DJTWW, Trump Media & Technology Group Corp.

Will it survive?

• Can it pay its interest? -21.0×
  Does not cover its interest
  Operating income ($573M) ÷ interest expense $27M
  What this means

  A full year of operating profit didn't cover the interest bill. This is the zombie zone: the business depends on refinancing, asset sales, or forbearance to service its debt.

• How heavy is the debt, net of cash? $508M
  Net debt against an operating loss
  Cash $135M + ST investments $305M − debt $947M
  What this means

  Netting $440M of cash and short-term investments against $947M of debt leaves $508M owed, with no operating profit this year to measure it against — understand that combination before anything else about the company. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.

• How long is cash tied up? -814d
  Negative, funded by others
  DSO 24 + DIO 0 − DPO 838 days
  What this means

  Days cash is tied up between paying suppliers and collecting from customers. A negative cycle is a quiet moat: suppliers and customers fund the operation (Buffett's “float”), the company grows on other people's money. (Little or no inventory, a services / asset-light model, so the inventory leg is ~0.)

Is it a good business?

• Return on invested capital -18%
  Below average
  NOPAT ($453M) ÷ invested capital $2.5B (debt + equity − cash)
  Industry peers: median -124%
  What this means

  The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.

• Owner-earnings margin 385%
  Positive this year, negative across the cycle
  latest $14M = operating cash $15M − maintenance capex $574K (positive this year), after an earlier loss stretch (4-yr median -1650%)
  Industry peers: median -161%
  What this means

  What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 385% of revenue this year, a -1650% median across 4 years. Treating stock comp as the real expense it is (less $59M of SBC) leaves ($45M).

• Are earnings backed by cash? $15M
  Loss, but cash-generative
  Net income ($712M) · cash from operations $15M
  What this means

  The company reported a net loss, so a conversion ratio isn't meaningful. What matters then is whether operations still threw off cash, here, they did.

How is the cash used?

• Where do the earnings go? 378%
  Returned more than it generated
  Dividends + buybacks $54M ÷ Owner Earnings $14M
  What this means

  The company returned more than it generated: against $14M of Owner Earnings, $54M (378%) went back to shareholders, $0 dividends, $54M buybacks — the excess came from the balance sheet or borrowing, not the year's operations. But the buybacks barely exceed stock issued to employees ($59M SBC), net of dilution, little was truly returned. Sustained, that pattern draws down cash or adds debt; the net-debt line above shows where it stands.

• Investing or harvesting? 0.08×
  Harvesting
  Capex $574K ÷ depreciation $7M
  What this means

  Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 0 of 3 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

• Adequate size Miss
  Revenue ≥ $2B · $4M
  What this means

  Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.

• Strong liquidity Miss
  Current ratio ≥ 2× · 1.23×
  What this means

  Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.

• Conservative debt Miss
  Debt ≤ working capital · $947M vs $223M WC
  What this means

  Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.

• Moderate price —
  P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price
  What this means

  Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $-1.41/share (latest year $-2.57), the averaged base the calculator's gate runs on, and book value is $5.95/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2022–2025

Whether the record’s returns held, and what the capital reinvested earned.

• Profitable years 1 of 4
  What this means

  Lost money in 3 year(s), look at what happened there before trusting the average.

• Operating margin −984% → −10351% (2-yr avg ends)

  In the filing’s words Input costs rose and the filing says it could not fully pass them on — which is where this margin compressed.

  What this means

  Through the cycle the operating margin slipped — about −984% early to −10351% lately, median −5141% — competition or costs are biting in.

• Reinvestment, incremental ROIC returns capital
  What this means

  The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.

• Worst year 2025 · −15560.8% op. margin
  What this means

  Operations went underwater in 2025, understand why before trusting the good years.