Meta Expects Reality Labs Losses to Peak in 2026 After $19.2B Loss While Messaging Revenue Soars 54%
Meta’s Reality Labs lost $19.2 billion in 2025 and forecasts similar losses peaking in 2026, with AI glasses sales more than tripling last year. Business messaging revenue jumped 54% to $801 million, while AI coding tools boosted software engineer output by 30%.
1. Reality Labs Performance and Outlook
Meta’s Reality Labs unit reported a $19.2 billion operating loss in 2025, more than quadruple the $4.5 billion loss in 2019. The company plans to pivot investment toward AI-enabled glasses, which saw sales more than triple in 2025, and expects losses to peak near $19 billion in 2026 before declining in 2027.
2. Messaging Revenue and AI Efficiency
Revenue from business messaging within the Family of Apps Other segment surged 54% to $801 million, driven by paid WhatsApp interactions with brands. Meta also disclosed that adopting AI coding tools raised software engineer output by 30% overall and by 80% among power users, highlighting efficiency gains as it scales AI investments.