Meta Platforms, Inc. stock research
FY2025 Q3
Meta Platforms (META) Gross Margin — Quarter Ended Sep 30, 2025
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit and cost of revenue also rose over the same periods. Gross margin was slightly lower than the prior quarter but higher than the year-ago quarter, indicating a mixed trend in profitability relative to revenue.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit and cost of revenue also rose over the same periods. Gross margin was slightly lower than the prior quarter but higher than the year-ago quarter, indicating a mixed trend in profitability relative to revenue.
- The strongest observable margin driver is the relationship between revenue and cost of revenue, where revenue grew faster than cost of revenue compared to the year-ago quarter, supporting gross margin improvement.
- Gross margin weakened slightly from the prior quarter but improved relative to the same quarter last year, reflecting a stable yet mixed performance.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
82.0%
Gross profit
$42.0B
Revenue
$51.2B
Cost of revenue
$9.2B
Quarter-over-quarter change
-0.1 pts
Year-over-year change
+0.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Dec 31, 2024 | $48.4B | $39.5B | $8.8B | 81.7% |
| Mar 31, 2025 | $42.3B | $34.7B | $7.6B | 82.1% |
| Jun 30, 2025 | $47.5B | $39.0B | $8.5B | 82.1% |
| Sep 30, 2025 | $51.2B | $42.0B | $9.2B | 82.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-0.1 pts
Year-over-year change
Sep 30, 2024
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue, where revenue grew faster than cost of revenue compared to the year-ago quarter, supporting gross margin improvement.
Gross margin weakened slightly from the prior quarter but improved relative to the same quarter last year, reflecting a stable yet mixed performance.
Monitor the trend in cost of revenue growth relative to revenue growth in upcoming quarters.