Trump Media posts $401 million loss as revenue declines
Trump Media struggles as revenue falls and losses pile up
Trump Media & Technology Group Corp. (TMTG), the parent company of Truth Social, reported a $401 million loss in 2024, a more than six-fold increase compared to the previous year.
The company’s revenue declined 12% to $3.6 million, while its accumulated deficit swelled to $2.9 billion, according to its annual report released Friday after markets closed, reports Bloomberg.
Despite the financial struggles, TMTG awarded employees over $107 million in stock compensation. The company ended 2024 with 29 full-time employees, suggesting that stock-based rewards averaged several million dollars per worker.
Stock Performance and Financial Headwinds
TMTG, which became publicly traded in March following a blank-check merger, has seen its stock perform similarly to meme stocks—companies that trade on market enthusiasm rather than traditional financial performance.
Its share price nearly doubled in 2024, largely driven by excitement around Donald Trump’s 2024 presidential campaign. The company spent $61 million in cash on operations, significantly exceeding its $3.6 million in revenue.
A large portion of the net loss stemmed from changes in the value of derivative liabilities, rather than direct operating costs. TMTG’s largest shareholder remains Donald Trump, with his stake held in a trust managed by his son, Donald Trump Jr.
Future Challenges and Uncertainty
The latest financial results raise concerns about TMTG’s long-term sustainability. While Truth Social remains the flagship product, the platform has struggled to generate meaningful revenue and compete with larger social media firms.
Still, investor enthusiasm remains high, fueled by Trump’s political influence. The company’s future will likely depend on whether it can expand revenue streams beyond its current limited advertising model and attract new users.
Additionally, in a speech to supporters in Florida, U.S. President Donald Trump sharply criticized Brazil, accusing the South American nation of imposing excessively high tariffs on American products and threatening to respond with additional trade sanctions.
