Trump Media & Technology Group (TMTG), the parent company of U.S. President Donald Trump’s social media platform Truth Social, reported disappointing financial results last year. While the Trump family has seen substantial profits from various endeavors since Trump’s election, including the First Lady’s public engagements, his two sons’ business ventures, and multiple lawsuits, TMTG has become Trump’s financial burden.
On Monday, TMTG disclosed its annual earnings for the previous year, reporting revenue of $3.6 million and a loss of $2.36 per share. Trump holds a 52% stake in the company, which went public last March on the NASDAQ under the ticker symbol “DJT” and completed a merger with Digital World Acquisition Corporation. This marks TMTG’s first financial report since the merger.
According to TMTG, Truth Social’s revenue declined by 12% compared to the previous year. The company’s net loss increased from $58.2 million in 2023 to $409 million last year. TMTG reported cash and cash equivalents of $776.8 million, with liabilities of $9.6 million.
The company attributed its increased net loss to rising legal expenses related to the merger, citing interference from the Securities and Exchange Commission (SEC) under the Biden administration. TMTG also pointed to changes in revenue-sharing agreements with advertising partners as a factor in the revenue decline.
TMTG’s management stated that, unlike Meta platforms or other social media companies, they do not rely on traditional metrics such as active user counts or average revenue per user. They argued that relying on such metrics could potentially divert their focus from strategic assessment of their business progress and growth.
Devin Nunes, former Republican Congressman and CEO of TMTG stated, “We will continue to explore opportunities to partner, merge with, and acquire other entities that are able to function effectively if TMTG evolves into a holding company with subsidiaries spanning several industries.”
TMTG stock, often seen as a proxy for Trump’s political fortunes, saw its share price rise more than 100% last year. However, since the beginning of this year, the stock has fallen by 11% to $30.39, with a current market capitalization of $6.59 billion.
Meanwhile, Trump has amassed 8.9 million followers on Truth Social and 109 million followers on X, which is now owned by Tesla CEO Elon Musk.
