Summary of Grindr Conference Call Company Overview - **Company**: Grindr - **Industry**: Social Networking and Dating Apps Key Points Company Vision and Strategy - Grindr aims to be a social network for gay and bisexual men, focusing on connection and community rather than just dating and hookups [6][7] - The management is looking to expand beyond dating into areas like healthcare, travel, and premium offerings, leveraging brand awareness [7][8] User Demographics and Monetization - Nearly half of Grindr's users are under 30, and over 90% do not pay for the service [6] - The company has increased paying users from approximately 600,000-700,000 to about 1.2 million-1.3 million over the last few years [11] - The strategy focuses on increasing revenue from existing users rather than solely growing the user base [11][12] U.S. Market Insights - The U.S. market is saturated, but Grindr maintains strong brand recognition [10] - The company is focusing on creating value to encourage existing users to pay more, with recent price increases being the first since 2018 [12][29] International Expansion - Grindr sees significant growth potential in international markets, particularly in Latin America and Asia, with a focus on localization [13][14] - Brand awareness in markets like Spain is around 60%-70%, compared to over 95% in the U.S., indicating room for growth [15] Product Development and AI Integration - Grindr is transitioning to an AI-first company, with 60%-70% of new code being developed using AI [24] - The new premium offering, "Edge," is being developed with advanced features and is priced significantly higher than existing tiers [25][27] - The company is exploring additional premium tiers beyond Edge, potentially creating exclusive offerings for affluent users [28] Advertising and Revenue Generation - 92% of users do not pay, but the company generates 16% of its revenue from ads, with plans to improve ad quality and relevance [32][33] - The company is considering reducing ad load while enhancing the user experience [33] Corporate Governance - Recent changes in corporate governance include an increased share repurchase authorization to $400 million and a standstill agreement with a majority shareholder [50][51] - The governance structure is seen as more favorable for investors, enhancing confidence in the company's direction [51] Future Opportunities - Grindr is exploring monetization opportunities through travel and local market advertising, leveraging user engagement data [39][40] - The company is focused on improving the app's technology stack to enhance user experience and unlock new capabilities [43][44] Conclusion - Grindr is positioned to leverage its strong brand and user engagement to expand into new markets and product offerings while enhancing monetization strategies through both premium services and advertising. The company is also committed to improving corporate governance to attract investors.

Overview - Grindr is the largest social network for gay individuals globally, with 98% of its users being men from various countries [2] Company Evolution - Grindr has been operational for nearly 17 years, experiencing consistent growth since its launch on the iPhone [3] - The company went public in 2022, with George Arison becoming CEO in the same year [3]

Grindr (NYSE:GRND) 2026 Conference Summary Company Overview - Grindr is the largest social network for gay individuals globally, with 98% of users being gay and bi men. The platform has been operational for nearly 17 years and went public in 2022. [3][4] Core Business Focus 1. **Preserving Free Product**: Grindr aims to maintain and enhance its robust free product to attract and retain users. [4] 2. **Monetization Strategies**: The company is shifting focus from user conversion to maximizing revenue from existing paying users by enhancing the value of paid services. [4][9] 3. **New Initiatives**: Grindr is exploring new business lines to diversify revenue streams beyond the core app, although significant impacts from these initiatives are expected in the long term. [5] Financial Performance and Projections - For 2026, Grindr is tracking towards revenue of approximately $528 million and EBITDA of around $217 million, with a target of $600 million in revenue and $245 million in adjusted EBIT by 2027. [6][7] - The company anticipates at least 20% year-over-year revenue growth for fiscal 2026, driven by pricing adjustments and new product features. [16][19] Pricing Strategy - Grindr has tested new pricing models for its premium services, finding that users are willing to pay more than previously expected. This includes a successful trial of a $99 Boost feature. [8][9][18] User Growth and Engagement - Grindr's user base has grown from 12 million to 15 million, with a paid penetration rate increasing from 6% to 8.5%. The company focuses on retaining a vibrant user base, particularly among younger users who may convert to paying customers over time. [26][28] Corporate Governance - Following governance issues, Grindr has made significant changes, including the appointment of a majority independent board and the addition of new independent directors. [10][12][15] Competitive Landscape - Grindr operates in a highly competitive environment but aims to be the primary choice for users by enhancing user experience and engagement. The company acknowledges competition but focuses on maintaining user satisfaction and app usage. [38][39] AI Integration - Grindr is leveraging AI to enhance user experience and improve matching algorithms, aiming to address challenges faced by users in finding partners. The company has transitioned to a more AI-driven coding approach, with 70% of its code now generated by AI. [40][42][50] Advertising and Monetization - Grindr's advertising revenue exceeded $70 million last year, with plans to improve ad quality and relevance. The company is exploring new ad formats to enhance monetization from free users. [31][32] Key Takeaways for Investors - Grindr should be viewed as a social network rather than a dating app, with a focus on a wealthy and trendsetting user base. The potential exists for Grindr to evolve into a super app for the gay community, offering tailored products and services. [53][55]

Table of Contents x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to ____ Commission file number 001-39714 ________________________ Grindr Inc. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ________________________ (Mark One) (Exact name of registrant as specifie ...

Financial Performance - For Q4 2025, the company reported revenue of $126 million, a 29% increase year-over-year, with $103 million in direct revenue and $23 million in indirect revenue [3] - Full-year revenue for 2025 reached $440 million, up 28% year-over-year, with Adjusted EBITDA of $196 million, representing a 44% margin, and net income of $103 million [4][5] - Operating income for Q4 was $31 million, or 25% of revenue, while full-year operating income was $126 million, or 29% of revenue [1][4] Operational Efficiency - Operating expenses excluding cost of revenue were $63 million for Q4, or 50% of revenue, down from 54% a year earlier; for the full year, these expenses were $201 million, or 46% of revenue, compared to 48% in 2024 [1][4] - The company ended 2025 with approximately $87 million in cash and cash equivalents and $396 million in total gross debt, with free cash flow of $133 million [8] Strategic Initiatives - The company is focusing on AI as an operational advantage, with AI writing approximately 60-70% of new code and improving engineer productivity by about 1.5 times [6][11] - A new AI-native premium tier, EDGE, is being tested with strong early demand, although it is not included in the 2026 revenue guidance [6][12][13] - The company expanded its share repurchase program by $400 million through March 2029, with total buyback availability reaching up to $450 million after repurchasing approximately $450 million of stock in 2025 [7][8] Future Outlook - For 2026, the company guided revenue to exceed $528 million and Adjusted EBITDA to exceed $217 million, with early initiatives like EDGE not included in the revenue outlook [16] - The advertising business grew by 37% last year, with plans for further enhancements including rewarded ads and direct advertising [17] - The company aims to strengthen its core business and improve user engagement through new pricing strategies and product enhancements [9][10]

Financial Data and Key Metrics Changes - Revenue for 2025 grew 28% year-over-year to $440 million, with Adjusted EBITDA reaching $196 million, representing a 44% margin [4][10] - Net income for the full year was $103 million, a significant improvement from a loss in 2024 [11] - In Q4, revenue was $126 million, up 29% year-over-year, with Adjusted EBITDA of $56 million, also a 44% margin [11][12] - Operating expenses as a percentage of revenue declined to 50% from 54% in the prior year, supporting an operating income of $31 million or 25% of revenue for Q4 [12] Business Line Data and Key Metrics Changes - Direct revenue for Q4 was $103 million, while indirect revenue was $23 million, indicating strong performance in subscription and add-on offerings [11] - The company expanded monetization through new ad formats, including Rewarded Video, contributing to revenue growth [4] Market Data and Key Metrics Changes - Average Monthly Active Users (MAU) for 2025 was 15 million, with approximately 1.26 million average paying users and an ARPU of $24.25 [14] - The advertising business grew by 37% last year, indicating strong demand in that segment [35] Company Strategy and Development Direction - The company aims to enhance premium AI experiences through the EDGE tier, focusing on power users and refining the user experience [7][40] - Plans for 2026 include durable core growth, operational rigor, and deliberate investment for long-term upside [8] - The company is committed to maintaining a robust free tier while introducing paywalls and premium features to drive monetization [55][56] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to grow revenue and profitability while investing in long-term initiatives [16] - The company expects revenue for 2026 to exceed $528 million and Adjusted EBITDA to exceed $217 million, reflecting confidence in ongoing growth [15][16] - Management noted that the pricing changes implemented in 2025 were well-received, with no significant impact on user conversion expected [20] Other Important Information - The company announced a three-year, $400 million expansion of its share repurchase authorization, reinforcing confidence in its strategy [13] - The management team is focused on building exceptional user experiences while driving sustained growth in revenue and profitability [8][9] Q&A Session Questions and Answers Question: What are the impacts of pricing actions on retention and churn? - Management reported positive reception to pricing changes, indicating that users accepted the increased costs due to added value in offerings [20] Question: Can you provide insights on the governance situation following the proposed takeout offer? - Management emphasized the importance of remaining a public company and highlighted the commitment to independent governance [25][30] Question: What are the primary contributors to the 20% revenue growth guidance? - The guidance is based on product enhancements and the recent pricing changes, along with growth in the advertising business [35] Question: How does Woodwork fit into the monetization strategy? - Woodwork is viewed as a startup within the company, with potential for future growth but not included in the 2026 revenue guidance [66] Question: How is the company balancing investment in engineering headcount versus AI tooling? - The company is adopting AI to enhance productivity, with a significant portion of code being generated by AI, while still planning to scale the engineering team [77][78]

Financial Data and Key Metrics Changes - Revenue for 2025 grew 28% year-over-year to $440 million, with Adjusted EBITDA reaching $196 million, representing a 44% margin [4][10] - Net income for the full year was $103 million, a significant improvement from a loss in 2024 [11] - In Q4, revenue was $126 million, up 29% year-over-year, with Adjusted EBITDA of $56 million, also a 44% margin [11][12] - Operating expenses as a percentage of revenue decreased to 50% from 54% in the prior year, supporting an operating income of $31 million or 25% of revenue for Q4 [12] Business Line Data and Key Metrics Changes - The core business remained strong, with significant enhancements in product offerings, including the global expansion of features like Right Now and A-List [4][5] - Subscription and add-on offerings contributed to revenue growth, with direct revenue at $103 million and indirect revenue at $23 million for Q4 [11] Market Data and Key Metrics Changes - Average Monthly Active Users (MAU) for 2025 was 15 million, with approximately 1.26 million average paying users and an Average Revenue Per User (ARPU) of $24.25 [14][15] - The advertising business grew by 37% in the previous year, indicating strong demand in international markets [11][35] Company Strategy and Development Direction - The company aims to enhance premium AI experiences through the EDGE initiative, focusing on power users and refining the user experience [7][8] - Plans for 2026 include durable core growth, operational rigor, and deliberate investment for long-term upside [7][8] - The company is committed to maintaining a robust free user experience while gradually introducing more premium features [56][57] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the acceptance of recent pricing changes, indicating no significant impact on user conversion [20] - The outlook for 2026 anticipates revenue exceeding $528 million and Adjusted EBITDA over $217 million, with a focus on long-term sustainable growth [15][16] - Management emphasized the importance of AI integration in operations, with AI agents contributing significantly to code production and productivity improvements [5][77] Other Important Information - The company announced a three-year, $400 million expansion of its share repurchase authorization, reinforcing confidence in its strategy [13] - The board is actively working on governance improvements and has added new directors to strengthen its independence [25][27] Q&A Session Summary Question: Insights on retention and churn impacts from pricing actions - Management reported positive reception to pricing changes, with no expected significant impact on conversion rates [20] Question: Governance situation following major shareholder changes - Management confirmed alignment on keeping Grindr a public company and highlighted the addition of new directors to strengthen governance [25][27] Question: Contributors to the 20% revenue growth guidance - Revenue growth is expected from product enhancements and the recent pricing changes, along with growth in the advertising business [35] Question: Value derived from the EDGE tier - Early subscribers highlighted features like A-List and Discover as significant enhancements to their experience [40][42] Question: Woodwork's role in monetization - Woodwork is viewed as a startup within Grindr, with potential for future growth but not included in the 2026 revenue guidance [66] Question: MAU growth considerations - Management noted aggressive removal of unwanted accounts impacted MAU growth, but underlying growth remains strong [70][72]

Financial Data and Key Metrics Changes - Revenue for 2025 grew 28% year-over-year to $440 million, with Adjusted EBITDA reaching $196 million, representing a 44% margin [4][9] - Net income for the full year was $103 million, a significant improvement from a loss in 2024 [10] - In Q4, revenue was $126 million, up 29% year-over-year, with Adjusted EBITDA of $56 million, also a 44% margin [10][11] - Operating expenses as a percentage of revenue decreased to 50% from 54% in the prior year, supporting an operating income of $31 million or 25% of revenue for Q4 [11] Business Line Data and Key Metrics Changes - Direct revenue for Q4 was $103 million, while indirect revenue was $23 million, indicating strong performance in both subscription and advertising segments [10] - The company expanded monetization through new ad formats, including Rewarded Video, and strengthened its core offerings, XTRA and Unlimited [4][5] Market Data and Key Metrics Changes - Average Monthly Active Users (MAU) for 2025 was 15 million, with approximately 1.26 million average paying users and an Average Revenue Per User (ARPU) of $24.25 [12][13] - The company plans to provide average MAU on an annual basis moving forward, aligning disclosures with public consumer internet peers [14] Company Strategy and Development Direction - The company aims to concentrate on four priorities for 2026: premium AI experiences, durable core growth, operational rigor, and deliberate investment for durability and upside [6][7] - The introduction of EDGE, an AI-native premium tier, is expected to enhance user experience and drive revenue growth [6][7] - The company is committed to reinvesting in its team and platform while also focusing on building Grindr Health and strengthening its advertising platform [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to continue growing revenue and profitability while scaling investments in long-term initiatives [15][16] - The company expects revenue for 2026 to exceed $528 million and Adjusted EBITDA to exceed $217 million, reflecting a commitment to sustainable growth [15][16] - Management noted that early initiatives like EDGE are not yet included in the revenue outlook, indicating potential upside if successful [15][16] Other Important Information - The company announced a three-year, $400 million expansion of its share repurchase authorization, reinforcing confidence in its strategy and future prospects [12] - The company removed approximately 350,000 unwanted accounts in 2025, which impacted MAU figures but was part of a strategy to enhance user quality [70][71] Q&A Session Questions and Answers Question: What have you seen regarding retention and churn impacts from pricing actions? - Management reported positive reception to pricing changes, indicating no significant impact on conversion rates expected from these adjustments [20] Question: Can you provide insights on the governance situation following the proposed takeout offer? - Management emphasized the importance of remaining a public company and highlighted the commitment to maintaining an independent board [25][30] Question: What are the primary contributors to the 20% revenue growth guidance? - The guidance is based on product enhancements and the recent pricing changes, along with growth in the advertising business [36] Question: How does Woodwork fit into the monetization strategy? - Woodwork is viewed as a startup within Grindr, with potential for growth but not included in the 2026 revenue guidance [66][68]

Financial Performance - Grindr reported a net income of $95 million for the fiscal year 2025, with an Adjusted EBITDA of $196 million, demonstrating strong operational performance [3]. - The company achieved a revenue of $439.9 million for 2025, reflecting a growth of approximately 28% compared to the previous year [15]. - Grindr's Adjusted EBITDA margin for 2025 was 44.5%, up from 42.7% in 2024, indicating improved profitability [15]. - Free cash flow for 2025 was reported at $132.9 million, with a free cash flow conversion rate of 67.9% [20]. - The net cash provided by operating activities for 2025 was $141.5 million, an increase from $95 million in 2024 [20]. Future Projections - The company introduced guidance for 2026, projecting revenue greater than $528 million and Adjusted EBITDA exceeding $217 million [2]. Stock and Investment - Grindr announced a $400 million increase to its common stock repurchase program, extending it to March 2029 [2]. User Engagement - The company has 15 million average monthly active users, highlighting its significant market presence [23]. Strategic Initiatives - Grindr plans to invest in premium experiences and AI capabilities to support sustainable long-term growth [3]. - The company aims to enhance its platform foundations and core growth initiatives as part of its future strategy [3].

Core Viewpoint - The online dating app sector is experiencing significant stock price declines, raising questions about its future viability and potential as a value investment [1][12]. Group 1: Market Performance - Match Group's share price has decreased nearly 85%, while Bumble has lost over 95% and Grindr has fallen around 60% [1]. - Match Group's revenue is projected to remain stable at approximately USD 3.5 billion in 2026, with free cash flow expected to rise from USD 1 billion in 2025 to between USD 1.09 billion and USD 1.14 billion [13]. - Bumble's market cap has shrunk to around USD 400 million, trading at approximately 1x sales and 3x EV/EBITDA [17]. Group 2: User Engagement and Monetization - Tinder has a substantial user base, with 50-75 million monthly active users globally, and captures 30-40% of the industry's revenue [3][4]. - The app's monetization strategy relies heavily on upselling features, indicating a strong ability to generate revenue from its users [4]. - Grindr's user behavior differs from general dating apps, with users spending approximately 140-150 minutes per week on the platform, leading to higher advertising revenue per user [20]. Group 3: Industry Challenges - The dating app industry faces criticism regarding user satisfaction, with headlines indicating that users are becoming fatigued with the platforms [5]. - Concerns have been raised about the addictive nature of dating apps, with some reports suggesting they may hinder rather than help users find meaningful relationships [14][15]. - New AI-driven matchmaking tools are emerging, potentially disrupting traditional dating app revenue models [14]. Group 4: Management and Strategic Initiatives - Match Group appointed Spencer Rascoff as CEO, who has a strong background in M&A and has invested millions in company stock, indicating confidence in the turnaround strategy [9]. - Deutsche Bank's research highlights a three-phase turnaround plan focusing on cultural reset and product revitalization, with a commitment to returning at least 100% of free cash flow to shareholders [11]. Group 5: Future Outlook - The stock of Match Group is considered potentially undervalued, trading at 9x FY26E EBITDA, with projections suggesting a favorable risk-reward scenario for patient investors [11][16]. - Grindr's stock price has fallen significantly, but it may be seen as cheap compared to a previous buyout offer of USD 18 per share, now trading around USD 10 [24][25]. - The dating app industry remains complex, with conflicting signals making it difficult to form a high-conviction view on future performance [29].