0001140361-26-020229
SEC filingRevenue grew 6% to $0.87M but operating loss widened to $293.5M due to $244M unrealized digital asset loss.
Revenue for the three months ended March 31, 2026 increased 6% to $0.87M from $0.82M in the prior-year period. The growth was driven by subscriptions to the Patriot Package on Truth+ and management fees from Truth.Fi ETF offerings, partially offset by a decline in advertising revenue on Truth Social. Cost of revenue surged 346% to $1.5M, primarily due to a $1.0M barter arrangement expense and higher content license and data center costs for Truth+. As a result, gross margin turned deeply negative.
Research and development expense decreased 33% to $8.4M, driven by lower stock-based compensation ($3.1M vs. $7.6M). Sales and marketing expense increased 39% to $0.7M due to higher user engagement and ad placement costs. General and administration expense rose 51% to $37.9M, mainly from a $13.2M increase in legal fees (to $24.1M), partially offset by lower stock-based compensation. Depreciation and amortization increased marginally to $1.9M.
The most significant impact was a $244.0M unrealized loss on digital assets and digital assets pledged, compared to zero in the prior year, due to a decline in the spot price of bitcoin and Cronos. This drove total operating costs and expenses to $294.4M, leading to a loss from operations of $293.5M, compared to a loss of $39.5M in the prior-year period.
Other income/expense included interest income of $7.2M (down 10% due to use of cash for bitcoin purchases), interest expense of $11.5M (up from $0.2M due to convertible notes and loan assumed from WCT acquisition), investment loss of $108.2M (primarily unrealized losses on equity securities), and litigation settlement income of $0.2M. The net loss before income taxes was $405.8M, compared to $31.7M in the prior year.
The MD&A does not provide a formal segment breakdown, but qualitative discussion reveals three main revenue streams: Truth Social (advertising), Truth+ (subscriptions), and Truth.Fi (management fees). Advertising revenue declined, while subscription and fee-based revenues grew. Truth+ is still in early stages with beta subscription (Patriot Package) and ongoing content licensing. Truth.Fi launched SMAs and ETFs, generating management fees. The company is also pursuing a digital token initiative and prediction market (Truth Predict). The bitcoin and digital asset strategy incurred significant unrealized losses, but management views it as a core part of their treasury strategy.
Management states that current cash and cash equivalents ($2.08B total liquidity) are sufficient to fund operations for at least the next 12 months. Key priorities include growing Truth Social, expanding Truth+ (including monetization via advertising and subscriptions), pursuing strategic M&A (notably the pending merger with TAE Technologies and potential spin-off of certain assets into a new public company, SpinCo), and potentially refinancing convertible notes due in November 2026. No specific revenue or earnings guidance is provided. The company continues to evaluate the SEPA for equity financing but sold no shares under it in Q1 2026. Risks include volatility in digital asset prices, ability to generate sustainable revenue, and execution of the merger and spin-off plans.
As of March 31, 2026, Trump Media held $249.1M in cash and cash equivalents, $30.5M in restricted cash, and $207.4M in short-term investments. Equity securities (primarily ETFs and common stock) totaled $554.1M, and digital assets (bitcoin and Cronos) were $700.1M, with additional $135.6M pledged as collateral. Total assets were $2.24B, down from $2.63B at year-end 2025, driven by unrealized losses on digital assets and equity securities. Total debt stood at $958.6M, consisting of $953.3M in convertible notes (0% coupon, 4% OID, effective rate 4.80%) and $5.3M in term loans. Stockholders' equity was $1.25B, reflecting accumulated deficit of $4.06B. The convertible notes mature May 29, 2028, with a holder put option on November 30, 2026.
No material purchase commitments (e.g., supply or capacity agreements) were disclosed. The company has operating lease obligations totaling $3.6M undiscounted ($3.2M present value) through 2029. Debt future minimum payments are $989.0M, including $958.1M current (mainly the convertible notes put option). Litigation contingencies are described but no amounts accrued. The company is involved in multiple legal proceedings, with potential for material cash outflows, particularly the Orlando advancement case where $30.5M has been paid or agreed.
No share repurchases occurred in Q1 2026 (prior quarter had $8.3M in buybacks). No dividends were declared. Debt increased by $11.5M due to accretion on convertible notes and term loan interest. Capital expenditures were negligible at $7.3K (0.84% of revenue). The company's primary capital allocation is toward its digital asset treasury strategy, with significant holdings in bitcoin and Cronos, and use of derivative strategies (covered calls, puts) to manage volatility.
The company operates two reportable segments: Media (Truth Social, Truth+) and Truth.Fi (financial services/FinTech). For Q1 2026, Media revenue was $810.1K (advertising $617.5K, subscriptions $192.6K), down from $821.2K in Q1 2025. Truth.Fi generated $61.1K in management fees (new in 2026). Segment EBITDA was -$6.9M for Media and -$0.7M for Truth.Fi. The Corporate & Other category (digital asset strategy) contributed a net loss of $380.2M, primarily from unrealized losses on digital assets and investments. No geographic breakdown is provided.