Trump Media & Technology Group reported a Q2 net loss of $238M, up from $20M in the same quarter last year, driven largely by unrealized losses on its cryptocurrency holdings.
The company posted $1.7M in revenue for the quarter ended June 30, up 89% year over year but still a fraction of what it needs to reach profitability.
Digital assets came under pressure during the April-to-June quarter as investors pulled back from riskier holdings amid interest rate uncertainty and geopolitical tensions.
Truth API is the new revenue bet
In a conference call with investors, interim CEO Kevin McGurn said the company is refocusing on its core social media business and walking back much of its recent expansion into unrelated industries.
The centerpiece of that pivot is Truth API, a licensed data feed that gives Wall Street firms faster access to Truth Social posts split seconds before the public sees them.
For high-frequency trading algorithms, milliseconds can mean serious money, and Trump's posts frequently move markets by announcing tariff policy, executive orders, and national security decisions.
More than 10 customer agreements have been signed since the service launched on Aug. 1, mostly with high-frequency trading firms paying between $60K and $100K a month.
Collectively, those customers could generate between $7M and $12M annually, two to three times the total revenue the company took in for all its businesses last year.
"We're in the early innings."
Kevin McGurn, Trump Media & Technology Group
McGurn said the company is also in talks with news organizations, AI companies, and large language model developers about joining the service.
Ethical and financial clocks are ticking
Democratic Sens. Elizabeth Warren and Adam Schiff have urged the SEC to investigate whether the arrangement violates federal securities law, calling it a shocking abuse of the office of the President.
Trump Media has dismissed the criticism, with McGurn noting that other social media companies offer similar data services. Beyond the ethics questions, the company faces a hard financial deadline.
Lenders holding $1B in convertible notes can demand early repayment on Nov. 30, right after the midterm elections. Truth Social's daily active users stood at just 261.3K in July, down 40% year over year, compared to X's 123.5M daily active users over the same period.
The platform's appeal is almost entirely tied to Trump's own posting activity, and it's unclear how much trading value the API holds once he leaves office in 2028.
The company has never reported a quarterly profit, and its stock has fallen from a high of around $62 at its 2024 debut to about $9 today.
