising revenue surges to $58.1 billion, ad pricing rises 6%
Meta’s costs and expenses rose sharply by 40% year-on-year to $35.15 billion in Q4 2025
Meta expects Q1 2026 revenue in the range of $53.5 billion to $56.5 billion.
Meta Platforms Inc, the parent company of Facebook, Instagram and WhatsApp, reported a 24% year-on-year rise in revenue to $59.89 billion for the fourth quarter of 2025, driven largely by growth in advertising.
Advertising revenue accounted for 97% of Meta’s total revenue, coming in at $58.1 billion during the quarter. The company said the average price per ad increased 6% year-on-year, underscoring sustained demand from advertisers.
Meta’s costs and expenses rose sharply by 40% year-on-year to $35.15 billion in Q4 2025, reflecting higher investments across the business. Research and development expenses were the largest component, totaling $17.13 billion, while marketing and sales expenses stood at $3.41 billion during the quarter.
The company generated strong cash flows, with cash flow from operating activities at $36.21 billion and free cash flow at $14.08 billion.
Meta also stepped up hiring during the quarter, with total headcount rising 6% year-on-year to 78,865 employees.
Providing an outlook, Meta Chief Financial Officer Susan Li said the company expects Q1 2026 revenue in the range of $53.5 billion to $56.5 billion. Total capital expenditure, including principal payments on finance leases, is projected to be between $115 billion and $135 billion, driven by increased investments to support Meta’s Superintelligence Labs initiatives and its core business.
For the full year, Li said Meta expects total expenses in the range of $162 billion to $169 billion, with the majority of expense growth driven by infrastructure costs, including higher third-party cloud spending, depreciation, and operating expenses.
The company also flagged higher employee compensation costs, reflecting continued investments in technical talent.
Separately, Meta cautioned that its recent alignment with the European Commission on offering less personalised ads, along with ongoing legal and regulatory headwinds in Europe and the US, could impact its business and financial performance in 2026.
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