Trump Media & Technology Group 2026 Q3 Earnings Call

Thanks, Scott. Good afternoon, everyone. Right out of the gate, I want to address our post-election stock movement. If you've watched our ticker this past week, you saw a familiar pattern. We showed signs of a rebound leading into the midterms and dropped sharply the moment the votes were counted. Let's be candid. Sometimes our stock memes before it responds to traditional inputs. We've traded as a proxy for the news cycle and political sentiment, not for what we're actually building day-to-day. While the market was trading on headlines, the underlying business didn't flinch. Our balance sheet didn't change from Tuesday to Wednesday. Our product traction didn't reverse. If anything, the election was a stark reminder of why this company was built in the first place. Regulatory crackdowns and online censorship are always only one election away.

The political climate shifts fast, and having a truly independent, uncancelable platform isn't just a philosophy, it's our commercial moat. Let's look at the traditional inputs that sentiment hasn't caught up to yet. First, revenue grew 205% year-over-year to $3 million, and 78% sequentially. That is driven by contracted recurring subscription revenue. The launch of Truth API in August immediately validated our proprietary data has enterprise institutional value. Second, our cost structure has fundamentally shifted. With legal disputes behind us, legal expenses plummeted from over $20 million per quarter in the first half of 2026 to $2.4 million this quarter. That is operational capital staying inside our ecosystem. Third, I want to be very clear about our capital strategy, we ended the quarter with $2.5 billion in total assets and $2.3 billion in financial assets. That liquidity gives us immense flexibility.

We intend to use our cash and available credit to clean up our cap table and address our bond obligations. We are in the fortunate position of not needing to tap the public markets for equity. Although, we intend to continue to evaluate the tools available to us to maintain our financial flexibility in response to changing markets and our capital needs. Our focus, though, is protecting and growing shareholder value, not diluting it. Finally, the largest traditional input on our horizon, our merger with TAE Technologies. Last Thursday, the SEC declared our Form S-4 effective. This is a massive regulatory milestone. The definitive proxy materials are going out to shareholders of record as of November 2nd, and our special meeting is scheduled for December 14th. We fully remain on track to close by the end of the year.

When our merger closes, we solidify public market investor access to the future of energy in our country and around the world. Just like free speech, energy independence and energy dominance will be a legacy that lasts well beyond an election cycle or term of office. TAE Technologies, for its part, brings groundbreaking innovation in fusion energy and Empower Solutions, technology for super-intelligent data centers. Once our merger closes, public market investors will have direct access to a company working to advance American energy independence. Like free speech, energy independence is a legacy that will last well beyond any election cycle or term of office. Each of the businesses stands on its own merits, both reflecting the power of American innovation and our commitment to long-term shareholder value. We cannot control short-term trading sentiment.

What we can control is executing the merger, growing contracted recurring revenue, eliminating overhead, and safeguarding our capital structure. I encourage every shareholder to read the proxy materials and vote ahead of December 14th. With that, I'll hand it over to Phil to walk through the third quarter financial results, balance sheet, and treasury framework.

Bill. Thanks, Kevin. The company reported third quarter revenue of approximately $3 million, up 78% sequentially from the second quarter of 2026, and over 200% year-over-year from the third quarter of 2025.

The revenue growth occurred primarily in our media segment, driven by subscription revenue related to Truth API and Truth+, an increase in advertising revenue on our Truth Social platform, and higher management fees earned from our Truth.Fi ETF offerings. We will continue to develop these nascent revenue streams and new initiatives, including Truth API, which we launched on August 1st of this year. Truth API is a business-to-business data feed subscription that provides licensed, low-latency access to publicly available posts from certain top Truth Social accounts.

Excluding gains and losses from digital assets and digital assets pledged, we reported total operating expenses of $26.5 million in the third quarter, down 45% sequentially from the second quarter of 2026, and 37% year-over-year. Our improved cost structure was driven by meaningfully lower legal expenses in the quarter. Legal fees were just $2.4 million in 3Q, and that was down from over $20 million in 2Q, and that is following the July 2026 resolution of the remaining SPAC-related matters. Our net income is impacted by the price volatility of digital assets, particularly Bitcoin. Net income was $409.7 million for the quarter, up over 270% sequentially from the 2Q loss. The increase was driven almost entirely by the mark-to-market of our digital assets, our digital assets pledged, and related securities.

As of September 30th, we held approximately 15,649 Bitcoins, of which roughly 11,385 were pledged to our Bitcoin Yield Management Program, along with 7 million shares of IBIT. In July, we began transitioning the company's holdings into the Yield Management Program, using proceeds from a partial sale of our IBIT holdings to acquire 4,359 Bitcoins during the third quarter, consistent with the shift toward a more diversified third-party institutional approach to managing the digital asset components of our treasury. The $378.1 million reported gain on digital assets in the third quarter largely reflects the 42% increase in the price of Bitcoin to approximately $84,000 on September 30th, from approximately $59,000 on June 30th. In addition, we reported an investment gain of $60 million in the third quarter, primarily realized and unrealized gains on Bitcoin-related securities, up over 180% from our second quarter investment loss.

This reflects the 42% increase in IBIT's closing share price to roughly $47 on September 30th, from roughly $33 on June 30th. The year-over-year comparison is not as meaningful here, since we were still establishing our Bitcoin and related securities positions during the third quarter of last year. Adjusted EBITDA, earnings before interest, taxes, depreciation, and amortization, adjusted for certain non-cash items, was a loss of $12.3 million in the third quarter, a 65% improvement sequentially. We reported net cash used in operating activities of $28.4 million year-to-date through the third quarter of 2026, compared to $2.6 million of cash provided by operating activities in the prior year period.

The decline was due in part to management's decision to pause our digital asset yield strategy as we pivoted to third-party institutional management of our digital assets, as well as receiving yield income in Bitcoin rather than fiat dollars, which reduced operating cash flow relative to recent quarters. Importantly, we ended the third quarter with $2.3 billion of gross financial assets. That's primarily comprised of $182 million in cash, $31 million of restricted cash, $211 million in short-term investments, and $1.7 billion in Bitcoin and Bitcoin-related assets. This balance sheet strength gives us flexibility we need to address the nearly $1 billion in outstanding convertible notes as they come due. To highlight this point, our net financial assets, net of debt, were approximately $1.3 billion as of September 30th.