Grindr (GRND) AI Stock Analysis

• Market Cap: $4.51B
• Dividend Yield: N/A
• Average Volume (3M): 1.88M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.60
• Revenue Growth: 30.08%
• EPS Growth: -196.62%
• Country: US
• Employees: 142
• Sector: Technology
• Sector Strength: 78
• Industry: Software - Application
• EPS (TTM): 0.09
• Shares Outstanding: 195,884,550
• 10 Day Avg. Volume: 1,606,339
• 30 Day Avg. Volume: 1,875,556
• PEG Ratio: -0.18
• Price to Book (P/B): -23.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 33.38
• Enterprise Value/Market Cap: 0.41
• Enterprise Value/Revenue: 1.39
• Enterprise Value/Gross Profit: 6.93
• Enterprise Value/Ebitda: -14.73
• 1Y Price Target: $25.50
• Price Target Upside: 10.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 73 Outperform
• Price Target: $27.00 ▲(17.34%Upside)

Grindr's overall stock score of 73 reflects a combination of strong technical momentum and positive earnings call sentiment, offset by challenges in financial performance and valuation. The company demonstrates strong revenue growth and effective cash flow generation, but struggles with profitability and high leverage. The positive market momentum and strategic initiatives, including AI integration and health services expansion, contribute significantly to the score, while valuation concerns and financial instability pose risks.

Positive Factors

Financial Confidence

GRND announced a buyback program of up to $500MM, indicating confidence in their business.

Product Development

Grindr Inc. is executing on its robust product roadmap, introducing new products and features, which supports strong top-line growth and industry-leading margins.

Revenue Growth

Grindr reported a 35% year-over-year revenue growth in the fourth quarter, driven by strong user engagement and rising payer conversion.

Negative Factors

EBITDA Performance

Fourth quarter EBITDA was below estimates, affected by investments into advertising, product, and AI.

Market Turmoil

GRND shares have been resilient amid tariff related market turmoil, showing a significant increase.

Share Dilution

The redemption of warrants resulted in a 17% dilution of Grindr's share count, impacting shareholders.

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 its subscription-based model and in-app advertising. The app offers a premium service known as Grindr XTRA, which provides users with additional features such as ad-free browsing, unlimited blocks and favorites, and advanced filters for a monthly fee. Additionally, Grindr offers another premium tier called Grindr Unlimited, which includes even more exclusive features such as incognito browsing and the ability to unsend messages. Alongside subscriptions, Grindr monetizes its large user base through targeted advertising, partnering with brands to deliver ads that resonate with its audience. These revenue streams are further supported by strategic partnerships with companies and organizations that align with its brand values and community focus.

Grindr Financial Statement Overview

Summary

Grindr shows strong revenue growth and cash generation capabilities, with a robust gross profit margin. However, the company faces challenges with profitability and leverage, as indicated by negative net income and a high debt-to-equity ratio. While cash flow metrics are favorable, the financial instability reflected in negative equity and high leverage presents risks. Overall, Grindr is in a growth phase, but needs to address profitability and leverage concerns to ensure long-term sustainability.

Income Statement

Grindr demonstrates positive revenue growth with a TTM revenue of $363.2 million, up from $344.6 million in the previous year. The gross profit margin remains strong at 73.4% for TTM. However, the company struggles with profitability, showing a negative net profit margin of -26.0% and a declining EBITDA margin. The consistent revenue growth is a positive indicator, but the lack of net profitability is a significant concern.

Balance Sheet

The company shows a moderate equity ratio of 47.0%, indicating a balanced approach to using its equity to finance assets. However, it has a high debt-to-equity ratio due to significant total debt, reflecting potential leverage risk. Return on equity is not meaningful due to negative equity in recent periods, highlighting financial instability. While asset levels have grown, the company's leverage and negative equity are challenges.

Cash Flow

Operating cash flow is positive and growing, reaching $98.1 million TTM. Free cash flow is also strong at $93.3 million, showing a 2.4% growth from the previous year. The operating cash flow to net income ratio is positive, indicating effective cash generation despite net losses. The company's ability to generate cash is a positive aspect, though continued cash flow growth is essential to support overall financial health.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
363.23M	344.64M	259.69M	195.01M	145.83M	104.46M
	Gross Profit
266.49M	257.06M	192.23M	143.74M	108.47M	73.04M
	EBIT
99.39M	92.60M	55.45M	10.24M	23.71M	-124.92K
	EBITDA
-49.17M	-75.76M	21.30M	70.09M	68.23M	-20.85M
	Net Income Common Stockholders
-94.58M	-131.00M	-55.77M	852.00K	5.06M	-20.85M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
33.84M	59.15M	27.61M	8.72M	15.78M	41.39M
	Total Assets
463.36M	479.09M	444.60M	438.83M	449.73M	503.70M
	Total Debt
364.50M	293.91M	344.25M	365.34M	137.12M	193.93M
	Net Debt
330.67M	234.76M	316.64M	356.61M	121.34M	152.54M
	Total Liabilities
469.00M	610.66M	462.89M	434.78M	186.49M	247.45M
	Stockholders Equity
-5.64M	-131.57M	-18.29M	4.05M	-5.89M	-10.96M
Cash Flow		Free Cash Flow
93.32M	94.01M	31.92M	45.06M	30.63M	-812.36K
	Operating Cash Flow
98.13M	94.96M	36.15M	50.64M	34.43M	-345.36K
	Investing Cash Flow
-4.81M	-5.34M	-4.23M	-5.58M	-3.80M	-278.76M
	Financing Cash Flow
141.54M	-58.85M	-13.04M	-52.11M	-56.25M	280.25M

Grindr Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 23.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GRND, the sentiment is Neutral. The current price of 23.01 is below the 20-day moving average (MA) of 23.69, above the 50-day MA of 21.97, and above the 200-day MA of 17.05, indicating a neutral trend. The MACD of 0.19 indicates Positive momentum. The RSI at 48.52 is Neutral, neither overbought nor oversold. The STOCH value of 23.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GRND.

Grindr Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GRND	73 Outperform	$4.51B	―	-63.52%	―	30.08%	-196.62%
LYFT	71 Outperform	$6.22B	108.84	8.56%	―	27.32%	―
FRSH	68 Neutral	$4.41B	―	-6.85%	―	20.46%	39.37%
MQ	68 Neutral	$2.52B	53.64	5.01%	―	-8.44%	―
ZETA	66 Neutral	$2.86B	―	-11.93%	―	40.36%	73.68%
INTA	66 Neutral	$4.33B	―	-4.16%	―	17.70%	61.98%
Sector *	62 Neutral	$11.80B	10.08	-7.46%	2.99%	7.37%	-8.21%

Grindr Corporate Events

Grindr Announces Board Changes and New Audit Chair

On June 3, 2025, Grindr Inc. announced the resignation of Gary Horowitz from its Board of Directors, with Chad Cohen appointed as his replacement and as Chair of the Audit Committee. Cohen, a seasoned finance executive, brings extensive experience from his previous roles at Zillow, Adaptive Biotechnologies, and Capella Space, and is expected to contribute significantly to Grindr’s growth and strategic direction. The company also revised its Non-Employee Director Compensation Policy, adjusting annual cash retainers and equity awards for board members.

The most recent analyst rating on (GRND) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on Grindr stock, see the GRND Stock Forecast page.

Grindr Director Gary Horowitz to Step Down

On April 24, 2025, Gary I. Horowitz informed Grindr Inc. that he will not seek re-election at the company’s 2025 annual stockholders meeting. His decision was not due to any disagreements with the company’s operations, policies, or practices.