Meta’s Reality Labs division, responsible for developing augmented and virtual reality technologies, reported an operating loss of $4.53 billion for the second quarter. The unit generated $370 million in revenue during the same period. While both figures were slightly better than analysts’ projections of a $4.99 billion loss and $381 million in revenue, they highlight the ongoing financial challenges Meta faces in building its next-generation computing platforms.
Reality Labs manages a wide range of AR and VR initiatives, including the Quest virtual reality headsets and the Ray-Ban Meta smart glasses, developed in collaboration with EssilorLuxottica. These products are central to Meta’s broader ambition of establishing a foothold in the metaverse and immersive computing. The company envisions future devices like its prototype Orion AR glasses playing a key role in transforming user interaction with technology.
Despite these ambitions, the division has yet to achieve commercial success on a meaningful scale. Since the end of 2020, Reality Labs has accumulated nearly $70 billion in operating losses. In the previous quarter, it posted a $4.2 billion loss with $412 million in sales. The latest figures reflect the high cost of innovation and hardware development in the AR/VR space, which remains a long-term bet for Meta.
While Quest headsets have struggled to gain widespread traction, the Ray-Ban Meta smart glasses appear to be gaining momentum. EssilorLuxottica recently reported that sales of the glasses more than tripled in the first half of 2025 compared to the same period last year. In June, the companies expanded their collaboration with the launch of Oakley Meta smart glasses, signaling a push to appeal to new consumer segments and athletic lifestyles.
Still, Meta continues to restructure its hardware operations. In April, the company confirmed that it had laid off a number of employees from its Oculus Studios software unit, which focuses on developing content for AR and VR devices. These layoffs suggest Meta is refining its strategy and reallocating resources as it pursues profitability and broader adoption of its metaverse technologies.
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