On Friday, Trump Media reported a net loss exceeding $16 million for the latest financial quarter, largely attributed to legal costs, consulting fees, and licensing expenses. The company, which operates the Truth Social app popular with former President Donald Trump, also saw a 30% drop in its modest revenue for the quarter ending June 30, compared to the previous year.
The stock of Trump Media, trading under the DJT ticker, has plummeted from a peak of over $71 per share following its merger with a special purpose acquisition company in late March. As of Friday afternoon, the stock closed at $26.21 per share, reflecting a 0.49% decrease.
Trump Media ends quarter with $344M cash, despite $16M loss and revenue drop
With a market capitalization nearing $5 billion, Trump Media’s valuation is seriously high relative to its limited sales. According to its 10-Q filing, the company reported a $16.37 million loss for the quarter ending June 30, an improvement from the $22.8 million loss recorded for the same period in 2023.
Legal costs related to the merger with Digital World Acquisition Corp. accounted for approximately half of the recent loss. Additionally, $3.1 million in IT consulting and software licensing expenses were incurred, mainly for the company’s new TV streaming service.
Quarterly revenue was $839,000, down from $1.2 million a year earlier. This decline was partly due to adjustments in revenue sharing with an advertising partner and experimentation with new advertising initiatives on Truth Social. Despite these challenges, Trump Media ended the quarter with $344 million in cash and no debt, which the company believes will support its new streaming platform, Truth+, and its ongoing operations.
