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NYSE:GRND
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Grindr (GRND) AI Stock Analysis

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GRND

Grindr

(NYSE:GRND)

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Neutral 51 (OpenAI - 4o)
Rating:51Neutral
Price Target:
$14.00
▲(2.19% Upside)
Grindr's overall stock score is driven by strong revenue growth and positive earnings call sentiment. However, challenges in profitability, balance sheet stability, and technical indicators weigh down the score. The company needs to address operational inefficiencies and leverage to enhance financial health.
Positive Factors
Revenue Growth
Strong revenue growth indicates robust demand and effective monetization strategies, supporting long-term business expansion and market presence.
User Base Expansion
Growth in paying users enhances recurring revenue potential and reflects successful user engagement strategies, crucial for sustained financial performance.
Cash Flow Improvement
Improved cash flow strengthens financial flexibility, enabling investment in growth opportunities and resilience against economic fluctuations.
Negative Factors
Profitability Challenges
Ongoing profitability issues suggest operational inefficiencies, which could hinder long-term financial health and shareholder returns if not addressed.
Increased Operating Expenses
Rising operating expenses, driven by stock-based compensation, may pressure margins and limit reinvestment capacity, affecting future growth.
Leadership Transition
Leadership changes can create strategic uncertainty and disrupt continuity, potentially impacting execution of long-term business strategies.

Grindr (GRND) vs. SPDR S&P 500 ETF (SPY)

Grindr Business Overview & Revenue Model

Company DescriptionGrindr (GRND) is a leading social networking and dating application designed primarily for LGBTQ+ individuals. Launched in 2009, it facilitates connections between users through location-based services, allowing them to meet new people, date, or socialize. Grindr operates in the technology and mobile app sectors, focusing on enhancing the social experiences of gay, bisexual, transgender, and queer individuals. Its core offerings include user profiles, messaging features, and various subscription services that enhance user experience and connectivity.
How the Company Makes MoneyGrindr 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 Earnings Call Summary

Earnings Call Date:Jun 30, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with strong revenue growth, successful product launches, and positive net income. However, the company faces challenges with increased operating expenses and direct advertising growth. The leadership transition also adds uncertainty.
Q2-2025 Updates
Positive Updates
Strong Revenue Growth
In Q2, total revenue grew 27% year-over-year to $104 million, with an adjusted EBITDA margin of 43% or $45 million.
Subscription and User Metrics
Direct revenue for the quarter was $87 million, up 24% year-over-year. Average monthly active users grew 6% year-over-year to 14.9 million, while average paying users increased 16% year-over-year to 1.2 million.
Successful Launch of New Features
Launched mobile mapping in 'Right Now' and 'Explore' features, with Explore Heatmaps showing the most active areas across 21 markets.
Indirect Revenue Surge
Indirect revenue was $17 million, up 39% year-over-year, driven by new third-party advertising partners and traction in international markets.
Positive Net Income and Cash Flow
Net income was $17 million, representing 16% of revenue compared to a net loss of $22 million in the same period last year. Free cash flow was $37 million.
Negative Updates
Increased Operating Expenses
Operating expenses, excluding $27 million in cost of revenue, were $53 million, up 43% year-over-year, primarily driven by stock-based compensation.
Challenges in Direct Advertising
Despite growth in the indirect advertising business, the direct advertising segment faced challenges in expanding the categories and verticals of brand partnerships.
Leadership Transition
CFO Vandana Mehta-Krantz announced her transition, although she will remain in her role until a successor is found.
Company Guidance
In the second quarter of 2025, Grindr demonstrated robust financial performance, with total revenue increasing by 27% year-over-year to $104 million and an adjusted EBITDA margin of 43%, equivalent to $45 million. The company reported direct revenue of $87 million, up 24% year-over-year, with strong growth driven by subscription offerings and enhancements in recommendations. Average monthly active users (MAUs) grew by 6% year-over-year to 14.9 million, while average paying users increased by 16% to 1.2 million. The average direct revenue per paying user rose by 7% to $23.65. Indirect revenue surged by 39% year-over-year to $17 million due to new third-party advertising partners and international market traction. Operating expenses, excluding $27 million in cost of revenue, were $53 million, reflecting a 43% increase primarily due to stock-based compensation. Net income amounted to $17 million, translating to 16% of revenue, a significant improvement from a net loss of $22 million in the previous year. The company also generated free cash flow of $37 million and ended the quarter with $121 million in cash and cash equivalents. Grindr reaffirmed its full-year outlook, anticipating at least 26% revenue growth and a minimum adjusted EBITDA margin of 43%.

Grindr Financial Statement Overview

Summary
Grindr shows strong revenue growth and improving cash flow metrics, but struggles with profitability and balance sheet stability. Operational inefficiencies and leverage need addressing for better financial health.
Income Statement
45
Neutral
Grindr's revenue has shown consistent growth, with a TTM revenue growth rate of 6.02%. However, the company is struggling with profitability, as indicated by negative net profit margins and EBIT margins over the periods. The gross profit margin remains strong at approximately 74%, but the negative EBITDA margin suggests operational inefficiencies.
Balance Sheet
40
Negative
The balance sheet shows improvement in the debt-to-equity ratio, now at 0.08 in the TTM period, reflecting reduced leverage. However, the company has faced challenges with negative equity in previous years, impacting return on equity, which is currently negative. The equity ratio is not favorable, indicating potential financial instability.
Cash Flow
55
Neutral
Grindr's cash flow position is improving, with a significant free cash flow growth rate of 25.54% in the TTM period. The operating cash flow to net income ratio is strong at 1.57, indicating good cash generation relative to net income. However, the free cash flow to net income ratio is slightly below 1, suggesting room for improvement in cash profitability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue385.10M344.64M259.69M195.01M145.83M104.46M
Gross Profit286.19M257.06M192.23M143.74M108.47M73.04M
EBITDA-6.94M-75.76M21.30M70.09M68.23M27.01M
Net Income-55.51M-131.00M-55.77M852.00K5.06M-20.85M
Balance Sheet
Total Assets547.62M479.09M444.60M438.83M449.73M503.70M
Cash, Cash Equivalents and Short-Term Investments120.83M59.15M27.61M8.72M15.78M41.39M
Total Debt15.00M293.91M344.25M365.34M137.12M193.93M
Total Liabilities359.93M610.66M462.89M434.78M186.49M247.45M
Stockholders Equity187.69M-131.57M-18.29M4.05M263.24M-10.96M
Cash Flow
Free Cash Flow117.15M94.01M31.92M45.06M30.63M-812.36K
Operating Cash Flow119.97M94.96M36.15M50.64M34.43M-345.36K
Investing Cash Flow-4.04M-5.34M-4.23M-5.58M-3.80M-278.76M
Financing Cash Flow-11.45M-58.85M-13.04M-52.11M-56.25M280.25M

Grindr Technical Analysis

Technical Analysis Sentiment
Negative
Last Price13.70
Price Trends
50DMA
14.58
Negative
100DMA
17.08
Negative
200DMA
18.43
Negative
Market Momentum
MACD
-0.21
Negative
RSI
43.80
Neutral
STOCH
26.86
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 13.7 is above the 20-day moving average (MA) of 13.31, below the 50-day MA of 14.58, and below the 200-day MA of 18.43, indicating a bearish trend. The MACD of -0.21 indicates Negative momentum. The RSI at 43.80 is Neutral, neither overbought nor oversold. The STOCH value of 26.86 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 "Tech & Innovation" 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$1.17B9.2321.16%6.79%12.97%
67
Neutral
$7.89B88.7214.07%19.94%
63
Neutral
$7.76B-1,383.93-0.63%28.97%98.96%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
60
Neutral
$3.98B-86.89-8.21%40.60%79.56%
51
Neutral
$2.53B-33.55-76.08%28.35%24.57%
46
Neutral
$547.10M-0.72-75.71%-5.06%-2318.18%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GRND
Grindr
13.20
-0.73
-5.24%
LYFT
Lyft
19.42
5.62
40.72%
YALA
Yalla Group
7.65
3.55
86.59%
BMBL
Bumble
5.26
-2.22
-29.68%
ZETA
Zeta Global Holdings Corp
16.70
-12.32
-42.45%
GTLB
Gitlab
51.04
-5.38
-9.54%

Grindr Corporate Events

Business Operations and StrategyExecutive/Board Changes
Grindr Appoints New CFO to Drive Growth
Positive
Oct 1, 2025

On September 30, 2025, Grindr Inc. announced the appointment of John F. North as the new Chief Financial Officer, effective October 1, 2025. North brings over 20 years of experience in leading high-growth public companies and will work closely with Grindr’s executive team to drive the company’s strategy and financial operations. This leadership change is expected to support Grindr’s rapid growth and enhance shareholder value. The appointment includes a comprehensive compensation package with performance-based incentives, reflecting Grindr’s focus on strategic expansion and value creation.

The most recent analyst rating on (GRND) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Grindr stock, see the GRND Stock Forecast page.

Grindr Inc.’s AI Integration: Navigating Risks and Regulatory Challenges
Aug 10, 2025

Grindr Inc. faces significant business risks due to its integration of artificial intelligence (AI) and machine learning (ML) technologies into its operations and services. The deployment of AI/ML, particularly generative AI, presents challenges such as potential operational failures, legal liabilities, and reputational damage. Additionally, the company must navigate complex regulatory landscapes and privacy laws, which could lead to compliance costs and legal actions. Competitive pressures and the need for continuous innovation in AI/ML offerings further compound these risks, potentially impacting Grindr’s market position and financial performance.

Grindr Inc. Reports Strong Q2 2025 Growth
Aug 8, 2025

Grindr Inc. is a prominent social networking app catering primarily to the LGBTQ+ community, offering a platform for connection and expression across more than 190 countries. The company has established itself as a leader in the digital dating industry, known for its unique focus on location-based services and community engagement.

Business Operations and StrategyFinancial Disclosures
Grindr Reports 27% Revenue Growth in Q2 2025
Positive
Aug 7, 2025

On August 7, 2025, Grindr Inc. reported a 27% revenue growth for the second quarter of 2025, reaching $104 million, with a net income of $17 million and an adjusted EBITDA of $45 million. The company emphasizes its strong performance and strategic focus on AI-native consumer platforms, which are expected to sustain its competitive advantage and long-term shareholder value.

The most recent analyst rating on (GRND) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on Grindr stock, see the GRND Stock Forecast page.

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.Date of analysis: Nov 01, 2025