Meta revenue reaches $64.6 billion as legal charge cuts operating profit

Meta announced third-quarter revenue of $64.6 billion on October 21, up 26% from a year earlier. Operating profit dropped 37% to $12.99 billion, with its operating margin halving to 20%.

The results included a $9.89 billion charge tied to an agreement with 52 attorneys general over teen mental health litigation. Meta said operating profit would have reached $22.88 billion without that charge.

Capital spending, including finance lease principal payments, totaled $34.91 billion. Free cash flow was negative $2.12 billion, although net income rose to $9.86 billion from $2.71 billion a year earlier.

Advertising volume increased 10%, while average ad pricing rose 14%. Meta said AI improvements were helping advertising revenue, but its newer AI investments would take longer to deliver returns.

Meta forecast fourth-quarter revenue between $73 billion and $76 billion. It also raised the lower end of its annual capital spending forecast, setting a range of $135 billion to $145 billion.