"Meta's third-quarter revenue was $51.2 billion, up 26% year over year and faster than the low-20s growth rate it delivered in the prior quarter. Ad impressions across its apps increased 14% year over year while the average price per ad rose 10%. Meanwhile, Meta's daily active users -- the lifeblood of the company's platforms -- rose 8% year over year."
"But not every metric was moving up. Free cash flow came in at $10.6 billion, down from $15.5 billion in the year-ago quarter as the company's big spending weighed on cash flow. AI spending raises the risk Ultimately, the recent slide in Meta's share price reflects worries that the next chapter of growth will require much heavier up-front investment than the last one. Even more, there's a lot of uncertainty regarding the potential payoff of these investments."
Meta's third-quarter revenue reached $51.2 billion, a 26% year-over-year increase, with ad impressions up 14% and average ad price rising 10%. Daily active users increased 8% year over year. Free cash flow declined to $10.6 billion from $15.5 billion a year earlier as elevated spending reduced cash generation. Management raised spending guidance, forecasting 2025 total expenses of $116–$118 billion and capex of $70–$72 billion. Executives signaled even larger investments for 2026, prioritizing substantial AI infrastructure buildout to enhance platform engagement and advertising tools. Significant uncertainty remains about the long-term payoff of this heavy investment.
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