Meta's third-quarter revenue rose 26.1% to $64.60B, but operating income fell 36.8% to $12.99B due to a $9.89 billion charge related to the August 2026 multistate attorneys general agreement.

The current filing discloses a $9.89 billion charge in the third quarter of 2026 related to the August 2026 multistate attorneys general agreement, which was not present in the prior year. This charge significantly increased general and administrative expenses and reduced operating income.

Total non-cancelable contractual commitments increased from $81.19 billion to $454.52 billion, driven by third-party cloud capacity arrangements, servers, network infrastructure, energy service agreements, and consumer hardware products.

Operating and finance leases not yet commenced increased from $58.14 billion to $355.73 billion, reflecting a massive expansion in data center and infrastructure commitments.

Capital expenditure guidance for 2026 is $135 billion to $145 billion, nearly double the 2025 guidance of $70 billion to $72 billion, reflecting increased investment in AI and infrastructure.

The current filing provides specific full-year 2026 Reality Labs operating loss guidance of $18 billion to $19 billion, whereas the prior filing only stated that losses would increase without a specific range.

The current filing discloses that $10.80 billion of money market funds was reclassified as restricted cash equivalents due to escrow requirements under multi-year infrastructure purchase agreements, a new development not mentioned in the prior filing.

Meta did not repurchase any shares in the first nine months of 2026, compared to $26.32 billion of repurchases in the same period of 2025.

The current filing adds a new risk factor discussing the recently announced Recapitalization and Dividend, including the planned issuance of Class C common stock and its potential effects on the trading price of Class A common stock.

The example of factors affecting user growth and engagement was updated from the COVID-19 pandemic and the war in Ukraine to a specific decline in Family daily active people in Q1 2026 due to internet disruptions in Iran and WhatsApp restrictions in Russia.

The current filing removes the specific timing 'as early as later in the fourth quarter of 2025' from the description of potential impact on European business and revenue.

The current filing significantly expands the description of AI-related security risks, adding specific vulnerabilities such as prompt injection, AI safety control circumvention, agent scope issues, and compromise of model weights.

The current filing adds that cyber-attacks are increasingly sophisticated due to threat actors using generative and agentic AI, and that AI enables faster discovery of security vulnerabilities.

The current filing expands the description of third-party partners to include those that conduct training of our AI models, reflecting increased data sharing for AI development.

The current filing replaces the specific reference to January 2025 content policy changes with a general statement about changes from time to time, and adds that AI technologies increase the volume and scale of incidents.

The case went to trial and resulted in a jury verdict against Meta with a $25 billion civil penalty, a material adverse development that Meta has accrued for and intends to appeal.

Meta entered into a new multistate settlement agreement with 52 attorneys general, providing for up to $18.59 billion in payments and product changes, a significant new financial obligation.

The court issued a judgment in Meta's favor in the FTC antitrust case, but the FTC has appealed, keeping the matter ongoing.

A new European Commission antitrust investigation was opened regarding WhatsApp Business API access for AI providers, and an interim measure was imposed requiring free access, which Meta is appealing.

The first bellwether trial in the youth addiction litigation resulted in a $6 million verdict against Meta and YouTube, with Meta allocated 70%, and Meta has appealed.

A New Mexico court found Meta's platforms constitute a public nuisance and awarded approximately $567 million in abatement costs and injunctive relief, which Meta is seeking to vacate.

The European Commission issued preliminary findings in its DSA proceedings, indicating potential non-compliance regarding minors' presence and addictive design features.

Meta entered into a new settlement with 52 attorneys general to resolve teen mental health litigation, providing for payments of up to approximately $18.59 billion and product changes for users under 18.

Meta formed a new Texas data center venture in July 2026, contributing $2.26 billion in held-for-sale assets and receiving a $1.04 billion distribution. This expands its data center co-development strategy beyond the Louisiana venture disclosed in the prior filing.

Meta's board declared a dividend of one share of new Class C common stock for each outstanding Class A and Class B share, contingent on the effectiveness of a restated charter. This recapitalization will be treated as a stock split and will not affect total stockholders' equity.

The first bellwether trial in the youth-related litigation concluded with a $6 million verdict against Meta and YouTube, with Meta allocated 70%. The prior filing only noted the upcoming trial date.

The New Mexico attorney general case resulted in a judgment against Meta, including approximately $567 million in abatement costs and injunctive relief. The prior filing only noted the upcoming trial date.

The Tax Court issued a supplemental opinion in the transfer pricing case, resolving remaining disputes and causing Meta to increase its provision for income taxes. The prior filing indicated the decision was still pending.

Meta's restricted cash equivalents increased significantly to $12.83 billion, including $10.80 billion related to escrow requirements under multi-year infrastructure purchase agreements. The prior filing showed a much smaller amount with no such escrow disclosure.