NEW YORK — The company behind Donald Trump’s social media platform, Truth Social, reported a loss of $19.2 million for the latest quarter, as indicated in an earnings report that coincided with his reclaiming of the presidency.
Late on Tuesday, the Trump Media and Technology Group disclosed that a significant portion of this financial deficit was attributed to over $12 million incurred in legal expenses, coupled with a decline in revenue. This unexpected announcement on Election Day saw the company’s stock prices rise on Wednesday, likely influenced more by Trump’s electoral victory over Vice President Kamala Harris than by any immediate improvements in financial performance.
Following his ban from major social networks like Twitter and Facebook after the January 6, 2021, Capitol incident, Trump established this company in Sarasota, Florida. However, the venture has continued to experience substantial financial losses and has faced challenges in achieving revenue growth.
For the quarter ending on September 30, revenues were reported at just above $1 million, reflecting a nearly 6% decrease compared to the same period last year. Moreover, this year alone, Trump Media’s overall losses have accumulated to more than $363 million.
The company attributed some of its expenses to the launch costs associated with a new streaming service named Truth+.
Devin Nunes, the CEO and former Republican congressman, stated that the organization is actively seeking further growth opportunities through potential mergers with other firms that might leverage Trump Media’s technology and branding advantages.
According to regulatory filings, the company’s future success is partially reliant on “the reputation and popularity of President Donald J. Trump.”