Truth Social operator reports $1.7 million in revenue while operating expenses jump 275%; company says more than 10 customers have signed up for Truth API
Trump Media & Technology Group reported a net loss of more than $238 million for the second quarter, a sharp deterioration from the nearly $20 million loss recorded a year earlier, as volatility in its digital-asset holdings weighed heavily on the company’s results.
The company, whose flagship platform Truth Social is used by U.S. President Donald Trump, reported just $1.7 million in quarterly revenue. Revenue nevertheless increased 89% from the same period a year earlier, with most of the income coming from advertising services on Truth Social.
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The scale of the loss highlights the gap between TMTG’s modest underlying revenue base and the substantial financial exposure created by its investments in digital assets and other securities.
TMTG said more than $190 million of the quarterly loss was linked to declines in “digital assets, digital assets pledged, and equity securities.” The company has increasingly tied its financial strategy to digital assets, making its reported earnings more sensitive to movements in asset prices than those of a conventional social-media company.
Operating expenses also increased sharply. TMTG reported more than $165 million in quarterly operating expenses, about 275% higher than in the same period last year.
“Our operating expenses are largely impacted by the price volatility of digital assets,” Chief Financial Officer Phillip Juhan said during the company’s first earnings call.
The results underscore the unusual financial structure of TMTG, which operates Truth Social but has also positioned itself around digital assets and other investments. That strategy can produce large swings in reported earnings even when the company’s core operating revenue remains relatively small.
Truth Social’s $1.7 million in quarterly revenue represented a significant percentage increase from a year earlier, but the figure remains tiny compared with the advertising businesses of major social-media platforms.
The revenue performance also comes as Truth Social faces questions about user traffic. The New York Times reported Monday that traffic to the platform had fallen sharply during the summer, adding pressure on TMTG to demonstrate that it can translate Trump’s enormous political and online following into a sustainable commercial audience.
Truth Social operates in a highly competitive social-media market dominated by much larger platforms, including Elon Musk’s X, which has a substantially larger user base and advertising operation.
Truth API Targets Trading Firms
TMTG also disclosed new details about Truth API, a service that provides faster access to Trump’s posts on Truth Social. The company said it has signed “more than 10 customer agreements to date,” with customers primarily consisting of high-frequency trading firms.
Those customers are paying between $60,000 and $100,000 a month, according to the company.
The pricing represents one of the more unusual attempts by TMTG to monetize Trump’s presence on Truth Social. For financial firms, rapid access to Trump’s posts could be valuable because his statements can influence markets, particularly when they concern tariffs, trade, monetary policy, geopolitics or individual companies.
At the lower end of the disclosed pricing range, 10 customers would generate at least $600,000 in monthly revenue, or $7.2 million annually if all contracts remained active at that rate. At the upper end, the same number of customers would represent $12 million in annualized revenue.
That potential revenue stream would be meaningful relative to TMTG’s current core business, although it remains small compared with the company’s overall losses and operating costs.
The figures also show why TMTG is seeking revenue streams beyond conventional social-media advertising. Truth Social’s advertising business generated growth in the latest quarter, but its absolute revenue remains too small to support the company’s cost structure on its own.
The second-quarter results therefore leave TMTG facing two very different financial stories. The company is generating faster advertising growth and has found a potentially lucrative niche with Truth API, but those businesses remain dwarfed by its expenses and exposure to volatile assets.
The company’s challenge is to turn Trump’s enormous public profile and Truth Social’s political relevance into recurring commercial revenue while reducing the degree to which financial-market volatility determines its bottom line.