Overview
- Meta’s latest 10-Q outlines a new mix that directs roughly 70% of Reality Labs operating expenses to wearables and AI glasses and about 30% to VR and Horizon.
- Reality Labs recorded a $19.19 billion operating loss in 2025, bringing six-year losses to approximately $83.55 billion.
- In the fourth quarter, Reality Labs logged a $6.02 billion operating loss on $955 million in revenue.
- Meta has closed multiple first-party VR studios, including Sanzaru Games, Twisted Pixel, and Armature Studio, and cut staff at Camouflaj as part of the portfolio shift.
- Mark Zuckerberg characterized AI glasses as a smartphone-like moment and said he expects Reality Labs losses this year to be similar to 2025 before gradually declining.