The key facts
- Meta will issue a new class of non-voting shares via a stock dividend to fund its AI expansion
- Quarterly revenue was $64 billion (+26% year over year), while expenses grew by 68%
- Reality Labs losses in 2026 are expected to be within $18–19 billion
New class of shares to fund AI
Meta confirmed during its third-quarter earnings report that it plans to create a new class of non-voting shares. As CFO Susan Li reported, the shares will be distributed to all existing shareholders via a stock dividend. According to her, the new class is designed to provide publicly traded non-voting securities suitable for raising capital, employee compensation, acquisitions and other corporate purposes — while preserving the voting power of existing Class A and Class B shareholders. Li noted that this will preserve the current 'founder-led structure' and expand financing tools for investments amid business growth, driven by AI. Semafor previously reported on the possible issuance of non-voting shares, and the company confirmed this information on the investor call.
Quarterly financial results
Meta's quarterly results exceeded Wall Street expectations: revenue came in at $64 billion, up 26% year over year. At the same time, costs and expenses grew 68% compared with a year earlier. The Reality Labs division, responsible for AR glasses, VR headsets and VR software, continues to post losses, albeit smaller than before: the company expects the division's losses to decline from the 2025 level to $18–19 billion.
AI products and scaling plans
Over the past year, Meta has released several AI models, including Muse Spark and Muse Glimmer at the beginning of the year, and in recent weeks Muse Wonder and Muse Spark Open (an open model with publicly available parameters). The company also launched the Muse Code coding agent for developers and, at Meta Connect, presented the Meta Muse avatar lineup for its AI assistant. Mark Zuckerberg said on the call that in a month and a half more than 10 million people in the US and Canada have set up personal Muse agents, and the app has topped the App Store almost daily. According to him, Muse has achieved clear product-market fit, and the company is moving to an operational scaling phase, ultimately expecting to 'serve billions of people.'
Regulatory risks
Susan Li warned that the company continues to monitor active legal and regulatory issues that could significantly affect the business and financial results. In particular, regulators remain focused on issues related to minors in a number of markets, and several lawsuits on this topic are scheduled in the US in the coming months.
