Grindr Inc. (GRND)
NYSE:GRND
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Grindr
(NYSE:GRND)
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Rating:72Outperform
Price Target:
$14.00
▲(6.14% Upside)
Action:Reiterated
Date:05/09/26
GRND scores well primarily on improving profitability and strong cash generation, reinforced by a bullish earnings call with raised 2026 guidance and continued buybacks. The main offset is balance-sheet fragility (very thin and historically negative equity), while technicals are positive but appear overextended and valuation is mid-range based on the provided P/E and lack of dividend data.
Positive Factors
Cash generation
Sustained, high-quality cash generation (OCF well above net income and FCF ~ $145M TTM) provides durable internal financing for product investment, buybacks, and working capital. Strong cash conversion reduces reliance on external funding and supports long-term capital allocation flexibility.
Negative Factors
Balance-sheet fragility
Very thin shareholders' equity and historically negative equity reduce financial cushion against shocks, constrain flexibility for larger M&A or sustained buybacks, and increase vulnerability to unexpected costs or revenue setbacks despite low nominal debt levels.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Sustained, high-quality cash generation (OCF well above net income and FCF ~ $145M TTM) provides durable internal financing for product investment, buybacks, and working capital. Strong cash conversion reduces reliance on external funding and supports long-term capital allocation flexibility.
Read all positive factors
Grindr (GRND) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.33B
Dividend YieldN/A
Average Volume (3M)1.45M
Price to Earnings (P/E)20.7
Beta (1Y)0.68
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. Volume2,197,212
30 Day Avg. Volume1,448,242
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 Cap0.98
Enterprise Value/Revenue4.78
Enterprise Value/Gross Profit6.43
Enterprise Value/Ebitda15.16
Forecast
1Y Price Target
$18.00Price Target Upside36.47% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.54
Revenue Forecast (FY)$536.07M
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 an...
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 | 150.19M | 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
12.99
Negative
12.36
Positive
13.43
Negative
Market Momentum
0.09
Positive
43.60
Neutral
2.49
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 13.19 is below the 20-day moving average (MA) of 13.70, above the 50-day MA of 12.99, and below the 200-day MA of 13.43, indicating a bearish trend. The MACD of 0.09 indicates Positive momentum. The RSI at 43.60 is Neutral, neither overbought nor oversold. The STOCH value of 2.49 is Positive, 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 | $928.48M | 8.23 | 17.85% | ― | -2.25% | 4.06% | |
74 Outperform | $4.57B | -66.83 | -3.04% | ― | 33.60% | 63.13% | |
72 Outperform | $2.33B | 20.71 | 123.31% | ― | 31.02% | ― | |
70 Outperform | $5.07B | 92.18 | 150.20% | ― | 9.36% | 5134.71% | |
67 Neutral | $4.51B | -557.66 | -6.24% | ― | 25.81% | -2156.00% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $406.95M | 1.90 | -108.85% | ― | -11.42% | -20.07% |
* Technology Sector Average
GRND
Grindr
12.83
-10.89
-45.91%
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Grindr Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Grindr Reports Strong 2025 Results, Expands Buyback Program
Positive
Feb 26, 2026
On February 26, 2026, Grindr Inc. reported that full-year 2025 revenue grew 28%, with net income reaching $95 million and Adjusted EBITDA at $196 million, surpassing the company’s annual revenue level at the time of its public listing three ...
Regulatory Filings and ComplianceShareholder Meetings
Grindr Sets 2026 Virtual Annual Meeting, Proxy Deadlines
Neutral
Feb 24, 2026
Grindr Inc. has scheduled its 2026 Annual Meeting of Stockholders for Tuesday, June 2, 2026, at 8:00 a.m. Eastern time, to be held virtually via webcast, with the record date to be specified in its forthcoming proxy statement. The company advanced...
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.