Meta has published its Q1 2026 performance update, which includes some interesting notes on the development of the business, as it continues to bet big on the AI future.
First off, on users. Meta’s daily active user count dropped for the first time ever in Q1, with 3.56 billion using its apps in the period.
That’s only a slight decline from the 3.58 billion that Meta reported across its family of apps in Q4 2025, but even so, it’s a significant point of note, that Meta, despite adding more opportunity to gain users through new apps like Threads and its Meta AI app, actually saw a decrease in usage in the period.
Meta said that the decline was driven by internet disruptions in Iran, as well as a restriction on access to WhatsApp in Russia. Russia has banned WhatsApp, as well as many other messaging apps, as it looks to force users to use its state-owned messaging tool instead, while Meta may also have lost some users in Australia due to its new teen social media restrictions.
Whatever the reason, it is a significant point of note, and something to watch for the business moving forward.
On the revenue side, Meta brought in $56.31 billion for the quarter, representing an increase of 33% year-over-year.
So despite seeing less usage, Meta is having no problems making money, though that could also be attributed to the increased ad load in its apps.
Ad impressions delivered across Meta’s apps increased by 19% year-over-year, while the average ad price increased by 12% year-over-year.
Meta’s clearly looking for more ways to generate income, as it invests hundreds of billions into artificial intelligence projects, and it could be that it’s injecting more ads, in more places, and increasing ad prices, in order to counter some of those costs.
Meta has also announced staff cuts, with more coming, as it seeks to rationalize the business.
And while the company is clearly not in trouble as such, it is worth noting the measures being taken here, versus the scale of Meta’s AI investments, which are clearly causing some strain on management.
Meta’s total costs and expenses were $33.44 billion in Q1, an increase of 35% year-over-year.
That said, Meta has also reduced losses slightly in its Reality Labs division, which was subject to its recent job cuts. Meta’s overall headcount, however, has risen by 1% on the same period last year, likely fuelled by AI staffing.
Meta’s Q1 report reflects the progression of the business, and the push to re-shape its revenue structure to improve its standing.
And while it has taken a slight hit in usage, 3.56 billion users still means that more than a third of the world’s population are using its apps every day, so Meta remains a key connective platform, and will continue to see more opportunities for revenue growth while it remains so.
But the numbers also suggest that its AI bets need to pay off, and that it will need to be cautious about its future development.
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