New Delhi [India], May 10 (ANI): Trump Media & Technology Group Corp. on Friday posted a net loss of USD 405.8 million for the quarter ended March 31, compared to a USD 31.7 million loss in the same period last year, impacted primarily by unrealized losses on digital assets. The company's Net sales rose modestly to a little over USD 871,000 from over USD 821,000 a year earlier.

Trump Media & Technology Group Corp is the parent company of the social media platform Truth Social, owned by the US President Donald Trump.

The sharp increase in losses was largely attributable to a USD 244.0 million unrealized loss on digital assets and digital assets pledged, a new line item for the quarter with no comparable expense in same quarter a year ago. The company also recorded an USD 108.2 million investment loss, further weighing on the bottom line. Total operating costs and expenses surged to USD 294.4 million from USD 40.4 million in Q1 2025.

Cost of revenue climbed to USD 1.5 million from nearly USD 337,000 while general and administrative expenses increased to USD 37.9 million from USD 25.2 million. Research and development spending fell to USD 8.4 million from USD 12.6 million, with stock-based compensation within research and development declining to USD 3.1 million from USD 7.6 million. Total stock-based compensation expense across the business dropped to USD 11.8 million from USD 17.9 million.

Loss from operations widened to USD 293.5 million compared to USD 39.5 million a year ago. Interest expense also rose significantly to USD 11.5 million from around USD 187,000 while interest income declined slightly to USD 7.2 million from USD 8.0 million.

On a per-share basis, basic and diluted loss came in at USD 1.47, compared to USD 0.14 in the year-ago quarter. The weighted average basic and diluted shares outstanding increased to 276.7 million from 220.6 million, reflecting the impact of new issuances.

The company's financial results reflect a shift in its cost structure and asset composition, with digital assets now a material factor in quarterly earnings volatility. While top-line revenue saw a slight year-over-year increase, the scale of non-operating losses overshadowed any operational gains.

Management did not provide forward guidance in the filing. The substantial unrealized loss on digital assets underscores the exposure to crypto market fluctuations, which may continue to drive variability in reported earnings. (ANI)