Meta’s Daily Active Users Drop for First Time as AI Costs Surge

Meta has recorded its first-ever decline in daily active users, with 3.56 billion people using its family of apps in Q1 2026 — a slight but historically notable dip from the 3.58 billion reported in Q4 2025. The drop marks a significant moment for the social media giant, which has been aggressively expanding its portfolio through platforms like Threads and a dedicated Meta AI app.

The company attributed the decline primarily to internet disruptions in Iran and Russia’s ban on WhatsApp, as it pushes citizens toward state-owned messaging alternatives. Australia’s tightened teen social media regulations may have also contributed to the dip.

Revenue Tells a Different Story

Despite the user decline, Meta’s financial performance remained strong. The company posted $56.31 billion in revenue for the quarter, a 33% jump year-over-year. Ad impressions across its platforms rose 19%, while the average price per ad climbed 12%, suggesting Meta is monetising its existing audience more intensively rather than relying purely on user growth.

AI Ambitions Come at a Cost

Meta’s total costs and expenses reached $33.44 billion, up 35% year-over-year, reflecting the enormous scale of its artificial intelligence investments. The company has also announced multiple rounds of staff cuts while overall headcount has risen 1% compared to the same period last year, likely driven by AI-related hiring.

With over a third of the global population still using its apps daily, Meta retains enormous reach. However, the pressure to deliver returns on its AI spending is growing — and the numbers suggest the company’s next chapter hinges on those bets paying off.