Trump Media's quarterly loss widens as costs rise

- Trump Media & Technology Group (DJT) on Friday reported widening losses and declining revenue for the third quarter, driven by rising expenses, indicating serious financial difficulties facing Truth Social's parent company.

Shares of the volatile company, a favorite of retail investors, fell more than 3% in morning trading.

Trump Media, which has consistently posted losses since its inception, faces the challenge of turning President Donald Trump's high-profile presence on its Truth Social platform into a viable revenue source. The company's revenue is primarily generated from advertising on the platform. The company's fortunes are tied to engagement on Trump's main communication channel, Truth Social.

The company reported total revenue of $972,900 for the third quarter ended in September, down 3.8% from a year earlier.

In August, Trump Media and Crypto.com agreed to a deal to launch a new venture with a blank-check acquisition company that will follow a treasury-style strategy to accumulate the cryptocurrency platform's native token, CRO, further deepening Trump's ties to the crypto industry.

Trump Media reported a net loss of $54.8 million, up from $19.2 million in the same period last year. It also saw legal expenses of $20.3 million in the quarter.

Trump Media & Technology Group went public in March 2024 through a merger with a special-purpose acquisition company. Since its launch, the stock has been subject to high levels of volatility, often trading on political news and the momentum of retail investors.

Unlike most publicly traded social media companies, Trump Media does not regularly disclose key performance indicators such as monthly or daily active users. The company is led by CEO Devin Nunes, a former Republican congressman.