Twitter on Friday reported a lower-than-expected revenue and a net loss for the second quarter, blaming its ongoing battle to close a takeover bid by Tesla CEO Elon Musk and a weakening online advertising market.

The social networking platform said its revenue dropped 1 percent year on year to $1.18 billion, compared with $1.19 billion a year ago. The revenue was lower than analyst estimates of $1.32 billion and reportedly Twitter's biggest miss ever.

Twitter made a net loss of $270 million in the second quarter, versus a profit of $65.6 million made in the same period last year.

The earnings results came as Twitter continues to be locked in a legal battle with Musk over his U-turn over a $44 billion deal to purchase the company. The pending deal has worried Twitter's advertisers and caused chaos inside the company.

Twitter also blamed the revenue drop on advertising industry headwinds caused by broader economic challenges. Its advertising revenue rose just 2 percent to $1.08 billion, lower than Wall Street expectations of $1.22 billion.

"Twitter is now in the unenviable position of convincing advertisers that its ad business is solid regardless of how its court battle with Musk ends, and its Q2 earnings show that the platform has its work cut it out for it to do that," said Jasmine Enberg, principal analyst at research firm Insider Intelligence.

(With input from Reuters)