Trump Media's $238 million Q2 loss was driven by digital asset declines. Revenue rose 89% to $1.7 million. The company pulled back from Crypto.com to focus on a fusion energy merger.
Trump Media & Technology Group reported a net loss of $238 million for its fiscal second quarter, far wider than the roughly $20 million loss a year earlier. Revenue came in at $1.7 million, up 89% from the same period.
The bulk of the loss, over $190 million, came from declines in digital assets and equity securities, the company said in a press release. Operating expenses hit more than $165 million, roughly 275% higher year over year. "Our operating expenses are largely impacted by the price volatility of digital assets," CFO Phillip Juhan said during the company's first-ever earnings call.
Revenue was almost entirely from ad sales on Truth Social, the social media platform used by President Donald Trump. Traffic on Truth Social has fallen sharply this summer, according to a report from the New York Times. AlphaScala gives NYT an Alpha Score of 41, a mixed reading on the stock. The platform's audience was already small compared with rivals like X.
Trump Media also disclosed new details about Truth API, a service that gives trading firms faster access to Trump's posts. The company said it has signed more than 10 customer agreements, primarily with high-frequency trading firms, at rates of $60,000 to $100,000 a month.
The company was formed after Trump was suspended from mainstream social platforms following the Jan. 6, 2021, Capitol riot. It went public through a SPAC merger and began trading on the Nasdaq in 2024 under the ticker DJT, matching the president's initials. Truth Social was its first product, later expanding into crypto and fusion power.
Interim CEO Kevin McGurn told Axios on Friday that Trump Media is pulling back from two agreements with Crypto.com to focus on its media business and a pending merger with TAE, a fusion energy firm. McGurn said on the earnings call that the combination with TAE is "the single most important driver of long-term value for this company." No commercial fusion plants exist today.
Shares of Trump Media closed down 8% Monday, trading at a fraction of their post-SPAC peak.
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