Grindr shares tumble as revenue misses estimates

Published 07/08/2025, 22:54
Grindr shares tumble as revenue misses estimates

Investing.com -- Grindr Inc. (NYSE:GRND), the self-described "Global Gayborhood in Your Pocket," saw its shares plunge 10.8% after reporting second quarter revenue that fell short of analyst expectations, despite posting solid profitability metrics.

The company reported second quarter revenue of $104 million, missing the consensus estimate of $105.11 million. However, revenue grew 26.6% compared to the $82.35 million reported in the same quarter last year. Grindr posted net income of $17 million, representing a net income margin of 16%, a significant improvement from the net loss of $22.4 million in the second quarter of 2024.

"Grindr delivered another strong quarter keeping us firmly on track to achieve our 2025 outlook," said George Arison, Chief Executive Officer of Grindr. "We are delivering on our performance objectives while continuing to execute at a high level on our product innovation and AI roadmaps."

The company’s adjusted EBITDA reached $45 million with an adjusted EBITDA margin of 43.4%, slightly down from 44.9% in the same period last year. Free cash flow for the quarter was $36.6 million, representing a free cash flow conversion rate of 81%.

Grindr has been focusing on AI integration into its platform, with Arison noting that the company has "a unique set of assets and capabilities that position us to build a leading AI-native consumer platform," which he believes will help maintain their competitive advantage and create long-term shareholder value.

Despite the company’s profitability improvements and strong cash flow generation, investors appeared focused on the revenue miss, sending the stock sharply lower following the announcement.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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