Topline
Trump Media & Technology Group, the parent of Truth Social, disclosed “material weaknesses” in its financial reporting controls—acknowledging the risk of errors in its financial statements—according to a new filing with the Securities and Exchange Commission.
President Donald Trump gestures while speaking during an executive order signing event in the White … More
Key Facts
Trump Media reported its quarterly earnings on Friday, disclosing a $31.7 million net loss on $821,000 in net sales with $758.9 million in cash and short-term investments and $9.8 million in debt.
In the filing, the company disclosed finding “material weaknesses” in its internal controls over financial reporting, citing a lack of formal accounting processes for complex transactions and insufficient personnel experienced in SEC reporting requirements.
As a result, Trump Media warned “there is a reasonable possibility” that “material misstatements” may have appeared in its financial filings.
The company says it has hired more accounting staff, brought in third-party consultants and begun formalizing its processes, but acknowledges it still has more work to do.
A spokesperson for Trump Media did not immediately respond to an inquiry.
Crucial Quote
“TMTG is committed to remediating the material weaknesses described above and continuing remediation efforts during 2025,” Trump Media stated in its filing, which was signed by CEO Devin Nunes and CFO Phillip Juhan.
Surprising Fact
Just six weeks before the disclosure, Nunes certified to the SEC that Trump Media’s internal controls “provide reasonable assurance” of accurate financial reporting.
Chief Critic
“Any time a company discloses a material weakness in terms of accounting, investors should absolutely pay attention,” said Michelle Leder, editor of footnoted, a site that analyzes what companies try to bury in SEC filings. Leder, who flagged the Trump Media disclosure to Forbes, added: “It’s often a precursor to an earnings restatement.”
Key Background
Trump Media went public in March 2024 through a merger with a blank-check company, more than two years after it was founded following Trump’s departure from the White House. In addition to Truth Social, it runs the streaming video service Truth+ and is expanding into financial services. President Donald Trump owns 115 million shares—about 58% of the company—worth $2.9 billion as of Friday’s close, through his revocable trust. While unrelated to Trump Media, Trump does have a history of financial record-keeping problems: He was convicted in May 2024 on 34 felony counts of falsifying business records, and the Trump Organization was found guilty of criminal tax fraud, scheming to defraud, conspiracy and falsifying business records in December 2022.
Tangent
Nunes earned $47 million in total compensation in 2024, though much of it is tied up in restricted stock he can’t access until 2027. Donald Trump Jr., who serves on the company’s board, was paid $813,000 last year—despite attending just two of its five meetings, according to an SEC filing. That compensation came as Trump Media reported a $401 million net loss on just $3.6 million in sales for the year.
Surprising Fact
Accounting firm BF Borgers, which had audited Trump Media, was charged with “massive fraud” by the SEC in May 2024 for failing to follow basic accounting standards across more than 1,500 filings. The firm, which audited over 500 public companies, was fined $12 million and banned for life from the industry.
Big Number
$5.5 billion. That’s Trump Media’s market capitalization as of Friday’s close.
Forbes Valuation
Forbes estimates Donald Trump is worth about $5.4 billion, with much of his wealth coming from his shares in Trump Media.
Editor’s Note
In November 2023, Trump Media sued 20 media outlets, including Forbes, for reporting that included calculations of its financial results while still a private company. The defendants have moved to dismiss the claims.
Further Viewing
Further Reading
Trump Media Executives Launch New SPAC Seeking $179 Million—And Target Crypto, Defense Sectors (Forbes)
Truth Social Hosted Party At Trump’s Mar-A-Lago (Forbes)
Trump-Linked SPAC Spent $10.8 Million On Legal Fees Amid Regulatory Probes (Forbes)
When It Comes To Truth Social, Republicans In Congress Aren’t Buying What Trump’s Selling (Forbes)
Trump’s Golf Courses Keep Pushing Legal Boundaries With Presidential Seal Markers (Forbes)
