Former President Donald Trump is the firm’s largest stakeholder, Trump Media, a social media platform, announced a net loss of more than $16 million for the last financial quarter on Friday. The company primarily attributed this loss to legal costs as well as consulting and licensing fees.
Trump Media, the company behind the Truth Social app that the former president frequently uses, also revealed that, in comparison to the same period last year, its already pitiful revenue for the three months that concluded on June 30 fell by 30%.
Traded under the DJT ticker, Trump Media’s stock price has plummeted from a peak of over $71 a share not long after becoming public in late March as a result of a merger with a purported special purpose acquisition firm. The share price of Trump Media finished at $26.21 on Friday afternoon, down.49%.
Considering its extremely low sales, the company’s market capitalization of about $5 billion is an incredibly high valuation.
Trump Media recorded a $16.37 million loss for the quarter ended June 30, compared to a $22.8 million loss for the same quarter in 2023, in its 10-Q filing on Friday afternoon.
According to the company, legal costs associated with Trump Media’s merger with Digital World Acquisition Corp. accounted for around half of the deficit for the most recent quarter.
According to a news statement from Trump Media, “Furthermore, the company spent $3.1 million on software licensing and IT consulting fees, mostly associated with the software license agreement that powers its new TV streaming service.”
The most recent quarter’s revenue was only $839,000, as opposed to $1.2 million for the same period the previous year.
As per Trump Media’s 10-Q filing, “A significant portion of the drop was caused by a change in our revenue-sharing arrangement with one of our advertising partners, which was part of an arrangement meant to strengthen the company’s short-term, pre-business combination financial situation.”
As we carefully evaluate a new advertising campaign on the Company’s Truth Social platform, revenue has also varied, according to the statement from the company.
According to Trump Media, company had $344 million in cash and cash equivalents at the end of the quarter and no debt.
In a news release, Trump Media stated, “Truth+, the company’s new TV streaming platform, was introduced in August 2024 and is expected to grow and improve thanks to its robust balance sheet and proprietary content delivery network (‘CDN’)”.
The company stated, “With a solid balance sheet and no debt, the company thinks it has enough operating capital to finance operations for the foreseeable future.”
In November’s election, Minnesota Governor Tim Walz, the Democratic nominee, Vice President Kamala Harris, and Republican front-runner Donald Trump, all of whom are senators from Ohio.