Trump Media reports $409.7 million Q3 profit on digital asset gains against $3 million in revenue

Trump Media & Technology Group reported third-quarter net income of $409.7 million today, Nov. 9, its first profit since going public. A year earlier it lost $54.8 million.

The company's own earnings statement attributes the swing mainly to gains on digital assets and other holdings. Revenue for the quarter was $3.0 million.

Where the profit came from

Gains on digital assets, collateralized digital tokens and equity securities totaled $496.1 million, according to the results. Those were partly offset by a $54 million loss on derivatives, $11.9 million in interest expense and $9.4 million in stock-based compensation.

Adjusted EBITDA, which strips out those valuation swings, was a $12.3 million loss. Cumulative operating cash outflow through the end of September was $28.4 million.

The company ended the quarter with total assets of $2.5 billion, including about $2.3 billion in financial assets such as cash, securities and digital assets. Crypto Briefing, drawing on the results, put the bitcoin holding at roughly 15,649 coins as of Sept. 30, with about 11,385 pledged to a yield program. It also reported 7 million shares of BlackRock's iShares Bitcoin Trust.

Those gains are largely paper gains. The same accounting that lifted the quarter would cut the other way if bitcoin falls.

The business underneath

Revenue rose 205% from $1.0 million in the third quarter of 2025. The company said the growth was primarily driven by $1.8 million in subscription growth from Truth API and the Truth+ streaming service, plus $0.2 million in management fees from Truth.Fi ETF products.

Truth API launched Aug. 1. It sells a high-speed feed of posts from top Truth Social accounts to news organizations, trading firms and other services. NBC News reported that the feed costs between $60,000 and $100,000 per month.

Legal fees fell to $2.4 million from $20.3 million a year earlier. The company says its legacy legal matters are now resolved.

"Revenue grew 205% year-over-year on recurring subscription revenue, our cost structure is inherently leaner, and our balance sheet gives us real flexibility," said Kevin McGurn, the interim CEO.

The Truth API dispute

The feed is the most politically charged piece of the business. When Trump Media announced it in July, McGurn said "markets already move on Truth Social posts." He said high-frequency and algorithmic trading firms that want a low-latency, machine-readable feed could benefit from paying for it.

Sen. Elizabeth Warren of Massachusetts and Sen. Adam Schiff of California, both Democrats, call it "an outrageous abuse of the President's office for his personal benefit." In July they asked the Securities and Exchange Commission to "determine whether the proposed arrangement would violate applicable federal securities laws." That is a request from two senators, not a finding by any regulator.

Reuters reported last month that Bloomberg and two Wall Street trading firms had signed up. Bloomberg declined to comment to NBC News in October. The other two firms did not respond to requests for comment.

President Trump is the most prominent user of Truth Social. His revocable trust owns more than 41% of the company, according to S&P Capital IQ data. A June SEC filing says Donald Trump Jr. is the trust's sole trustee, with sole voting and investment power over its holdings.

The stock

DJT closed at $4.06 on Monday, a market value of $1.13 billion. The stock is down about 69% this year.

Shares fell 25% the day after the midterms, when Democrats won majorities in both chambers of Congress. Democrats have indicated plans to scrutinize businesses linked to the Trump family, and those majorities give them more investigative authority.

The Bloomberg Billionaires Index values Trump's stake at about $466 million and the family's net worth at $6.4 billion. Asked about his wealth in a recent interview, Trump told 60 Minutes, "I devote almost no time to my net worth."

The TAE merger

Trump Media is pursuing a merger with fusion company TAE Technologies. The SEC declared the S-4 registration statement effective Nov. 5, after amendments filed Oct. 28 and Nov. 3.

Shareholders of record as of Nov. 2 will vote at a special meeting on Dec. 14. Completion still requires shareholder, stockholder and regulatory approvals and other closing conditions. TAE drew the remaining $100.0 million available under its convertible note with Trump Media in October.

The company said it expects the merger to close before the end of 2026. The Dec. 14 vote is the next hard date. The first full quarter of Truth API sales will be measured against it, and so will the Democratic-led congressional scrutiny that has already hit the stock.