X Revenue rose 17% in Q3 2025, signalling a fragile recovery under Elon Musk even as deep losses and heavy debt continue to challenge the platform’s long-term stability.
X Revenue Climbs as Platform Attempts a Financial Comeback
TheInterviewTimes.com | December 13, 2025: Elon Musk’s social media platform X has reported a sharp rise in quarterly income, with X Revenue jumping more than 17% in the quarter ending September 30. The platform generated around $752 million, marking its strongest quarterly top-line growth since Musk acquired Twitter in 2022 and rebranded it as X. Despite this improvement, the company remains loss-making, burdened by deep restructuring costs, persistent advertiser concerns and the weight of acquisition-related debt.
The rebound comes after two volatile years marked by advertiser exits, content moderation disputes and fluctuating product priorities. With X now integrated into Musk’s AI venture xAI, the company is attempting to stabilise its financial base and signal momentum to lenders, investors and global brands.
X Revenue Growth vs Heavy Losses: A Split Financial Picture
People familiar with the company’s internal numbers say sales for the first nine months of 2025 have crossed $2 billion, a significant turnaround from the steep slump following Musk’s takeover. Yet the platform posted a net loss of roughly $577 million in the third quarter due to restructuring charges and interest expenses tied to its heavy debt load.
Adjusted EBITDA rose about 16% year-on-year to $454 million, indicating that the core operations are becoming more stable even as one-off costs drag down profitability. Analysts caution that the improvement in X Revenue must eventually translate into sustained profit if the company is to keep pace with rising financing obligations.
The year-on-year recovery is particularly notable because brand spending had sharply declined through 2023 and early 2024, with several advertisers pausing campaigns over concerns regarding brand safety and unpredictable policy changes.
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Advertisers Slowly Return as Market Forecasts Improve
Research firm eMarketer forecasts that X’s global ad sales will reach about $2.26 billion in 2025, up 16–17% from the previous year — the platform’s first annual increase under Musk’s ownership. In the United States, its largest market, X is expected to generate around $1.3 billion in advertising revenue this year.
While still far below Twitter’s pre-acquisition totals, the new upward trajectory shows that some advertisers are returning and new revenue streams — including subscriptions, creator features and AI-driven tools — are beginning to support overall X Revenue.
Industry experts say this recovery remains fragile. As regulatory scrutiny increases and competitors expand their AI-integrated content tools, X must demonstrate clarity in its brand-safety commitments and product roadmap to sustain advertiser trust.
xAI Merger and Leadership Shift Shape the Road Ahead
X’s financial outlook is now intertwined with Musk’s fast-growing AI startup, xAI, which completed a full all-stock acquisition of the social network earlier this year. The restructuring valued X at about $33 billion, significantly below the $44 billion Musk paid in 2022 but far higher than its 2023 lows.
By folding X into xAI, lenders from the original leveraged buyout now gain exposure to the AI company’s rapidly expanding revenue pipeline. Analysts believe this provides a financial cushion for X while it continues rebuilding ad demand and reducing dependence on short-term adjustments.
The leadership landscape remains unsettled. Former CEO Linda Yaccarino stepped down in July 2025 after nearly two years at the helm. Her exit raised fresh questions about the company’s governance structure, its long-term strategy and Musk’s direct operational involvement. Internally, teams continue to grapple with evolving priorities between social media functions, subscriptions and deep integration with xAI’s model development.
Outlook: Recovery Visible, But Major Risks Remain
Forecasts indicate that 2025 could mark the platform’s first annual increase in advertising income under Musk — a symbolic milestone in its post-acquisition journey. However, with around $12 billion in debt still on the books and quarterly losses driven by restructuring and interest costs, the turnaround is far from complete.
For Musk and xAI, the task ahead is to convert rising X Revenue into durable profit while balancing free-speech advocacy, advertiser requirements, compliance challenges and rapid AI integration. The next two quarters will be crucial in determining whether the current rebound is the beginning of a long-term recovery or another temporary surge in an unpredictable reinvention cycle.
Key Takeaways
- X Revenue rose 17% in Q3 2025, totalling about $752 million.
- The platform remains loss-making, with a $577 million net loss.
- Advertisers are slowly returning, boosting confidence for 2025.
- Integration with xAI offers financial stability but adds strategic complexity.
- Sustained profitability will depend on rebuilding trust and reducing debt pressure.