Hiltzik: TMTG racks up huge losses - Los Angeles Times

Los Angeles Times

by Michael Hiltzik

March 3, 2026

AI-Generated Deep Dive Summary

Trump Media and Technology Group (TMTG), majority-owned by former President Donald Trump, reported staggering losses of $712.1 million in 2025 on just $3.7 million in revenue, marking a significant decline from the previous year’s $409 million loss. The company, which owns the struggling social media platform Truth Social, has seen its stock price plummet by 83% since its IPO, reaching a low of $11.08 in midday trading. Much of TMTG’s financial struggles stem from heavy investments in speculative ventures like cryptocurrency and nuclear fusion, with plans to raise $3.5 billion for crypto initiatives despite the platform’s limited user engagement. Truth Social, which currently has about 2 million active users compared to X’s 450 million and Facebook’s nearly 3 billion, is not a robust revenue generator. The platform primarily serves as a vessel for Trump’s political messaging, which is widely redistributed by other platforms, reducing its unique value. TMTG has rejected traditional performance metrics like user growth or ad revenue in favor of vague long-term goals, such as innovation and brand alignment with Trump’s reputation. The company’s financial missteps and reliance on speculative investments raise serious questions about its viability. While TMTG claims to focus on long-term innovation, its stockholder value continues to erode, reflecting broader concerns about the sustainability of a business model tied so closely to one person’s political fortunes. This lack of diversification and heavy investment in high-risk ventures leave TMTG vulnerable to further losses, particularly as public interest in Trump wanes. Despite these challenges, TMTG remains a key player in the tech and media landscape due to its ties to Trump and his influence over regulatory policies. The company’s financial struggles highlight the risks of aligning business success with political figures and their fluctuating

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Originally published on Los Angeles Times on 3/3/2026