- Trump Media and Technology Group, which operates Truth Social, reported $58.2 million in losses in 2023 while generating only $4.1 million in revenue.
- The company’s auditor, BF Borgers CPA PC, warned that Trump Media’s operating losses “raise substantial doubt” about its ability to continue as a going concern.
- Trump Media acknowledged it expects to operate at a loss for the foreseeable future as it works to expand Truth Social’s user base and attract more advertisers.
Donald Trump‘s media company is facing financial struggles that have raised concerns about its viability, according to a new report.
Huge Losses Reported
Trump Media and Technology Group, which operates the Truth Social platform, lost $58.2 million in 2023 while generating just $41 million in revenue. The company’s largest expense was interest payments totaling over $39 million.
In a regulatory filing with the Securities and Exchange Commission, Trump Media disclosed these losses and an independent auditor warned they “raise substantial doubt” about the company’s ability to continue operations.
Cash Reserves Running Low
As of late 2023, Trump Media had about $26 million left in its cash reserves but total liabilities of $701 million. The company acknowledged it expects to operate at a loss for the foreseeable future as it tries to expand Truth Social’s user base and attract more advertisers.
Trump Media said it may need an additional $5-60 million in the near future to bridge its funding needs.
Stock Price Takes Hit
The concerning financials reported this week have taken a toll on Trump Media’s stock price. Shares dropped more than 20% on Monday after the losses were revealed.
The company went public just last week under the ticker DJT. While the stock surged initially, analysts warned its valuation would likely sink rapidly if Trump sold any of his shares.
