Meta Platforms, Inc.

Previous wording

To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States (GAAP), we present revenue on a constant currency basis, which is a non-GAAP financial measure. Revenue on a constant currency basis is presented in the section entitled "—Revenue—Foreign Exchange Impact on Revenue." To calculate revenue on a constant currency basis, we translated revenue for the three months ended March 31, 2025 using the prior year's monthly exchange rates for our settlement or billing currencies other than the U.S. dollar.

Current wording

To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States (GAAP), we present revenue on a constant currency basis, which is a non-GAAP financial measure. Revenue on a constant currency basis is presented in the section entitled "—Revenue—Foreign Exchange Impact on Revenue." To calculate revenue on a constant currency basis, we translated revenue for the three and six months ended June 30, 2025 using the prior year's monthly exchange rates for our settlement or billing currencies other than the U.S. dollar.

Previous wording

Our financial results and key Family metrics for the first quarter of 2025 are set forth below. Total revenue for the first quarter of 2025 was $42.31 billion, an increase of 16% compared to the first quarter of 2024, due to an increase in advertising revenue. Revenue on a constant currency basis would have increased 19% compared to the first quarter of 2024. Ad impressions delivered across our Family of Apps in the first quarter of 2025 increased 5% year-over-year, and our average price per ad in the first quarter of 2025 increased 10% year-over-year.

Current wording

Our financial results and key Family metrics for the second quarter of 2025 are set forth below. Total revenue for the second quarter of 2025 was $47.52 billion, an increase of 22% compared to the second quarter of 2024, due to an increase in advertising revenue. Ad impressions delivered across our Family of Apps in the second quarter of 2025 increased 11% year-over-year, and our average price per ad in the second quarter of 2025 increased 9% year-over-year.

Previous wording

Income from operations for the first quarter of 2025 was $17.56 billion, an increase of $3.74 billion, or 27%, compared to the first quarter of 2024, driven by an increase in advertising revenue, partially offset by an increase in costs and expenses. The increase in costs and expenses was primarily due to increases in employee compensation and infrastructure costs, partially offset by lower legal-related costs.

Current wording

Income from operations for the second quarter of 2025 was $20.44 billion, an increase of $5.59 billion, or 38%, compared to the second quarter of 2024, driven by an increase in advertising revenue, partially offset by an increase in costs and expenses. The increase in costs and expenses was mainly due to increases in infrastructure costs and employee compensation, partially offset by lower legal-related costs.

Previous wording

•Net income was $16.64 billion, with diluted earnings per share (EPS) of $6.43 for the three months ended March 31, 2025.

Current wording

•Net income was $18.34 billion, with diluted earnings per share (EPS) of $7.14 for the three months ended June 30, 2025.

Previous wording

•Capital expenditures, including principal payments on finance leases, were $13.69 billion for the three months ended March 31, 2025.

Current wording

•Capital expenditures, including principal payments on finance leases, were $17.01 billion for the three months ended June 30, 2025.

Previous wording

•Share repurchases of our Class A common stock were $13.40 billion and total dividend and dividend equivalent payments were $1.33 billion for the three months ended March 31, 2025.

Current wording

•Share repurchases of our Class A common stock were $9.76 billion and total dividend and dividend equivalent payments were $1.33 billion for the three months ended June 30, 2025.

Previous wording

•Cash, cash equivalents, and marketable securities were $70.23 billion as of March 31, 2025.

Current wording

•Cash, cash equivalents, and marketable securities were $47.07 billion as of June 30, 2025.

Previous wording

•Headcount was 76,834 as of March 31, 2025, an increase of 11% year-over-year.

Current wording

•Headcount was 75,945 as of June 30, 2025, an increase of 7% year-over-year.

Previous wording

•Family daily active people (DAP) was 3.43 billion on average for March 2025, an increase of 6% year-over-year.

Current wording

•Family daily active people (DAP) was 3.48 billion on average for June 2025, an increase of 6% year-over-year.

Previous wording

•Ad impressions delivered across our Family of Apps in the first quarter of 2025 increased by 5% year-over-year.

Current wording

•Ad impressions delivered across our Family of Apps in the second quarter of 2025 increased by 11% year-over-year.

Previous wording

•Average price per ad in the first quarter of 2025 increased by 10% year-over-year.

Current wording

•Average price per ad in the second quarter of 2025 increased by 9% year-over-year.

Previous wording

In particular, legislative and regulatory developments such as the General Data Protection Regulation, including its evolving interpretation through decisions of the Court of Justice of the European Union, ePrivacy Directive, European Digital Services Act, Digital Markets Act, and U.S. state privacy laws including the California Consumer Privacy Act, as amended by the California Privacy Rights Act, have impacted our ability to use data signals in our ad products, and an increasing number of laws have been introduced limiting or prohibiting the provision of our services to younger users. We expect these and other developments will have further impact in the future. As a result, we have implemented, and we will continue to implement, whether voluntarily or otherwise, changes to our products and user data practices, which reduce our ability to effectively target and measure ads and may negatively impact our advertising revenue and user engagement. For example, in response to regulatory developments in Europe, we announced our plans to change the legal basis for behavioral advertising on Facebook and Instagram in the European Union, European Economic Area, and Switzerland from "legitimate interests" to "consent," and began offering users in the region a "subscription for no ads" alternative. We subsequently began offering users in the region who elect to continue using our services free-of-charge, supported by ads, an option to see less personalized ads, which are less relevant and effective than our premium ad offerings. We are engaging with regulators on our consent model. In addition, mobile operating system and browser providers, such as Apple and Google, have implemented product changes and/or announced future plans to limit the ability of websites and application developers to collect and use these signals to target and measure advertising. For example, in 2021, Apple made certain changes to its products and data use policies in connection with changes to its iOS operating system that reduce our and other iOS developers' ability to target and measure advertising, which has negatively impacted, and we expect will continue to negatively impact, the size of the budgets marketers are willing to commit to us and other advertising platforms.

Current wording

In particular, legislative and regulatory developments such as the General Data Protection Regulation, including its evolving interpretation through decisions of the Court of Justice of the European Union, ePrivacy Directive, European Digital Services Act, Digital Markets Act, and U.S. state privacy laws including the California Consumer Privacy Act, as amended by the California Privacy Rights Act, have impacted our ability to use data signals in our ad products, and an increasing number of laws have been introduced limiting or prohibiting the provision of our services to younger users. We expect these and other developments will have further impact in the future. As a result, we have implemented, and we will continue to implement, whether voluntarily or otherwise, changes to our products and user data practices, which reduce our ability to effectively target and measure ads and may negatively impact our advertising revenue and user engagement. For example, in response to regulatory developments in Europe, we announced our plans to change the legal basis for behavioral advertising on Facebook and Instagram in the European Union, European Economic Area, and Switzerland from "legitimate interests" to "consent," and began offering users in the region a "subscription for no ads" alternative. We subsequently began offering users in the region who elect to continue using our services free-of-charge, supported by ads, an option to see less personalized ads, which are less relevant and effective than our premium ad offerings. We are engaging with regulators on our consent model. In addition, mobile operating system and browser providers, such as Apple and Google, have implemented product changes and/or announced plans to limit the ability of websites and application developers to collect and use these signals to target and measure advertising. For example, in 2021, Apple made certain changes to its products and data use policies in connection with changes to its iOS operating system that reduce our and other iOS developers' ability to target and measure advertising, which has negatively impacted, and we expect will continue to negatively impact, the size of the budgets marketers are willing to commit to us and other advertising platforms.

Previous wording

We remain focused on operating efficiently while investing in significant opportunities. In the three months ended March 31, 2025, 81% of our total costs and expenses were recognized in FoA and 19% were recognized in RL. Our FoA investments include expenses relating to headcount, data centers, and technical infrastructure as part of our efforts to develop our apps and our advertising services. These efforts include significant investments in AI initiatives, including to recommend relevant content across our products, enhance our advertising tools, develop new products, and develop new features for existing products using generative AI. In particular, we expect our AI initiatives will require increased investment in infrastructure and headcount.

Current wording

We remain focused on operating efficiently while investing in significant opportunities. In the six months ended June 30, 2025, 82% of our total costs and expenses were recognized in FoA and 18% were recognized in RL. Our FoA investments include expenses relating to headcount, data centers, and technical infrastructure as part of our efforts to develop our apps and our advertising services. These efforts include significant investments in AI initiatives, including generative AI and superintelligence, to, among other things, recommend relevant content across our products, enhance our advertising tools, develop new products, and develop new features for existing products. In particular, we expect our AI initiatives will require increased investment in infrastructure and headcount.

Previous wording

We are also making significant investments in our metaverse and wearables efforts, including developing virtual, augmented, and mixed reality devices, software for social platforms, neural interfaces, and other foundational technologies. Our RL investments include expenses relating to technology development across these efforts. Many of our RL investments are directed toward long-term, cutting-edge research and development for products that may only be fully realized in the next decade. During the three months ended March 31, 2025, our RL segment reduced our overall operating profit by approximately $4.21 billion, and we continue to expect our full-year RL operating losses to increase in 2025. We expect this will be a complex, evolving, and long-term initiative, and our ability to support our RL efforts is dependent on generating sufficient profits from other areas of our business. We are investing now because we believe this will become the next computing platform and will unlock monetization opportunities for businesses, developers, and creators, including around advertising, hardware, and digital goods.

Current wording

We are also making significant investments in our metaverse and wearables efforts, including developing virtual, augmented, and mixed reality devices, software for social platforms, neural interfaces, and other foundational technologies. Our RL investments include expenses relating to technology development across these efforts. Many of our RL investments are directed toward long-term, cutting-edge research and development for products that may only be fully realized in the next decade. During the six months ended June 30, 2025, our RL segment reduced our overall operating profit by approximately $8.74 billion, and we continue to expect our full-year RL operating losses to increase in 2025. We expect this will be a complex, evolving, and long-term initiative, and our ability to support our RL efforts is dependent on generating sufficient profits from other areas of our business. We are investing now because we believe this will become the next computing platform and will unlock monetization opportunities for businesses, developers, and creators, including around advertising, hardware, and digital goods.

Previous wording

We calculate our revenue by user geography based on our estimate of the geography in which ad impressions are delivered, virtual and digital goods are purchased, or consumer hardware products are shipped. The geography of our users affects our revenue and financial results. Our revenue in regions such as United States & Canada and Europe is relatively higher primarily due to the size and maturity of those online and mobile advertising markets, and ad impression growth is mainly in geographies that monetize at lower rates, such as Asia-Pacific. In the first quarter of 2025, revenue increased by 18% in United States & Canada, 14% in Europe, 13% in Asia-Pacific, and 20% in Rest of World, in each case relative to the same period in 2024.

Current wording

We calculate our revenue by user geography based on our estimate of the geography in which ad impressions are delivered, virtual and digital goods are purchased, or consumer hardware products are shipped. The geography of our users affects our revenue and financial results. Our revenue in regions such as United States & Canada and Europe is relatively higher primarily due to the size and maturity of those online and mobile advertising markets, and ad impression growth is mainly in geographies that monetize at lower rates, such as Asia-Pacific. In the second quarter of 2025, revenue increased by 21% in United States & Canada, 24% in Europe, 19% in Asia-Pacific, and 24% in Rest of World, in each case relative to the same period in 2024.

Previous wording

Note: Non-advertising revenue includes RL revenue generated from the delivery of consumer hardware products and FoA Other revenue, which consists of revenue from WhatsApp Business Platform, Meta Verified subscriptions, net fees we receive from developers using our Payments infrastructure, and revenue from various other sources.

Current wording

Note: Non-advertising revenue includes RL revenue generated from the delivery of consumer hardware products and FoA Other revenue, which consists of revenue from paid messaging from WhatsApp, Meta Verified subscriptions, net fees we receive from developers using our Payments infrastructure, and revenue from various other sources.

Previous wording

Worldwide DAP increased 6% to 3.43 billion on average during March 2025 from 3.24 billion during March 2024.

Current wording

Worldwide DAP increased 6% to 3.48 billion on average during June 2025 from 3.27 billion during June 2024.

Previous wording

During the first quarter of 2025, worldwide ARPP was $12.36, an increase of 10% from the first quarter of 2024.

Current wording

During the second quarter of 2025, worldwide ARPP was $13.65, an increase of 15% from the second quarter of 2024.

Previous wording

Other revenue. Other revenue consists of revenue from WhatsApp Business Platform, Meta Verified subscriptions, net fees we receive from developers using our Payments infrastructure, and revenue from various other sources.

Current wording

Other revenue. Other revenue consists of revenue from paid messaging from WhatsApp, Meta Verified subscriptions, net fees we receive from developers using our Payments infrastructure, and revenue from various other sources.

Previous wording

FoA revenue in the three months ended March 31, 2025 increased $5.89 billion, or 16%, compared to the same period in 2024. The increase was almost entirely driven by advertising revenue.

Current wording

FoA revenue in the three and six months ended June 30, 2025 increased $8.43 billion, or 22%, and $14.31 billion, or 19%, respectively, compared to the same periods in 2024. The increases were almost entirely driven by advertising revenue.

Previous wording

Advertising revenue in the three months ended March 31, 2025 increased $5.76 billion, or 16%, compared to the same period in 2024, due to increases in ad impressions delivered and average price per ad. During the three months ended March 31, 2025, ad impressions delivered increased by 5%, year-over-year, as compared with a 20% increase in the same period in 2024. Ad impressions delivered during the three months ended March 31, 2025 grew in all regions, especially in Asia-Pacific, which was primarily driven by increases in users and their engagement on our products. During the three months ended March 31, 2025, the average price per ad increased by 10%, year-over-year, as compared with an increase of 6% in the same period in 2024. The increase in average price per ad during the three months ended March 31, 2025 was driven by an increase in advertising demand, which we believe is mostly due to ongoing improvements to our ad performance from our ad targeting and measurement tools. This increase was partially offset by a higher number of ad impressions delivered, especially in geographies and in products, such as Reels, that monetize at lower rates. Other factors are discussed in the section entitled "—Executive Overview of First Quarter Results." In addition, the online commerce vertical was the largest contributor to the increase in advertising revenue in the three months ended March 31, 2025 compared to the same period in 2024. We anticipate that future advertising revenue will be driven by a combination of price and ad impressions delivered.

Current wording

Advertising revenue in the three and six months ended June 30, 2025 increased $8.23 billion, or 21%, and $13.99 billion, or 19%, respectively, compared to the same periods in 2024, due to increases in ad impressions delivered and average price per ad. During the three and six months ended June 30, 2025, ad impressions delivered increased by 11% and 8%, respectively, year-over-year, as compared with increases of 10% and 15%, respectively in the same periods in 2024. Ad impressions delivered during the three and six months ended June 30, 2025 grew in all regions, especially in Asia-Pacific, which was driven by increases in users and their engagement on our products. During the three and six months ended June 30, 2025, the average price per ad increased by 9% and 10%, respectively, year-over-year, as compared with increases of 10% and 8%, respectively, in the same periods in 2024. The increases in average price per ad were driven by an increase in advertising demand, which we believe is mostly due to ongoing improvements to our ad performance from our ad targeting and measurement tools. This increase was partially offset by a higher number of ad impressions delivered, especially in geographies and in products, such as Reels, that monetize at lower rates. Other factors are discussed in the section entitled "—Executive Overview of Second Quarter Results." In addition, the online commerce vertical was the largest contributor to the increase in advertising revenue in the three and six months ended June 30, 2025 compared to the same periods in 2024. We anticipate that future advertising revenue will be driven by a combination of price and ad impressions delivered.

Previous wording

FoA other revenue in the three months ended March 31, 2025 increased $130 million, or 34%, compared to the same period in 2024. The increase was mostly driven by revenue from WhatsApp Business Platform and Meta Verified subscriptions.

Current wording

FoA other revenue in the three and six months ended June 30, 2025 increased $194 million, or 50%, and $324 million, or 42%, respectively, compared to the same periods in 2024. The increases were mostly driven by paid messaging from WhatsApp and Meta Verified subscriptions.

Previous wording

RL revenue in the three months ended March 31, 2025 decreased $28 million, or 6%, compared to the same period in 2024. The decrease in RL revenue was driven by a net decrease in Meta Quest sales, partially offset by an increase in sales of Ray-Ban Meta AI glasses.

Current wording

RL revenue in the three months ended June 30, 2025 increased $17 million, or 5%, compared to the same period in 2024, driven by an increase in sales of Ray-Ban Meta AI glasses, partially offset by a net decrease in Meta Quest sales. RL revenue in the six months ended June 30, 2025 decreased $11 million, or 1%, compared to the same period in 2024.

Previous wording

Changes in foreign exchange rates had an unfavorable impact on our revenue in the three months ended March 31, 2025 compared to the same period in 2024. To calculate revenue on a constant currency basis, we translated revenue using the prior year's monthly exchange rates for our settlement or billing currencies other than the U.S. dollar. Using these constant rates for the three months ended March 31, 2025, our total revenue and advertising revenue would have been $43.55 billion and $42.62 billion, which were $1.24 billion and $1.22 billion higher than actual total revenue and advertising revenue, respectively.

Current wording

Changes in foreign exchange rates had an unfavorable impact on our revenue in the three and six months ended June 30, 2025 compared to the same periods in 2024. To calculate revenue on a constant currency basis, we translated revenue using the prior year's monthly exchange rates for our settlement or billing currencies other than the U.S. dollar. Using these constant rates, for the three months ended June 30, 2025, our total revenue and advertising revenue would have been $47.60 billion and $46.64 billion, which were $82 million and $80 million higher than actual total revenue and advertising revenue, respectively. Using these constant rates, for the six months ended June 30, 2025, our total revenue and advertising revenue would have been $91.15 billion and $89.26 billion, which were $1.32 billion and $1.30 billion higher than actual total revenue and advertising revenue, respectively.

Previous wording

Cost of revenue in the three months ended March 31, 2025 increased $932 million, or 14%, compared to the same period in 2024. The increase was mainly due to higher operational expenses related to our data centers and technical infrastructure, which included a decrease in the depreciation growth rate due to an extension in the useful lives of servers and network assets, effective January 1, 2025. To a lesser extent, higher costs associated with partner arrangements also contributed to the increase in the three months ended March 31, 2025.

Current wording

Cost of revenue in the three and six months ended June 30, 2025 increased $1.18 billion, or 16%, and $2.12 billion, or 15%, respectively, compared to the same periods in 2024. The increases were mainly due to higher operational expenses related to our data centers and technical infrastructure, which included decreases in the depreciation growth rate due to an extension in the useful lives of servers and network assets, effective January 1, 2025. To a lesser extent, higher costs associated with partner arrangements also contributed to the increases in the three and six months ended June 30, 2025.

Previous wording

Research and development expenses in the three months ended March 31, 2025 increased $2.17 billion, or 22%, compared to the same period in 2024. The increase was mostly due to higher employee compensation and infrastructure costs for research and development.

Current wording

Research and development expenses in the three and six months ended June 30, 2025 increased $2.40 billion, or 23%, and $4.58 billion, or 22%, respectively, compared to the same periods in 2024. The increases were mostly due to higher employee compensation and infrastructure costs for research and development.

Previous wording

The higher employee compensation was mainly from a 14% growth in employee headcount from March 31, 2024 to March 31, 2025 in engineering and other technical functions supporting our continued investment in our family of products and Reality Labs.

Current wording

The higher employee compensation was mainly from a 10% growth in employee headcount from June 30, 2024 to June 30, 2025 in engineering and other technical functions supporting our continued investment in our family of products and Reality Labs.

Previous wording

Marketing and sales expenses in the three months ended March 31, 2025 increased $193 million, or 8%, compared to the same period in 2024. The increase was mainly due to an increase in professional services related to ongoing platform integrity efforts.

Current wording

Marketing and sales expenses in the three and six months ended June 30, 2025 increased $258 million, or 9%, and $450 million, or 9%, respectively, compared to the same periods in 2024. The increases were primarily due to higher professional services related to ongoing platform integrity efforts and marketing and promotional expenses. In the three months ended June 30, 2025, the increase was partially offset by a decrease in employee compensation related to a 2% decrease in employee headcount from June 30, 2024 to June 30, 2025 in our marketing and sales functions.

Previous wording

General and administrative expenses in the three months ended March 31, 2025 decreased $1.18 billion, or 34%, compared to the same period in 2024. The decrease was primarily driven by lower legal-related costs.

Current wording

General and administrative expenses in the three and six months ended June 30, 2025 decreased $995 million, or 27%, and $2.17 billion, or 31%, respectively, compared to the same periods in 2024. The decreases were mostly driven by lower legal-related costs.

Previous wording

FoA income from operations in the three months ended March 31, 2025 increased $4.10 billion, or 23%, compared to the same period in 2024. The increase in FoA income from operations was driven by higher advertising revenue which was partially offset by an increase in costs and expenses. The increase in costs and expenses was mainly due to increases in employee compensation and infrastructure costs, partially offset by a decrease in legal-related costs.

Current wording

FoA income from operations in the three and six months ended June 30, 2025 increased $5.64 billion, or 29%, and $9.74 billion, or 26%, respectively, compared to the same periods in 2024. The increases in FoA income from operations were driven by higher advertising revenue which was partially offset by increases in costs and expenses. The increases in costs and expenses were mainly due to increases in employee compensation and infrastructure costs, partially offset by lower legal-related costs.

Previous wording

RL loss from operations in the three months ended March 31, 2025 increased $364 million, or 9%, compared to the same period in 2024, driven by an increase in RL costs and expenses. RL costs and expenses increased primarily due to an increase in employee compensation.

Current wording

RL loss from operations in the six months ended June 30, 2025 increased $405 million, or 5%, compared to the same period in 2024, driven by an increase in RL costs and expenses. The increase in RL costs and expenses was mostly due to increases in employee compensation and RL technology development costs.

Previous wording

Interest expense increased in the three months ended March 31, 2025, compared to the same period in 2024, due to higher long-term debt balances. Foreign currency exchange gains (losses), net increased in the three months ended March 31, 2025, compared to the same period in 2024, as a result of foreign currency transactions and remeasurement. Other income, net recognized in the three months ended March 31, 2025, was primarily related to unrealized gains on our equity investments.

Current wording

Interest expense increased in the three and six months ended June 30, 2025, compared to the same periods in 2024, due to higher long-term debt balances. Foreign currency exchange gains (losses), net increased in the three and six months ended June 30, 2025, compared to the same periods in 2024, as a result of foreign currency transactions and remeasurement. The decreases in other income (expense), net in the three and six months ended June 30, 2025, compared to the same periods in 2024, were driven by unrealized losses on our marketable equity securities.

Previous wording

Our provision for income taxes in the three months ended March 31, 2025 decreased $76 million, or 4%, compared to the same period in 2024, due to a decrease in the effective tax rate, offset by an increase in income before provision for income taxes.

Current wording

Our provision for income taxes in the three and six months ended June 30, 2025 increased $556 million, or 34%, and $480 million, or 14%, respectively, compared to the same periods in 2024, due to increases in income before provision for income taxes. In the six months ended June 30, 2025, the increase was partially offset by a decrease in the effective tax rate.

Previous wording

Our effective tax rate decreased in the three months ended March 31, 2025 compared to the same period in 2024, a majority of which was due to excess tax benefits recognized from share-based compensation.

Current wording

Our effective tax rate was flat in the three months ended June 30, 2025 compared to the same period in 2024. Our effective tax rate decreased in the six months ended June 30, 2025 compared to the same period in 2024, a majority of which was due to excess tax benefits recognized from share-based compensation.

Previous wording

The accounting for share-based compensation may increase or decrease our effective tax rate based upon the difference between our share-based compensation expense and the deductions taken on our tax return, which depend upon the stock price at the time of employee award vesting. If our stock price remains constant to the April 25, 2025 price, and absent any changes to our tax landscape, we expect our effective tax rate for the full year 2025 to be in the range of 12-15%. This includes the effects of the mandatory capitalization and amortization of research and development expenses incurred in 2025, as required by the 2017 Tax Cuts and Jobs Act (Tax Act). The mandatory capitalization requirement increases our 2025 cash tax liabilities materially but also decreases our effective tax rate due to increasing the foreign-derived intangible income deduction. If the mandatory capitalization is deferred or repealed, our effective tax rate in 2025 could be higher when compared to current law and our cash tax liabilities could be lower.

Current wording

The accounting for share-based compensation may increase or decrease our effective tax rate based upon the difference between our share-based compensation expense and the deductions taken on our tax return, which depend upon the stock price at the time of employee award vesting.

Previous wording

A number of countries have enacted legislation to implement the Organization for Economic Cooperation and Development’s 15% global minimum tax regime. We do not expect these changes to have a material impact on our consolidated financial statements for 2025. We continue to evaluate the impacts of proposed and enacted legislation with respect to the global minimum tax regime in the jurisdictions we operate in. As additional jurisdictions enact legislation, transitional relief expires, and other provisions of the minimum tax legislation become effective, our effective tax rate and cash tax payments could increase in future years.

Current wording

A number of countries have enacted legislation to implement the Organization for Economic Cooperation and Development’s 15% global minimum tax regime. We do not expect these changes to have a material impact on our consolidated financial statements for 2025. We continue to evaluate the impacts of proposed and enacted legislation with respect to the global minimum tax regime in the jurisdictions we operate in. As additional jurisdictions enact legislation, transitional relief expires, and other provisions of the global minimum tax legislation become effective, our effective tax rate and cash tax payments could increase in future years.

Previous wording

Our principal sources of liquidity are our cash, cash equivalents, marketable securities, and cash generated from operations. Cash, cash equivalents, and marketable securities are comprised of cash on deposit with banks, time deposits, money market funds, U.S. government and agency securities, investment grade corporate debt securities, and marketable equity securities. As part of our cash management strategy, we concentrate cash deposits with large financial institutions and our investment holdings are in diversified highly rated securities. Cash, cash equivalents, and marketable securities were $70.23 billion as of March 31, 2025, a decrease of $7.58 billion from December 31, 2024. The decrease was primarily due to our capital returns of $14.08 billion for repurchases of our Class A common stock and payments of dividends and dividend equivalents, $13.69 billion for capital expenditures, including principal payments on finance leases, and $4.88 billion of taxes paid related to net share settlement of employee restricted stock unit (RSU) awards. These decreases were partially offset by $24.03 billion of cash generated from operations.

Current wording

Our principal sources of liquidity are our cash, cash equivalents, marketable securities, and cash generated from operations. Cash, cash equivalents, and marketable securities are comprised of cash on deposit with banks, time deposits, money market funds, U.S. government and agency securities, investment grade corporate debt securities, and marketable equity securities. As part of our cash management strategy, we concentrate cash deposits with large financial institutions and our investment holdings are in diversified highly rated securities. Cash, cash equivalents, and marketable securities were $47.07 billion as of June 30, 2025, a decrease of $30.74 billion from December 31, 2024. The decrease was mostly due to $30.70 billion of capital expenditures, including principal payments on finance leases, $25.58 billion of capital returns for repurchases of our Class A common stock and payments of dividends and dividend equivalents, $15.21 billion of non-marketable equity investments, and $8.99 billion of taxes paid related to net share settlement of employee restricted stock unit (RSU) awards. These decreases were partially offset by $49.59 billion of cash generated from operations.

Previous wording

Cash provided by operating activities during the three months ended March 31, 2025 mostly consisted of $16.64 billion net income adjusted for certain non-cash items, such as $4.15 billion of share-based compensation expense and $3.90 billion of depreciation and amortization expense. The increase in cash flows from operating activities during the three months ended March 31, 2025, compared to the same period in 2024, was due to an increase in cash collection from our customers driven by the increase in revenue, partially offset by higher operational spending.

Current wording

Cash provided by operating activities during the six months ended June 30, 2025 mostly consisted of $34.98 billion net income adjusted for certain non-cash items, such as $8.98 billion of share-based compensation expense, $8.24 billion of depreciation and amortization expense, and $2.16 billion of deferred income taxes. The increase in cash flows from operating activities during the six months ended June 30, 2025, compared to the same period in 2024, was due primarily to an increase in cash collections from our customers driven by the increase in revenue and lower cash paid for income taxes, partially offset by higher operational spending.

Previous wording

Cash used in investing activities during the three months ended March 31, 2025 mostly consisted of $12.94 billion of purchases of property and equipment as we continued to invest in servers, data centers, and network infrastructure, and $6.98 billion of net purchases of marketable securities. The increase in cash used in investing activities during the three months ended March 31, 2025, compared to the same period in 2024, was mostly due to increases in purchases of property and equipment and marketable securities.

Current wording

Cash used in investing activities during the six months ended June 30, 2025 mostly consisted of $29.48 billion of purchases of property and equipment as we continued to invest in servers, data centers, and network infrastructure, and $15.21 billion of purchases of non-marketable equity investments. The increase in cash used in investing activities during the six months ended June 30, 2025, compared to the same period in 2024, was mostly due to increases in non-marketable equity investments and purchases of property and equipment.

Previous wording

We anticipate making capital expenditures of approximately $64 billion to $72 billion in 2025 to support our core business and generative AI efforts.

Current wording

We anticipate making capital expenditures of approximately $66 billion to $72 billion in 2025 to support our core business and AI efforts.