Meta Platforms, Inc. (META) reported an impressive start to 2025, posting strong first-quarter results marked by broad-based growth across financials, user engagement, and strategic initiatives. Total revenue reached $42.31 billion, a 16% year-over-year increase, fueled by robust advertising performance and higher monetization across its platforms. Profitability surged as net income rose to $16.64 billion, up from $12.37 billion a year earlier, while diluted EPS climbed to $6.43, reflecting a solid 36% YoY gain. Operating strength was evident as well, with operating income jumping 27% to $17.56 billion, pushing the operating margin to 41%, up from 38% in the prior year.

Despite a 9% rise in total expenses to $24.76 billion, Meta maintained efficiency gains, generating $10.3 billion in free cash flow. The company ended the quarter with a robust $70.2 billion in cash and marketable securities, and returned capital to shareholders via $13.4 billion in share repurchases and $1.33 billion in dividends, with the quarterly dividend increased to $0.525 per share.

Segment-wise, the Family of Apps (FoA) division continued to be the earnings engine, delivering $41.90 billion in revenue, up 16% YoY, and $21.77 billion in operating income, a 23% increase, with a 52% margin. Ad impressions rose 5%, and average ad prices were up 10%, driven by strong performance in online commerce. Meanwhile, Reality Labs (RL) saw revenue decline 6% to $412 million, with its operating loss deepening to $4.21 billion, as Meta pressed forward on long-term investments in VR/AR and AI-driven hardware.

On the user front, engagement remained strong, with 3.43 billion daily active people across its apps in March, up 6% YoY. WhatsApp surpassed 3 billion monthly active users, while Threads topped 350 million, further cementing Meta's global social media footprint.

Meta’s strategic focus continues to center on AI. The company expanded its infrastructure investments and launched new models like Llama 4, reinforcing its ambitions to lead in generative AI and “general intelligence.” Capital expenditures for 2025 are now expected to range between $64–$72 billion, up from earlier guidance, reflecting heightened AI-related spending. Despite this, Meta trimmed its full-year expense outlook to $113–$118 billion.

Looking ahead, Meta projects Q2 2025 revenue between $42.5–$45.5 billion, aided by a modest FX tailwind. While regulatory pressures—particularly in Europe—remain a concern, leadership expressed confidence in Meta’s positioning. CEO Mark Zuckerberg underscored AI as the “central driver” of the company’s future, identifying key areas like advertising, messaging, and devices where AI is already enhancing performance. CFO Susan Li highlighted that expense growth is being carefully managed even as CapEx is ramped up to support long-term AI infrastructure.

In summary, Meta delivered a standout quarter, combining strong top- and bottom-line growth with disciplined investment in future technologies, setting a confident tone for the rest of 2025.