Grindr (GRND) AI Stock Analysis

• Market Cap: $2.17B
• Dividend Yield: N/A
• Average Volume (3M): 1.13M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.60
• Revenue Growth: 28.97%
• EPS Growth: -4.18%
• Country: US
• Employees: 142
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.16
• Shares Outstanding: 184,734,120
• 10 Day Avg. Volume: 1,256,624
• 30 Day Avg. Volume: 1,129,797
• PEG Ratio: -0.18
• Price to Book (P/B): -23.85
• Price to Sales (P/S): 9.10
• P/FCF Ratio: 33.38
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 5.22
• Enterprise Value/Gross Profit: 7.00
• Enterprise Value/Ebitda: 15.90
• 1Y Price Target: $22.00
• Price Target Upside: 89.33% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.57
• Revenue Forecast (FY): $531.27M

• Rating: 53 Neutral
• Price Target: $12.00 ▲(3.27% Upside)

Grindr's overall stock score reflects a mixed financial performance with strong revenue growth but significant profitability challenges. Technical indicators suggest a bearish trend, and valuation metrics are weak due to negative earnings. The positive sentiment from the earnings call and the strategic appointment of a new CFO provide some optimism for future growth.

Positive Factors

Revenue Growth

A sustained 30% YoY revenue increase reflects durable monetization strength across subscriptions and ads. Persistent top-line growth supports reinvestment in product and marketing, increasing runway to scale ARPU and convert MAUs into stable recurring revenue over multiple quarters.

Cash Generation

Strong free cash flow growth and an operating cash flow to net income ratio above 1 indicate durable cash generation despite accounting losses. Reliable cash generation enhances financial flexibility for capex, product development, and debt servicing, reducing reliance on external financing.

Product Innovation (AI tier)

Introducing an AI-powered premium tier is a structural product expansion that can raise ARPU and diversify revenue away from ad cycles. If adopted by power users, it can create a higher-margin, differentiated offering supporting longer-term monetization and retention improvements.

Negative Factors

Profitability

Persistent negative net and operating margins signal the company has yet to translate strong gross margins into bottom-line profitability. Without sustained margin improvement or scale-driven operating leverage, losses could constrain reinvestment and shareholder returns over the medium term.

Balance Sheet / Equity

While leverage has improved, a low equity ratio and negative ROE indicate limited equity capital and recurring losses that erode shareholder buffer. This reduces the company's shock absorption and strategic optionality for M&A or large-scale international investment without raising new capital.

International Expansion

Under-prioritizing international markets limits TAM expansion and leaves growth concentrated in core regions. Weak localization and brand recognition in large markets like Brazil, Philippines and India constrain durable user and revenue diversification, increasing exposure to local ad cycles.

Grindr Business Overview & Revenue Model

Company Description

Grindr Inc. operates social network platform for the LGBTQ community. Its platform enables gay, bi, trans, and queer people to engage with each other, share content and experiences, and express themselves. It offers a free, ad-supported service and a premium subscription version. The company was founded in 2009 and is based in West Hollywood, California.

How the Company Makes Money

Grindr generates revenue primarily through a freemium model, where users can access basic features for free but can opt for premium subscriptions that offer additional functionalities. The key revenue streams include subscription fees from its premium service, Grindr XTRA, which provides users with enhanced features like advanced filtering options, ad-free browsing, and increased profile visibility. Additionally, Grindr earns revenue through advertising by partnering with brands that target the LGBTQ+ community, selling ad placements within the app. The company also engages in promotional partnerships and collaborations with relevant organizations and events, further contributing to its earnings. Overall, Grindr's diverse revenue model leverages both direct user payments and advertising income to sustain its operations and growth.

Grindr Financial Statement Overview

Summary

Grindr shows strong revenue growth and efficient cost management, as seen in its gross profit margin. However, profitability remains a significant challenge, with negative net income and EBIT margins. The balance sheet has improved in terms of leverage, but equity levels are low. Cash flow metrics are a bright spot, indicating strong cash generation capabilities.

Income Statement

Grindr's income statement shows a mixed performance. The company has achieved a consistent revenue growth rate, with a notable 6.87% increase in the TTM period. However, profitability remains a concern, as evidenced by negative net profit margins and EBIT margins in recent periods. The gross profit margin is strong at around 74.5%, indicating efficient cost management relative to revenue. Despite this, the negative EBITDA margin highlights challenges in operational efficiency.

Balance Sheet

The balance sheet reveals a moderate financial position. The debt-to-equity ratio has improved significantly in the TTM period, dropping to 0.21 from negative figures in previous years, indicating better leverage management. However, the return on equity remains negative, reflecting ongoing profitability challenges. The equity ratio is low, suggesting limited equity financing relative to total assets, which could pose risks if debt levels increase.

Cash Flow

Grindr's cash flow statement shows positive trends, with a strong free cash flow growth rate of 22.92% in the TTM period. The operating cash flow to net income ratio is robust at 1.56, indicating effective cash generation relative to earnings. The free cash flow to net income ratio is also healthy, suggesting that the company is generating sufficient cash to cover its net losses. These metrics highlight a solid cash flow position despite profitability issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	411.55M	344.64M	259.69M	195.01M	145.83M	104.46M
Gross Profit	306.63M	257.06M	192.23M	143.74M	108.47M	73.04M
EBITDA	135.07M	107.17M	21.30M	70.09M	68.23M	27.01M
Net Income	-49.36M	-131.00M	-55.77M	852.00K	5.06M	-13.07M
Balance Sheet
Total Assets	439.19M	479.09M	444.60M	438.83M	449.73M	503.70M
Cash, Cash Equivalents and Short-Term Investments	6.33M	59.15M	27.61M	8.72M	15.78M	41.39M
Total Debt	15.00M	293.91M	344.25M	365.34M	137.12M	193.93M
Total Liabilities	368.23M	610.66M	462.89M	434.78M	186.49M	247.45M
Stockholders Equity	70.95M	-131.57M	-18.29M	4.05M	263.24M	256.26M
Cash Flow
Free Cash Flow	140.01M	94.01M	31.92M	45.06M	30.63M	25.59M
Operating Cash Flow	146.29M	94.96M	36.15M	50.64M	34.43M	26.06M
Investing Cash Flow	-6.97M	-5.34M	-4.23M	-5.58M	-3.80M	-264.46M
Financing Cash Flow	-172.11M	-58.85M	-13.04M	-52.11M	-56.25M	299.69M

Grindr Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 11.62 is below the 20-day moving average (MA) of 12.56, below the 50-day MA of 13.09, and below the 200-day MA of 17.15, indicating a bearish trend. The MACD of -0.47 indicates Positive momentum. The RSI at 21.85 is Positive, neither overbought nor oversold. The STOCH value of 15.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GRND.

Grindr Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YALA	81 Outperform	$1.13B	8.72	20.19%	―	5.80%	12.20%
ZETA	70 Outperform	$5.00B	-167.70	-3.92%	―	35.87%	85.20%
GTLB	68 Neutral	$6.27B	-136.75	-5.17%	―	27.35%	18.18%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
LYFT	55 Neutral	$6.87B	49.21	24.53%	―	14.90%	―
GRND	53 Neutral	$2.17B	―	-171.54%	―	28.97%	-4.18%
BMBL	51 Neutral	$409.24M	-1.84	-25.34%	―	-7.43%	61.36%

Grindr Corporate Events

Grindr Files Consolidated Disclosure on Material Agreement

The release states that information previously disclosed under Item 1.01 regarding an entry into a material definitive agreement has been incorporated by reference into Item 2.03 of the company’s filing. This procedural disclosure consolidates earlier material agreement details into another filing, does not announce new substantive information, and mainly serves to ensure the prior disclosures are formally included in the company’s disclosure record, offering stakeholders a clearer, consolidated filing trail with minimal operational impact.

The most recent analyst rating on (GRND) stock is a Hold with a $13.50 price target. To see the full list of analyst forecasts on Grindr stock, see the GRND Stock Forecast page.