Key Points
- Meta extended the useful life of most servers and network assets to 5.5 years effective January 1, 2025.
- The reported benefit from this change in FY25 was a reduction in depreciation expense of $2.92B and an increase in net income of $2.59B ($1.00 per diluted share).
- Capex and depreciation expense by quarter are shown below for the last three years.
- Verbatim disclosure language is provided at the end.
Server and Network Equipment Useful Life Assumptions
| Fiscal Year | Useful Life Assumption for Most Servers & Network Assets |
|---|---|
| 2025 | 5.5 years (extended from prior) |
| 2024 | 5 years |
| 2023 | 4–5 years |
Disclosure:
- For 2025: “In January 2025, we completed an assessment of the useful lives of property and equipment, which resulted in an increase in the estimated useful lives of most servers and network assets to 5.5 years, effective January 1, 2025.”
- For 2024 and 2023: “Servers and network assets: Four to Five years” (2024 10-K); “Servers and network assets: Four to Five years” (2023 10-K).
Quantified Dollar Benefit from Useful Life Extension (FY25)
| Fiscal Year | Reduction in Depreciation Expense ($B) | Increase in Net Income ($B) | EPS Impact ($/diluted share) |
|---|---|---|---|
| 2025 | 2.92 | 2.59 | 1.00 |
Disclosure:
- “Based on the servers and network assets placed in service as of December 31, 2024, the financial impact of this change in estimate included a reduction in depreciation expense of $2.92 billion and an increase in net income of $2.59 billion, or $1.00 per diluted share, for the year ended December 31, 2025.” (2025 10-K)
Capex vs. Depreciation Expense by Quarter
Capital Expenditures and Depreciation Expense ($M)
| Quarter | Capex (Purchases of Property & Equipment) | Depreciation & Amortization Expense |
|---|---|---|
| Q4 2025 | $22,531* | $5,411* |
| Q3 2025 | $19,370 | $4,761 |
| Q2 2025 | $17,010 | $4,280 |
| Q1 2025 | $12,941 | $3,841 |
| Q4 2024 | $32,435* | $4,874* |
| Q3 2024 | $15,477 | $3,963 |
| Q2 2024 | $14,906 | $3,579 |
| Q1 2024 | $6,400 | $3,374 |
| Q4 2023 | $10,215* | $4,320* |
| Q3 2023 | $8,378 | $2,830 |
| Q2 2023 | $7,522 | $2,583 |
| Q1 2023 | $6,823 | $2,524 |
*Q4 capex and depreciation are computed as the difference between full-year and YTD September figures.
Verbatim Disclosure Language
2025 10-K:
“In January 2025, we completed an assessment of the useful lives of property and equipment, which resulted in an increase in the estimated useful lives of most servers and network assets to 5.5 years, effective January 1, 2025. Based on the servers and network assets placed in service as of December 31, 2024, the financial impact of this change in estimate included a reduction in depreciation expense of $2.92 billion and an increase in net income of $2.59 billion, or $1.00 per diluted share, for the year ended December 31, 2025.”
2024 10-K:
“Servers and network assets: Four to Five years”
2023 10-K:
“Servers and network assets: Four to Five years”
Additional Notes
- The extension of useful life was only implemented in 2025; prior years used a 4–5 year range.
- The benefit to depreciation expense and net income is explicitly quantified only for FY25.
- Capex and depreciation expense are as reported in the consolidated statements of cash flows and notes; quarterly depreciation is from quarterly filings, and capex is purchases of property and equipment.
- No restatements were made to prior periods for the useful life change.
Summary:
Meta extended the useful life of most servers and network assets to 5.5 years starting in 2025, resulting in a $2.92B reduction in depreciation expense and a $2.59B increase in net income for FY25. Capex and depreciation expense by quarter are shown above. The company’s disclosures on useful life and the impact of the change are quoted verbatim.
