X recorded a better-than-expected revenue increase during the Christmas period, despite ongoing advertiser concerns and public backlash following the U.S. election. However, the platform remains under financial strain due to its significant debt obligations.
According to reports, financial data shared by banks looking to offload Elon Musk’s acquisition debt suggests that X generated approximately $1.2 billion in adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) in 2024. This includes around $400 million in EBITDA from $710 million in revenue during the final quarter, reflecting an election-driven uptick in activity.
While this indicates a stabilisation in earnings despite an advertiser exodus, the platform's annual debt interest payments, also estimated at $1.2 billion, suggest that the platform likely failed to turn a profit in 2024. This comes despite Musk’s extensive cost-cutting measures, including an 80% reduction in staff.
Musk has reportedly urged X employees to improve performance, with recent reports citing an internal email stating that “user growth is stagnant, revenue is unimpressive, and we’re barely breaking even.” Musk has denied sending the message, but the platform’s daily active user count has remained at 250 million since November 2022, while initiatives such as X Premium have failed to drive significant revenue.
The platform's financial outlook remains uncertain, but reports indicate that advertisers such as Amazon are resuming spending on the platform, while Apple is reconsidering its decision to withdraw ads. The shift comes as former U.S. President Donald Trump returns to power, potentially influencing corporate strategies towards the platform. Musk’s involvement in global political movements could further impact the platform’s trajectory.
While Musk’s wealth offers some flexibility, the platform still needs to become self-sustaining. Possible funding options include integrating revenue from xAI, Musk’s artificial intelligence venture, which relies on X as a data source. However, despite a slight improvement in revenue towards the end of 2024, the platform remains in a precarious financial position.