Trump Media & Technology Group disclosed a net loss of more than $238 million for its fiscal second quarter, a significant increase from the approximately $20 million loss reported in the same period the previous year. The company generated less than $2 million in revenue during the quarter.
The substantial loss was largely attributable to non-cash asset declines, with more than $190 million stemming from losses in digital assets, pledged digital assets, and equity securities. The company’s Chief Financial Officer Phillip Juhan attributed the elevated operating expenses to price volatility in digital assets. Operating expenses for the quarter exceeded $165 million, representing a roughly 275% increase compared to the year-prior quarter.
Revenue generation proved limited, with approximately $1.7 million in quarterly revenue derived primarily through advertising services on Truth Social, the company’s primary social media platform. This marked an 89% increase from the comparable quarter in the prior year. Separately, Truth Social’s user traffic experienced sharp declines during the summer months, according to reporting from The New York Times.
Trump Media also outlined its Truth API service, which provides expedited access to posts from the platform. The company has secured more than 10 customer agreements with clients described as primarily high-frequency trading firms, paying monthly rates between $60,000 and $100,000. Additionally, interim Chief Executive Officer Kevin McGurn indicated the company is scaling back certain cryptocurrency agreements with Crypto.com to concentrate on its media operations and a pending merger with TAE Technologies, a fusion energy company.
The stock declined 8% on the trading day following these disclosures.
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