Trump Media Reports $16 Million Loss Due to Legal Costs

Trump Media, the social media company primarily owned by former President Donald Trump, announced a net loss exceeding $16 million for the financial quarter ending June 30, largely attributed to legal expenses and consulting fees. The company, which operates the Truth Social app, experienced a 30% drop in revenue compared to the same period last year, with earnings reported at just $839,000. The company's stock, trading under the DJT ticker, has seen a dramatic decline from a peak of over $71 per share following its merger with a special purpose acquisition corporation in March. As of Friday, the stock closed at $26.21, reflecting a decrease of 0.49%. Despite a market capitalization nearing $5 billion, the valuation appears inflated given the company's modest sales figures. In its recent 10-Q filing, Trump Media reported a loss of $16.37 million for the quarter, a slight improvement from the $22.8 million loss recorded in the same quarter of 2023. Legal expenses related to the merger with Digital World Acquisition Corp. accounted for approximately half of the losses. Additionally, the company incurred $3.1 million in IT consulting and software licensing costs, primarily for its new TV streaming service. Despite the financial challenges, Trump Media reported a strong balance sheet with $344 million in cash and no debt. The company expressed confidence in its ability to fund operations and expand its new streaming platform, Truth+, launched in August 2024, leveraging its custom-built content delivery network.