X ad revenue slips 2.2% in Q2 2025 to $707 million

New Delhi: X, the social media platform owned by Elon Musk, reported a 2.2% sequential decline in advertising revenue in the second quarter of 2025, falling to about $707 million, according to news reports. The dip came despite a 20% year-on-year increase, pointing to a slowdown in recovery momentum.

The contraction reflects continuing challenges in stabilising the platform’s ad business. Research firm Sensor Tower’s data, reported in Social Media Today, indicated that the decline followed a short-lived lift earlier this year from political ad spending in the United States. That temporary boost has since receded, exposing underlying weaknesses in advertiser demand.

Industry analysts have highlighted several factors behind the performance, including hesitation from advertisers over brand safety, competition from Meta’s Threads, and a reduction in daily active users. While forecasts from eMarketer suggest X’s annual advertising revenue could grow 16.5% in 2025 to $2.26 billion, the second-quarter results underline the volatility of its recovery.

Reports also noted that under departing chief executive Linda Yaccarino, the platform recorded a 62% increase in US ad spending during the first half of 2025, as referenced in Yahoo Finance. However, these gains were insufficient to offset pressures from user attrition and eroding market share.

Historically, X’s ad sales have fluctuated significantly since Musk’s acquisition in 2022. According to Bloomberg and Reuters, revenue fell to $2.5 billion in 2023, well below pre-acquisition levels. Although 2025 has shown signs of stabilisation, projections remain at less than half of the company’s 2021 peak.