X has announced higher revenue results for Q3, projecting approximately $2.9 billion for the full year—a 10% increase from 2024. The platform generated $752 million in Q3 revenue, representing a 17% jump compared to the same period last year, according to reports from Bloomberg. This marks an improvement from Q2’s $707 million, suggesting that advertisers are gradually returning to the platform despite previous controversies surrounding Elon Musk’s leadership changes.
Advertiser Confidence Returns
The revenue climb indicates renewed advertiser confidence in X as a platform. While the exact contributors to this growth remain unclear—whether from increased advertising spend or premium subscriptions—the upward trend represents meaningful recovery. However, context matters: X’s projected $2.9 billion annual revenue remains substantially lower than Twitter’s pre-acquisition performance, when the platform generated $4.4 billion in 2022.
Strategic Positioning Through xAI Merger
The recent merger between X and xAI has fundamentally altered the platform’s financial outlook. With xAI reportedly seeking $15 billion in funding at a $230 billion valuation, X now benefits from shared resources and support. This strategic alignment potentially reduces pressure on X’s standalone revenue performance, allowing greater operational flexibility.
Despite these improvements, X’s revenue has declined 35% since Musk’s takeover. Additionally, annual debt servicing costs of approximately $1.2 billion keep the platform operating near break-even. Yet the Q3 results demonstrate that X remains viable and capable of recovery, positioning it for potential growth despite intensifying competition from Meta’s Threads.