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Investing.com - Goldman Sachs has lowered its price target on Grindr (NYSE:GRND) to $20.00 from $22.00 while maintaining a Buy rating following the company’s third-quarter 2025 earnings report. This target remains above Grindr ’s current trading price of $15.11, with analyst consensus maintaining a Strong Buy recommendation and price targets ranging from $20 to $26, according to InvestingPro data.
The dating app company reported revenue performance ahead of Goldman Sachs estimates, with the advertising business identified as the primary driver of outperformance amid stable user metrics. This comes despite what the investment bank described as "elevated investor concern over the last 3-6 months." InvestingPro data shows Grindr’s revenue grew nearly 29% over the last twelve months to $411.55 million, maintaining an impressive gross profit margin of 74.5%.
Grindr management continues to focus on platform and product innovation, with expectations that a premium-priced tier will contribute to revenue in the second half of 2026. The company indicated that its current mix of user growth and engagement supports long-term monetization potential.
Goldman Sachs highlighted the Grindr app as having "outsized levels of engagement, user growth and long-tailed monetization prospects" that could compound revenue opportunities over the next two to three years. Despite these positive growth indicators, InvestingPro Tips note the stock has fallen over 43% in the past six months and is currently trading at a high EBITDA valuation multiple. InvestingPro offers 9 additional insights on Grindr’s financial health and valuation metrics in its comprehensive Pro Research Report.
Investors currently remain focused on developments surrounding a non-binding proposal submitted by Zage and Lu, which is being evaluated by a special committee of independent, disinterested Grindr directors.
In other recent news, Grindr reported strong financial results for the third quarter of 2025, exceeding expectations for both earnings per share (EPS) and revenue. The company’s EPS reached $0.16, surpassing the anticipated $0.12. Revenue came in at $116 million, exceeding the forecasted $113.33 million. These results indicate a positive performance for the company, as reflected in the investor response. Analysts have noted the company’s robust quarterly performance, which has contributed to a favorable outlook. The impressive earnings and revenue figures have drawn attention from investment firms. While no mergers or acquisitions were announced, the financial results themselves have been a focal point for investors. Analyst firms are closely watching Grindr’s performance following these developments.
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