Meta says it would’ve made over $22 billion if it didn’t have to pay a child safety settlement

Meta spent $9.89 billion on its settlement with US attorneys general during the third quarter, according to its quarterly earnings report. The figure is tied to a nationwide lawsuit that accused the company of harming children by designing its social media platforms to be addictive. Meta agreed in August to pay $17.1 billion to settle that case.

The company will only pay $5.3 billion of that amount if YouTube and TikTok adopt stricter settings and safeguards for kids, which Meta also agreed to as part of the settlement. Meta’s total costs and expenses for the quarter reached $51.61 billion, including the settlement payment. Those legal costs may grow: a New Mexico court ordered Meta on Wednesday to pay $25 billion over the Cambridge Analytica scandal.

Despite the fees from its legal battles, Meta reported $64.60 billion in revenue, a 26 percent increase from the same period last year. CEO Zuckerberg said in the earnings release that the company hit major milestones during the quarter toward delivering personal superintelligence for everyone. He said its investments are paying off, the core business is strong, and it is seeing velocity across the board.

The results come as Meta faces mounting pressure over how its platforms affect younger users in the US, where the attorneys general lawsuit and the New Mexico order both originated. The third-quarter filing shows the settlement with US attorneys general is already weighing on the company’s expenses. The disclosure also confirms the structure of the August agreement, under which the obligations of YouTube and TikTok determine how much Meta ultimately pays.

Meta’s revenue growth and its legal costs are both detailed in the same earnings report covering the third quarter. The company’s costs and expenses, including the settlement amount, were reported alongside its revenue figures. The New Mexico order, issued Wednesday, adds a separate $25 billion penalty tied to the Cambridge Analytica scandal to the company’s litigation exposure.

Zuckerberg’s comments in the press release focused on the company’s investments and core business rather than its legal settlements. The earnings report did not address how the company expects the settlement or the New Mexico order to affect future quarters.

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