Grindr Inc. (GRND)
NYSE:GRND
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Grindr
(NYSE:GRND)
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Rating:67Neutral
Price Target:
$11.50
▼(-12.81% Downside)
Action:Reiterated
Date:06/06/26
The score is supported by strong cash flow and a very positive, guidance-raising earnings update, but is held back by a fragile balance sheet (very thin equity) and poor near-term technical momentum (below key moving averages with negative MACD and oversold readings). Valuation appears reasonable rather than compelling at ~20.8x earnings.
Positive Factors
Strong cash generation
Consistent, rising operating cash flow and free cash flow provide durable internal funding for product investment, buybacks, and working capital. High cash conversion (operating cash flow ~1.89x net income) reduces reliance on external financing and supports strategic optionality over the medium term.
Negative Factors
Extremely thin equity / balance-sheet fragility
Very low shareholders' equity leaves limited cushion against adverse shocks and constrains financial flexibility for M&A, cyclical downturns, or larger investment programs. Even with low absolute debt, the stretched equity base amplifies solvency risk and limits the firm's capital structure optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent, rising operating cash flow and free cash flow provide durable internal funding for product investment, buybacks, and working capital. High cash conversion (operating cash flow ~1.89x net income) reduces reliance on external financing and supports strategic optionality over the medium term.
Read all positive factors
Grindr (GRND) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.04B
Dividend YieldN/A
Average Volume (3M)1.77M
Price to Earnings (P/E)22.6
Beta (1Y)0.74
Revenue Growth31.02%
EPS GrowthN/A
CountryUS
Employees142
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.50
Shares Outstanding177,725,980
10 Day Avg. Volume1,858,890
30 Day Avg. Volume1,766,475
Financial Highlights & Ratios
PEG Ratio-0.16
Price to Book (P/B)54.65
Price to Sales (P/S)5.84
P/FCF Ratio18.25
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue4.66
Enterprise Value/Gross Profit6.26
Enterprise Value/Ebitda16.25
Forecast
1Y Price Target
$18.33Price Target Upside38.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.54
Revenue Forecast (FY)$536.07M
Grindr Business Overview & Revenue Model
Company Description
Grindr Inc. runs an online social networking platform specifically designed for the LGBTQ demographic. Through this digital space, gay, bisexual, transgender, and queer individuals can interact, exchange experiences and media, and freely express t...
How the Company Makes Money
Grindr primarily generates revenue through (1) subscriptions and (2) advertising. Subscriptions: The company offers paid membership tiers (commonly marketed as Grindr XTRA and Grindr Unlimited) that unlock premium features beyond the free version ...
Grindr Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call presented a strongly positive operational and financial quarter: revenue (+38% to $130M), adjusted EBITDA growth (+44% to $58M) and raised 2026 guidance point to durable momentum driven by pricing, improved conversion/retention, ad expansion and product/AI initiatives (Edge, gAI). Notable risks include regulatory/age-assurance friction reducing potential MAU growth (~400k estimate), expected deceleration in H2 2026 absent a major product launch, and the multi-year effort to broaden direct brand advertising. On balance, the positive financial performance, margin strength, buybacks, product roadmap and AI productivity gains outweigh the flagged near-term headwinds.Positive Updates
Strong Top-Line Growth
Revenue grew 38% year-over-year to $130 million in Q1 2026, driven by core app strength and pricing changes; company raised full-year 2026 revenue outlook to at least $535 million (a $10 million increase vs February guidance).
Negative Updates
MAU Headwinds from Age-Assurance and Regulatory Actions
In a subset of international markets, new age-assurance rules have increased friction in sign-up/login flows and caused privacy-conscious adult users to drop out; management estimates MAU would have been ~400,000 higher on average in 2026 without these two factors (age-assurance friction and repressive country policies).
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Revenue grew 38% year-over-year to $130 million in Q1 2026, driven by core app strength and pricing changes; company raised full-year 2026 revenue outlook to at least $535 million (a $10 million increase vs February guidance).
Read all positive updates
Company Guidance
Grindr raised its 2026 outlook after a strong Q1: revenue grew 38% YoY to $130M, adjusted EBITDA was $58M (up 44%) with a 45% adjusted EBITDA margin and a 21% net income margin; app revenue +33% and ad revenue +68% in Q1. Management now expects at least $535M in revenue and at least $227M in adjusted EBITDA for 2026 (a $10M raise vs. February), with ads running in the mid‑to‑high‑teens% of revenue in 2026 (targeting ~15% in 2027). The company retired 8.3M shares in Q1 and has deployed ~ $140M of repurchases since December with $350M remaining authorization; repurchase settlements will run through Q3. Management said MAU would have been ~400k higher absent age‑assurance and country headwinds, payer penetration has risen from <6% to >8.5% (would be >10% if MAU were static), Edge is expected to command a significant premium and could capture ~0.5–1.0 percentage point of MAU over several years as a major 2027 growth driver, and planned investments will accelerate in Q2 while growth moderates in H2 (particularly Q4) due to comps and pricing anniversaries.Grindr Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
42
Neutral
Cash Flow
83
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 475.90M | 439.90M | 344.64M | 259.69M | 195.01M | 145.83M |
| Gross Profit | 354.24M | 318.48M | 257.06M | 192.23M | 143.74M | 108.47M |
| EBITDA | 136.49M | 145.12M | 107.17M | 21.30M | 70.09M | 68.23M |
| Net Income | 94.48M | 94.75M | -131.00M | -55.77M | 852.00K | 5.06M |
Balance Sheet | ||||||
| Total Assets | 470.92M | 531.03M | 479.09M | 444.60M | 438.83M | 449.73M |
| Cash, Cash Equivalents and Short-Term Investments | 23.81M | 87.05M | 59.15M | 27.61M | 8.72M | 15.78M |
| Total Debt | 20.00M | 401.01M | 293.91M | 344.25M | 365.34M | 137.12M |
| Total Liabilities | 470.08M | 484.02M | 610.66M | 462.89M | 434.78M | 186.49M |
| Stockholders Equity | 839.00K | 47.01M | -131.57M | -18.29M | 4.05M | 263.24M |
Cash Flow | ||||||
| Free Cash Flow | 145.28M | 140.77M | 94.01M | 31.92M | 45.06M | 30.63M |
| Operating Cash Flow | 149.93M | 141.52M | 94.96M | 36.15M | 50.64M | 34.43M |
| Investing Cash Flow | -9.55M | -8.62M | -5.34M | -4.23M | -5.58M | -3.80M |
| Financing Cash Flow | -371.12M | -105.01M | -58.85M | -13.04M | -52.11M | -56.25M |
Grindr Technical Analysis
Negative
13.19
Price Trends
12.84
Negative
12.18
Negative
13.09
Negative
Market Momentum
-0.52
Positive
42.00
Neutral
52.20
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GRND, the sentiment is Negative. The current price of 13.19 is above the 20-day moving average (MA) of 12.20, above the 50-day MA of 12.84, and above the 200-day MA of 13.09, indicating a bearish trend. The MACD of -0.52 indicates Positive momentum. The RSI at 42.00 is Neutral, neither overbought nor oversold. The STOCH value of 52.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GRND.
Grindr Risk Analysis
Grindr disclosed 58 risk factors in its most recent earnings report. Grindr reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Grindr Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $824.46M | 5.73 | 17.85% | ― | -2.25% | 4.06% | |
75 Outperform | $5.21B | 1.87 | 150.20% | ― | 9.36% | 5134.71% | |
75 Outperform | $5.00B | -194.14 | -3.04% | ― | 33.60% | 63.13% | |
69 Neutral | $4.80B | -188.51 | -6.24% | ― | 24.90% | -233.01% | |
67 Neutral | $2.04B | 22.59 | 123.31% | ― | 31.02% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $356.08M | -0.43 | -108.85% | ― | -11.42% | -20.07% |
* Technology Sector Average
GRND
Grindr
11.64
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-49.41%
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Grindr Corporate Events
Business Operations and StrategyShareholder Meetings
Grindr Expands Equity Incentive Plan Following Shareholder Approval
Positive
Jun 5, 2026
On June 2, 2026, Grindr Inc. held its 2026 annual meeting of stockholders, where investors approved an amendment and restatement of the company’s 2022 Equity Incentive Plan. The revised plan increases the pool of common shares available for ...
Business Operations and StrategyRegulatory Filings and ComplianceShareholder Meetings
Grindr Shareholders Approve Governance, Compensation at 2026 Meeting
Positive
Jun 4, 2026
On June 2, 2026, Grindr Inc. held its 2026 annual meeting of stockholders, where shareholders elected eight directors to serve until the 2027 annual meeting and ratified Ernst Young LLP as the independent registered public accounting firm for the...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.