Meta Platforms (META) risk factors, FY2025 10-K

Risks Related to Our Product Offerings

1. 01If we fail to retain existing users or add new users, or if our users decrease their level of engagement with our products, our revenue, financial results, and business may be significantly harmed
2. 02We generate substantially all of our revenue from advertising. The loss of marketers, or reduction in spending by marketers, could seriously harm our business
3. 03Our user growth, engagement, and monetization on mobile devices depend upon effective operation with mobile operating systems, networks, technologies, products, and standards that we do not control
4. 04Our new products and changes to existing products could fail to attract or retain users or generate revenue and profits, or otherwise adversely affect our business
5. 05We may not be successful in our artificial intelligence initiatives, which could adversely affect our business, reputation, or financial results36% rewritten
6. 06We make product and investment decisions that may not prioritize short-term financial results and may not produce the long-term benefits that we expect
7. 07We may not be successful in our Reality Labs strategy and investments, which could adversely affect our business, reputation, or financial results
8. 08If we are not able to maintain and enhance our brands, our ability to maintain or expand our base of users, marketers, and developers may be impaired, and our business and financial results may be harmed
9. 09We may not be able to continue to successfully maintain or grow engaging third-party content on our platform or usage of and engagement with applications that integrate with our products26% rewritten

Risks Related to Our Business Operations and Financial Results

1. 10Our business is highly competitive. Competition presents an ongoing threat to the success of our business
2. 11Our financial results will fluctuate from quarter to quarter and are difficult to predict
3. 12Unfavorable media coverage negatively affects our business22% rewritten
4. 13We are subject to the risk of catastrophic events and crises, which may have a significant adverse impact on our business and operations33% rewritten
5. 14Our business is dependent on our ability to maintain and scale our technical infrastructure, and any significant disruption in our products and services could damage our reputation, result in a potential loss of users and engagement, and adversely affect our financial results
6. 15We have experienced, and could experience in the future, difficulties in building and operating key portions of our technical infrastructure
7. 16Real or perceived inaccuracies in our community and other metrics may harm our reputation and negatively affect our business
8. 17We cannot assure you that we will effectively manage our scale
9. 18We have significant international operations, which subject us to increased business, economic, and legal risks that could affect our financial results
10. 19We face design, manufacturing, and supply chain risks with respect to our consumer hardware products that, if not properly managed, could adversely impact our financial results
11. 20We face inventory risk with respect to our consumer hardware products
12. 21We are involved in numerous class action lawsuits and other litigation matters that are expensive and time consuming, and, if resolved adversely, could harm our business, financial condition, or results of operations
13. 22We plan to continue to make acquisitions and pursue other strategic transactions, which could impact our financial condition or results of operations and may adversely affect the price of our common stock
14. 23We may not be able to successfully integrate our acquisitions, and we incur significant costs to integrate and support the companies we acquire
15. 24We have had, and may in the future have, exposure to greater than anticipated tax liabilities
16. 25Changes in tax laws or tax rulings could materially affect our financial position, results of operations, and cash flows27% rewritten
17. 26Given our levels of share-based compensation, our tax rate has in the past varied, and may in the future vary, significantly depending on our stock price54% rewritten
18. 27If our goodwill or intangible assets become impaired, we may be required to record a significant charge to earnings
19. 28The loss of one or more of our key personnel, or our failure to attract and retain other highly qualified personnel in the future, could harm our business27% rewritten
20. 29Our CEO has control over key decision making as a result of his control of a majority of the voting power of our outstanding capital stock
21. 30We cannot guarantee that our share repurchase program will be fully consummated or that it will enhance long-term stockholder value. Share repurchases and dividend payments could also increase the volatility of the trading price of our stock and will diminish our cash reserves
22. 31There can be no assurance that we will continue to declare cash dividends

Risks Related to Government Regulation and Enforcement

1. 32Actions by governments that restrict access to Facebook or our other products in their countries, censor or moderate content on our products in their countries, or otherwise impair our ability to sell or deliver advertising in their countries, could substantially harm our business and financial results38% rewritten
2. 33DMA, DSA, OSA, EU AI Act, the Korean Personal Information Protection Act, and the Indian Digital Personal Data Protection ActNew
3. 34Payment-related activities may subject us to additional regulatory requirements, regulatory actions, and other risks that could be costly and difficult to comply with or that could harm our business

Risks Related to Data, Security, Platform Integrity, and Intellectual Property

1. 35Security breaches, improper access to or disclosure of our data or user data, other hacking and phishing attacks on our systems, or other cyber incidents could harm our reputation and adversely affect our business42% rewritten
2. 36Intentional misuse of our services and user data and other undesirable activity by third parties on our platform could adversely affect our business
3. 37Our products and internal systems rely on software and hardware that is highly technical, and any errors, bugs, or vulnerabilities in these systems, or failures to address or mitigate technical limitations in our systems, could adversely affect our business
4. 38If we are unable to protect our intellectual property, the value of our brands and other intangible assets may be diminished, and our business may be adversely affected
5. 39We are currently, and expect to be in the future, party to patent, trademark, and copyright lawsuits and other intellectual property rights claims that are expensive and time consuming and, if resolved adversely, could have a significant impact on our business, financial condition, or results of operations34% rewritten

Risks Related to Ownership of Our Class A Common Stock

1. 40The trading price of our Class A common stock has been and will likely continue to be volatile
2. 41The dual class structure of our common stock has the effect of concentrating voting control with our CEO and certain other holders of our Class B common stock; this will limit or preclude your ability to influence corporate matters
3. 42Our status as a "controlled company" could make our Class A common stock less attractive to some investors or otherwise harm our stock price
4. 43Delaware law and provisions in our certificate of incorporation and bylaws could make a merger, tender offer, or proxy contest difficult, thereby depressing the trading price of our Class A common stock