filings.toolsItem 1. Financial Statements
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Item 1. Financial Statements
META PLATFORMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except number of shares and par value)
(Unaudited)
| March 31, 2026 | December 31, 2025 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 23,426 | $ | 35,873 | |||||||
| Marketable securities | 57,754 | 45,719 | |||||||||
| Accounts receivable, net | 17,470 | 19,769 | |||||||||
| Prepaid expenses and other current assets | 11,115 | 7,361 | |||||||||
| Total current assets | 109,765 | 108,722 | |||||||||
| Non-marketable equity investments | 28,410 | 27,524 | |||||||||
| Property and equipment, net | 194,776 | 176,400 | |||||||||
| Operating lease right-of-use assets | 23,268 | 20,404 | |||||||||
| Goodwill | 24,748 | 24,534 | |||||||||
| Other assets | 14,283 | 8,437 | |||||||||
| Total assets | $ | 395,250 | $ | 366,021 | |||||||
| Liabilities and stockholders' equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 13,326 | $ | 8,894 | |||||||
| Operating lease liabilities, current | 2,414 | 2,213 | |||||||||
| Accrued expenses and other current liabilities | 31,013 | 30,729 | |||||||||
| Total current liabilities | 46,753 | 41,836 | |||||||||
| Operating lease liabilities, non-current | 25,607 | 22,940 | |||||||||
| Long-term debt | 58,748 | 58,744 | |||||||||
| Long-term income taxes | 16,849 | 21,005 | |||||||||
| Other liabilities | 3,612 | 4,253 | |||||||||
| Total liabilities | 151,569 | 148,778 | |||||||||
| Commitments and contingencies | |||||||||||
| Stockholders' equity: | |||||||||||
| Common stock and additional paid-in capital, $0.000006 par value; 5,000 million Class A shares authorized, 2,196 million and 2,187 million shares issued and outstanding, as of March 31, 2026 and December 31, 2025, respectively; 4,141 million Class B shares authorized, 342 million and 343 million shares issued and outstanding, as of March 31, 2026 and December 31, 2025, respectively | 99,337 | 95,793 | |||||||||
| Accumulated other comprehensive income (loss) | (303) | 271 | |||||||||
| Retained earnings | 144,647 | 121,179 | |||||||||
| Total stockholders' equity | 243,681 | 217,243 | |||||||||
| Total liabilities and stockholders' equity | $ | 395,250 | $ | 366,021 |
See Accompanying Notes to Condensed Consolidated Financial Statements.
META PLATFORMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share amounts)
(Unaudited)
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Revenue | $ | 56,311 | $ | 42,314 | |||||||||||||||||||
| Costs and expenses: | |||||||||||||||||||||||
| Cost of revenue | 10,218 | 7,572 | |||||||||||||||||||||
| Research and development | 17,699 | 12,150 | |||||||||||||||||||||
| Marketing and sales | 2,908 | 2,757 | |||||||||||||||||||||
| General and administrative | 2,614 | 2,280 | |||||||||||||||||||||
| Total costs and expenses | 33,439 | 24,759 | |||||||||||||||||||||
| Income from operations | 22,872 | 17,555 | |||||||||||||||||||||
| Interest and other income (expense), net | (1,120) | 827 | |||||||||||||||||||||
| Income before income taxes | 21,752 | 18,382 | |||||||||||||||||||||
| Provision (benefit) for income taxes | (5,021) | 1,738 | |||||||||||||||||||||
| Net income | $ | 26,773 | $ | 16,644 | |||||||||||||||||||
| Earnings per share: | |||||||||||||||||||||||
| Basic | $ | 10.57 | $ | 6.59 | |||||||||||||||||||
| Diluted | $ | 10.44 | $ | 6.43 | |||||||||||||||||||
| Weighted-average shares used to compute earnings per share: | |||||||||||||||||||||||
| Basic | 2,534 | 2,527 | |||||||||||||||||||||
| Diluted | 2,564 | 2,590 |
See Accompanying Notes to Condensed Consolidated Financial Statements.
META PLATFORMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In millions)
(Unaudited)
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Net income | $ | 26,773 | $ | 16,644 | |||||||||||||||||||
| Other comprehensive income (loss): | |||||||||||||||||||||||
| Change in foreign currency translation adjustment, net of tax | (391) | 893 | |||||||||||||||||||||
| Change in unrealized gain (loss) on available-for-sale investments and other, net of tax | (183) | 339 | |||||||||||||||||||||
| Comprehensive income | $ | 26,199 | $ | 17,876 |
See Accompanying Notes to Condensed Consolidated Financial Statements.
META PLATFORMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(In millions, except per share amounts)
(Unaudited)
| Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Class A and Class B Common Stock and Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total Stockholders' Equity | Class A and Class B Common Stock and Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Total Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balances at beginning of period | 2,530 | $ | 95,793 | $ | 271 | $ | 121,179 | $ | 217,243 | 2,534 | $ | 83,228 | $ | (3,097) | $ | 102,506 | $ | 182,637 | |||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | 26,773 | 26,773 | — | — | — | 16,644 | 16,644 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | — | — | (574) | — | (574) | — | — | 1,232 | — | 1,232 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock | 16 | — | — | — | — | 16 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Shares withheld related to net share settlement | (8) | (2,488) | — | (1,935) | (4,423) | (8) | (1,807) | — | (3,076) | (4,883) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation | — | 6,032 | — | — | 6,032 | — | 4,147 | — | — | 4,147 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Share repurchases | — | — | — | — | — | (19) | — | — | (13,398) | (13,398) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends and dividend equivalents declared ($0.525 per share) | — | — | — | (1,370) | (1,370) | — | — | — | (1,342) | (1,342) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other | — | — | — | — | — | — | — | — | (8) | (8) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Balances at end of period | 2,538 | $ | 99,337 | $ | (303) | $ | 144,647 | $ | 243,681 | 2,523 | $ | 85,568 | $ | (1,865) | $ | 101,326 | $ | 185,029 |
See Accompanying Notes to Condensed Consolidated Financial Statements.
META PLATFORMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from operating activities | |||||||||||
| Net income | $ | 26,773 | $ | 16,644 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 5,999 | 3,900 | |||||||||
| Share-based compensation | 6,032 | 4,147 | |||||||||
| Deferred income taxes | 123 | (993) | |||||||||
| Unrealized (gain) loss on equity investments | 1,075 | (135) | |||||||||
| Other | (17) | (96) | |||||||||
| Changes in assets and liabilities: | |||||||||||
| Accounts receivable | 2,128 | 2,804 | |||||||||
| Prepaid expenses and other current assets | (2,424) | 360 | |||||||||
| Other assets | (1,082) | (52) | |||||||||
| Accounts payable | (937) | (1,034) | |||||||||
| Accrued expenses and other current liabilities | (271) | (2,231) | |||||||||
| Other liabilities | (5,173) | 712 | |||||||||
| Net cash provided by operating activities | 32,226 | 24,026 | |||||||||
| Cash flows from investing activities | |||||||||||
| Purchases of property and equipment | (18,997) | (12,941) | |||||||||
| Purchases of marketable securities | (32,978) | (11,763) | |||||||||
| Sales and maturities of marketable securities | 19,176 | 4,784 | |||||||||
| Purchases of non-marketable equity investments | (544) | (100) | |||||||||
| Payments for held-for-sale assets | (118) | — | |||||||||
| Acquisitions of businesses and intangible assets | (372) | (1) | |||||||||
| Other investing activities | 155 | 11 | |||||||||
| Net cash used in investing activities | (33,678) | (20,010) | |||||||||
| Cash flows from financing activities | |||||||||||
| Taxes paid related to net share settlement of equity awards | (4,423) | (4,883) | |||||||||
| Repurchases of Class A common stock | — | (12,754) | |||||||||
| Payments for dividends and dividend equivalents | (1,346) | (1,329) | |||||||||
| Principal payments on finance leases | (843) | (751) | |||||||||
| Other financing activities | 59 | 222 | |||||||||
| Net cash used in financing activities | (6,553) | (19,495) | |||||||||
| Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents | 7 | 112 | |||||||||
| Net decrease in cash, cash equivalents, restricted cash, and restricted cash equivalents | (7,998) | (15,367) | |||||||||
| Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of the period | 39,100 | 45,438 | |||||||||
| Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of the period | $ | 31,102 | $ | 30,071 |
See Accompanying Notes to Condensed Consolidated Financial Statements.
META PLATFORMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents to the condensed consolidated balance sheets | |||||||||||
| Cash and cash equivalents | $ | 23,426 | $ | 28,750 | |||||||
| Restricted cash and restricted cash equivalents, included in prepaid expenses and other current assets | 340 | 71 | |||||||||
| Restricted cash and restricted cash equivalents, included in other assets | 7,336 | 1,250 | |||||||||
| Total cash, cash equivalents, restricted cash, and restricted cash equivalents | $ | 31,102 | $ | 30,071 | |||||||
| Supplemental cash flow data | |||||||||||
| Cash paid for income taxes, net | $ | 541 | $ | 448 | |||||||
| Cash paid for interest, net of amounts capitalized | $ | 284 | $ | 352 | |||||||
| Non-cash investing and financing activities: | |||||||||||
| Property and equipment in accounts payable and accrued expenses and other current liabilities | $ | 16,040 | $ | 9,338 | |||||||
| Acquisition of businesses and intangible assets in accounts payable, accrued expenses and other current liabilities, and other liabilities | $ | 2,169 | $ | 159 | |||||||
| Repurchases of Class A common stock in accrued expenses and other current liabilities | $ | — | $ | 577 |
See Accompanying Notes to Condensed Consolidated Financial Statements.
META PLATFORMS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1. Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2025.
The condensed consolidated balance sheet as of December 31, 2025 included herein was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by GAAP.
The condensed consolidated financial statements include the accounts of Meta Platforms, Inc. and its subsidiaries where we have controlling financial interests. All intercompany balances and transactions have been eliminated.
The accompanying condensed consolidated financial statements reflect all normal recurring adjustments that are necessary to present fairly the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year.
Use of Estimates
Preparation of condensed consolidated financial statements in conformity with GAAP requires the use of estimates and judgments that affect the reported amounts in the condensed consolidated financial statements and accompanying notes. These estimates form the basis for judgments we make about the carrying values of our assets and liabilities, which are not readily apparent from other sources. We base our estimates and judgments on historical information and on various other assumptions that we believe are reasonable under the circumstances. GAAP requires us to make estimates and judgments in several areas, including, but not limited to, those related to loss contingencies, income taxes, valuation of non-marketable equity investments, valuation of long-lived assets and their associated estimated useful lives, revenue recognition, valuation of goodwill, credit losses of available-for-sale debt securities, accounts receivable, and fair value of financial instruments and leases. These estimates are based on management's knowledge about current events, interpretation of regulations, and expectations about actions we may undertake in the future. Actual results could differ materially from those estimates.
Significant Accounting Policies
There have been no material changes to our significant accounting policies from our Annual Report on Form 10-K for the year ended December 31, 2025.
Note 2. Revenue
Revenue disaggregated by revenue source and by segment consists of the following (in millions):
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Advertising | $ | 55,024 | $ | 41,392 | |||||||||||||||||||
| Other revenue | 885 | 510 | |||||||||||||||||||||
| Family of Apps | 55,909 | 41,902 | |||||||||||||||||||||
| Reality Labs | 402 | 412 | |||||||||||||||||||||
| Total revenue | $ | 56,311 | $ | 42,314 |
Revenue disaggregated by geography, based on the addresses of our customers, consists of the following (in millions):
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| United States and Canada | $ | 21,267 | $ | 16,869 | |||||||||||||||||||
| Europe (1) | 13,240 | 9,621 | |||||||||||||||||||||
| Asia-Pacific | 15,445 | 11,239 | |||||||||||||||||||||
| Rest of World (1) | 6,359 | 4,585 | |||||||||||||||||||||
| Total revenue | $ | 56,311 | $ | 42,314 |
(1)Europe includes Russia and Turkey, and Rest of World includes Africa, Latin America, and the Middle East.
Deferred revenue was $1.12 billion and $1.08 billion as of March 31, 2026 and December 31, 2025, respectively. Our deferred revenue mostly relates to advertising prepayments and credits, as well as software updates and upgrades associated with Reality Labs hardware sales, substantially all of which are expected to be realized in less than a year.
Note 3. Earnings per Share
The holders of our Class A and Class B common stock (together, "common stock") have identical liquidation and dividend rights but different voting rights. Accordingly, we present the earnings per share (EPS) for Class A and Class B common stock together.
Basic EPS is computed by dividing net income by the weighted-average number of shares of our common stock outstanding. Diluted EPS is computed by dividing net income by the weighted-average number of fully diluted common stock outstanding and assumes the conversion of our Class B common stock to Class A common stock.
For the three months ended March 31, 2026 and 2025, approximately 40 million and 1 million shares, respectively, were excluded from the diluted EPS calculation as including them would have an anti-dilutive effect.
The numerators and denominators of the basic and diluted EPS computations for our common stock are calculated as follows (in millions, except per share amounts):
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Basic EPS: | |||||||||||||||||||||||
| Numerator | |||||||||||||||||||||||
| Distributed earnings | $ | 1,346 | $ | 1,329 | |||||||||||||||||||
| Undistributed earnings | 25,427 | 15,315 | |||||||||||||||||||||
| Net income | $ | 26,773 | $ | 16,644 | |||||||||||||||||||
| Denominator | |||||||||||||||||||||||
| Shares used in computation of basic EPS (1) | 2,534 | 2,527 | |||||||||||||||||||||
| Basic EPS | $ | 10.57 | $ | 6.59 | |||||||||||||||||||
| Diluted EPS: | |||||||||||||||||||||||
| Numerator | |||||||||||||||||||||||
| Net income for diluted EPS | $ | 26,773 | $ | 16,644 | |||||||||||||||||||
| Denominator | |||||||||||||||||||||||
| Shares used in computation of basic EPS (1) | 2,534 | 2,527 | |||||||||||||||||||||
| Effect of dilutive shares | 30 | 63 | |||||||||||||||||||||
| Shares used in computation of diluted EPS | 2,564 | 2,590 | |||||||||||||||||||||
| Diluted EPS | $ | 10.44 | $ | 6.43 |
(1)Includes 2,192 million and 2,184 million shares of Class A common stock and 342 million and 343 million shares of Class B common stock, for the three months ended March 31, 2026 and 2025, respectively.
EPS for Class B common stock is not presented separately as under the two-class method Class A and Class B EPS is not meaningfully different.
Note 4. Financial Instruments
Fair Value Measurements
Our cash equivalents, marketable securities, and restricted cash equivalents are classified within Level 1 or Level 2 of the fair value hierarchy because their fair values are derived from quoted market prices or alternative pricing sources and models utilizing market observable inputs. Certain other assets are classified within Level 3 because factors used to develop the estimated fair value are unobservable inputs that are not supported by market activity.
The following tables summarize our assets measured at fair value on a recurring basis and the classification by level of input within the fair value hierarchy (in millions):
| Fair Value Measurement at Reporting Date Using | ||||||||||||||||||||||||||
| March 31, 2026 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||
| Cash equivalents: | ||||||||||||||||||||||||||
| Money market funds | $ | 14,372 | $ | 14,372 | $ | — | $ | — | ||||||||||||||||||
| U.S. government securities | 1,867 | 1,867 | — | — | ||||||||||||||||||||||
| Time deposits | 504 | — | 504 | — | ||||||||||||||||||||||
| Corporate debt securities | 2,537 | — | 2,537 | — | ||||||||||||||||||||||
| Total cash equivalents | 19,280 | 16,239 | 3,041 | — | ||||||||||||||||||||||
| Marketable securities: | ||||||||||||||||||||||||||
| U.S. government securities | 30,916 | 30,916 | — | — | ||||||||||||||||||||||
| U.S. government agency securities | 888 | 888 | — | — | ||||||||||||||||||||||
| Corporate debt securities | 21,627 | — | 21,627 | — | ||||||||||||||||||||||
| Marketable equity securities | 4,323 | 4,323 | — | — | ||||||||||||||||||||||
| Total marketable securities | 57,754 | 36,127 | 21,627 | — | ||||||||||||||||||||||
| Restricted cash equivalents | 7,425 | 7,425 | — | — | ||||||||||||||||||||||
| Other assets | 113 | — | — | 113 | ||||||||||||||||||||||
| Total | $ | 84,572 | $ | 59,791 | $ | 24,668 | $ | 113 |
| Fair Value Measurement at Reporting Date Using | ||||||||||||||||||||||||||
| December 31, 2025 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||
| Cash equivalents: | ||||||||||||||||||||||||||
| Money market funds | $ | 27,928 | $ | 27,928 | $ | — | $ | — | ||||||||||||||||||
| U.S. government securities | 1,623 | 1,623 | — | — | ||||||||||||||||||||||
| Time deposits | 328 | — | 328 | — | ||||||||||||||||||||||
| Corporate debt securities | 1,603 | — | 1,603 | — | ||||||||||||||||||||||
| Total cash equivalents | 31,482 | 29,551 | 1,931 | — | ||||||||||||||||||||||
| Marketable securities: | ||||||||||||||||||||||||||
| U.S. government securities | 21,483 | 21,483 | — | — | ||||||||||||||||||||||
| U.S. government agency securities | 767 | 767 | — | — | ||||||||||||||||||||||
| Corporate debt securities | 17,477 | — | 17,477 | — | ||||||||||||||||||||||
| Marketable equity securities | 5,992 | 5,992 | — | — | ||||||||||||||||||||||
| Total marketable securities | 45,719 | 28,242 | 17,477 | — | ||||||||||||||||||||||
| Restricted cash equivalents | 2,539 | 2,539 | — | — | ||||||||||||||||||||||
| Other assets | 106 | — | — | 106 | ||||||||||||||||||||||
| Total | $ | 79,846 | $ | 60,332 | $ | 19,408 | $ | 106 |
Restricted Cash Equivalents
As of March 31, 2026, our restricted cash equivalents of $7.42 billion include $5.00 billion of money market funds to be held in escrow related to a multi-year purchase agreement. These funds are restricted from general corporate use and are expected to be released upon satisfying the underlying purchase obligations. Based on the expected timing of release of restrictions, substantially all of our restricted cash equivalents were classified within other assets on our condensed consolidated balance sheet. For additional information, see Note 8 — Commitments and Contingencies.
Marketable Debt Securities
The following tables summarize our available-for-sale marketable debt securities with unrealized losses as of March 31, 2026 and December 31, 2025, aggregated by major security type and the length of time that individual securities have been in a continuous loss position (in millions):
| March 31, 2026 | |||||||||||||||||||||||||||||||||||
| Less than 12 months | 12 months or greater | Total | |||||||||||||||||||||||||||||||||
| Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||
| U.S. government securities | $ | 13,872 | $ | (39) | $ | 769 | $ | (9) | $ | 14,641 | $ | (48) | |||||||||||||||||||||||
| U.S. government agency securities | 199 | (1) | 25 | — | 224 | (1) | |||||||||||||||||||||||||||||
| Corporate debt securities | 7,756 | (25) | 940 | (12) | 8,696 | (37) | |||||||||||||||||||||||||||||
| Total | $ | 21,827 | $ | (65) | $ | 1,734 | $ | (21) | $ | 23,561 | $ | (86) |
| December 31, 2025 | |||||||||||||||||||||||||||||||||||
| Less than 12 months | 12 months or greater | Total | |||||||||||||||||||||||||||||||||
| Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||
| U.S. government securities | $ | 1,491 | $ | (2) | $ | 1,570 | $ | (18) | $ | 3,061 | $ | (20) | |||||||||||||||||||||||
| U.S. government agency securities | 17 | — | 25 | — | 42 | — | |||||||||||||||||||||||||||||
| Corporate debt securities | 1,213 | (1) | 1,534 | (20) | 2,747 | (21) | |||||||||||||||||||||||||||||
| Total | $ | 2,721 | $ | (3) | $ | 3,129 | $ | (38) | $ | 5,850 | $ | (41) |
As of March 31, 2026 and December 31, 2025, the gross unrealized gains on our marketable debt securities were $129 million and $300 million, respectively, and the allowance for credit losses were not material for both periods.
The following table classifies our marketable debt securities by contractual maturities (in millions):
| March 31, 2026 | |||||
| Due within one year | $ | 26,879 | |||
| Due after one year to five years | 26,552 | ||||
| Total | $ | 53,431 |
Marketable Equity Securities
The net unrealized losses on our marketable equity securities were $1.57 billion and the net unrealized gains were $137 million for the three months ended March 31, 2026 and 2025, respectively. These gains and losses are recorded within interest and other income (expense), net on our condensed consolidated statements of income.
Note 5. Non-Marketable Equity Investments
Our non-marketable equity investments are in privately-held companies without readily determinable fair values. The following table summarizes our non-marketable equity investments under measurement alternative and equity method (in millions):
| March 31, 2026 | December 31, 2025 | ||||||||||
| Initial cost | $ | 20,241 | $ | 20,271 | |||||||
| Cumulative upward adjustments | 558 | 429 | |||||||||
| Cumulative impairment/downward adjustments | (624) | (624) | |||||||||
| Non-marketable equity investments under measurement alternative | 20,175 | 20,076 | |||||||||
| Non-marketable equity investments under equity method | 8,235 | 7,448 | |||||||||
| Total carrying value of non-marketable equity investments | $ | 28,410 | $ | 27,524 |
Non-Marketable Equity Investments Under Equity Method
Our non-marketable equity method investments include an arrangement, entered into in October 2025, to co-develop a data center campus in Louisiana (the Venture), in which we hold a 20% membership interest. This Venture provides strategic optionality and flexibility, which we expect will enable us to effectively meet future infrastructure capacity needs as AI markets and technologies develop. The parties have committed to fund their respective pro rata share of approximately $27 billion in total estimated development costs.
Our lease agreements with the Venture, which cover the right to use properties on the data center campus, will commence in 2029 and have an aggregate initial lease commitment of approximately $12.31 billion. Each leased property has an initial four-year lease term and options to renew for a total lease period of up to 20 years. In addition, we have provided residual value guarantees (RVG) with an aggregate threshold of approximately $28 billion that decreases over time. If we decide to terminate or not renew a lease, and if certain other conditions are met, our maximum RVG payment would equal any shortfall between the fair value at that time and the RVG threshold for that property. RVG payments are not probable, and therefore no liability has been recorded to date.
Significant judgment is required to identify the activities that most significantly impact the Venture's economic performance based upon the purpose and design of the entity. This judgment included, but was not limited to, considering future conditions that may impact the fair value of the Venture's long-lived assets (including expectations of payments under the RVG) or the Venture's ability to generate cash flows. On the basis of analyses performed, decisions pertaining to remarketing the data center campus, including but not limited to, negotiations with future lease tenants and individual property sales, were determined to have the most significant impact on the Venture's economic performance. As we do not have the power to direct the activities that most significantly impact the Venture's economic performance, we are not the primary beneficiary and, therefore, do not consolidate the variable interest entity (VIE). Our ongoing involvement with the VIE includes providing construction management, administrative and property management services to the Venture.
As of March 31, 2026 and December 31, 2025, the carrying value of our equity investment included within non-marketable equity investments on our condensed consolidated balance sheets was $2.37 billion and $1.83 billion, respectively, and our maximum exposure to loss related to the Venture was $45.99 billion and $45.95 billion, respectively, consisting of the carrying value of our equity investment, the lease commitments, our estimated future funding commitments, and the maximum RVG threshold.
In addition, we have other types of unconsolidated VIEs of which we are not the primary beneficiary. As of March 31, 2026 and December 31, 2025, our maximum exposure to loss in these VIEs was $5.79 billion and $5.58 billion, respectively, which represents the carrying value of our investments.
Note 6. Property and Equipment
Property and equipment, net consists of the following (in millions):
| March 31, 2026 | December 31, 2025 | ||||||||||
| Land | $ | 3,677 | $ | 3,687 | |||||||
| Servers and network assets | 105,987 | 98,040 | |||||||||
| Buildings | 58,836 | 55,568 | |||||||||
| Leasehold improvements | 8,209 | 8,346 | |||||||||
| Equipment and other | 9,699 | 9,377 | |||||||||
| Finance lease right-of-use assets | 8,842 | 8,187 | |||||||||
| Construction in progress (1) | 61,017 | 50,521 | |||||||||
| Property and equipment, gross | 256,267 | 233,726 | |||||||||
| Less: Accumulated depreciation | (61,491) | (57,326) | |||||||||
| Property and equipment, net | $ | 194,776 | $ | 176,400 |
(1)Construction in progress includes costs mostly related to construction of data centers, network infrastructure and servers.
Depreciation expense on property and equipment was $5.68 billion and $3.84 billion for the three months ended March 31, 2026 and 2025, respectively. Within property and equipment, our servers and network assets depreciation expenses were $4.38 billion and $2.63 billion for the three months ended March 31, 2026 and 2025, respectively.
Held-for-sale Assets
In March 2026, we approved a plan to dispose of certain data center assets with a carrying value of $1.48 billion, consisting mostly of construction in progress and land. These assets were classified as held-for-sale within prepaid expenses and other current assets on our condensed consolidated balance sheet as of March 31, 2026. We expect to dispose of these assets within the next twelve months through a contribution to a third party for the purpose of co-developing data centers.
Note 7. Long-term Debt
The carrying amount of our long-term debt in the form of fixed-rate senior unsecured notes (the Notes) was $58.75 billion and $58.74 billion as of March 31, 2026 and December 31, 2025, respectively. The total estimated fair value of our outstanding Notes was $55.94 billion and $57.22 billion as of March 31, 2026 and December 31, 2025, respectively. The fair value was determined based on the quoted prices at the end of the reporting periods and categorized as Level 2 in the fair value hierarchy.
Note 8. Commitments and Contingencies
Leases and Contractual Commitments
In addition to the lease liabilities that are included on our balance sheet, we have operating and finance leases that have not yet commenced as of March 31, 2026. These lease obligations were approximately $182.88 billion, consisting of data centers, colocations, and certain network infrastructure, which will commence during the remainder of 2026 and 2036 with lease terms ranging from greater than one year to 30 years.
As of March 31, 2026, we had $237.67 billion of non-cancelable contractual commitments, comprising both short-term and long-term arrangements. These commitments are mostly related to third-party cloud capacity arrangements and continued investments in servers and network infrastructure, data centers, and consumer hardware products in Reality Labs, with approximately $42.25 billion and $47.65 billion due in 2026 and 2027, respectively. In addition, as of March 31, 2026, we have contingent obligations to purchase up to $14.72 billion of cloud capacity over a five-year period, which may be reduced if the cloud service provider is able to sell such capacity to other customers. In April 2026, we entered into additional multi-year infrastructure contracts, related to which our non-cancelable contractual commitments increased by approximately $24 billion.
In connection with certain contractual restrictions under a multi-year purchase agreement, we reclassified $5.00 billion of money market funds as restricted cash equivalents as of March 31, 2026. These funds are restricted from general corporate use and are expected to be released upon satisfying the underlying purchase obligations. For additional information regarding restricted cash equivalents, see Note 4 — Financial Instruments.
As part of the normal course of business, we have entered into agreements ranging from three to 25 years to purchase clean and renewable energy that do not specify a fixed or minimum volume commitment. The ultimate spend under these agreements may vary and will be based on actual volume purchased.
Legal and Related Matters
With respect to the cases, actions, and inquiries described below, we evaluate the associated developments on a regular basis and accrue a liability when we believe a loss is probable and the amount can be reasonably estimated. In addition, we believe there is a reasonable possibility that we may incur a loss in some of these matters. Unless otherwise noted, with respect to the matters described below that do not include an estimate of the amount of loss or range of possible loss, such losses or range of possible losses either cannot be estimated or are not individually material, but we believe there is a reasonable possibility that they may be material in the aggregate.
We are also party to various other legal proceedings, claims, and regulatory, tax or government inquiries and investigations that arise in the ordinary course of business. Additionally, we are required to comply with various legal and regulatory obligations around the world. The requirements for complying with these obligations may be uncertain and subject to interpretation and enforcement by regulatory and other authorities, and any failure or perceived failure to comply with such obligations could eventually lead to asserted legal or regulatory action. With respect to these other legal proceedings, claims, regulatory, tax, or government inquiries and investigations, and other matters, asserted and unasserted, we evaluate the associated developments on a regular basis and accrue a liability when we believe a loss is probable and the amount can be reasonably estimated. In addition, we believe there is a reasonable possibility that we may incur a loss in some of these other matters. We believe that the amount of losses or any estimable range of possible losses with respect to these other matters will not, either individually or in the aggregate, have a material adverse effect on our business and condensed consolidated financial statements.
The ultimate outcome of the legal and related matters described in this section, such as whether the likelihood of loss is remote, reasonably possible, or probable, or if and when the reasonably possible range of loss is estimable, is inherently uncertain. Therefore, if one or more of these matters were resolved against us for amounts in excess of management's estimates of loss, our results of operations and financial condition, including in a particular reporting period in which any such outcome becomes probable and estimable, could be materially adversely affected.
For information regarding income tax contingencies, see Note 10 — Income Taxes.
Privacy and Related Matters
Beginning on March 20, 2018, multiple putative class actions were filed in state and federal courts in the United States and elsewhere against us and certain of our directors and officers alleging various causes of action in connection with our platform and user data practices as well as the misuse of certain data by a developer that shared such data with third parties in violation of our terms and policies, and seeking unspecified damages and injunctive relief. With respect to the putative class actions alleging fraud and violations of consumer protection, privacy, and other laws in connection with the same matters, several of the cases brought on behalf of consumers in the United States were consolidated in the U.S. District Court for the Northern District of California (In re Facebook, Inc., Consumer Privacy User Profile Litigation). On December 22, 2022, the parties entered into a settlement agreement to resolve the lawsuit, which provided for a payment of $725 million by us and became final on May 14, 2025. In addition, our platform and user data practices, as well as the events surrounding the misuse of certain data by a developer, became the subject of U.S. Federal Trade Commission (FTC), state attorneys general, and other government inquiries in the United States, Europe, and other jurisdictions. We entered into a settlement and modified consent order to resolve the FTC inquiry, which took effect in April 2020. Among other matters, our settlement with the FTC required us to pay a penalty of $5.0 billion which was paid in April 2020 upon the effectiveness of the modified consent order. In addition, in December 2025, we entered into a settlement agreement with California to resolve its lawsuit alleging violations of consumer protection laws, which was approved by the court in California in March 2026. Certain other state attorneys general inquiries and litigation and certain government inquiries in other jurisdictions remain ongoing. On June 1, 2023, the court presiding over the lawsuit filed by the District of Columbia granted our motion for summary judgment, resolving the case in our favor. On June 29, 2023, the District of Columbia filed a notice of appeal. The appeal was heard on January 30, 2025 and on July 31, 2025, the District of Columbia Court of Appeals reversed the decision on procedural grounds and remanded the matter to the lower court. Trial in the New Mexico Attorney General's case, which has expanded to include various claims related to content moderation issues, is scheduled to begin on September 8, 2026. The New Mexico Attorney General has indicated that they intend to seek up to $62.85 billion in penalties in this case. On July 16, 2021, a stockholder derivative action was filed in Delaware Court of Chancery against certain of our directors and officers asserting breach of fiduciary duty and related claims relating to our historical platform and user data practices, as well as our settlement with the FTC. On July 20, 2021, other stockholders filed an amended derivative complaint in a related Delaware Chancery Court action, asserting breach of fiduciary duty and related claims against certain of our current and former directors and officers in connection with our historical platform and user data practices. On November 4, 2021, the lead plaintiffs filed a second amended and consolidated complaint in the stockholder derivative action. The pending consolidated matter is In re Facebook Inc. Derivative Litigation. On January 19, 2022, we filed a motion to dismiss, which was denied in part on May 10, 2023. The insider trading claim was dismissed as to all defendants except Mark Zuckerberg, and the motion was denied as to the breach of fiduciary duty claims. Trial began on July 16, 2025. On July 17, 2025, the parties agreed to a settlement in principle to resolve all claims in the action, which was approved by the court in April 2026.
On May 3, 2023, the FTC filed a public administrative proceeding (In the Matter of Facebook, Inc.) seeking substantial changes to the modified consent order, which took effect in April 2020 after its entry by the U.S. District Court for the District of Columbia. The changes sought by the FTC are set forth in a proposed order and include, among others, a prohibition on our use of minors' data for any commercial purposes, changes to the composition of our board of directors, and significant limitations on our ability to modify and launch new products. On May 31, 2023, we filed a motion before the U.S. District Court for the District of Columbia seeking to enjoin the FTC from further pursuing its agency process to modify the modified consent order. On November 27, 2023, the district court denied our motion, and we then appealed to the U.S. Court of Appeals for the District of Columbia Circuit (U.S. v. Facebook, Inc.) and sought to stay the FTC proceeding pending resolution of the appeal. Our motion for a stay pending appeal was denied in March 2024. After the underlying appeal was briefed and oral argument was held on November 5, 2024, the U.S. Court of Appeals for the District of Columbia Circuit issued its decision on May 16, 2025, reversing the district court's denial of our motion on jurisdictional grounds, and directed the district court to consider the merits of our arguments. On July 10, 2025, the case was remanded to the district court to consider our claims in light of the Court of Appeals' determination that the district court retains jurisdiction over the entirety of the consent order. On December 23, 2025, the district court ordered a schedule for supplemental briefing in light of the Court of Appeals decision, with briefing due to be complete by May 2026.
On November 29, 2023, we separately filed a complaint, also in the U.S. District Court for the District of Columbia (Meta Platforms, Inc. v. FTC), asserting constitutional challenges to the structure of the FTC, and seeking to preliminarily enjoin the FTC proceeding during the pendency of the litigation. On December 13, 2023, the FTC filed an opposition to our motion for preliminary injunction and a motion to dismiss the complaint. On March 14, 2024, the district court denied our motion to preliminarily enjoin the FTC proceeding during the pendency of the litigation, and also denied the FTC's motion to dismiss our complaint without prejudice, pending the U.S. Supreme Court's decision in SEC v. Jarkesy (Jarkesy). Our motion for a stay of the FTC proceeding pending appeal was denied in March 2024. Both the district court action and the appeal were stayed pending the Supreme Court's decision in Jarkesy. Following the Supreme Court's ruling in Jarkesy on June 27, 2024, the government filed a renewed motion to dismiss, which was fully briefed as of October 18, 2024. On June 29, 2025, the district court granted our request for a stay in light of the Court of Appeals' May 16, 2025 decision in the jurisdictional case, and on January 20, 2026, the district court continued the stay and ordered the parties to file a status update by June 8, 2026.
On April 1, 2024, we filed our response to the FTC's Order to Show Cause, arguing, among other things, that the Order to Show Cause proceeding was legally improper. Per FTC orders, we completed briefing on threshold legal issues on July 18, 2024, and the FTC held oral argument before the Commissioners on those issues on November 12, 2024. On January 10, 2025, the Commission issued a decision on certain threshold legal issues, including that the Commission has statutory authority to modify consent orders. The Commission stated that its decision is subject to Meta's jurisdictional challenges then pending before the U.S. Court of Appeals for the District of Columbia Circuit in U.S. v. Facebook, Inc., and that the nature and scope of any further administrative proceedings would be addressed at a later date. On July 30, 2025, the Commission issued an order staying the Order to Show Cause proceeding pending final resolution of the two judicial cases we filed challenging the proceeding. Through the administrative process, the FTC could amend the order to impose the additional requirements set forth in the proposed order. We should have the opportunity to appeal an FTC decision modifying the order and could request the appellate court to stay the enforcement of the modifications to the order while the appeal is pending. It is unclear whether the appeal or the request for a stay would be successful.
We also notify the Irish Data Protection Commission (IDPC), our lead European Union privacy regulator under the General Data Protection Regulation (GDPR), of certain other personal data breaches and privacy issues, issue similar notifications to European regulators under other laws (such as UK GDPR and Member State implementations of the ePrivacy Directive), and are subject to inquiries and investigations by the IDPC and other European regulators regarding various aspects of our regulatory compliance. For example, the IDPC is continuing to assess the compliance of our "subscription for no ads" consent model with requirements under the GDPR. In addition, on May 12, 2023, the IDPC issued a Final Decision concluding that Meta Platforms Ireland's reliance on Standard Contractual Clauses in respect of certain transfers of European Economic Area (EEA) Facebook user data was not in compliance with the GDPR. The IDPC issued an administrative fine of EUR €1.2 billion as well as corrective orders, which is described further in "Legal Proceedings" contained in Part II, Item 1 of this Quarterly Report on Form 10-Q. The interpretation of the GDPR is still evolving, including through decisions of the Court of Justice of the European Union, and draft decisions in investigations by the IDPC are subject to review by other European privacy regulators as part of the GDPR's cooperation and consistency mechanisms, which may lead to significant changes in the final outcome of such investigations. As a result, the interpretation and enforcement of the GDPR, as well as the imposition and amount of penalties for non-compliance, are subject to significant uncertainty. Although we are vigorously defending our regulatory compliance, we have accrued significant amounts for loss contingencies related to these inquiries and investigations in Europe, and we believe there is a reasonable possibility that additional accruals for losses related to
these matters could be material individually or in the aggregate. In addition, we are subject to individual and class actions in Europe relating to matters that are or have been the subject of regulatory investigations.
Beginning on June 7, 2021, multiple putative class actions were filed against us alleging that we improperly received individuals' information from third-party websites or apps via our business tools in violation of our terms and various state and federal laws and seeking unspecified damages and injunctive relief (for example, In re Meta Pixel Healthcare Litigation; In re Meta Pixel Tax Filing Cases; Frasco v. Flo Health, Inc.; Doe v. Hey Favor, Inc. et al.; Doe v. GoodRx Holdings, Inc. et al. in the U.S. District Court for the Northern District of California; and Rickwalder, et al. v. Meta Platforms, Inc. in the Santa Clara County Superior Court). These cases are in different stages, but several of our motions to dismiss have been denied in whole or in part, while certain others have been granted in whole or in part. In Rickwalder, the Superior Court denied plaintiffs' motion for class certification and the plaintiffs have appealed that decision. In Meta Pixel Tax Filing Cases, on March 30, 2026, the U.S. District Court for the Northern District of California denied plaintiffs' motion for class certification. In Flo Health, on August 1, 2025, a jury returned a verdict on liability in favor of the plaintiffs and on behalf of a California subclass on the sole claim remaining against Meta under Section 632 of the California Invasion of Privacy Act. Plaintiffs are seeking $5,000 in statutory damages per class member and have asserted that there are up to approximately 1.6 million class members. The amount of potential damages is uncertain at this time. In addition, we are subject to individual and class actions in Europe, as well as regulatory investigations in the United States, Europe, and elsewhere, relating to similar matters with regard to our business tools.
Competition
We are subject to various litigation and government inquiries and investigations, formal or informal, by competition authorities in the United States, Europe, and other jurisdictions. Such investigations, inquiries, and lawsuits concern, among other things, our business practices in the areas of social networking or social media services, digital advertising, and/or mobile or online applications, as well as our acquisitions. For example, in 2019 we became the subject of antitrust investigations by the FTC and U.S. Department of Justice. On December 9, 2020, the FTC filed a complaint (FTC v. Meta Platforms, Inc.) against us in the U.S. District Court for the District of Columbia alleging that we engaged in anticompetitive conduct and unfair methods of competition in violation of Section 5 of the Federal Trade Commission Act and Section 2 of the Sherman Act, including by acquiring Instagram in 2012 and WhatsApp in 2014 and by maintaining conditions on access to our platform. The FTC sought a permanent injunction against our company's alleged violations of the antitrust laws, and other equitable relief, including divestiture or reconstruction of Instagram and WhatsApp. On June 28, 2021, the court granted our motion to dismiss the complaint filed by the FTC with leave to amend. On August 19, 2021, the FTC filed an amended complaint, and on October 4, 2021, we filed a motion to dismiss this amended complaint. On January 11, 2022, the court denied our motion to dismiss the FTC's amended complaint. On April 5, 2024, we filed our motion for summary judgment and the FTC filed its opposition and its own motion for partial summary judgment on May 24, 2024. On November 13, 2024, the court granted in part and denied in part both our and the FTC's motions for summary judgment. Trial began on April 14, 2025 and concluded on May 27, 2025. On November 18, 2025, the court granted judgment in our favor. On January 20, 2026, the FTC filed a notice of appeal of that ruling. Multiple putative class actions have also been filed in state and federal courts in the United States and in the United Kingdom against us alleging violations of antitrust laws and other causes of action in connection with these acquisitions and/or other alleged anticompetitive conduct, and seeking damages and injunctive relief. Several of the cases brought on behalf of certain advertisers and users in the United States were consolidated in the U.S. District Court for the Northern District of California (Klein et al., v. Meta Platforms, Inc.). On December 30, 2024, we filed our motion for summary judgment in the putative class action brought on behalf of certain advertisers, which is pending with the court. On January 24, 2025, the court denied plaintiffs' motion for class certification in the action brought on behalf of users, permitting it to proceed only on an individual basis as to the named plaintiffs. On September 29, 2025, in the user action, the court granted our motion, entering judgment in our favor. On October 27, 2025, plaintiffs in the user action filed a notice of appeal.
On February 11, 2022, a putative class action was filed against us in the UK Competition Appeals Tribunal (CAT) under the UK collective proceedings regime (Lovdahl-Gormsen v. Meta Platforms, Inc. et al.). On October 6, 2023, following the denial of class certification, the class representative submitted an amended claim alleging abuse of dominance relating to aspects of our data processing practices and seeking damages. The CAT certified the amended claim on February 15, 2024. Trial is scheduled to begin in September 2027.
We are also subject to litigation in Europe brought by news and media companies alleging anticompetitive conduct in relation to aspects of our historic data processing practices. For example, on December 1, 2023, 87 news media companies filed a joint action against us in Spain in relation to our legal basis under the GDPR for behavioral advertising, alleging unfair competition and abuse of dominance (Asociacion de Medios de Informacion (AMI) v. Meta Ireland). On November 19, 2025, the court issued judgment against us, finding that AMI had failed to establish abuse of dominance but upholding its case on unfair competition and awarding damages of approximately EUR €542 million. We have appealed the decision. In addition, on October 24, 2024, ten radio and television publishers commenced a separate claim against us in Spain on the same basis (Union de Televisiones Comerciales Asociadas (UTECA) v. Meta Ireland). Trial is scheduled for October 2026. In addition, on April 29, 2025, a similar unfair competition claim was filed against us by 67 media companies in France (Amaury et al. v. Meta Platforms Ireland Limited). Trial is expected to take place in 2027.
In December 2022, the European Commission issued a Statement of Objections alleging that we tie Facebook Marketplace to Facebook and use data in a manner that infringes European Union competition rules. On November 18, 2024, the European Commission issued a decision that Meta infringed Article 102 on the Treaty of the Functioning of the European Union in relation to certain alleged business practices relating to Facebook Marketplace and imposed a fine of approximately EUR €798 million. We appealed the European Commission's decision on January 28, 2025.
In March 2024, the European Commission opened an investigation into the compliance of our "subscription for no ads" consent model with requirements under Article 5(2) of the Digital Markets Act (DMA). The European Commission issued preliminary findings on July 1, 2024 reflecting its preliminary view that our model does not comply with such requirements. In April 2025, the European Commission issued a final decision that our "subscription for no ads" model does not comply with such requirements and imposed a fine of EUR €200 million. Based on feedback from the European Commission in connection with the DMA, we launched less personalized ads (LPA) in November 2024 and made significant modifications to LPA since the European Commission issued its final decision. We appealed the European Commission's decision on July 4, 2025, but further modifications to our model may be imposed during the appeal process, which could result in a materially worse user experience for European users and a significant impact to our European business and revenue.
Securities and Other Actions
Beginning on March 20, 2018, multiple putative class actions and derivative actions were filed in state and federal courts in the United States and elsewhere against us and certain of our directors and officers alleging violations of securities laws, breach of fiduciary duties, and other causes of action in connection with our platform and user data practices as well as the misuse of certain data by a developer that shared such data with third parties in violation of our terms and policies, and seeking unspecified damages and injunctive relief. Beginning on July 27, 2018, two putative class actions were filed in federal court in the United States against us and certain of our directors and officers alleging violations of securities laws in connection with the disclosure of our earnings results for the second quarter of 2018 and seeking unspecified damages. These two actions subsequently were transferred and consolidated in the U.S. District Court for the Northern District of California (In Re Facebook, Inc. Securities Litigation) with the putative securities class action described above relating to our platform and user data practices. In a series of orders in 2019 and 2020, the district court granted our motions to dismiss the plaintiffs' claims. On January 17, 2022, the plaintiffs filed a notice of appeal of the order dismissing their case, and on October 18, 2023, the U.S. Court of Appeals for the Ninth Circuit issued its decision affirming in part and reversing in part the district court's order dismissing the plaintiffs' case. We filed a petition for writ of certiorari on March 4, 2024 with the U.S. Supreme Court, seeking review of the Ninth Circuit's order. The Supreme Court granted in part our petition for writ of certiorari on June 10, 2024, and following oral argument issued an order on November 22, 2024 dismissing the grant of certiorari as improvidently granted. On January 24, 2025, the U.S. Court of Appeals for the Ninth Circuit returned the case to the district court. On July 1, 2025, the plaintiffs filed a fourth amended complaint. On September 2, 2025, we filed a motion to dismiss the fourth amended complaint. On February 27, 2026, the district court granted in part and denied in part our motion to dismiss the fourth amended complaint.
We are also subject to other government inquiries and investigations relating to our business activities and disclosure practices. For example, beginning in September 2021, we became subject to government investigations and requests relating to a former employee's allegations and release of internal company documents concerning, among other things, our algorithms, advertising and user metrics, and content enforcement practices, as well as misinformation and other undesirable activity on our platform, and user well-being. We have since received additional requests relating to these and other topics. Beginning on October 27, 2021, multiple putative class actions and derivative actions were filed in the U.S. District Court for the Northern District of California against us and certain of our directors and officers alleging violations of securities laws,
breach of fiduciary duties, and other causes of action in connection with the same matters, and seeking unspecified damages (In re Meta Platforms, Inc., Securities Litigation). On September 30, 2024, the court dismissed certain claims with leave to amend, but determined certain claims regarding content enforcement practices and user well-being could proceed against us and certain of our current and former directors and officers. On February 13, 2026, the plaintiffs filed a second amended complaint asserting the same and similar claims regarding content enforcement practices and user well-being, as well as additional claims regarding encryption and age verification practices and previously dismissed claims regarding our algorithms. On March 30, 2026, we filed a motion to dismiss the second amended complaint.
On March 8, 2022, a putative class action was filed in the U.S. District Court for the Northern District of California against us and certain of our directors and officers alleging violations of securities laws in connection with the disclosure of our earnings results for the fourth quarter of 2021 and seeking unspecified damages (Plumbers & Steamfitters Local 60 Pension Trust v. Meta Platforms, Inc.). On July 18, 2023, the court dismissed the claims against Meta and its officers with leave to amend. On September 18, 2023, the plaintiffs filed an amended complaint and on September 17, 2024, the court dismissed the claims with prejudice. On October 14, 2024, plaintiffs filed their notice of appeal and on February 24, 2026, the Court of Appeals affirmed dismissal.
Youth-Related Actions
Beginning in January 2022, we became subject to litigation and other proceedings that were filed in various federal and state courts in the United States as well as other jurisdictions alleging that Facebook and Instagram cause "social media addiction" in users, with most proceedings focused on those under 18 years old, resulting in various mental health and other harms. Putative class actions have been filed in the United States, Brazil, Canada, Europe, and elsewhere on behalf of users in those jurisdictions, and numerous school districts, municipalities, and tribal nations have filed public nuisance claims in the United States, Brazil, and/or Canada based on similar allegations. On October 6, 2022, the U.S. federal cases were centralized in the U.S. District Court for the Northern District of California (In re Social Media Adolescent Addiction Product Liability Personal Injury Litigation). Beginning in March 2023, U.S. states and territories began filing lawsuits on these topics in various federal and state courts. These additional lawsuits include allegations regarding violations of the Children's Online Privacy Protection Act (COPPA), child sexual abuse material and other child safety concerns, as well as violations of state consumer protection laws, unfair business practices, public nuisance, and products liability, with proceedings focused on our alleged business practices (including the use of end-to-end encryption) and harms to users under 18 years old. Certain of the lawsuits described above have since expanded to include various other claims relating to our services, including with respect to age verification, AI and AI chatbots, deceptive advertising, illicit or illegal activity with respect to drugs, fraud, and firearms, and privacy-related matters, among others. These lawsuits seek damages, disgorgement, and/or civil penalties and injunctive relief, and include cases filed by various state attorneys general in In re Social Media Adolescent Addiction Product Liability Personal Injury Litigation in the U.S. District Court for the Northern District of California, as well as various state courts around the country. Trial in the first of the personal injury cases began on January 27, 2026 in Judicial Council Coordination Proceeding No. 5255 pending in Los Angeles County California Superior Court. On March 25, 2026, a jury returned a verdict in the first bellwether trial and awarded $6 million in compensatory and punitive damages between us and YouTube, allocated 70% to us and 30% to YouTube. We intend to appeal the decision. The second user bellwether trial is scheduled to begin on July 27, 2026. Trial in the first of the state attorneys general cases began on February 2, 2026 in the First Judicial District Court of New Mexico, in a case brought by the New Mexico Attorney General. On March 24, 2026, a jury returned a verdict against us and ordered that we pay a civil penalty of $375 million. The New Mexico Attorney General has indicated that they intend to seek approximately $3.7 billion in abatement costs as well as injunctive relief, which includes requests for extensive changes to the manner in which we provide our services in New Mexico. A bench trial on these issues and the public nuisance claim is scheduled for May 4, 2026. Trials in other state attorneys general cases are currently scheduled or expected to be scheduled in the second half of 2026 or in 2027, including the Tennessee Attorney General's case which is scheduled to begin on July 20, 2026. The first trial in the multidistrict litigation (In re Social Media Adolescent Addiction Product Liability Personal Injury Litigation) is a school district bellwether case and is scheduled to begin on June 15, 2026. The second trial in the multidistrict litigation (In re Social Media Adolescent Addiction Product Liability Personal Injury Litigation) is the first trial for the state attorneys general that have filed federal claims. Trial in this case is currently scheduled to begin August 5, 2026. Across the cases described above, the damages, disgorgement, or penalties that plaintiffs have indicated they intend to seek range widely in amount, including in certain cases up to the high tens of billions of dollars. In addition, beginning in November 2024, counsel for over one hundred thousand individual claimants have sent mass arbitration demands relating to "social media addiction" and related harms allegedly caused by Instagram.
We are also subject to government investigations and requests from multiple regulators in various jurisdictions globally concerning the use of our products and services, and the alleged mental and physical health and safety and privacy impacts on users, particularly younger users, as well as the accuracy of our statements about youth and parental features. On May 16, 2024, the European Commission opened formal proceedings assessing our compliance with certain requirements under Articles 28, 34, and 35 of the Digital Services Act (DSA), including the way in which we identified, assessed, and mitigated against certain systemic risks to minors and other vulnerable users that may stem from the design and functioning of Instagram and Facebook. On April 29, 2026, the Commission issued preliminary findings with respect to some of these topics, reflecting its preliminary view that users under 13 years of age are present on Facebook and Instagram, calling into question our compliance with the obligations to diligently assess systemic risks, effectively mitigate such risks, and to overall ensure a high level of protection of minors. We have an opportunity to respond to the preliminary findings, and would also have an opportunity to appeal a final decision by the Commission.
Other Actions
Beginning on August 15, 2018, multiple putative class actions were filed against us alleging that we inflated our estimates of the potential audience size for advertisements, resulting in artificially increased demand and higher prices. The cases were consolidated in the U.S. District Court for the Northern District of California (DZ Reserve v. Facebook, Inc.) and seek unspecified damages and injunctive relief. In a series of rulings in 2019, 2021, and 2022, the court dismissed certain of the plaintiffs' claims, but permitted their fraud and unfair competition claims to proceed. On March 29, 2022, the court granted the plaintiffs' motion for class certification. On March 21, 2024, the U.S. Court of Appeals for the Ninth Circuit affirmed in part and reversed in part the order granting class certification. On May 3, 2024, we filed a petition for panel rehearing and rehearing en banc, which was denied by the Ninth Circuit. We filed a petition for a writ of certiorari with the U.S. Supreme Court on October 2, 2024, which was denied. We then moved to compel arbitration, which the district court denied. We appealed the denial of our motion to compel arbitration to the Ninth Circuit on December 3, 2025. The matter is stayed in district court pending resolution of our appeal.
Beginning on July 7, 2023, multiple cases, including putative class actions, were filed against us in the United States and elsewhere, alleging that we improperly acquired, distributed, and used various copyrighted materials and/or other types of data to train our artificial intelligence models and seeking unspecified damages and injunctive relief. In the United States, statutory damages for copyright liability are calculated on a per work basis, which may result in substantial damages, particularly given the large volumes of data required to train AI models. The cases in the United States, which were filed in the U.S. District Court for the Northern District of California (Kadrey, et al. v. Meta Platforms, Inc., Chabon, et al. v. Meta Platforms, Inc. and Farnsworth v. Meta Platforms, Inc.) and U.S. District Court for the Southern District of New York (Huckabee, et al. v. Meta Platforms, Inc. et al., which was subsequently transferred to the U.S. District Court for the Northern District of California), have been consolidated into Kadrey, et al. v. Meta Platforms, Inc. Motions for summary judgment were heard in this case on May 1, 2025, including on the issue of the applicability of the fair use defense to use of copyrighted books for generative AI model training. On June 25, 2025, the court granted our motion for summary judgment on fair use as to the named plaintiffs in the case. The parties will proceed to brief the remaining claim of copyright infringement due to alleged distribution of books to third parties during the downloading process. The court is scheduled to hear summary judgment motions on February 25, 2027. Beginning in November 2025, additional cases with similar claims were filed against us in the U.S. District Court for the Northern District of California (Entrepreneur Media v. Meta Platforms, Inc., Carreyrou et al. v. Anthropic PBC, et al., TED Entertainment, Inc. v. Meta Platforms, Inc. and Chicken Soup for the Soul LLC v. Anthropic PBC, et al.). The court is scheduled to hear summary judgment motions in Entrepreneur Media on February 25, 2027 and trial is scheduled for May 24, 2027.
On April 30, 2024, the European Commission opened formal proceedings against us to assess Facebook and Instagram's compliance with certain requirements under Articles 14, 16, 17, 20, 24, 25, 34, 35, and 40 of the DSA, regarding a range of topics including elections, content reporting and appeals, third-party access to data, political content recommendations, potential deceptive advertising and disinformation, including the way in which we identified, assessed, and mitigated against certain systemic risks on Instagram and Facebook. The Commission issued preliminary findings with respect to some of these topics on October 24, 2025 reflecting its preliminary view that we have infringed DSA obligations related to notice and action mechanisms for illegal content reporting, content moderation decision appeals, and data access for researchers. We have an opportunity to respond to the preliminary findings, and would also have an opportunity to appeal a final decision by the Commission. We are also responding to regulatory inquiries and litigation related to allegedly deceptive advertising, including but not limited to financial scams and the use of our services to promote deceptive activity, in other parts of the world.
We are also subject to other litigation and government inquiries and investigations relating to advertising on our platform and our alleged role in causing or contributing to various societal harms, including illegal activity with respect to drugs, fraud, deceptive activity, unlawful discrimination, and other harms potentially impacting large numbers of people. We have received additional requests relating to these and other topics including in connection with news outlet reporting regarding these issues in the fourth quarter of 2025.
In addition, we are subject to litigation and other proceedings involving law enforcement and other regulatory agencies, including in particular in Brazil, Russia, and other countries in Europe, in order to ascertain the precise scope of our legal obligations to comply with the requests of those agencies, including our obligation to disclose user information in particular circumstances. A number of such instances have resulted in the assessment of fines and penalties against us. We believe we have multiple legal grounds to satisfy these requests or prevail against associated fines and penalties, and we intend to vigorously defend such fines and penalties.
Note 9. Stockholders' Equity
Capital Return Program
Share Repurchase
Our board of directors has authorized a share repurchase program of our Class A common stock, which commenced in January 2017 and does not have an expiration date. We did not repurchase any shares of Class A common stock during the three months ended March 31, 2026. As of both December 31, 2025 and March 31, 2026, $25.03 billion remained available and authorized for repurchases under this program.
Dividend
During the three months ended March 31, 2026 and 2025, we paid dividends and dividend equivalents of $0.525 per each share of common stock, totaling to $1.17 billion and $1.15 billion, respectively, for Class A common stock, and $180 million in both periods for Class B common stock.
Share-based Compensation
Effective January 1, 2026, pursuant to the automatic increase provision under our 2025 Equity Incentive Plan (2025 Plan), our board of directors approved an increase of 55 million shares of Class A common stock reserved for issuance. As of March 31, 2026, there were 446 million shares of our Class A common stock reserved for future issuance under our 2025 Plan.
Restricted Stock Units
The following table summarizes our share-based compensation expense, which consists of the RSU expense, by line item in our condensed consolidated statements of income (in millions):
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Cost of revenue | $ | 273 | $ | 271 | |||||||||||||||||||
| Research and development | 5,332 | 3,427 | |||||||||||||||||||||
| Marketing and sales | 210 | 236 | |||||||||||||||||||||
| General and administrative | 210 | 213 | |||||||||||||||||||||
| Total | $ | 6,025 | $ | 4,147 |
The following table summarizes the activities for our unvested RSUs for the three months ended March 31, 2026:
| Number of Shares | Weighted-Average Grant Date Fair Value Per Share | ||||||||||
| (in thousands) | |||||||||||
| Unvested at December 31, 2025 | 115,552 | $ | 500.68 | ||||||||
| Granted | 54,863 | $ | 599.20 | ||||||||
| Vested | (15,785) | $ | 369.16 | ||||||||
| Forfeited | (4,867) | $ | 501.07 | ||||||||
| Unvested at March 31, 2026 | 149,763 | $ | 550.62 |
The fair value as of the respective vesting dates of RSUs that vested during the three months ended March 31, 2026 and 2025 was $10.10 billion and $11.53 billion, respectively. The income tax benefit recognized related to awards vested during the three months ended March 31, 2026 and 2025 was $2.23 billion and $2.36 billion.
As of March 31, 2026, unrecognized share-based compensation expense for RSU awards was $79.22 billion, which is expected to be recognized over a weighted-average period of approximately three years based on vesting under the award service conditions.
Stock Options
In March 2026, we issued nonstatutory stock options to purchase an aggregate of 19 million shares of our Class A common stock under the 2025 Plan to certain of our executives and employees. These options have a weighted-average exercise price of $2,788 per share and a weighted-average remaining contractual term of approximately five years as of March 31, 2026. Stock options become vested and exercisable at such times and under such service and market conditions as determined by our compensation, nominating & governance committee or its equity subcommittee, as appropriate. As of March 31, 2026, unrecognized share-based compensation expense related to these stock options was $495 million, which is expected to be recognized over a weighted-average period of approximately four years.
Note 10. Income Taxes
Our tax provision for interim periods is determined using an estimated annual effective tax rate, adjusted for discrete items arising in that quarter, including excess tax benefits or shortfall tax expenses from share-based compensation and changes in unrecognized tax benefits. In each quarter, we update the estimated annual effective tax rate and make a year-to-date adjustment to the provision. The estimated annual effective tax rate is subject to significant volatility due to several factors, including our ability to accurately predict the proportion of our income (loss) before provision for income taxes in multiple jurisdictions, the effects of tax law changes, and the U.S. tax benefits from foreign-derived deduction eligible income.
Our gross unrecognized tax benefits were $17.82 billion and $16.45 billion as of March 31, 2026 and December 31, 2025, respectively. These unrecognized tax benefits are primarily related to the uncertainties with our research tax credits and transfer pricing with our foreign subsidiaries, which include licensing of intellectual property, providing services and other transactions. If the gross unrecognized tax benefits as of March 31, 2026 were realized in a future period, this would result in a tax benefit of $11.98 billion within our provision for income taxes at such time. The amount of interest and penalties accrued was $2.83 billion and $2.60 billion as of March 31, 2026 and December 31, 2025, respectively. We expect to continue to accrue unrecognized tax benefits for certain recurring tax positions.
On February 18, 2026, the U.S. Treasury issued Notice 2026-7, providing relief from the Corporate Alternative Minimum Tax (CAMT) related to the expensing of previously capitalized U.S. research and development costs. As a result, we recognized an $8.03 billion discrete income tax benefit during the first quarter of 2026, which partially offsets the $15.93 billion discrete charge recognized in the third quarter of 2025 upon enactment of the One Big Beautiful Bill Act. We expect to remain subject to CAMT for 2026 and subsequent years.
Facebook, Inc. v. Comm'r of Internal Revenue
In July 2016, we received a Statutory Notice of Deficiency ("2010 Notice") from the Internal Revenue Service (IRS) related to transfer pricing with our foreign subsidiaries in conjunction with the examination of the 2010 tax year. While the Notice applies only to the 2010 tax year, the IRS stated that it will also apply its position for tax years subsequent to 2010 and has done so in years covered by the second Notice described below. We did not agree with the position of the IRS and filed a petition in the Tax Court challenging the Notice (Facebook, Inc. v. Comm'r of Internal Revenue (2010 tax year)). On January 15, 2020, the IRS' amendment to answer was filed stating that it planned to assert at trial an adjustment that is higher than the adjustment stated in the Notice. The first session of the trial was completed in March 2020 and the final trial session was completed in August 2022.
In March 2018, we received a second Notice ("2011-2013 Notice") from the IRS in conjunction with the examination of our 2011 through 2013 tax years. The IRS applied its position from the 2010 tax year to each of these years and also proposed new adjustments related to other transfer pricing with our foreign subsidiaries and certain tax credits that we claimed. We do not agree with the positions of the IRS in the second Notice and have filed a petition in the Tax Court challenging the second Notice (Facebook, Inc. v. Comm'r of Internal Revenue (2011-2013 tax years)).
On May 22, 2025, the Tax Court issued its opinion in Facebook, Inc. v. Comm'r of Internal Revenue (2010 tax year). The Tax Court opinion provided a value of $7.79 billion for the intellectual property transferred to our international subsidiary, which is $1.48 billion higher than we reported. We estimated the net tax effects based on the revised value, and our provision for income taxes increased due to the remeasurement of unrecognized tax benefits. The Tax Court will review tax estimates submitted by both parties and determine the tax due in its forthcoming Tax Court decision. We will reassess any remeasurement of unrecognized tax benefits in the period in which the Tax Court decision is entered. At that time, we and the IRS will each have the option to file an appeal to the Ninth Circuit U.S. Court of Appeals.
In September 2025, we received a Statutory Notice of Deficiency ("2017-2019 Notice") from the IRS, asserting an additional $15.89 billion in tax, plus interest and penalties for our 2017 through 2019 tax years. This 2017-2019 Notice primarily relates to transfer pricing with our foreign subsidiaries and other international tax adjustments. The largest issue in the 2017-2019 Notice relates to the same underlying transfer pricing transaction that we litigated in the 2010 tax year trial and for which we received a Tax Court opinion in May 2025. The IRS' proposed adjustments do not represent a final determination and do not reflect offsets, including reduction in tax we would owe under the mandatory transition tax on accumulated foreign earnings, global intangible low-taxed income tax, and foreign-derived intangible income deduction from the 2017 Tax Cuts and Jobs Act. We do not agree with the IRS' position and filed a petition with the Tax Court in December
2025 to challenge the 2017-2019 Notice. As of March 31, 2026, we believe our accrual for unrecognized tax benefits is adequate.
Note 11. Segment Information
We report our financial results for our two reportable segments: Family of Apps (FoA) and Reality Labs (RL). FoA includes Facebook, Instagram, Messenger, WhatsApp, and other services. RL includes our virtual and augmented reality related consumer hardware, software, and content. Our operating segments are the same as our reportable segments.
The following table sets forth our segment information of revenue, expenses, and income (loss) from operations (in millions):
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Family of Apps: | |||||||||||||||||||||||
| Revenue | $ | 55,909 | $ | 41,902 | |||||||||||||||||||
| Employee compensation (1) | (12,079) | (9,031) | |||||||||||||||||||||
| Other costs and expenses (2) | (16,930) | (11,106) | |||||||||||||||||||||
| Income from operations | $ | 26,900 | $ | 21,765 | |||||||||||||||||||
| Reality Labs: | |||||||||||||||||||||||
| Revenue | $ | 402 | $ | 412 | |||||||||||||||||||
| Employee compensation (1) | (2,545) | (2,777) | |||||||||||||||||||||
| Other costs and expenses (3) | (1,885) | (1,845) | |||||||||||||||||||||
| Loss from operations | $ | (4,028) | $ | (4,210) | |||||||||||||||||||
| Total: | |||||||||||||||||||||||
| Revenue | $ | 56,311 | $ | 42,314 | |||||||||||||||||||
| Employee compensation (1) | (14,624) | (11,808) | |||||||||||||||||||||
| Other costs and expenses (2)(3) | (18,815) | (12,951) | |||||||||||||||||||||
| Income from operations | $ | 22,872 | $ | 17,555 |
(1)Employee compensation includes employee payroll, share-based compensation, bonus, and employee benefits for medical care, retirement, insurances, and other expenses.
(2)Includes costs and expenses in FoA segment for infrastructure, professional services, partner arrangements, marketing, facilities, legal-related costs, and other expenses.
(3)Includes costs and expenses in RL segment for inventory, professional services, marketing, infrastructure, facilities, and other expenses.
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