Former President Donald Trump’s social media company, Trump Media, revealed a significant financial loss in its most recent financial quarter. The company reported a net loss of over $16 million, as its revenue dropped by 30% to only $836,900. This decline in revenue has led to a decrease in the stock price of Trump Media, which now trades at $26.21 per share, down from a high of $71 per share.
Despite the company’s struggles, it still maintains a market capitalization of nearly $5 billion. However, this valuation seems quite high given the company’s modest sales figures. In a 10-Q filing, Trump Media attributed about half of its recent loss to legal expenses related to its merger with Digital World Acquisition Corp. Additionally, the company incurred significant IT consulting and software licensing expenses for its new TV streaming service.
Revenue for the most recent quarter was reported at $839,000, down from $1.2 million in the same quarter the previous year. Trump Media cited changes in revenue share agreements with advertising partners as well as ongoing testing of new advertising initiatives on its Truth Social platform as contributing factors to the revenue decline.
Despite these financial challenges, Trump Media ended the quarter with $344 million in cash and cash equivalents and no debt. The company expressed confidence in its strong balance sheet and believes it has enough working capital to fund its operations for the foreseeable future. Trump Media also highlighted its new TV streaming platform, Truth+, which was launched in August 2024 on a custom-built content delivery network.
Looking ahead, former President Donald Trump, along with his running mate Sen. JD Vance of Ohio, are gearing up to face the Democratic nominees, Vice President Kamala Harris and Minnesota Gov. Tim Walz, in the upcoming November election. The outcome of the election could have significant implications for Trump Media and its future prospects in the ever-evolving social media landscape.