Reality Labs Reports $4.4 Billion Loss in Third Quarter

Despite successfully showcasing its Orion prototype AR glasses in September, Meta continues to lose billions of dollars each quarter as it develops the new emerging metaverse.

On Wednesday, Meta reported its third-quarter earnings, revealing that its Reality Labs unit, which focuses on developing augmented and virtual reality technologies, recorded an operating loss of $4.4 billion. Analysts surveyed by StreetAccount had expected this unit to report an operating loss of $4.68 billion. Reality Labs' revenue increased by 29% year-over-year in the third quarter, reaching $270 million, falling short of analysts' expectations of $310.4 million. Reality Labs primarily generates revenue by selling Meta's Quest VR headsets and Ray-Ban Meta smart glasses.