DOWNLOAD
Meta Platforms
- Sector: TechnologyTechnology Media and Telecommunications
- Sub Sector: Technology
- Country: US
- Bond: META 4.95 33
- Indicative Yield-to-Maturity (YTM): 4.95%
Access this content:
If you are an existing investor, log in first to your Metrobank Wealth Manager account.
If you wish to start your wealth journey with us, click the “How To Sign Up” button.
Fundamental View
AS OF 19 Dec 2025Meta delivered strong revenue growth in its 3Q25 results and 4Q25 guidance, which were both above consensus expectations. However, total expenses are now expected to grow “significantly” faster in 2026 relative to the 22-24% YoY implied growth in 2025. Also, capex will have “notably larger” dollar growth in 2026. We estimate this could imply $115-120 capex or ~50% of sales in 2026. As a result, we expect FCF to be pressured in 2026.
Meta just launched $30 bn IG bonds which is on the heels of the recent $27 bn off balance sheet Meta JV bond deal. Pro forma for $30 bn issuance, gross leverage is 0.5x (0.2x at 3Q25) and lease-adjusted leverage is 0.7x (0.4x at 3Q25). Net cash was $15.6 bn at 3Q25. Meta recently prevailed in the FTC’s monopoly litigation.
Business Description
AS OF 19 Dec 2025- Meta Platforms is the largest social networking company in the world. Meta's advertising revenue is primarily from Facebook and Instagram, although also on Messenger, Whatsapp, Threads, and third-party affiliated websites and apps.
- In 3Q25, Family of Apps was 99% of revenue (97.7% from advertising and 1.3% from other) and Reality Labs was 1% of revenue. Reality Labs generated $18.1 bn in operating losses during LTM 3Q25.
- There are 3.54 bn Family Daily Active People (DAP) as of 3Q25, and the Family Average Revenue per Person (ARPP) was $14.46 quarterly in 3Q25.
- Meta is headquartered in Menlo Park, California. Employee headcount was >78.4k at 3Q25.
Risk & Catalysts
AS OF 19 Dec 2025We continue to expect Meta to be a regular/annual issuer to fund its shareholder returns, operating losses in Reality Labs, and substantial investments in AI.
Meta recently prevailed in the FTC’s monopoly litigation. In December 2020, the FTC filed a lawsuit against Meta seeking to unwind prior acquisitions of Instagram and Whatsapp.
Meta’s business model relies almost entirely on user-generated content, exposing it to customer privacy concerns and regulatory scrutiny in the US and Europe.
Key Metric
AS OF 19 Dec 2025| $ mn | 2021 | 2022 | 2023 | 2024 | LTM 3Q25 |
|---|---|---|---|---|---|
| Revenue YoY % | 37.2% | (1.1%) | 15.7% | 21.9% | 21.3% |
| EBITDA | 63,882 | 49,622 | 71,955 | 101,568 | 118,359 |
| EBITDA Margin | 54.2% | 42.6% | 53.3% | 61.7% | 62.5% |
| CapEx % of Sales | 16.3% | 27.5% | 20.8% | 23.8% | 34.3% |
| Sh. Ret. % of CFO-CapEx | 116% | 152% | 46% | 68% | 74% |
| Net Debt | (47,998) | (30,815) | (47,018) | (48,989) | (15,614) |
| Gross Leverage | 0.0x | 0.2x | 0.3x | 0.3x | 0.2x |
| EV / EBITDA | 14.0x | 5.8x | 12.3x | 14.5x | 15.8x |
CreditSight View Comment
AS OF 18 Nov 2025Meta delivered strong revenue growth in its 3Q25 results and 4Q25 guidance, which were both above consensus expectations. However, total expenses are now expected to grow “significantly” faster in 2026 relative to the 22-24% YoY implied growth in 2025. Also, capex will have “notably larger” dollar growth in 2026. We estimate this could imply $115-120 capex or ~50% of sales in 2026. As a result, we think FCF could be slightly negative in 2026. Meta just launched $30 bn IG bonds which is on the heels of the recent $27 bn off balance sheet Meta JV bond deal. Pro forma for $30 bn issuance, gross leverage is 0.5x (0.2x at 3Q25) and lease-adjusted leverage is 0.7x (0.4x at 3Q25). Net cash was $15.6 bn at 3Q25. Meta recently prevailed in the FTC’s monopoly litigation.
Recommendation Reviewed: November 18, 2025
Recommendation Changed: July 31, 2025
Featured Issuers
Bank of Philippine Islands
SK Hynix
Hyundai Motor
