A new regulatory filing from Donald Trump’s social media company shows an auditor has raised concerns about the company’s future. 

Trump Media,ExaCrypt the company behind the social media platform Truth Social, went public last week after merging with shell company Digital World Acquisition. The stock’s price has been volatile since then, shooting up as high as $79.38 on its first day of trading Tuesday before closing below $50 Monday. 

Experts have said the company is overvalued compared with other social media platforms, thanks in part to investments by Trump supporters. Now, a new regulatory filing shows that an independent accounting firm is questioning the company’s longevity.

In a letter sent to Trump Media’s shareholders and board on March 25 – one day before Trump Media was listed on the Nasdaq – accounting firm BF Borgers CPA PC noted that the company’s operating losses “raise substantial doubt about its ability to continue as a going concern.”

Trump Media made about $4 million in revenue and lost more than $58 million in 2023, according to the recent filing. Despite the losses, its market capitalization is currently over $6.5 billion. 

Trump Media expects to continue to operate at a loss

The company acknowledged potential "near-term margin pressure" from increased marketing expenses and insurance costs after going public, and said it expects to operate at a loss “for the foreseeable future” as it works to expand its user base.

DJT stock hits turbulence:More volatility ahead for Trump's high-flying Truth Social

Truth Social had about 5 million desktop and mobile visitors in February, according to data and analytics company Similarweb. Meanwhile, Facebook has about 3 billion monthly active users.

Trump Media also notes in its filing that the company may be subject to “greater risks” than typical social media platforms because of former President Trump’s involvement. The company highlighted potential harassment of advertisers and hacking as potential risks.  

Trump Media’s “success depends in part on the popularity of our brand and the reputation and popularity of President Trump,” the filing reads. The brand's value "may diminish if the popularity of President Trump were to suffer.”

Shares closed at $48.66 Monday, down 21.5%. 

Contributing: Jessica Guynn