Jan 18, 2024 - Business

Trump's Truth Social kept losing money in Q3 2023

Donald Trump standing in front of an American flag

Photo by Alexi J. Rosenfeld/Getty Images.

Former President Trump's social media platform, Truth Social, generated just $1.07 million in revenue during the third quarter of 2023, according to SEC filings.

The big picture: Truth Social has become Trump's main means of communicating with the masses, but it hasn't yet leveraged his political popularity into a a financially sustainable business.

By the numbers: Truth Social's parent company, Trump Media & Technology Group, generated a total of $3.38 million in revenue for the first nine months of 2023.

  • It reports a $49 million net loss during the same period, including around $26 million in Q3.
  • The company's cash-on-hand dwindled to just $1.8 million at the end of September, compared to $2.4 million at the end of June, while its total liabilities climbed nearly 72% to $60.5 million.

A spokesperson for TMTG declined to comment on the financials.

The bottom line: Truth Social's financial future is tied to a proposed reverse merger with a blank-check company called Digital World Acquisition Corp., which raised around $300 million in its IPO.

  • That deal was first signed in October 2021, but has faced numerous challenges. Last fall, DWAC shareholders agreed to extend the merger closing date to this coming September, which also is shortly before the presidential election.
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