Trump Media & Technology Group on Monday reported a net loss of more than $238 million for its fiscal second quarter on revenue of less than $2 million.
That loss, which dwarfed the almost $20 million it lost in the same period last year, was primarily due to declines in non-cash assets, including more than $190 million in losses from “digital assets, digital assets pledged, and equity securities,” the company said in a press release.
The company’s $1.7 million in quarterly revenue mostly came through ad services on Truth Social, TMTG’s flagship social media product, which is used by President Donald Trump. That revenue marked an 89% increase from the year-ago quarter.
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 — fell sharply this summer.
TMTG’s quarterly operating expenses of more than $165 million were roughly 275% higher year over year.
“Our operating expenses are largely impacted by the price volatility of digital assets,” Chief Financial Officer Phillip Juhan said during the company’s first-ever earnings call.
The company also provided new details about Truth API, its controversial new service offering faster access to Trump’s Truth Social posts.
TMTG said it has signed “more than 10 customer agreements to date,” adding that those clients are “primarily high-frequency trading firms” and are paying rates of $60,000 to $100,000 a month, the company confirmed.
Trump Media & Technology was created after Trump was temporarily suspended from social media platforms in the wake of the Jan. 6, 2021, Capitol riot. It went public through a merger with a special purpose acquisition company and started trading on the Nasdaq in 2024 under the ticker DJT, which match the president’s initials.
Truth Social was the company’s first product, but it later expanded into a variety of other industries, including crypto, financial services and fusion power.
TMTG interim CEO Kevin McGurn told Axios on Friday that the company is pulling back from two agreements it struck with Crypto.com as it focuses on its media business and a pending merger with TAE, the fusion energy firm.
McGurn said in Monday’s earnings call that the combination with TAE is “the single most important driver of long-term value for this company.”
There are currently no commercial plants producing electricity using fusion tech.
TMTG stock, which is now worth a fraction of what it fetched when it first started trading, closed down 8% Monday.