Meta’s Reality Labs has accumulated more than $85 billion in operating losses since the end of 2020, but first-half 2026 losses were $8.6 billion, slightly below a year earlier. CEO Mark Zuckerberg expects 2026 losses to be similar to 2025’s $19.2 billion and likely to peak.
At Connect, Meta unveiled a $449 third-generation Ray-Ban model, $349 glasses without cameras and $1,300 virtual-reality glasses due next spring. Reality Labs’ second-quarter revenue rose 16% year over year to $431 million, driven by AI glasses sales and partly offset by lower Quest sales. Costs and expenses rose 3%, and the division recorded a $4.6 billion loss.
In 2025, Reality Labs generated $2.2 billion in revenue against $21.4 billion in costs and expenses. Revenue would need to grow nearly tenfold, with costs held flat, for the segment to break even. Zuckerberg said most future Reality Labs investment would go to glasses and wearables as Meta gradually reduces losses.
