Trump Media & Technology Group on Monday reported a fiscal second-quarter net loss of more than $238 million on revenue of less than $2 million.
The loss, which seemed small compared to a loss of about $20 million in the same period last year, was primarily due to a decline in non-cash assets, including more than $190 million in losses from “digital assets, digital assets pledged as collateral, and equity,” the company said in a press release.
Most of the company’s $1.7 million in quarterly revenue came from advertising services from TMTG’s flagship social media product, Truth Social, which is also used by President Donald Trump. This revenue was up 89% year over year.
The New York Times reported earlier Monday that Truth Social’s traffic — which already paled in comparison to similar platforms such as Elon Musk’s X — plummeted over the summer.
TMTG’s quarterly operating expenses were more than $165 million, an increase of approximately 275% year-over-year.
“Our operating expenses are significantly affected by price fluctuations in digital assets,” Chief Financial Officer Philippe Jouin said in the company’s first earnings call.
The company also revealed new details about its controversial new service, the Truth API, which provides quick access to President Trump’s Truth Social posts.
TMTG said it has “more than 10 customer engagements to date,” which the company acknowledged are “primarily high-frequency trading companies” and pay monthly fees between $60,000 and $100,000.
Trump Media & Technology was formed in response to President Trump’s temporary suspension from social media platforms following the January 6, 2021 Capitol riot. The company went public through a merger with a special purpose acquisition company and began trading on the Nasdaq in 2024 under the ticker DJT, which matches the company president’s initials.
Truth Social was the company’s first product, but it has since expanded to a variety of other industries, including cryptocurrencies, financial services, and fusion power.
TMTG interim CEO Kevin McGahn told Axios on Friday that the company is rescinding two deals it signed with Crypto.com to focus on its media business and its pending merger with fusion energy company TAE.
McGahn said on Monday’s earnings call that the combination with TAE is “the most important driver of long-term value for this company.”
Currently, there are no commercial power plants using fusion technology to generate electricity.
TMTG stock is now a fraction of its opening value, and closed down 8% on Monday.
