The parent company of Donald Trump’s Truth Social platform lost nearly $406m (£314m) in the first three months of the year while generating a little over $870,000 in revenue, according to financial filings with the US Securities and Exchange Commission.
The Trump Media and Technology Group (TMTG) reported a net loss of $405.9m for the first quarter of 2026, covering January to March. Net sales rose 6% year on year to roughly $870,000–$900,000, but the figure remains negligible for a company with a market valuation that has swung wildly.
Non-cash losses dwarf revenue
The overwhelming majority of the quarterly loss – $368.7m – came from non-cash items, principally unrealised losses on digital assets and equity securities. The company’s press release broke down the components: “Unrealised losses on digital assets, digital assets pledged, and equity securities ($368m), accreted interest ($11.5m), and stock-based compensation ($11.8m).”
Non-cash losses mean the company is writing down the value of assets it still holds, not spending actual cash. In TMTG’s case, the biggest driver is its heavy exposure to cryptocurrencies, particularly bitcoin.
Crypto holdings take a hit
Most of the losses stem from $3.5bn in bitcoin purchases the company made in 2025 when the cryptocurrency was surging in value and TMTG announced plans to establish a “bitcoin treasury”. The company also owns a significant quantity of Cronos (CRO) tokens.
At the end of the first quarter of 2026, TMTG held 9,542 bitcoin and 756 million Cronos tokens. According to the company’s filings, the entire crypto portfolio had a market value of approximately $821.9m against a cost basis of $1.24bn – an unrealised loss of around $423m.
The 9,542 bitcoin were valued at $767m, with an average acquisition price of $118,529 per coin. That position alone shows an unrealised loss of roughly $358.8m. The 756 million CRO tokens were valued at $54m, with a cost basis of $113.95m, producing a $60.6m loss.
Bitcoin fell by about a third from its 2025 highs and dropped 22% in the first three months of 2026 – its worst quarterly performance since 2018. The sharp decline directly hammered TMTG’s balance sheet.
TMTG had previously announced plans to allocate up to $2.5bn toward cryptocurrency investments as part of its financial services expansion under the Truth.Fi brand.
Revenue and operational cash flow
Truth Social, the company’s flagship platform, generated only $900,000 in revenue during the quarter. Advertising accounts for 98% of that income; there is no subscription revenue model. TMTG also operates Truth+ (a video streaming service) and Truth.Fi (financial services).
Despite the net loss, the company reported its fourth consecutive quarter of positive operating cash flow – $17.9m in Q1 2026 – indicating that its core operations are generating cash even at an early revenue stage.
User engagement on Truth Social remains lower than on major rivals such as Facebook and X, with a significant proportion of activity driven by Donald Trump’s own profile. Most users also maintain accounts on other platforms.
Merger plans and leadership changes
The reported losses come five months after TMTG announced a definitive merger agreement with TAE Technologies, a private California-based nuclear fusion company, in a deal valued at over $6bn. The all-stock transaction, announced in December 2025, aims to create one of the world’s first publicly traded fusion companies. TAE Technologies is working to develop fusion energy to power artificial intelligence datacenters, though nuclear fusion has yet to produce more energy than it consumes.
Upon completion, shareholders of both companies are expected to own roughly 50% of the combined entity. TMTG would become the holding company for Truth Social, Truth+, Truth.Fi, and TAE’s various businesses. Devin Nunes, then TMTG’s chief executive, and Michl Binderbauer, TAE’s chief executive, were slated to serve as co-CEOs of the merged group. The company intends to file a registration statement on Form S-4 with the SEC for the merger.
TMTG is also considering spinning out Truth Social and Truth+ into a separate publicly traded company, a decision it will weigh alongside the TAE merger.
Kevin McGurn was appointed interim chief executive on 22 April 2026, succeeding Devin Nunes. McGurn, who has more than two decades of experience in media and advertising technology, said in a statement that TMTG “is using its strong balance sheet and positive operating cashflow to continue growing all our businesses and platform infrastructure”. He added, without elaboration, that Truth Social “remains a bastion of free speech with innovative enhancements coming soon”.
The leadership change followed recent board departures, including former US Trade Representative Robert Lighthizer and director Eric Swider. TMTG is classified as a “controlled company” under Nasdaq rules because a single trust holds more than 50% of voting power, allowing it to opt out of certain governance requirements.
Historical losses and stock volatility
In 2024 TMTG reported a net loss of $186m on $3.6m in sales. In 2025 the loss widened to over $712m on roughly $3.7m in revenue. In the first quarter of 2024, before the bulk of its crypto purchases, the company lost $327.6m on revenue of $770,500.
TMTG closed Q1 2026 with total assets of $2.2bn, nearly tripling from $759m a year earlier, largely because of its digital asset holdings. Financial assets reached approximately $2.1bn, comprising cash, restricted cash, short-term investments, equity securities, a note receivable, accrued interest, and digital assets. Total debt as of December 2025 was reported at $0.94bn.
The company’s stock, which trades under the ticker DJT, has been highly volatile. Its 52-week high was $27.78, with a low of $8.30 as of early May 2026. By December 2025 the shares had fallen 69% for the year.
McGurn said in a statement: “Even as we work toward advancing our proposed merger with TAE Technologies as quickly as possible, we’re identifying new growth opportunities and new ways to increase shareholder value.”
