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X Projects First Ad Revenue Growth Since Musk's 2022 Takeover

Growth driven by returning advertisers and small-business expansion, but revenue remains far below pre-acquisition levels.

'X' logo is seen on the top of the headquarters of the messaging platform X, formerly known as Twitter, in downtown San Francisco, California, U.S., July 30, 2023. REUTERS/Carlos Barria/File Photo
Image
This combination of pictures created on Oct. 10, 2023, shows (left) SpaceX, Twitter and electric car maker Tesla CEO Elon Musk during his visit at the Vivatech technology startups and innovation fair at the Porte de Versailles exhibition center in Paris, on June 16, 2023, and (right) the new Twitter logo rebranded as X, pictured on a screen in Paris on July 24, 2023. The EU’s digital chief Thierry Breton warned Elon Musk on Oct. 10, 2023, that his platform X, formerly Twitter, is spreading “illegal content and disinformation,” in a letter seen by AFP. (Alain Jocard/AFP via Getty Images/TNS)
Elon Musk has remained a fixture in Washington since the start of President Donald Trump's second term.

Overview

  • X's U.S. advertising revenue is projected to grow by 17.5% in 2025, reaching $1.31 billion, with global ad sales expected to rise 16.5% to $2.26 billion.
  • The recovery is partly attributed to Elon Musk's political influence as a senior adviser in the Trump administration, prompting some advertisers to return.
  • Fear of legal or financial repercussions, including potential lawsuits from Musk, has also motivated some advertisers to resume spending on the platform.
  • X has successfully attracted small- and medium-sized businesses, a demographic it historically struggled to engage, contributing to its growth.
  • Despite the projected gains, X's ad revenue remains significantly below its 2021 level of $4.51 billion, reflecting ongoing challenges in rebuilding its business.