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US Treasury par yield curve · Jul 29 · Source: U.S. Treasury
Wednesday, July 29, 2026
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Earnings

Meta's revenue rose 28 percent in the quarter, and its free cash flow came to $784m

Money & World
The Editorial Team ·
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$784 million.

That is what Meta Platforms had left over the three months to 30 June, on the company's own published definition of free cash flow, and it is in the results Meta filed with the Securities and Exchange Commission at 4:03 p.m. Eastern on Wednesday. A year earlier the same measure was $8,549m. Revenue over the same three months rose 28 percent, from $47,516m to $60,801m.

The gap is not a mystery, because the release publishes the whole calculation, and Meta defines the measure by subtracting both its purchases of property and equipment and the principal it pays on finance leases. Net cash provided by operating activities was $31,862m, against $25,561m a year earlier. Purchases of property and equipment took $30,116m, against $16,538m. Principal payments on finance leases took $962m more. That leaves $784m.

Revenue rose 28 percent. Net income fell 14 percent, from $18,337m to $15,848m. Total costs and expenses rose 55 percent to $42,026m, and inside that figure sit $2.40bn of charges related to legal proceedings and $1.18bn of severance connected to the headcount reduction Meta made in May 2026. Operating margin was 31 percent against 43 percent, and diluted earnings per share were $6.18 against $7.14.

The two segments

Family of Apps, which Meta defines as Facebook, Instagram, Messenger, WhatsApp and other services, reported revenue of $60,370m against $47,146m a year earlier, and income from operations of $23,394m against $24,971m. Revenue there rose 28 percent and operating income fell 6 percent. Reality Labs lost $4,619m against $4,530m. Its revenue was $431m.

Across the first six months free cash flow was $13,170m against $18,883m, on operating cash flow of $64,088m against $49,587m and purchases of property and equipment of $49,113m against $29,479m. Meta held $90.26bn of cash, cash equivalents and marketable securities at 30 June, and $83.66bn of long-term debt. Headcount was 75,472, down 1 percent from a year earlier. The company said that figure still includes about 8,000 people affected by the May reduction and that most of them will be out of the count by the end of the third quarter.

Daily active people averaged 3.60 billion in June, up 3 percent. Ad impressions across the Family of Apps rose 14 percent and the average price per ad rose 12 percent.

One line in the release is worth reading before the $784m is used for anything. Meta writes that free cash flow "is not intended to represent our residual cash flow available for discretionary expenditures." It is the company's own caution about its own number, and it is printed a page above the table that produces it.

The document: Meta Platforms, Inc., 'Meta Reports Second Quarter 2026 Results', Exhibit 99.1 to a Form 8-K filed 29 July 2026, accession 0001628280-26-050596, accepted by EDGAR at 16:03:23 Eastern on 29 July 2026, Item 2.02. Three months ended 30 June, $m, prior year in brackets: revenue 60,801 (47,516); costs and expenses 42,026 (27,075); income from operations 18,775 (20,441); net income 15,848 (18,337); diluted EPS 6.18 (7.14); provision for income taxes 2,908 (2,197). Free cash flow reconciliation, $m: net cash provided by operating activities 31,862 (25,561); purchases of property and equipment (30,116) ((16,538)); principal payments on finance leases (962) ((474)); free cash flow 784 (8,549). Six months: free cash flow 13,170 (18,883). Segment income from operations, $m: Family of Apps 23,394 (24,971); Reality Labs (4,619) ((4,530)). Exhibit read in full 29 July 2026..

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