Meta Reality Labs Losses Exceed $85 Billion Since 2020

Meta Platforms has accumulated more than $85 billion in losses since the end of 2020 through its Reality Labs segment, the division responsible for developing virtual reality headsets and smart glasses. During a two-day Connect event, the company introduced a new lineup of hardware, including a third-generation Ray-Ban AI glasses model for $449 and virtual reality glasses priced at $1,300.

Despite the heavy cumulative spending, Mark Zuckerberg stated that losses this year will likely peak as the company shifts its investment strategy toward wearables. Financial data shows a slight deceleration in operating losses, with the first half of 2026 seeing losses of $8.6 billion, compared to $8.7 billion during the same period in 2025.

The segment remains far from profitability. While second-quarter revenue rose 16% year-over-year to $431 million, the scale of spending remains vast; in 2025, the division recorded $21.4 billion in costs against only $2.2 billion in revenue.