Trump Media suffers a $19.2 million loss on Election Day and shares rise

NEW YORK (AP) — The parent company of Donald Trump's social networking site Truth Social lost $19.2 million in its most recent quarter, according to an earnings report released the same day he reclaimed the presidency .

According to its surprise Election Day earnings report, Trump Media and Technology Group reported late Tuesday that much of that loss was due to more than $12 million in legal fees as well as a decline in revenue. The company's stock price rose sharply on Wednesday, but that was driven more by Trump's loss to Vice President Kamala Harris in reclaiming the presidency than by its earnings outlook.

Trump founded the company after he was banned from Twitter and Facebook following the Capitol riots on January 6, 2021. The Sarasota, Florida-based company has suffered losses and struggled to generate revenue.

Revenue for the three-month period ended Sept. 30 was just over $1 million, down nearly 6% from a year ago. Trump Media, based in Sarasota, Florida, has lost more than $363 million so far this year.

Trump Media said some of its costs are related to the launch of its new TV streaming service called Truth+.

CEO and former Republican U.S. Rep. Devin Nunes said in a statement that the company “continues to explore additional growth opportunities,” such as mergers with other companies that would “benefit from Trump Media's technology and branding.”

The company said in a regulatory statement that its success depends in part on the “reputation and popularity of President Donald J. Trump.”