Core Viewpoint - Grindr Inc. held its Q1 2025 earnings conference call, indicating a focus on discussing financial performance and future outlook [1][2]. Group 1: Company Overview - The earnings call was led by CEO George Arison and CFO Vanna Krantz, highlighting the leadership's engagement in communicating with investors [2]. - A shareholder letter was released prior to the call, available on the SEC's website and Grindr's Investor page, indicating transparency and accessibility of information for stakeholders [2]. Group 2: Financial Performance - The call included discussions on the company's outlook and future performance, emphasizing the importance of these projections for investors [3]. - The company acknowledged that forward-looking statements are subject to risks and uncertainties, which could lead to actual results differing from expectations [3].

Group 1 - Grindr (NYSE: GRND) reported 1Q25 results that were largely in line with consensus expectations [1] - The company provided guidance for 26% revenue growth, which exceeds the consensus estimate of 24% [1] - EBITDA guidance of 43% is also 2 percentage points above consensus [1]

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against Grindr, Inc. regarding a class action complaint filed on May 1, 2025, focusing on whether the board of directors breached their fiduciary duties to the company [1]. Group 1 - The investigation is aimed at long-term stockholders of Grindr, Inc. following a class action complaint [1]. - The law firm is seeking information from long-term stockholders who may have insights or questions regarding the claims [2]. - Bragar Eagel & Squire, P.C. is a nationally recognized law firm that represents investors in various complex litigations [3].

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=7&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Grindr reported a significant financial turnaround in Q1 2025, posting $27.0 million net income and 24.7% revenue growth, while strengthening its balance sheet through warrant redemption [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets increased to $679.4 million, with stockholders' equity shifting from a deficit to a positive $319.8 million, primarily due to warrant liability elimination Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $255,868 | $59,152 | | Total current assets | $319,714 | $116,984 | | Total assets | $679,445 | $479,090 | | **Liabilities & Stockholders' Equity** | | | | Total current liabilities | $75,784 | $67,809 | | Long-term debt, net | $272,021 | $275,580 | | Warrant liability | $0 | $252,178 | | Total liabilities | $359,629 | $610,660 | | Total stockholders' equity (deficit) | $319,816 | $(131,570) | [Condensed Consolidated Statement of Operations and Comprehensive Income (Loss)](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) For Q1 2025, revenue grew 24.7% to $93.9 million, resulting in a net income of $27.0 million, a significant improvement from a prior-year loss, aided by a gain on warrant liability fair value Statement of Operations Highlights (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $93,938 | $75,345 | | Income from operations | $25,392 | $19,256 | | Gain (loss) in fair value of warrant liability | $9,905 | $(18,680) | | Net income (loss) | $27,019 | $(9,406) | | Diluted EPS | $0.09 | $(0.05) | [Condensed Consolidated Statement of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) In Q1 2025, operating activities provided $23.8 million in cash, while financing activities generated $173.6 million, primarily from warrant exercises, leading to a $196.7 million net increase in cash Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $23,793 | $20,449 | | Net cash used in investing activities | $(628) | $(1,148) | | Net cash provided by (used in) financing activities | $173,551 | $(26,146) | | **Net increase (decrease) in cash** | **$196,716** | **$(6,845)** | - Financing activities in **Q1 2025** were dominated by **$314.1 million** in proceeds from the exercise of warrants and **$132.0 million** in payments for common stock repurchases[24](index=24&type=chunk)[172](index=172&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail revenue streams, debt, equity events like warrant redemption and stock repurchases, and ongoing legal proceedings, including a new UK group action Revenue Disaggregation (Q1 2025 vs Q1 2024, in thousands) | Revenue Type | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Direct revenue | $80,082 | $64,378 | | Indirect revenue | $13,856 | $10,967 | | **Total Revenue** | **$93,938** | **$75,345** | | **By Geography** | | | | North America | $57,799 | $45,503 | | Europe | $21,146 | $18,107 | | Rest of the world | $14,993 | $11,735 | - In **January 2025**, the company announced the redemption of all outstanding warrants. By the **February 24, 2025** redemption date, this resulted in cash proceeds of **$314.1 million** from cash exercises and the issuance of **3.4 million shares** from cashless exercises. As of **March 31, 2025**, no warrants were outstanding[71](index=71&type=chunk)[72](index=72&type=chunk)[73](index=73&type=chunk) - In **March 2025**, the Board authorized a **$500 million** stock repurchase program. During the quarter, the company repurchased and retired **8.3 million shares** for an aggregate price of **$141.1 million**[75](index=75&type=chunk) - The company is facing a new group action lawsuit in the English Court, served in **April 2025**, on behalf of over **10,000** alleged users claiming breach of UK data protection laws. The company states it is too early to determine the likely outcome[104](index=104&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes 24.7% revenue growth to increased Average Paying Users and ARPPU, leading to higher Adjusted EBITDA and significantly boosted liquidity from warrant exercises funding stock repurchases [Operating and Financial Metrics](index=30&type=section&id=Operating%20and%20Financial%20Metrics) The company experienced broad growth in Q1 2025, with Average Paying Users up 15.5%, improved monetization metrics like ARPPU, and a 28.8% increase in Adjusted EBITDA to $40.7 million Key Operating and Financial Metrics (Q1 2025 vs Q1 2024) | Metric (in thousands, except percentages and per-user amounts) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Average Paying Users | 1,168 | 1,011 | | Average Monthly Active Users (Average MAUs) | 14,613 | 13,705 | | Average Paying User Penetration | 8.0% | 7.3% | | ARPPU | $22.86 | $21.25 | | ARPU | $2.14 | $1.83 | | Revenue | $93,938 | $75,345 | | Net income (loss) | $27,019 | $(9,406) | | Adjusted EBITDA | $40,689 | $31,607 | | Adjusted EBITDA Margin | 43.3% | 41.9% | | Free cash flow | $23,165 | $19,301 | [Results of Operations](index=35&type=section&id=Results%20of%20Operations) Q1 2025 revenue increased 24.7% to $93.9 million, driven by direct and indirect revenue growth, while operating expenses rose, leading to a net income of $27.0 million primarily due to higher revenue and warrant liability fair value changes - Direct revenue increased by **$15.7 million** (**24.4%**) due to growth in both Average Paying Users (up **157 thousand**) and ARPPU (up **$1.61**). This was attributed to paywall optimizations, new weekly subscription offerings, and strong demand for premium add-ons[145](index=145&type=chunk) - Indirect revenue grew by **$2.9 million** (**26.4%**), driven by the introduction of new ad formats, improved ad technology, and the addition of new third-party advertising partners[146](index=146&type=chunk) - Product development expenses rose by **$4.6 million** (**80.7%**), mainly from a **$2.0 million** increase in contractor fees and a **$2.8 million** increase in personnel costs to scale the engineering team[150](index=150&type=chunk) - Net income was **$27.0 million**, a change of **$36.4 million** from the prior year's net loss, mainly due to a **$18.6 million** increase in revenue and a **$28.6 million** positive change in the fair value of warrant liability[157](index=157&type=chunk) [Non-GAAP Financial Measures](index=37&type=section&id=Non-GAAP%20Financial%20Measures) The company utilizes Adjusted EBITDA and Free Cash Flow to assess performance, with Q1 2025 Adjusted EBITDA increasing 28.8% to $40.7 million and free cash flow reaching $23.2 million Reconciliation of Net Income (Loss) to Adjusted EBITDA (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income (loss) | $27,019 | $(9,406) | | Interest expense, net | $3,875 | $7,185 | | Income tax provision | $4,551 | $2,680 | | Depreciation and amortization | $3,477 | $4,119 | | Litigation related costs | $226 | $422 | | Stock-based compensation expense | $10,947 | $7,869 | | Severance expense | $499 | $58 | | Change in fair value of warrant liability | $(9,905) | $18,680 | | **Adjusted EBITDA** | **$40,689** | **$31,607** | Reconciliation of Net Cash from Operations to Free Cash Flow (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $23,793 | $20,449 | | Less: Capitalized development software costs and purchases of property and equipment | $(628) | $(1,148) | | **Free cash flow** | **$23,165** | **$19,301** | [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity significantly strengthened in Q1 2025, ending with $255.9 million in cash, primarily from $314.1 million in warrant exercise proceeds, which also funded $132.0 million in stock repurchases - The company's cash and cash equivalents stood at **$255.9 million** as of **March 31, 2025**[176](index=176&type=chunk) - In **Q1 2025**, the company received aggregate cash proceeds of **$314.1 million** from the exercise of warrants before their redemption[175](index=175&type=chunk) - A new stock repurchase program of up to **$500 million** was authorized in **March 2025**. During the quarter, the company repurchased **8.3 million shares** for **$141.1 million**[186](index=186&type=chunk) - As of **March 31, 2025**, the company had **$278.3 million** outstanding under its term loan and **$11.6 million** under its revolving credit facility[178](index=178&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate risk from variable-rate debt and foreign currency exchange risk from international operations, impacting pre-tax interest expense and revenue respectively - The company's primary market risk is interest rate risk related to its **$272.0 million** in outstanding variable-rate debt. A hypothetical **100 basis point** change in interest rates would result in approximately **$0.7 million** of additional or lower pre-tax interest expense for the quarter[190](index=190&type=chunk)[191](index=191&type=chunk) - The company has foreign currency exchange risk, as international revenue accounted for **41.2%** of total revenue in **Q1 2025**. A hypothetical **10%** adverse change in the Euro and British Pound would have reduced revenue by **$2.1 million** for the quarter[194](index=194&type=chunk)[195](index=195&type=chunk) [Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of **March 31, 2025**, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level[197](index=197&type=chunk) - There were no changes in internal control over financial reporting during the **first quarter of 2025** that have materially affected, or are reasonably likely to materially affect, internal controls[198](index=198&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, with management generally not expecting a material adverse effect, though outcomes for some matters remain uncertain - The company does not believe the final outcome of its current legal matters will have a material adverse effect, other than those for which it is too early to determine materiality and probability of outcome[200](index=200&type=chunk) [Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes from the risk factors disclosed in the Annual Report on Form 10-K for the year ended **December 31, 2024**, have been reported[203](index=203&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In March 2025, the company initiated a $500 million stock repurchase program, buying back 8.3 million shares for $141.1 million during the quarter, with $358.9 million remaining Issuer Purchases of Equity Securities (March 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Total Value of Shares Purchased (approx.) | Approx. Value Remaining Under Program (in thousands) | | :--- | :--- | :--- | :--- | :--- | | March 1-31, 2025 | 8,268,937 | $17.07 | $141,139,000 | $358,861 | - In **March 2025**, the Board of Directors authorized a stock repurchase program for up to **$500.0 million** of the Company's common stock, valid until **March 6, 2027**[205](index=205&type=chunk) [Other Information](index=46&type=section&id=Item%205.%20Other%20Information) During the last fiscal quarter, several company officers, including the CFO, Chief Product Officer, and General Counsel, adopted new or terminated existing Rule 10b5-1 trading plans for the sale of company securities - Certain directors and officers, including the CFO Vandana Mehta-Krantz, CPO Austin "AJ" Balance, and General Counsel Zachary Katz, adopted new Rule 10b5-1 trading plans and terminated previous ones during the quarter[208](index=208&type=chunk) [Exhibits](index=47&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report, including certifications by the Principal Executive Officer and Principal Financial Officer, and XBRL data files

Financial Performance - Grindr Inc. reported quarterly earnings of $0.09 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.03 per share a year ago [1] - The company posted revenues of $93.94 million for the quarter ended March 2025, which was 1.01% below the Zacks Consensus Estimate, compared to $75.35 million in the same quarter last year [2] - Over the last four quarters, Grindr has surpassed consensus EPS estimates only once, while it has topped consensus revenue estimates three times [2][1] Stock Performance - Grindr Inc. shares have increased approximately 34.7% since the beginning of the year, contrasting with a decline of 4.3% in the S&P 500 [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.09 on revenues of $103.1 million, and for the current fiscal year, it is $0.40 on revenues of $430.3 million [7] - The outlook for the Internet - Software industry, where Grindr operates, is currently in the top 37% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 grew 25% year over year to $94 million, with adjusted EBITDA margin reaching 43% at $41 million [15][20] - Direct revenue increased 24% year over year to $80 million, driven by demand for Unlimited Weekly and Extra Weekly subscriptions [15] - Average monthly active users rose 7% year over year to 14.6 million, while average paying users increased 16% to 1.2 million, resulting in a paid penetration of 8% [15][16] - Net income for Q1 was $27 million, representing 29% of revenue, compared to a net loss of $9 million in the same period last year [17] Business Line Data and Key Metrics Changes - The RightNow feature has been rolled out to 17 major cities, with 20-25% of users engaging weekly, contributing to the updated revenue guidance [9][10] - Indirect revenue grew 26% year over year to $14 million, supported by new ad formats and an expanded network of ad partners [16] Market Data and Key Metrics Changes - The company has seen a positive impact from foreign exchange rates, which contributed to the updated EBITDA guidance [25] - The average direct revenue per paying user increased 8% year over year to $22.86 [16] Company Strategy and Development Direction - Grindr is focusing on three strategic pillars: enhancing intent-based offerings, integrating AI into the app, and building a digital neighborhood [7] - The company plans to launch over 40 new products and initiatives in 2025, significantly increasing its product portfolio [13] - Woodwork, a men's health subscription service, is being developed as a startup within Grindr, targeting specific health needs of its user base [12][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in raising the full-year revenue growth outlook to 26% or greater and maintaining an adjusted EBITDA margin of at least 43% [6][20] - The company has not observed any consumer weakness despite broader economic concerns, attributing this to the higher disposable income of its user base [48][49] Other Important Information - Grindr completed the redemption of all outstanding unexercised warrants, which will eliminate the revaluation of warrant liability starting Q2 2025 [18] - The company generated free cash flow of over $23 million and ended the quarter with approximately $256 million in cash and cash equivalents [19] Q&A Session Summary Question: What changed in the higher 2025 guidance? - Management noted that positive results from ongoing tests and early monetization of RightNow contributed to the increased guidance [24][25] Question: How does Grindr defend its position against competitors? - Management emphasized the importance of understanding the specific needs of the gay community and highlighted the success of the RightNow feature in addressing immediate connection needs [42][44] Question: How is Grindr planning to integrate Woodwork into its ecosystem? - Management indicated that Woodwork is in its early stages and could potentially offer discounts on Grindr subscriptions and integrate payment systems [35][36] Question: How does Grindr view the international growth opportunity? - Management acknowledged significant opportunities for user growth both domestically and internationally, with plans to enhance product localization in the future [58][61] Question: What is the scope for growth in user engagement and monetization? - Management stated that product-led growth strategies are key, with new features aimed at retaining users who might otherwise seek alternatives [55][57]

Financial Data and Key Metrics Changes - In Q1 2025, total revenue grew 25% year over year to $94 million, with adjusted EBITDA margin reaching 43% at $41 million [14][16] - Direct revenue increased 24% year over year to $80 million, driven by demand for Unlimited Weekly and Extra Weekly subscriptions [14][16] - Average monthly active users rose 7% year over year to 14.6 million, while average paying users increased 16% to 1.2 million, resulting in a paid penetration of 8% [14][15] - Net income for Q1 was $27 million, representing 29% of revenue, compared to a net loss of $9 million in the same period last year [16][17] - Free cash flow generated in Q1 was over $23 million, with cash and cash equivalents at approximately $256 million [17] Business Line Data and Key Metrics Changes - The RightNow feature has been rolled out to 17 major cities, with 20-25% of users engaging weekly, contributing to the positive revenue guidance [8][14] - Indirect revenue grew 26% year over year to $14 million, supported by new ad formats and an expanded network of ad partners [15] Market Data and Key Metrics Changes - The company noted a favorable foreign exchange impact in March, contributing positively to revenue and EBITDA guidance [23] - The U.S. market remains strong, with 95% brand awareness, while international markets present significant growth opportunities due to lower brand recognition [54][56] Company Strategy and Development Direction - Grindr is focusing on becoming an AI-native leader in non-consumer apps, with plans to launch over 40 new products in 2025 [6][12] - The company is committed to deepening intent-based offerings and building a digital neighborhood, with initiatives like Woodwork targeting health and wellness [7][11] - The product roadmap emphasizes user experience and monetization, with a focus on optimizing offerings as new products are launched [12][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model and the ability to drive enhanced monetization and operational efficiency, raising full-year revenue growth guidance to 26% or greater [6][18] - The management team has not observed any consumer weakness, attributing this stability to the higher education levels and disposable income of their user base [44][45] Other Important Information - The company completed the redemption of all outstanding unexercised warrants, which will eliminate the revaluation of warrant liability starting Q2 2025 [16] - The Woodwork initiative is in its early stages, with plans to expand healthcare offerings beyond erectile dysfunction medications [11][32] Q&A Session Summary Question: What changed regarding the higher 2025 guidance? - Management indicated that positive results from ongoing tests and early monetization of RightNow contributed to the increased revenue and EBITDA guidance [22][23] Question: How does Grindr defend its position against competitors? - Management emphasized that understanding the specific needs of gay men is crucial, and Grindr's product strategy is built around intent, which sets it apart from competitors [38][39] Question: How is Grindr addressing potential macroeconomic weaknesses? - Management reported no observed consumer weakness and noted that their user base tends to have higher disposable income, which may buffer against economic downturns [44][45] Question: Can you elaborate on the AI native product suite? - Management expressed excitement about the AI products, particularly Alist, which addresses user needs in innovative ways, and highlighted plans for further AI-based offerings [62][65]

[Financial Highlights and Outlook](index=1&type=section&id=Financial%20Highlights%20and%20Outlook) Grindr reported strong Q1 2025 financial results, with revenue up **25%** to **$93.9 million**, and raised full-year 2025 guidance Q1 2025 Financial Performance | Metric | Q1 2025 (Millions of US Dollars) | YoY Change | | :--- | :--- | :--- | | Revenue | $93.9 | +25% | | Net Income | $27.0 | N/A (from loss) | | Adjusted EBITDA | $40.7 | +28.7% | | Adjusted EBITDA Margin | 43.3% | +1.4 p.p. | FY 2025 Guidance Update | FY 2025 Guidance | Previous | Updated | | :--- | :--- | :--- | | Revenue Growth | Not Stated | 26% or Greater | | Adjusted EBITDA Margin | Not Stated | At Least 43% | [Business and Product Updates](index=1&type=section&id=Business%20and%20Product%20Updates) Grindr launched early testing of its AI-powered 'A-List' premium experience and expanded its 'Right Now' feature - Began early testing of **"A-List,"** a new AI-powered premium user experience[1](index=1&type=chunk) - Expanded the **"Right Now"** feature and soft-launched a new product as part of its **"gayborhood expansion vision"**[1](index=1&type=chunk) - CEO George Arison stated, "This is the **biggest year for product innovation** in our history, and the team is executing at an exceptional level"[1](index=1&type=chunk) [Forward-Looking Statements and Risk Factors](index=2&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) This section outlines forward-looking statements and key risk factors that could impact Grindr's future performance and actual results - The report contains **forward-looking statements** regarding guidance, growth, and strategy, which are not guarantees of future performance and are subject to numerous risks[3](index=3&type=chunk)[4](index=4&type=chunk)[6](index=6&type=chunk) - Key risk factors include the ability to retain and add users, **regulatory compliance** (especially privacy and data protection), **competition**, and successful **adoption of AI/ML**[7](index=7&type=chunk) - Investors are directed to the "Risk Factors" section in the company's **Annual Report on Form 10-K** for a more detailed discussion of potential risks[8](index=8&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) Grindr uses non-GAAP measures like Adjusted EBITDA and free cash flow to assess core operating performance, with detailed reconciliations provided - The company uses non-GAAP measures such as **Adjusted EBITDA** and **free cash flow** to evaluate core operating performance, which may differ from measures used by other companies[9](index=9&type=chunk) - Forward-looking guidance for **Adjusted EBITDA margin** cannot be reconciled to **net income margin** without unreasonable efforts due to the variability of excluded charges like stock-based compensation[12](index=12&type=chunk) [Adjusted EBITDA Reconciliation](index=3&type=section&id=Adjusted%20EBITDA%20Reconciliation) Q1 2025 Net Income of **$27.0 million** reconciled to an Adjusted EBITDA of **$40.7 million**, yielding a **43.3%** Adjusted EBITDA Margin Adjusted EBITDA Reconciliation (Thousands of US Dollars) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Net income (loss)** | **$27,019** | **$(9,406)** | | Interest expense, net | $3,875 | $7,185 | | Income tax provision | $4,551 | $2,680 | | Depreciation and amortization | $3,477 | $4,119 | | Stock-based compensation expense | $10,947 | $7,869 | | Change in fair value of warrant liability | $(9,905) | $18,680 | | **Adjusted EBITDA** | **$40,689** | **$31,607** | | **Revenue** | **$93,938** | **$75,345** | | Net income (loss) margin | 28.8% | (12.5)% | | **Adjusted EBITDA Margin** | **43.3%** | **41.9%** | [Free Cash Flow Reconciliation](index=4&type=section&id=Free%20Cash%20Flow%20Reconciliation) Q1 2025 net cash from operating activities was **$23.8 million**, yielding a free cash flow of **$23.2 million** and a **56.9%** conversion rate Free Cash Flow Reconciliation (Thousands of US Dollars) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $23,793 | $20,449 | | Capitalized development software costs | $(628) | $(1,148) | | **Free cash flow** | **$23,165** | **$19,301** | | Free cash flow conversion | 56.9% | 61.1% | - **Free cash flow** is defined as net cash from operating activities less capitalized software, development costs, and purchases of property and equipment[15](index=15&type=chunk) [Company Overview](index=5&type=section&id=Company%20Overview) Grindr, positioned as "the Global Gayborhood in Your Pocket," serves over **14.5 million** monthly active users across **190** countries - Grindr has more than **14.5 million** average monthly active users[19](index=19&type=chunk) - The service is available in **190 countries and territories**, serving as a primary connection tool for its users[19](index=19&type=chunk)

Group 1 - Grindr (GRND) reported 4Q24 results that were largely in line with consensus, as the quarter was communicated ahead of time [1] - The company provided in-line FY25 guidance, but shares sold off due to EBITDA guidance [1] Group 2 - Astrada Advisors specializes in actionable recommendations that enhance portfolio performance and uncover alpha opportunities, with a strong track record in investment research [1] - The firm has expertise in technology, media, internet, and consumer sectors in North America and Asia, excelling in identifying high-potential investments [1] - Astrada Advisors integrates rigorous fundamental analysis with data-driven insights to provide a nuanced understanding of key trends, growth drivers, and competitive landscapes [1]

Group 1 - Grindr Inc. reported quarterly earnings of $0.09 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.04 per share a year ago [1] - The company posted revenues of $97.62 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 0.43%, and up from $72.09 million year-over-year [2] - Grindr has surpassed consensus revenue estimates four times over the last four quarters [2] Group 2 - The stock has underperformed, losing about 12% since the beginning of the year compared to the S&P 500's decline of -2.4% [3] - The earnings outlook for Grindr is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is $0.09 on revenues of $97.5 million, and for the current fiscal year, it is $0.40 on revenues of $427.9 million [7] Group 3 - The Internet - Software industry, to which Grindr belongs, is currently ranked in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]