Meta’s Reality Labs division for VR and wearables loses $4.62B in Q2

Meta's Reality Labs division reported a $4.62 billion operating loss in the second quarter ended June 30, with revenue of $431 million, up from $370 million a year earlier. The loss exceeded the $4.53 billion loss a year ago but was better than analyst expectations of a $5.07 billion loss on $423.4 million in revenue. CEO Mark Zuckerberg has shifted the division's focus from VR to AI glasses starting in late 2025.

Become a member of GB MAX to gain exclusive access to the industry and to the most influential global B2B leadership community in the business of gaming, entertainment, and tech. Join now https://go.gamesbeat.com/gb-max/ and also get a VIP ticket to GamesBeat Next Nov 2-3, SF .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 https://investor.atmeta.com/investor-news/press-release-details/2026/Meta-Reports-Second-Quarter-2026-Results/default.aspx 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.