X to report first annual ad revenue growth since Musk’s takeover, data shows

Elon Musk attends a cabinet meeting at the White House in Washington, Monday, March 24, 2025. (Pool via AP)

Elon Musk-owned social media platform X is poised for the company’s first year of advertising revenue growth since its acquisition by the billionaire in 2022, data from research firm Emarketer showed on Wednesday.

Brands are returning to X at a time when Musk’s influence has grown in the Trump administration, with the Tesla TSLA.O CEO’s key role in the U.S. Department of Government Efficiency.

In 2025, X’s U.S. ad revenue is expected to grow 17.5% to $1.31 billion, while global ad sales are estimated to rise 16.5% to $2.26 billion, according to Emarketer.

“Some of this year’s growth is also being driven by fear. Many advertisers may view spending on X as a cost of doing business in order to mitigate potential legal or financial repercussions,” said Jasmine Enberg, principal analyst at Emarketer.

Enberg said X has managed to attract small- and medium-sized businesses, which the company has historically struggled with.

Social platforms including Meta Platforms-owned META.O Instagram and short-video app TikTok jostle for a larger share of the ad market that could be impacted by U.S. tariffs and economic uncertainty.

MoffettNathanson on Monday trimmed its U.S. advertising growth forecast to more than 5.8% from over 6.9%, citing a flurry of changes brought by the new administration.

“The whiplash of tariff announcements and federal job cuts have created heightened uncertainty for businesses and markets alike,” the brokerage said.

Emarketer’s data showed that even with the projected spending increase, X’s ad business is still smaller than it was when Musk acquired the company for $44 billion in late 2022.

As a private company, X does not disclose financial data. In 2021, it had reported ad revenue of $4.51 billion as a publicly traded company.

X did not immediately respond to a Reuters request for comment.

It had hired NBCUniversal advertising chief Linda Yaccarino as CEO in 2023.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Maju Samuel)