Meta’s Reality Labs division reported that it lost $4.62 billion in the most recent quarter, showing the company is still investing heavily and still losing a lot of money in virtual reality and AI wearables.
In the second quarter ended June 30, Meta said in its earnings report that Reality Labs generated revenue of $431 million. That was up from $370 million a year earlier.
But the company’s operating loss grew to $4.53 billion a year ago. Analysts expected a second-quarter loss of $5.07 billion on revenue of $423.4 million.
Mark Zuckerberg, CEO of Meta, focused on VR starting in 2014 with its acquisition of Oculus for $2 billion, and it launched its first headset in 2016. A big fan of the metaverse, Zuckerberg changed the company’s name from Facebook to Meta in 2021. He has been losing billions of dollars a quarter in the Reality Labs division, but the focus shifted from VR to AI glasses starting in late 2025.
In an analyst call, Meta said the Reality Lab segment in Q2 saw revenue of $431 million dollars, up 16% year over year due to strong growth in AI glasses revenue, partially offset by lower Meta Quest VR headset sales.