A Bloomberg report states that Elon Musk’s X generated approximately $752 million in revenue for Q3 2025 from July–September is up over 17% year-over-year. This brought total revenue for the first nine months of 2025 between January–September to just over $2 billion.
This marks a sign of stabilization and growth after years of ad revenue declines post-acquisition, though X remains below its pre-2022 peaks when Twitter reported around $5 billion annually and continues to face significant costs and debt from the $44 billion buyout.
The company is diversifying beyond ads through subscriptions, data licensing including to xAI, and emerging payment features, contributing to the rebound. The reported $2 billion+ in revenue for January–September 2025 with Q3 at $752 million, up 17% YoY signals a notable turnaround for Elon Musk’s X after steep post-acquisition declines.
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Post-2022 acquisition, X’s revenue plunged like ~$2.5–2.6B in 2024 vs. ~$5B pre-Musk Twitter peaks, driven by advertiser boycotts over content moderation concerns. 2025 marks the first sustained YoY growth, with projections for annual ad revenue increases like U.S. ads up 17.5% per eMarketer.
This reflects returning brands, especially smaller/medium businesses, and diversification into subscriptions, data licensing including to xAI, and emerging payments. X is shifting from ad-heavy reliance, building resilience amid ongoing controversies.
Q3 showed ~$454M adjusted EBITDA up 16% YoY but a ~$577M net loss due to restructuring and high interest on ~$12–13B acquisition debt. Drastic cost cuts, 80% staff reduction have helped margins, keeping X near break-even on operations.
Revenue growth is positive, but debt servicing ~$1B+ annually and one-time costs limit true profitability. Full-year 2025 could approach 2024’s adjusted ~$1.2B EBITDA levels. X’s valuation cratered to ~$10–15B in 2023–2024 but rebounded to ~$33–44B in 2025 dealings, aided by debt refinancing sold at near par and ties to high-valued xAI— X merged into/acquired by xAI at $33B equity value.
Musk’s political influence post-2024 election, advertiser returns, and xAI stake providing upside. Validates Musk’s “everything app” vision; social + payments + AI, potentially salvaging his $44B investment. Enables easier fundraising/debt management.
Integration with xAI positions X as a key asset in Musk’s AI push. Video, payments beta, and real-time data make it more utility-focused. User growth described as “stagnant” internally; competition from Meta/TikTok; potential regulatory scrutiny over Musk’s influence.
Success bolsters Musk’s empire like Tesla, SpaceX, xAI synergies, but X still trails pre-Musk revenue peaks and faces volatility tied to Musk’s decisions/politics.
This revenue milestone indicates X is emerging from its post-acquisition turmoil toward stabilization, though full recovery to pre-2022 levels or profitability will depend on sustained diversification and cost control.
Growth driven by returning advertisers especially SMBs, subscriptions ~$200M annually, and data licensing potentially $500M+ in 2025 from deals including xAI. X is reducing ad dependency, building a more resilient model amid ongoing content/moderation debates.
Aggressive cost cuts in workforce have boosted adjusted EBITDA ~$454M in Q3, up 16% YoY, with 2024 full-year adjusted EBITDA ~$1.2–1.25B. However, ~$12–13B acquisition debt incurs ~$1–1.2B annual interest, contributing to net losses, potential full-year losses despite revenue gains.
Near break-even on operations, but debt burden delays true profitability. Debt refinancing/sales in 2025 have eased pressure, signaling investor confidence. X’s standalone valuation recovered to ~$33–44B in 2025 dealings, boosted by a March 2025 all-stock merger/acquisition into xAI valuing X at $33B equity, combined entity >$100–113B.
X provides real-time data for Grok AI training; xAI enhances X features via Grok integration, Premium+ subscriptions. This points to X emerging from post-acquisition crisis toward sustainable growth, increasingly as an AI-enabled platform rather than pure social media. Full recovery hinges on diversification success and debt management.