Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - JMP Securities lowered its price target on Grindr (NYSE:GRND) to $23.00 from $27.00 on Monday, while maintaining a Market Outperform rating following the company’s second-quarter results. The stock, currently trading at $15.69, remains well below the analyst consensus range of $20-$27, despite strong fundamentals including a healthy 74.32% gross margin and 28.35% revenue growth.
The dating app company reported revenue growth that accelerated two percentage points from the first quarter of 2025, but slightly missed JMP’s projections. Grindr maintained its full-year revenue guidance of 26% or more year-over-year growth, which back-loads estimates for 2025. According to InvestingPro, the company maintains a strong financial position with a current ratio of 2.48, indicating robust liquidity to support its growth initiatives.
JMP noted that some key performance indicators, including monthly active users and paying users, came in marginally below expectations. Despite these slight misses, the firm believes Grindr continues to innovate on creating what it calls the "gayborhood," which could expand the company’s user base, monetization opportunities, and broader market potential. With a market capitalization of $3.01 billion, InvestingPro analysis reveals 12+ additional exclusive insights about Grindr’s growth potential and market position.
The research firm identified additional growth opportunities in international markets, pricing strategies, and new services for higher-tiered subscription products. JMP expects Grindr can sustain growth above 20% long-term, citing its position as a category leader with network effects and limited competition. Based on InvestingPro’s Fair Value analysis, the stock currently appears to be trading near its fair value, with analysts maintaining a bullish outlook on its growth trajectory.
JMP lowered its price target as its estimates came down slightly, but maintained its positive outlook on the stock, suggesting newer features like maps for the "Right Now" and "Explore" functions can support continued growth.
In other recent news, Grindr reported its second-quarter results for 2025, which showed revenues of $104 million, slightly below the projected $105.11 million. The company’s earnings per share also missed expectations, coming in at $0.10 compared to the forecasted $0.11. Following these results, Raymond (NSE:RYMD) James adjusted its price target for Grindr to $20.00 from the previous $26.00, while maintaining an Outperform rating. The firm noted that Grindr’s performance did not meet the usual pattern of exceeding expectations. These developments highlight the challenges Grindr faces in meeting analyst projections.
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