Meta CEO Mark Zuckerberg presents Orion AR Glasses as he makes a keynote speech during the Meta Connect annual event at the company’s headquarters in Menlo Park, California, on Sept. 25, 2024.
Manuel Orbegozo | Reuters
Meta’s Reality Labs, the unit tasked with building the futuristic metaverse, continues bleeding money.
The social media company reported its second-quarter earnings on Wednesday and revealed that Reality Labs logged an operating loss of $4.53 billion while recording $370 million in sales during the period. Analysts were projecting that unit to post a second-quarter operating loss of $4.99 billion while generating $381 million in sales.
The Reality Labs division oversees the Quest line of virtual reality headsets in addition to the Ray-Ban Meta smart glasses, which are jointly developed with the French-Italian eyewear giant EssilorLuxottica. Meta wants Reality Labs to create cutting-edge products similar to the prototype Orion augmented reality glasses that could underpin a new, immersive computing platform.
But developing VR, AR and other new devices is an expensive endeavor, with the Reality Labs division logging nearly $70 billion in cumulative losses since late 2020. Meta in April said Reality Labs recorded an operating loss of $4.2 billion during the first quarter while bringing in $412 million in sales.
Although the Quest VR headsets haven’t become breakout hits, the Ray-Ban Meta smart glasses are showing signs of success.
EssilorLuxottica on Monday said Ray-Ban Meta smart glasses sales more than tripled year over year for the first half of 2025. The eyewear giant and Meta debuted in June the new Oakley Meta smart glasses, which is the latest product spawned from their partnership.
Meta said in April that an undisclosed number of Reality Labs employees who were part of its Oculus Studios VR and AR software unit were laid off.
