Meta Actuality Labs income for Q3 was 74% increased than in 2024, with Meta explaining it as retailers stocking Quest headsets for the vacation season.
Actuality Labs is the division of Meta accountable for Quest headsets and their Horizon OS, first occasion VR software program like Horizon Worlds, the Ray-Ban and Oakley branded good glasses, and the Meta Neural Band.
The most recent quarter noticed Actuality Labs herald $470 million, making it the division’s second finest Q3 ever. The determine is 74% increased than the $270 million of Q3 2024.
Nonetheless, Q3 2024 was proper earlier than the launch of Quest 3S, which had broadly leaked within the months earlier than. Throughout the earnings name this week, Meta CFO Susan Li advised traders that the excessive income was as a consequence of “retail companions procuring Quest headsets” in an effort to “put together for the vacation season”, in addition to “robust AI glasses income”.
Li additionally warned that the early Quest stocking implies that Meta expects This autumn 2025 income to be decrease than This autumn 2024.
“We’re nonetheless anticipating important year-over-year development in AI glasses income in This autumn, as we profit from robust demand for the latest merchandise that we’ve 10 launched, however that’s greater than offset by the headwinds to the Quest headsets”, Li famous.
As at all times, the Meta Actuality Labs income got here at an unlimited price, and the division stays deeply unprofitable. Meta spent $4.9 billion on it in Q3 alone, leading to a “loss” of over $4.4 billion.
Although whereas describing this as a loss is technically appropriate in a monetary sense, a lot of it is also described as long-term funding. XR headsets like Quest are nonetheless a comparatively early know-how, removed from maturity, and as of 2022 greater than 50% of Actuality Labs spending was on the analysis and improvement of AR glasses, a future product line that hasn’t even launched but.
Ray-Ban Meta Gross sales Have Extra Than Tripled This 12 months So Far
Gross sales of Ray-Ban Meta glasses to date this yr have greater than tripled in comparison with the identical time final yr, greater than 200% development.
Throughout the name, when requested by a Wall Road analyst about whether or not Actuality Labs spending could be decrease in 2026, Li responded by saying that Meta is “nonetheless working by means of the finances particulars”:
“We’re not sharing an outlook for Actuality Labs working losses in 2026 partially, once more, as a result of we’re nonetheless working by means of the finances particulars. What I can say from the method to date is we’re actually making an attempt to shift momentum in the direction of AI glasses.
And that’s been one of many largest priorities wanting on the Actuality Labs’ finances and roadmap for 2026. And that’s partially as a result of we’ve seen that there’s a lot of demand. I might say we have been stocked out a number of occasions over the course of this yr, and we need to get forward of that.
Each as a result of there may be product market match, and in addition as a result of it’s an awesome and really pure platform or kind issue for AI experiences that may be constructed on high of these and carried with you into the world. So, that’s actually what we’re as our highest precedence after we take into consideration what the 2026 Actuality Labs roadmap appears like.”
