Meta's Reality Labs Bleeds $19 Billion as VR Ambitions Falter

• Meta's Reality Labs reported a staggering $19.1 billion loss in 2025, widening from $17.7 billion in 2024, with $6.2 billion lost in Q4 alone.
• The losses contrast sharply with Reality Labs' revenue, which was $955 million in Q4 and $2.2 billion for the full year.
• CEO Mark Zuckerberg acknowledged that Reality Labs will remain deeply unprofitable in the near term, expecting 2026 losses to be similar to 2025.
• Meta is shifting investment focus towards glasses and wearables, aiming to make Horizon a success on mobile and VR a profitable ecosystem.
• The company has scaled back some VR efforts, including layoffs, shutting down VR studios, and retiring the Workrooms app, as AI becomes its primary growth engine.

Why It Matters: Meta's Reality Labs continues to incur massive losses, raising doubts about its VR ambitions and path to profitability.