v3.25.4
Segment and Geographical Information
12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment and Geographical Information Segment and Geographical Information
We report our financial results for our two reportable segments: Family of Apps (FoA) and Reality Labs (RL). FoA includes Facebook, Instagram, Messenger, WhatsApp, and other services. RL includes our virtual and augmented reality related consumer hardware, software, and content. Our operating segments are the same as our reportable segments.

Our chief executive officer is our chief operating decision maker (CODM). Our CODM uses consolidated and operating segment's revenue and income (loss) from operations to allocate resources during our annual planning process and to assess performance. Our CODM does not evaluate operating segments using asset or liability information.

Revenue and costs and expenses are generally directly attributed to our segments. These directly attributable costs and expenses include certain product development related operating expenses, costs associated with partnership arrangements, consumer hardware product costs, content costs, and legal-related costs. Indirect costs are allocated to segments based on a reasonable allocation methodology, when such costs are significant to the performance measures of the operating segments. Indirect operating expenses, such as facilities, information technology, certain shared research and development activities, recruiting, and physical security expenses are mostly allocated based on headcount. Costs related to the operation of our data centers and technical infrastructure are generally allocated to our segments based on estimated usage, most of which is allocated to the FoA segment.

The following table sets forth our segment information of revenue, expenses, and income (loss) from operations (in millions):
 Year Ended December 31, 
 202520242023
Family of Apps:
Revenue$198,759 $162,355 $133,006 
Employee compensation (1)
(39,943)(31,116)(28,878)
Other costs and expenses (2)
(56,347)(44,130)(41,257)
Income from operations$102,469 $87,109 $62,871 
Reality Labs:
Revenue$2,207 $2,146 $1,896 
Employee compensation (1)
(10,759)(10,211)(8,942)
Other costs and expenses (3)
(10,641)(9,664)(9,074)
Loss from operations$(19,193)$(17,729)$(16,120)
Total:
Revenue$200,966 $164,501 $134,902 
Employee compensation (1)
(50,702)(41,327)(37,820)
Other costs and expenses(66,988)(53,794)(50,331)
Income from operations$83,276 $69,380 $46,751 
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(1)Employee compensation includes employee payroll, share-based compensation, bonus, and employee benefits for medical care, retirement, insurances and other.
(2)Includes costs and expenses in FoA segment for infrastructure, professional services, partner arrangements, marketing, facilities, legal-related costs, and other expenses.
(3)Includes costs and expenses in RL segment for inventory, professional services, marketing, infrastructure, facilities, and other expenses.
The following table sets forth our long-lived assets by geographic area, which consist of property and equipment, net and operating lease right-of-use assets (in millions):
 December 31,
 20252024
United States$173,390 $117,478 
Rest of the world (1)
23,414 18,790 
Total long-lived assets$196,804 $136,268 
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(1)No individual country, other than disclosed above, exceeded 10% of our total long-lived assets for any period presented.

For information regarding revenue disaggregated by geography, see Note 2 — Revenue.