This article first appeared on GuruFocus. Release Date: November 09, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Revenue grew 205% year over year to $3 million and 78% sequentially, driven by contracted recurring subscription revenue from Truth API, Truth Plus, and advertising. Legal
Revenue grew 205% year over year to $3 million and 78% sequentially, driven by contracted recurring subscription revenue from Truth API, Truth Plus, and advertising.
Legal expenses plummeted from over $20 million per quarter in the first half of 2026 to $2.4 million this quarter, significantly reducing overhead.
The company ended the quarter with $2.5 billion in total assets and $2.3 billion in financial assets, providing substantial liquidity and flexibility.
The SEC declared the Form S-4 effective for the TAE Technologies merger, a major regulatory milestone, with the merger on track to close by the end of 2026.
Adjusted EBITDA loss improved 65% sequentially to $12.3 million, reflecting better cost management and operational efficiency.
Negative Points
Net cash used in operating activities was $28.4 million year-to-date through Q3 2026, compared to $2.6 million cash provided in the prior year period.
The company has nearly $1 billion in outstanding convertible notes coming due, and the amount noteholders will seek for repayment is still uncertain.
No share repurchases were completed during the third quarter despite a $400 million buyback authorization, with only $40 million previously used.
The planned digital token distribution was discontinued due to challenges in obtaining necessary information from objecting beneficial owners, potentially disappointing some shareholders.
The merger with TAE Technologies will approximately double the share count from about 300 million to 600 million shares, potentially diluting existing shareholders.
Q: How much of the $1 billion convertible note due November 30 does the company expect to repay, and how will it fund those repayments? A: General Counsel Scott Glabe said the company cannot specify the repayment amount yet because noteholders have until the end of the month to elect repayment. Interim CEO Kevin McGern added that TMTG holds $2.3 billion in financial assets and plans to use a mix of cash and credit to repay the notes, while avoiding additional equity issuance and preserving as much Bitcoin as possible for its yield strategy.
Q: What are management’s main priorities ahead of the TAE Technologies merger close? A: Interim CEO Kevin McGern said closing the merger is the top priority, citing the SEC’s effectiveness declaration for the Form S-4 as a major milestone. Other priorities include resolving the convertible note situation without diluting shareholders, retaining Bitcoin for the yield program, and growing the media business through content acquisition, advertising sales, and data licensing, with a focus on a strong fourth quarter.
Q: What should shareholders do ahead of the TAE Technologies merger? A: General Counsel Scott Glabe urged shareholders to vote. The Form S-4 was declared effective on Thursday, the proxy statement was filed on Friday, November 6, and the special meeting is set for December 14, 2026, for holders of record as of November 2. He said more details on voting logistics will follow.
Q: What will the TAE float look like after the merger is completed? A: CFO Philip Juhon said the transaction is a merger of equals and the combined company’s share count will roughly double the current float, from about 300 million shares outstanding today to approximately 600 million shares on a fully diluted basis.
Q: Was any share buyback completed in the third quarter? A: CFO Philip Juhon said the company has an approved $400 million share repurchase authorization and has previously used $40 million of it, but no repurchases were completed during the third quarter.
Q: What is the latest update on the planned February 2 digital token? A: General Counsel Scott Glabe said TMTG has decided to discontinue the planned token distribution, citing challenges in obtaining necessary information from shareholders classified as objecting beneficial owners (OBOs). Instead, the company will offer benefits and incentives, such as discounts and promotions, to bona fide shareholders of record as of February 2, 2026, as management deems reasonable and feasible.
Q: What drove the third-quarter revenue growth? A: CFO Philip Juhon said revenue of approximately $3 million rose 78% sequentially and over 200% year over year, driven primarily by the media segment. Growth came from subscription revenue tied to Truth API and Truth Plus, higher advertising revenue on Truth Social, and increased management fees from the Truth Phi ETF offerings. Truth API, launched August 1, is a business-to-business data feed licensing low-latency access to public posts from certain top Truth Social accounts.
Q: How did the company’s cost structure change in the third quarter? A: CFO Philip Juhon said total operating expenses, excluding digital asset gains and losses, were $26.5 million, down 45% sequentially and 37% year over year. The improvement was driven by legal fees falling to $2.4 million from over $20 million in the second quarter, following the July 2026 resolution of the remaining SPAC-related matters.
Q: What drove net income and the digital asset gains in the third quarter? A: CFO Philip Juhon said net income was $409.7 million, up over 270% sequentially from the second-quarter loss, driven almost entirely by mark-to-market gains on pledged digital assets and related securities. The company held about 15,649 Bitcoins as of September 30, of which roughly 11,385 were pledged to its Bitcoin Yield Management Program, plus 7 million IBIT shares. The $378.1 million digital asset gain largely reflected Bitcoin’s 42% rise to about $84,000 from about $59,000 at June 30, while a $60 million investment gain reflected IBIT’s 42% price increase.
Q: What was the strategy behind running a national television ad during the Eternal City Tip-Off in Rome? A: Interim CEO Kevin McGern said the company continually looks for opportunities to grow its market, similar to its support for UFC 250 on the South Lawn of the White House. The Eternal City Tip-Off, a basketball game between Notre Dame and Villanova in Rome, offered a high concentration of Catholic and faith-based audiences and tied sports with international expansion. He said TMTG will continue partnering with outlets like Fox and Everwonder Studios on national spots through the fourth quarter and into 2027.
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