Telegram's H1 2025 financials reveal a stark contradiction: revenue surged 65% to $870 million and operating profit approached $400 million, yet the company posted a net loss of $222 million. The culprits are a $500 million tranche of Russian corporate bonds frozen by sanctions and a sharp decline in Toncoin's price. The long-awaited IPO in New York is once again on hold.
$500M Bond Stuck in Moscow
Despite moving headquarters to Dubai, Telegram's debt structure still has a Russian anchor. Out of $1.7 billion total debt, about $500 million is held at Russia's National Settlement Depository (NSD). U.S. and EU sanctions on NSD make the bonds impossible to transfer or redeem, effectively locking a critical liquidity lever. The company has ample cash on hand but cannot use those bonds to optimize its liability structure — a hedging move that backfired.
Toncoin Volatility Wipes Out Profit
Beyond advertising and Premium subscriptions, Telegram generated roughly $300 million in H1 2025 revenue from Toncoin-related commercial agreements. Toncoin's price later fell to $1.90, forcing the company to revalue its holdings under international accounting rules and book a large paper loss. Operating profit was solid, but the crypto exposure makes final earnings highly sensitive to market swings. Auditors are cautious, adding friction to the IPO process.
Tiny Team, Giant Compliance Hurdles
Telegram serves nearly 1 billion active users with fewer than 100 full-time employees. That efficiency is rare and risky for a public listing. Founder Pavel Durov remains entangled in French litigation over content moderation and the Digital Services Act (DSA). Regulators in the EU and U.S. demand stronger governance and transparency. A hundred-person team juggling 1 billion users, sanctions risk, and crypto accounting leaves almost no margin for error.
I like Bitcoin. I firmly believe it is digital gold. I myself hold a large amount of Bitcoin, and Trump also holds a lot.
Durov's 2024 remarks fueled expectations of regulatory leniency, but the change in Washington did not relax Russia-related sanctions. Telegram must still confront frozen assets.
IPO Timeline Slips Again
The company had targeted $2 billion in full-year 2025 revenue and a New York listing. Now it must solve three problems: maintain sufficient cash flow without tapping the $500 million trapped bonds; dampen the direct impact of Toncoin price swings on earnings; and rapidly expand governance and legal teams to meet listing standards. 2026 is a stress test: if revenue keeps growing and TON stabilizes, Telegram may generate enough cash flow to survive the audit season.