Goldman Sachs lifts Grindr stock target to $26, maintains buy rating

Published 09/05/2025, 11:22
Goldman Sachs lifts Grindr stock target to $26, maintains buy rating

On Friday, Goldman Sachs adjusted its outlook on Grindr (NYSE:GRND), increasing the price target on the company’s shares to $26.00 from the previous target of $20.00, while reiterating a Buy rating for the stock. The company’s stock has demonstrated remarkable performance, delivering a 130.88% return over the past year and currently trading near its 52-week high of $24.80. According to InvestingPro analysis, while the stock appears to be in overbought territory, there are 14 additional key insights available to subscribers. The decision follows Grindr’s recent Q1 2025 earnings report, which highlighted several key developments and strategies that are positively influencing the company’s financial forecasts.

Grindr’s management has raised its full-year 2025 revenue and margin guidance, citing strong monetization and user engagement with its products, including Right Now. This optimism builds on the company’s impressive 32.71% revenue growth and robust 74.59% gross profit margin in the last twelve months. The company is also planning to expand Right Now to additional cities in the coming weeks. Furthermore, Grindr is focusing on delivering over 40 new products and features across its core app, artificial intelligence/machine learning technologies, and the Gayborhood platform within the year. For detailed financial analysis and comprehensive valuation metrics, investors can access the full Pro Research Report on InvestingPro.

The company has continued to emphasize user safety, launching new features and a safety and privacy center during the first quarter. Additionally, Grindr provided updates on its long-term initiatives, such as Woodwork, which marks its entry into the men’s health category, and has begun initial testing in two undisclosed markets.

Goldman Sachs analyst Eric Sheridan commented on the earnings report and Grindr’s strategic direction, stating, "While near-term debates will likely remain around user trajectory (and the growth contribution from international vs. domestic), we use this report to reiterate our key thesis around the stock." Sheridan’s remarks underscore the firm’s confidence in Grindr’s growth prospects and its decision to raise the price target based on the company’s performance and management commentary.

In other recent news, Grindr reported its Q1 2025 earnings, revealing a revenue of $94 million, which did not meet the forecast of $95.66 million. Despite missing the revenue forecast, Grindr demonstrated a robust year-over-year growth of 25%. The company did not provide earnings per share (EPS) data, leaving a gap in the assessment of earnings performance. Grindr raised its full-year revenue growth guidance to 26% or greater, reflecting confidence in its strategic initiatives. The company continues to focus on investing in AI and new product development, with plans for over 40 new product launches in 2025. Grindr’s average monthly active users increased by 7% to 14.6 million, while average paying users rose by 16% to 1.2 million. The company also generated a free cash flow exceeding $23 million in the first quarter. Analysts did not provide any upgrades or downgrades for Grindr, but the company remains optimistic about its growth prospects.

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