In the first earnings report as a publicly traded company, Trump Media and Technology Group, the owner of Truth Social, reported a loss of over $300 million. For the quarter ending on March 31, the company revealed a loss of $327.6 million, which included $311 million in non-cash expenses associated with its merger with Digital World Acquisition Corp. Despite the decline in revenue from the previous year, Trump Media emphasized its focus on long-term product development rather than immediate revenue generation.
Trump Media had gone public quickly and easily through its merger with Digital World Acquisition Corp., a special purpose acquisition company (SPAC). However, this action was delayed due to an auditing issue. The company terminated its auditor, BF Borgers, after being charged with fraud by federal regulators in early May. This action resulted in a delay in filing the earnings report. Prior to this incident, Trump Media had already gone through multiple auditors, including one that resigned in 2023 and another that was fired in March.
Shares of Trump Media rose 36 cents to $48.74 in after-hours trading following the release of the earnings report. Despite reaching a peak of nearly $80 in late March during pre-earnings trading, shares have since dropped below their initial listing price. The loss reported by Trump Media highlights the challenges faced by newly public companies as they navigate their first financial reporting season as publicly traded entities.
