DJT — Q2 2026 Financial Report Analysis

Trump Media & Technology Group (TMTG), the owner of Truth Social, lost $238.1 million in the second quarter of 2026 (April–June), up from a $20.0 million loss a year earlier. Almost none of that is about running a social network. About $188.4 million (79%) came from falling market prices of what the company owns: a $116.7 million paper loss on its bitcoin and Cronos tokens, plus a $71.8 million net investment loss driven by $73.7 million of unrealized losses on its bitcoin-related securities. The media business itself is still very small: revenue was $1.67 million, up 89% from $0.88 million, and the company's own measure of segment earnings (Segment EBITDA, earnings before interest, taxes, depreciation and amortization, excluding stock pay) was a $7.0 million loss, slightly wider than the $5.4 million loss a year ago.

At a glance

• $188.4 million of the $238.1 million loss was market marks — bitcoin, Cronos and bitcoin-related securities fell in value during the quarter. These are "unrealized" (paper) losses on assets still held; they reverse if prices recover, and grow if prices keep falling.
• $1.67 million of quarterly revenue — for a company with about $2.0 billion of total assets, Truth Social, Truth+ streaming and the Truth.Fi ETF funds together still bring in less than $7 million a year at this pace.
• $1.0 billion of convertible notes can be put back for cash on November 30, 2026 — holders have the right to demand repayment at face value on that date, which makes the next six weeks more important for the balance sheet than any change in Truth Social's ad sales.

Results at a glance

For the first half (January–June), revenue was $2.54 million (up from $1.70 million) and the net loss was $644.0 million (versus $51.7 million), of which $360.6 million was losses on digital assets and $180.0 million was investment losses — together about 84% of the half-year loss.

Two businesses in one set of accounts

The crypto treasury. At June 30 the company held about 11,554 bitcoin — 9,477.16 held directly plus 2,077.34 pledged to a counterparty for its options strategy — worth about $679.2 million at roughly $58,800 per coin, plus 756 million Cronos tokens worth $40.6 million. The directly held bitcoin had a cost basis of $1,006.0 million, an average of about $106,000 per coin, so those coins were worth about 45% less than the company paid. The filing attributes the quarter's $116.7 million digital-asset loss to "a decline in the ending spot price of bitcoin and Cronos on their principal markets from March 31, 2026 to June 30, 2026." On top of that, the company owns $480.5 million of "equity securities" — bitcoin-related funds and stocks — which lost $73.7 million in value in the quarter. The company also sells covered call and put options on part of its bitcoin (selling someone else the right to buy or sell at a set price in exchange for a fee) to earn income; that produced only $1.7 million of realized gains in Q2, versus $18.3 million in the first half.

The media and fintech business. Revenue rose $786,000 to $1.67 million. Management says the increase came from "provisioning of advertising services related to a barter agreement, subscriptions to the Patriot Package offered as part of our beta launch of Truth+, and management fees earned from our Truth.Fi ETF offerings, partially offset by a decrease in advertising revenue on our Truth Social platform." In other words, ad revenue on Truth Social itself — the original business — went down. Media segment revenue was $1.61 million and Truth.Fi (the company's line of ETFs and managed accounts) brought in just $55,400.

The operating cost line that moved most was legal fees: general and administrative expense rose $7.3 million to $35.9 million, because legal fees climbed $10.7 million to $25.6 million, "related to recently concluded legal matters related to events prior to our merger with DWAC in 2024" (DWAC was the blank-check company TMTG merged with to go public). Stock-based pay fell from $17.7 million to $8.1 million, which pulled research and development spending down $4.8 million to $8.2 million.

Below the operating line, interest income fell from $16.8 million to $7.2 million because cash was spent on bitcoin-related securities during 2025, while interest expense rose from $4.1 million to $11.7 million, mostly accreted interest on the $1.0 billion zero-coupon convertible notes issued in May 2025 (they pay no cash coupon, but were sold at a 4% discount, which is booked as interest over time).

What the headline numbers hide

• The underlying cash burn is small; the balance-sheet swings are large. Cash used in operating activities was $13.7 million for the whole first half (versus $7.4 million a year earlier). The company says the increase came mainly from the legal costs and from a switch to receiving option premiums in bitcoin instead of cash. Compare that with total equity, which fell from $1,646.9 million at December 31 to $1,022.9 million at June 30 — a 38% drop driven almost entirely by marks on crypto and crypto-linked holdings.
• Some losses are not purely "paper." The first-half digital-asset loss includes a $52.2 million loss from derecognizing bitcoin (removing it from the books when it was transferred or disposed of) and a $55.5 million loss on reacquiring bitcoin that had been pledged. These come from how the options and lending arrangements work, not just from price moves on coins sitting in a wallet.
• Part of revenue is barter. The revenue increase leans partly on advertising provided under a barter deal (ads exchanged for ads, no cash). In the first half, cost of revenue included $1.0 million tied to that barter arrangement. On a revenue base this small, that matters: the cash-paying part of the business grew less than the 89% headline.
• Q2 has some one-offs. Legal fees of $25.6 million relate to cases the company says are now concluded, so they should not recur at this level; the $1.8 million litigation settlement gain also won't repeat.
• The November put is the real liquidity test. Convertible notes are carried at $964.9 million and are classified as current liabilities because holders can require cash repayment of the $1.0 billion principal on November 30, 2026. Against that, the company had $215.5 million of cash, $30.7 million of restricted cash, $209.2 million of short-term investments and $480.5 million of bitcoin-related equity securities (plus the bitcoin itself and a $200 million note receivable from TAE Technologies). Management lists "potentially refinance our convertible notes if noteholders elect to exercise their right to cash repayment in November 2026" among its liquidity needs and says it expects current resources to fund operations for at least 12 months. Holders can alternatively convert at 28.8 shares per $1,000 of notes, about $34.72 per share.
• Dilution was minimal this quarter. Shares outstanding rose only from 276.7 million to 277.9 million, and no shares were sold under the company's $2.5 billion standby equity facility in the first half. The bigger potential share issues are conversion of the notes and the pending all-stock merger with TAE Technologies.

Takeaway: Trump Media is now, financially, a bitcoin holding company with a small media business attached: about 79% of the Q2 loss came from crypto and crypto-linked marks, while Truth Social's own ad revenue went down. The share price and the balance sheet will be decided by bitcoin's price and how the $1.0 billion November 30 note put is handled, not by the social network's growth.

What's next

Management gives no revenue or earnings guidance. What the filing does point to:

• More bitcoin. In July 2026 the company sold $159.6 million of bitcoin-related securities and used the proceeds to buy bitcoin directly; by July 31 it held about 14,139 bitcoin worth $890.5 million at $62,982 per coin. That makes Q3 results even more directly tied to bitcoin's price.
• The TAE merger. The pending all-stock merger with TAE Technologies (a fusion-energy developer) would change what the company is. A planned spin-off of Truth Social into a separate listed company was dropped on June 10, 2026; after the merger closes, the combined board will "evaluate potential strategic alternatives" for the legacy media units.
• New media products. Truth API, a paid business data feed of posts from top Truth Social accounts, launched August 1, 2026. The planned prediction-markets integration with Crypto.com was scaled back to a marketing agreement on August 7, 2026.

Our read: none of the new products is yet large enough to move the income statement, and core Truth Social ad revenue declined this quarter, so the media business is unlikely to change the picture soon. The two things to watch in the Q3 report are how the company handled the November 30 note put (refinancing, conversion, or cash repayment from its securities and bitcoin) and how much of the Q3 result comes from the bitcoin mark on a now-larger 14,000-coin position.