Meta's Reality Labs Segment Has Accumulated Over $85 Billion in Losses Since 2020
Meta Platforms' Reality Labs segment, which includes its AI glasses and VR headsets, has accumulated over $85 billion in operating losses since the end of 2020. Despite these significant losses, Meta's stock price remains near a record high at around $775 per share as of this writing. The annual loss from Reality Labs grew steadily through 2025 but slowed to just an 8% increase in 2024 and remained flat or slightly improved in the first half of 2026. CEO Mark Zuckerberg has stated that losses are expected to peak around current levels, with a gradual reduction anticipated going forward. To turn the segment profitable would require revenue growth nearly tenfold from its $2.2 billion level in 2025 while keeping costs flat. While Meta's AI glasses have seen strong adoption and sales, their quarterly revenue of just $431 million suggests it could take years before losses shrink meaningfully.
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Topics: AI Glasses Hardware Segment Losses Meta Platforms Reality Labs