Parent Company of Truth Social Reports $58 Million Loss in 2023

Trump's Truth Social lost (Credits: Axios)

According to recent regulatory filings, the parent company of former President Trump’s Truth Social platform faced an outstanding financial setback in 2023. Trump Media & Technology Group, which recently went public, reported a loss of $58 million for the year.

Despite generating $4.1 million in revenue, with over $750,000 coming in the fourth quarter alone, the company’s expenses outweighed its earnings. Operating expenses totaled approximately $16 million, while interest expenses amounted to $39.4 million, as indicated in the Securities and Exchange Commission (SEC) filing.

Following its public debut, Trump Media experienced a surge in stock value, with shares reaching as high as $79.38 on the first day of trading. However, by the end of the week before the Easter holiday, the stock had settled around $62 per share.

Donald Trump (Credits: Rolling Stone)

As of Monday morning, shares had fallen to approximately $53. Despite these fluctuations, former President Trump, who owns roughly 58 percent of Trump Media, can earn billions from the company’s public offering.

Trump’s media venture faced challenges on its journey to public trading. In October 2021, the company initially pursued merger discussions with Digital World Acquisition Corp., a “blank check” company.

However, the merger encountered several obstacles along the way. Legal issues arose, including charges of insider trading against a former Digital World board member and two others and a $18 million fine imposed by the SEC for alleged investor and agency deception.

Donald Trump (Credits: The Daily Beast)

Despite nearing completion last month, the merger faced additional hurdles, including lawsuits from former company leaders. Trump Media’s lackluster performance in 2023 has led many financial analysts to categorize it as a “meme stock,” driven more by enthusiasm for the former president than by the company’s economic viability.

Despite this, Trump’s substantial ownership stake in the company suggests the potential for significant economic gains if it can overcome its current challenges and establish a more stable financial footing.