Meta Platforms Inc - Class A
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.30%.
Did META Beat Earnings? Q2 2025 Results
Meta Platforms delivered a blowout second quarter, posting revenue of $47.52 billion, up 21.6% year-over-year and ahead of the $44.84 billion consensus by nearly 6%, while diluted EPS of $7.14 beat the $5.90 estimate by more than 20%. The primary engine was advertising, where a simultaneous lift in both volume and pricing, an 11% rise in ad impressions alongside a 9% increase in average price per ad, drove advertising revenue to $46.56 billion and pushed the company's operating margin to 43%, up from 38% a year ago. Family daily active people reached 3.48 billion, reinforcing the audience scale that underpins that ad pricing power. Meta's aggressive AI infrastructure buildout, reflected in $17.01 billion of capital expenditures in the quarter alone, compressed free cash flow to $8.55 billion but signals the company's conviction in the technology; full-year capex guidance was narrowed to $66 to $72 billion. Looking ahead, Meta guided Q3 2025 revenue to $47.50 to $50.50 billion, though management flagged EU regulatory pressure around its advertising products as a potential revenue headwind as early as next quarter.
- Ad impressions increased 11% year-over-year
- Average price per ad increased 9% year-over-year
- Family daily active people grew 6% year-over-year to 3.48 billion
- Revenue grew 22% year-over-year on both reported and constant currency basis
- Operating margin expanded to 43% from 38% in the prior year quarter
- Total costs and expenses grew 12% year-over-year, slower than revenue growth
“We've had a strong quarter both in terms of our business and community. I'm excited to build personal superintelligence for everyone in the world.”
Meta CEO, on the earnings call
Forward Guidance & Outlook
Meta expects Q3 2025 total revenue in the range of $47.5-50.5 billion, with foreign currency providing an approximately 1% tailwind. The company expects its Q4 2025 year-over-year growth rate to be slower than Q3 as it laps stronger growth in Q4 2024. Full-year 2025 total expenses are expected to be $114-118 billion (narrowed from $113-118 billion), representing 20-24% year-over-year growth. Capital expenditures including principal payments on finance leases are expected to be $66-72 billion for 2025 (narrowed from $64-72 billion). Management expects 2026 expense growth to exceed 2025 rates, driven primarily by infrastructure depreciation acceleration and technical hiring. Similarly significant capital expenditure dollar growth is expected in 2026. The new U.S. tax law is anticipated to reduce federal cash taxes for the remainder of 2025 and future years. Regulatory headwinds in the EU, particularly around the DMA and Less Personalized Ads offering, could significantly impact European revenue as early as Q3 2025.
META YoY Financials
META Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.