Trump Media & Technology Group reported a second-quarter loss of $238 million, more than 10 times its deficit from a year earlier, as the company retreats from a costly expansion into crypto, online betting and other ventures unrelated to its core social media business.
The company behind the Truth Social platform said the loss covered the three months through June, with per-share losses widening to 86 cents from 8 cents a year earlier. Shares fell 8% in regular trading before slipping further in after-hours trading following the earnings release.
Newly installed chief executive Kevin McGurn told analysts that a yearlong effort to branch into several new industries would now be largely abandoned in favor of the platform’s original mission as a forum for users to share their views.
“We made the disciplined choice to pivot in order to invest more time and resources in our most important initiatives,” McGurn said. “We will say no to things or change course as warranted.”
Central to the turnaround strategy is Truth API, a service offering Wall Street trading firms faster access to top posters on the platform, including President Donald Trump, whose posts frequently move markets by breaking major U.S. policy shifts. The company said it has signed more than 10 customer agreements for the service.
The recently launched paid access product has drawn scrutiny from government watchdogs, who have characterized Trump Media as a vehicle for the president to profit during his second term. Democratic lawmakers have pledged to investigate the paid service should they win control of Congress in the coming midterm elections.
The pivot marks a sharp reversal from earlier ambitions. Over the past year, Trump Media had pushed into cryptocurrency and online gaming, moves that expanded its footprint but weighed heavily on its balance sheet as digital-asset prices declined.
By narrowing its focus, the company aims to concentrate resources on Truth Social and monetization tools such as Truth API rather than dispersing capital across unrelated business lines.
The results underscore the challenges facing a company whose fortunes remain closely tied to a single high-profile user. How investors respond to the streamlined strategy, and whether the new revenue services can offset heavy losses, will shape the company’s trajectory in the quarters ahead.