Trump Media’s $409M Profit Dwarfs Its $3M Revenue

Key Takeaways

Non-Cash Digital Asset Gains Drive $409.7 Million Profit

Trump Media and Technology Group reported net income of $409.7 million for the third quarter ended Sept. 30, a reversal from a $54.8 million loss a year earlier. The company generated just $3 million of revenue in the period, meaning the quarter’s profit was roughly 138 times its sales.

The gap is explained by accounting. The company said the bulk of net income reflected non-cash items, chiefly gains on its digital assets and equity securities, rather than any sudden improvement in the underlying business.

Revenue rose 205% to $3 million from $1 million in the third quarter of 2025, according to the company’s earnings release and its quarterly filing with the SEC. The company attributed $1.8 million of the increase to subscription growth in its media segment, driven by Truth API, which launched Aug. 1, and by Truth+. A further $200,000 came from management fees on Truth.fi exchange-traded fund (ETF) products.

Interim CEO Kevin McGurn said revenue “grew 205% year-over-year on recurring subscription revenue.” For the first nine months of 2026, revenue was $5.5 million, up about 106% from $2.7 million. Unearned revenue on the balance sheet climbed to $5.6 million from $30,400 at the end of 2025, reflecting amounts billed or received ahead of service. Reliance on a single advertising platform also eased, falling to 31% of nine-month revenue from 85% a year earlier.

Trump Media said net realized and unrealized gains on digital assets, pledged digital assets and equity securities totaled $496.1 million in the quarter. Those were partly offset by a $54 million loss on derivatives, $11.9 million of accrued interest expense, $9.4 million of stock-based compensation and $4 million of investment expenses. In the income statement, a $378.1 million digital-asset gain and $60 million of investment income are the largest items.

Digital Asset Holdings Reach $1.36 Billion as Debt Mounts

The company’s non-GAAP adjusted EBITDA loss was $12.3 million, down from $29.1 million. The operating loss narrowed partly because legal costs collapsed. With legacy legal matters resolved, legal fees fell to $2.4 million from $20.3 million a year earlier, and general and administrative expense dropped to $13.4 million from $31.1 million. Sales and marketing spending moved the other way, rising to $1.9 million from $700,000.

The third-quarter gain follows large losses earlier in the year. Over the first nine months, Trump Media reported a net loss of $234.2 million, more than double the $106.6 million loss of the same period in 2025. The company used $28.4 million in operating activities over nine months, compared with $2.6 million provided a year earlier, which it linked mainly to legal expenses tied to the recently concluded legacy matters.

Total assets were $2.48 billion at quarter-end, with digital assets, pledged digital assets and equity securities making up about 68.3% of the total. Digital asset holdings, including those pledged, were about $1.36 billion, up from $1.08 billion at the end of 2025, after $278.2 million of purchases during the nine months. On the other side of the ledger, convertible notes payable were $976.8 million, and interest expense was $11.9 million in the quarter. Cash and cash equivalents were $182.3 million.

Attention now turns to the proposed merger with TAE Technologies. The SEC declared the registration statement effective Nov. 5, and shareholders will vote at a special meeting Dec. 14, with completion targeted for the fourth quarter, subject to approvals and closing conditions. In October, TAE drew the remaining $100 million available under its convertible note with Trump Media.