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Grindr
(NYSE:GRND)
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Rating:68Neutral
Price Target:
$16.50
▲(5.16% Upside)
Action:Downgraded
Date:10/02/26
The score is driven primarily by strong cash flow and improved profitability, reinforced by upbeat earnings-call execution and raised guidance. Offsetting these strengths are a weak balance-sheet signal (negative equity), a technically weak price/momentum profile, and mixed corporate-event risk (privacy settlement) despite the strategically positive healthcare acquisition.
Positive Factors
Strong Cash Generation
Strong operating and free cash flow, with free cash flow closely matching net income, indicates that reported profitability is supported by cash conversion. This provides internal funding for product investment, strategic initiatives, and capital returns while reducing reliance on external financing.
Negative Factors
Negative Stockholders’ Equity
Persistently negative stockholders’ equity limits balance-sheet flexibility even though current debt is low. It can reduce resilience during operating setbacks, constrain financing choices, and amplify the impact of future liabilities or investment needs on financial stability.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
Strong operating and free cash flow, with free cash flow closely matching net income, indicates that reported profitability is supported by cash conversion. This provides internal funding for product investment, strategic initiatives, and capital returns while reducing reliance on external financing.
Read all positive factors
Grindr (GRND) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.39B
Dividend YieldN/A
Average Volume (3M)1.76M
Price to Earnings (P/E)26.4
Beta (1Y)0.79
Revenue Growth32.38%
EPS GrowthN/A
CountryUS
Employees172
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.52
Shares Outstanding173,820,630
10 Day Avg. Volume1,759,708
30 Day Avg. Volume1,756,145
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 Cap1.24
Enterprise Value/Revenue5.80
Enterprise Value/Gross Profit7.76
Enterprise Value/Ebitda21.27
Forecast
1Y Price Target
$20.75Price Target Upside32.25% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.63
Revenue Forecast (FY)$542.58M
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 generates revenue primarily through a freemium model that combines paid subscriptions with advertising monetization. (1) Subscriptions: The company offers premium tiers (e.g., Grindr XTRA and Grindr Unlimited) that provide enhanced function...
Grindr Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call conveyed strong positive momentum: double-digit top-line growth (+33% revenue), expanding adjusted EBITDA (+27%) and a 42% margin, AI-driven productivity gains (~2.5x engineering output) that materially lower future hiring needs, and a raised full-year outlook. Management acknowledged deliberate higher near-term investment (Madonna activation, product development) and cautioned that growth will moderate in the back half of the year due to timing and comps, along with ongoing work to convert more advertisers to direct deals and to manage platform safety. Overall, the positives (revenue, margins, AI leverage, brand moments, buybacks) materially outweigh the manageable near-term headwinds and execution risks.Positive Updates
Strong Top-Line Growth
Total revenue of $138 million in Q2 2026, up 33% year-over-year, driven by product and ad momentum.
Negative Updates
Higher Operating Spend (One-Time and Ongoing)
Operating expenses excluding cost of revenue rose to $71 million from $53 million year-over-year (+34%), partly driven by one-time marketing for the Madonna partnership.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top-Line Growth
Total revenue of $138 million in Q2 2026, up 33% year-over-year, driven by product and ad momentum.
Read all positive updates
Company Guidance
Grindr raised full‑year 2026 guidance to approximately $540 million in revenue and $232 million in adjusted EBITDA (up from prior $535M/$227M), implying roughly a 43% FY adjusted‑EBITDA margin; Q2 results drove the upgrade with revenue of $138M (+33% YoY), adjusted EBITDA of $58M (+27% YoY) at a 42% margin, app revenue of $113M (+30% YoY) and advertising revenue of $25M (+44% YoY), while operating expenses (ex‑cost of revenue) were $71M versus $53M a year ago (including one‑time Madonna marketing tied to a Times Square activation of ~50,000 attendees). Management expects advertising to run in the mid‑ to high‑teens % of revenue for 2026 (normalizing near ~15% in 2027), anticipates H2 growth moderation as subscription pricing anniversaries and tougher comps lap, executed a $60M accelerated share repurchase in Q2 (with settlement activity into Q3) and retains about $300M available under a $900M buyback authorization, and cited AI‑driven gains (engineering output ~2.5x from July 2025–April 2026, avoiding roughly 200 engineers and ~$60M of annual cost) as a source of incremental operating leverage.Grindr Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
46
Neutral
Cash Flow
85
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 509.82M | 439.90M | 344.64M | 259.69M | 195.01M | 145.83M |
| Gross Profit | 381.00M | 318.48M | 257.06M | 192.23M | 143.74M | 108.47M |
| EBITDA | 138.88M | 145.12M | 110.76M | 21.30M | 69.04M | 68.23M |
| Net Income | 95.59M | 94.75M | -131.00M | -55.77M | 852.00K | 5.06M |
Balance Sheet | ||||||
| Total Assets | 462.84M | 531.03M | 479.09M | 444.60M | 438.83M | 449.73M |
| Cash, Cash Equivalents and Short-Term Investments | 6.50M | 87.05M | 59.15M | 27.61M | 8.72M | 15.78M |
| Total Debt | 389.60M | 400.59M | 293.91M | 344.25M | 365.34M | 137.12M |
| Total Liabilities | 474.58M | 484.02M | 610.66M | 462.89M | 434.78M | 186.49M |
| Stockholders Equity | -11.74M | 47.01M | -131.57M | -18.29M | 4.05M | 263.24M |
Cash Flow | ||||||
| Free Cash Flow | 148.76M | 140.77M | 94.01M | 31.92M | 45.06M | 30.63M |
| Operating Cash Flow | 153.22M | 141.52M | 94.96M | 36.15M | 50.64M | 34.43M |
| Investing Cash Flow | -15.51M | -8.62M | -5.34M | -4.23M | -5.58M | -3.80M |
| Financing Cash Flow | -250.71M | -105.01M | -58.85M | -13.04M | -52.11M | -56.25M |
Grindr Technical Analysis
Negative
15.69
Price Trends
15.25
Negative
14.93
Negative
13.63
Positive
Market Momentum
-0.33
Positive
37.43
Neutral
19.15
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 15.69 is above the 20-day moving average (MA) of 14.75, above the 50-day MA of 15.25, and above the 200-day MA of 13.63, indicating a neutral trend. The MACD of -0.33 indicates Positive momentum. The RSI at 37.43 is Neutral, neither overbought nor oversold. The STOCH value of 19.15 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $858.11M | 6.22 | 16.63% | ― | -3.75% | -3.09% | |
68 Neutral | $2.39B | 26.40 | 357.13% | ― | 32.38% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $419.86M | 36.21 | 1.96% | ― | 13.62% | ― | |
47 Neutral | $41.13M | -3.09 | -13.83% | ― | 14.63% | 11.10% | |
39 Underperform | $1.70M | >-0.01 | 46.25% | ― | -14.34% | 90.97% |
* Technology Sector Average
GRND
Grindr
13.73
1.06
8.37%
PHUN
Phunware
2.01
-0.71
-26.10%
ILLR
Triller Group
0.07
-6.13
-98.89%
API
Agora
4.49
0.86
23.69%
YALA
Yalla Group
5.60
-1.49
-21.02%
BLIV
BeLive Holdings
2.34
-1.31
-35.89%
Grindr Corporate Events
Business Operations and StrategyM&A Transactions
Grindr to Acquire PurposeMed, Expanding LGBTQ+ Healthcare
Positive
Sep 30, 2026
On September 30, 2026, Grindr Inc. announced its first major acquisition, agreeing to buy PurposeMed Inc., parent of the Freddie telehealth brand, for $250 million in cash and stock, with a possible $70 million earnout tied to 2027 performance. Fr...
Business Operations and StrategyLegal Proceedings
Grindr settles UK privacy group action, boosts safeguards
Negative
Sep 4, 2026
Grindr has settled a UK group action in the High Court of England and Wales concerning alleged violations of UK privacy laws affecting users up to early 2020, when the platform was owned and controlled by Chinese conglomerate Kunlun. The settlemen...
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.