(Reuters) -Trump Media & Technology Group reported a bigger third-quarter loss and a decline in revenue on Friday, squeezed by a surge in expenses, highlighting the Truth Social parent’s steep financial hurdles.
Shares of the company, a volatile favorite of retail investors, fell more than 3% in morning trading.
Trump Media, which has consistently posted losses since its inception, faces the challenge of converting the high-profile presence of President Donald Trump on its Truth Social platform into a viable revenue stream. The company’s revenue is primarily generated from advertising on the platform.
The company’s fortunes are inextricably linked to engagement on Truth Social, which serves as the main communication channel for Trump.
The company reported total revenue $972,900 for the third quarter ended September, down 3.8% from a year earlier.
In August, Trump Media and Crypto.com agreed to a deal with a blank-check acquisition company to launch a new venture that would pursue a treasury-style strategy to accumulate the cryptocurrency platform’s native token CRO, deepening Trump’s ties to the crypto industry.
Trump Media reported a net loss of $54.8 million, wider than the $19.2 million reported in the same period last year. It saw $20.3 million in legal expenses in the quarter.
Trump Media & Technology Group went public in March 2024 through a merger with a special-purpose acquisition company. The stock has been subject to high levels of volatility since its debut, often trading on political news and momentum from retail investors.
Unlike most publicly traded social media companies, Trump Media does not regularly disclose key performance indicators such as monthly or daily active users. The company is led by CEO Devin Nunes, a former Republican congressman.
(Reporting by Akash Sriram and Anhata Rooprai in Bengaluru, Editing by Matthew Lewis)
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