Trump Media Reports Major Financial Control Weaknesses Amid Losses

NEW YORK, NY — Trump Media & Technology Group, the parent company of Truth Social, has disclosed significant weaknesses in its financial reporting controls, according to a recent filing with the Securities and Exchange Commission (SEC). The company cited these weaknesses in a quarterly earnings report released on Friday, revealing a net loss of $31.7 million against net sales of $821,000.

In the filing, Trump Media acknowledged a lack of established accounting processes for complex transactions and insufficient personnel familiar with SEC reporting standards. The company stated that there is a “reasonable possibility” that material misstatements may have occurred in its financial filings.

To address these issues, Trump Media has hired additional accounting staff and engaged third-party consultants to improve its internal processes. “We are committed to remediating the material weaknesses described above and continuing our efforts throughout 2025,” the company said in its statement, which was signed by CEO Devin Nunes and CFO Phillip Juhan.

A spokesperson for Trump Media dismissed the report as misleading, asserting, “This is a routine disclosure we have made repeatedly in the past.” However, experts are urging investors to pay attention. “Any time a company discloses a material weakness in terms of accounting, investors should absolutely pay attention,” cautioned Michelle Leder, an analyst who flagged the disclosure.

Trump Media went public in March 2024 through a merger with a blank-check company, and it has since ventured into other services, including a streaming video platform. Amid financial challenges, the company is also focusing on expanding into fintech with products like Truth.Fi.

The firm ended the first quarter with $759 million in cash and investments, but its financial controls are still under scrutiny. CEO Devin Nunes indicated the company is focused on acquiring quality assets to ensure growth. While the firm’s current stock value is estimated at $5.4 billion, the impact of the recent disclosures remains to be seen, as its stock barely moved following the announcement.