Meta’s, META, Reality Labs posted a $4.53 billion loss in second quarter

Meta’s Reality Labs division, which is responsible for building the company’s vision of the metaverse, continues to rack up heavy losses.

In its second-quarter earnings report released Wednesday, Meta disclosed that Reality Labs posted an operating loss of $4.53 billion while generating $370 million in revenue. Wall Street analysts had expected a slightly larger loss of $4.99 billion and sales of about $381 million for the unit.

Reality Labs oversees the Quest virtual reality headset lineup as well as the Ray-Ban Meta smart glasses, which are developed in partnership with eyewear maker EssilorLuxottica. The long-term goal is to push forward next-generation devices, including the prototype Orion augmented reality glasses, that Meta believes could form the backbone of a new computing era.

But the pursuit of VR, AR, and other advanced hardware has come at a steep cost. Since late 2020, Reality Labs has accumulated nearly $70 billion in losses. Earlier this year, Meta reported that the division lost $4.2 billion in the first quarter while producing $412 million in revenue.

While the Quest headsets have yet to achieve mass-market success, the Ray-Ban Meta smart glasses are beginning to gain traction. EssilorLuxottica said Monday that sales of the glasses more than tripled year-over-year in the first half of 2025. The two companies also introduced Oakley Meta smart glasses in June, expanding their collaboration.

Reality Labs has not been immune to cutbacks either. In April, Meta confirmed that some staff from its Oculus Studios VR and AR software group had been laid off, underscoring the financial strain of maintaining its metaverse ambitions.