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Investing.com - Raymond (NSE:RYMD) James has lowered its price target on Grindr (NYSE:GRND) to $20.00 from $26.00 while maintaining an Outperform rating following the company’s second-quarter 2025 results. According to InvestingPro data, despite recent price weakness, the stock has delivered an impressive 67.2% return over the past year.
The dating app company delivered solid results that nonetheless fell short of expectations for its typical beat-and-raise performance pattern, according to Raymond James.
Investors have focused heavily on Grindr’s monthly active user (MAU) figures, with the year-over-year growth rate decelerating by one percentage point to 6%, which overshadowed positive developments in other metrics.
The firm highlighted that Grindr’s payer conversion ratio expanded to 8.2%, indicating continued improvement in the company’s ability to convert users into paying customers. InvestingPro analysis reveals 12+ additional insights about Grindr’s financial health and valuation metrics, available exclusively to subscribers.
Raymond James characterized the post-earnings stock weakness as a buying opportunity, suggesting that the market’s focus on MAU growth is "myopic" given Grindr’s significant monetization opportunities and product launches that could create an improved user experience serving more use cases. With analysts forecasting profitability this year and a gross profit margin of 74.5%, the company shows promising financial metrics despite current market sentiment.
In other recent news, Grindr announced its second-quarter results for 2025, which did not meet analysts’ expectations. The company reported revenues of $104 million, slightly below the anticipated $105.11 million. Earnings per share were $0.10, missing the forecast of $0.11. Despite the shortfall in earnings and revenue, there have been no recent updates on analyst ratings or recommendations for Grindr. Investors are closely monitoring these developments, as financial performance remains a critical factor in evaluating the company’s future prospects. These recent results highlight the importance of meeting market expectations in sustaining investor confidence.
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