Meta's Reality Labs Reports $4.5B Q2 Loss as Metaverse Investment Costs Surpass $50B
Meta's Reality Labs, responsible for augmented and virtual reality technologies, reported a $4.48 billion operating loss in Q2, slightly better than analysts' expected $4.55 billion loss. Since 2020, the division has accumulated losses exceeding $50 billion as part of CEO Mark Zuckerberg's vision for the "next era of personal computing."
Meta Reality Labs company logo
Despite the losses, Reality Labs' revenue grew 28% year-over-year to $353 million, primarily from Quest VR headsets and Ray-Ban Meta smart glasses sales, though falling short of the anticipated $371 million.
Meta continues to expand its smart glasses initiative, partnering with Ray-Ban parent EssilorLuxottica. The second-generation smart glasses launched in October at $299, with Zuckerberg highlighting the potential for "fashionable AI glasses without a display."
In the VR space, Meta released the Quest 3 headset in September for $499, competing with Apple's Vision Pro, which launched at $3,500 in the US and ¥29,999 ($4,128) in China.
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