Telegram reported a significant shift in its financial trajectory during the first half of 2025, with reven…

Lede

Telegram reported a significant shift in its financial trajectory during the first half of 2025, with revenues reaching $870 million. This figure marks a substantial 65% increase from the $525 million recorded during the same period in the previous year. Despite this robust growth in top-line revenue, the messaging platform posted net losses exceeding $220 million for the H1 2025 period. This financial result is a sharp departure from the first half of the previous year, when the company managed a net profit of $334. Much of the current revenue stream is closely tied to the platform’s cryptocurrency ecosystem. Specifically, $300 million—roughly one-third of the total revenue—was derived from exclusivity agreements associated with the cryptocurrency Toncoin (TON).

The company’s financial results reflect a complex relationship with its digital asset holdings. Telegram reportedly sold $450 million in TON during the year to date as part of its operational strategy. However, the gains from these sales and exclusivity deals were offset by significant write-downs of its holdings. The company targets a total revenue of $2 billion for the full year of 2025, suggesting a need for continued aggressive growth in the coming months. The divergence between rising revenues and deepening net losses highlights the volatility inherent in the company’s current business model, which integrates traditional communication services with cryptocurrency assets.

Context

The financial backdrop for Telegram is further complicated by international sanctions and substantial debt obligations. Reports indicate that $500 million of Telegram’s bonds are currently frozen within Russia’s central securities depository. This immobilization of assets, worth half a billion dollars, is a direct result of Western sanctions and underscores the platform’s continued exposure to the Russian financial system. In response to its ongoing capital requirements, Telegram has remained active in international debt markets. In May 2025, the company issued a $1.7 billion convertible bond offering. This sale reportedly attracted significant interest from existing high-profile backers, including the global investment firm BlackRock and Abu Dhabi’s investment firm, Mubadala.

In addition to raising new capital, Telegram has been active in managing its existing liabilities. The company reportedly bought back a majority of its bonds that were scheduled for maturity in 2026. These financial maneuvers are taking place against a backdrop of significant regulatory scrutiny and legal pressure. CEO Pavel Durov remains under formal investigation in France, where authorities are examining the platform’s alleged failure to address criminal activity, including the distribution of child abuse content. Telegram has informed bondholders that it is cooperating with French authorities, but it noted that a resolution to these legal challenges is likely a prerequisite for any future public market listing. This regulatory environment adds a layer of uncertainty to the company’s long-term financial planning.

Impact

The market performance of Toncoin has emerged as a primary driver of Telegram’s net financial outcomes. In 2025, Toncoin lost 69% of its market value, a decline that forced the company to significantly write down the value of its holdings. This massive depreciation is cited as the reason for the company’s transition from a minor profit last year to a net loss of over $220 million in the first half of 2025. The scale of Telegram’s involvement in the TON market is substantial; the reported sale of $450 million in Toncoin by the company accounts for approximately 10% of the token’s total market capitalization, which currently stands at roughly $4.6 billion.

• Exclusivity agreements linked to Toncoin generated $300 million in revenue during H1 2025.
• The 69% value drop in TON necessitated major balance sheet write-downs, impacting net profit.
• Telegram’s sales of TON represent a significant portion of the asset’s total $4.6 billion market cap.

The financial impact of these cryptocurrency assets creates a high-stakes environment for the company. While the exclusivity agreements provide a significant boost to the top-line revenue, the volatility of the underlying asset introduces significant risk to the bottom line. The current market capitalization of Toncoin remains a critical metric for Telegram, as its holdings in the token continue to influence its net earnings. As the company navigates these market conditions, the stability of the TON ecosystem will likely remain a decisive factor in whether Telegram can bridge the gap between its operational revenue growth and its overall profitability.

Outlook

Looking toward the remainder of 2025, Telegram has established a revenue target of $2 billion. Achieving this goal would require the platform to maintain or accelerate the 65% growth rate observed in the first half of the year. The company’s future remains inextricably linked to its ability to manage both its digital asset exposure and its complex legal environment. The ongoing investigation into Pavel Durov in France continues to be a primary concern for investors and bondholders. Telegram has indicated that more resolution regarding this case is necessary before it can proceed with plans for an initial public offering, making the legal outcome a critical milestone for the company’s evolution into a public entity.

Structurally, the company is working to stabilize its finances through strategic debt management. The successful May 2025 issuance of $1.7 billion in convertible bonds, backed by major firms like BlackRock and Mubadala, provides a capital cushion for the firm. Additionally, the proactive buyback of bonds maturing in 2026 suggests an effort to reduce short-term liabilities. However, the transition from a $334 net profit in the previous year’s first half to a substantial net loss highlights the fragility of its current fiscal state. The company’s outlook depends heavily on whether Toncoin can recover from its 69% value loss and whether the platform can diversify its revenue enough to mitigate the risks associated with cryptocurrency market volatility.