Trump Media reported last week a net loss of more than $16 million for the most recent financial quarter, as revenue fell and costs, driven by legal and licensing expenses, rose.
Trump Media, which owns the Truth Social social media site, reported that its revenue dropped for the three months that ended June 30 by 30% when compared to the same time last year.
Former President Donald Trump is the majority shareholder in the media company, which saw its stock prices close at $26.21 per share on Friday afternoon.
Shortly after the company became public, stock prices had inflated to more than $71 per share in late March after it merged with a special purpose acquisition corporation.
In its 10-Q filing from Friday afternoon, Trump Media reported that it lost $16.37 million for the quarter ending June 30. This wasn’t out of the ordinary, as in the same quarter in 2023, it lost $22.8 million.
As for what made up the loss for the company, it shared in a press release that legal expenses related to Trump Media’s merger with Digital World Acquisition Corp. played a major role.
“Additionally, the Company incurred $3.1 million of IT consulting and software licensing expenses, primarily related to its software licensing agreement to power its new TV streaming service,” Trump Media said in a press release.
While during the same quarter last year, the company brought in $1.2 million in revenue, this year that number fell to $839,000.
“A significant portion of the decrease was attributable to a change in the revenue share with one of our advertising partners, in connection with an agreement intended to improve the Company’s short-term, pre-Business Combination financial position,” Trump Media said in its 10-Q filing.
The company also said its revenue has “varied” because it has been selectively testing “a nascent advertising initiative on the Company’s Truth Social platform.”
Trump Media reported that it ended the quarter with $344 million in cash and cash equivalents. It also reported that it was debt-free.
In its release, the company went on to say that it is set up for success with a “strong balance sheet” and the launch of its new streaming platform “Truth+,” which launched this month.
“With its strong balance sheet and zero debt load, the Company believes it has sufficient working capital to fund operations for the foreseeable future,” the company said.