Core Insights - Grindr Inc. reported quarterly earnings of $0.16 per share, exceeding the Zacks Consensus Estimate of $0.12 per share, and showing an increase from $0.05 per share a year ago, resulting in an earnings surprise of +33.33% [1] - The company generated revenues of $115.77 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.46% and increasing from $89.32 million year-over-year [2] - Grindr Inc. shares have declined approximately 26.1% since the beginning of the year, contrasting with the S&P 500's gain of 15.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.13 on revenues of $124.6 million, and for the current fiscal year, it is $0.47 on revenues of $436.8 million [7] - The estimate revisions trend for Grindr Inc. was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Internet - Software industry, to which Grindr Inc. belongs, is currently ranked in the top 35% of over 250 Zacks industries, suggesting that companies in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8]

Financial Data and Key Metrics Changes - Grindr reported a total revenue increase of 30% year-over-year, reaching $116 million in Q3 2025 [11] - Adjusted EBITDA was $55 million, up 37% year-over-year, resulting in a record margin of 47% [11][14] - Net income for Q3 was $31 million, or $0.16 per diluted share, compared to $25 million, or $0.09 per share, a year ago [13] Business Line Data and Key Metrics Changes - Direct revenue grew by 25% year-over-year, while indirect revenue increased by 56% [11] - The advertising business was the primary driver of outperformance, with strong results from international third-party advertising partners [12] - Average monthly active users (MAU) totaled 15.1 million, with an average of 1.3 million paying users, resulting in a penetration rate of 8.6% [12] Market Data and Key Metrics Changes - Grindr's user demographics show that 46% of users are aged 18 to 29, indicating strong engagement among younger cohorts [27] - The company is focusing on international markets, particularly in Europe and regions like Brazil and India, where brand recognition is lower [49][50] Company Strategy and Development Direction - Grindr is expanding its product service area and enhancing user experience through features like Albums, Boost, and AI-powered tools [5][6] - The company is testing subscription price changes for the first time since 2018, with positive retention rates observed [6] - A new AI-powered premium tier is being developed for power users, expected to roll out globally in late 2026 [7][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a full-year 2025 adjusted EBITDA of $191-$193 million, reaffirming a revenue growth outlook of 26% or greater [4][14] - The company remains focused on execution despite a proposal from large shareholders to take Grindr private [9][10] Other Important Information - Grindr has repurchased 25.1 million shares for approximately $450 million, with $50 million remaining under the current authorization [13] - The board has formed a special committee to evaluate the proposal for taking the company private [9] Q&A Session Summary Question: Pricing strategy and user conversion - Management emphasized the importance of balancing price increases with user conversion, noting minimal impact on conversion rates despite price changes [17][18] Question: Engagement metrics for new products - The "Right Now" feature has seen high engagement, with 20-25% of users posting weekly and over 75% viewing postings [25] Question: Trends in user base growth and bad actor removal - MAU growth is primarily organic, with efforts to remove bad actors impacting reported numbers [30][32] Question: International market initiatives - Management outlined three buckets for international growth: increasing pay penetration in economically advanced countries, expanding user base in emerging markets, and focusing on India [48][50] Question: AI integration and advertising growth - AI features are being integrated into the premium tier, and advertising growth has been strong, contributing positively to EBITDA [59][60]

Financial Performance - Revenue for Q3 2025 reached $115.766 million, a 29.6% increase from $89.325 million in Q3 2024[19] - Net income for Q3 2025 was $30.834 million, compared to a net income of $24.681 million in Q3 2024, reflecting a 24.6% increase[19] - Basic net income per share for Q3 2025 was $0.16, compared to $0.14 in Q3 2024, indicating a 14.3% increase[19] - Net income for the nine months ended September 30, 2025, was $74,491,000, compared to a net loss of $7,149,000 for the same period in 2024[24] - Net income for the three months ended September 30, 2025, was $30,834,000, compared to $24,681,000 for the same period in 2024, representing a 24% increase[98] - The diluted net income per share for the nine months ended September 30, 2025, was $0.33, compared to a loss of $(0.04) for the same period in 2024[98] - Adjusted EBITDA for the three months ended September 30, 2025, was $54.8 million, representing a 36.7% increase from $40.1 million in the same period in 2024[125] - Free cash flow for the nine months ended September 30, 2025, was $111.0 million, compared to $61.3 million in the same period in 2024, indicating a significant increase[127] Assets and Liabilities - Total current assets decreased to $77.304 million as of September 30, 2025, down from $116.984 million at December 31, 2024, representing a decline of 33.8%[18] - Total liabilities decreased to $368.234 million as of September 30, 2025, down from $610.660 million at December 31, 2024, a reduction of 39.6%[18] - Cash and cash equivalents decreased to $6.327 million as of September 30, 2025, from $59.152 million at December 31, 2024, a decline of 89.3%[18] - The company reported a total stockholders' equity of $70.954 million as of September 30, 2025, compared to a deficit of $131.570 million at December 31, 2024[18] - As of September 30, 2025, total debt amounted to $279,908,000, a decrease from $290,580,000 as of December 31, 2024, representing a reduction of approximately 3.5%[52] - The Senior Term Loan Facility has a principal balance of $270,750,000, with an interest rate of 7.1% as of September 30, 2025[55] Revenue Breakdown - Direct revenue for the same period was $96,346,000, up from $76,907,000, while indirect revenue increased to $19,420,000 from $12,418,000[44] - Direct revenue accounted for 83.2% of total revenue for the three months ended September 30, 2025, down from 86.1% in the same period in 2024[118] - Indirect revenue represented 16.8% of total revenue for the three months ended September 30, 2025, compared to 13.9% in the same period in 2024[118] - Average Revenue Per Paying User (ARPPU) increased to $24.70 for the three months ended September 30, 2025, from $23.07 in the same period in 2024[127] Operating Expenses - Operating expenses for Q3 2025 were $70.525 million, an increase of 15.6% from $60.938 million in Q3 2024[19] - Total operating expenses for the three months ended September 30, 2025, were $70.5 million, or 60.9% of total revenue, compared to $60.9 million, or 68.2% in 2024[147] - Selling, general and administrative expenses increased to $29.3 million, or 25.3% of total revenue, from $25.0 million, or 28.0% in 2024[147] Stock and Compensation - Stock-based compensation for the nine months ended September 30, 2025, totaled $33,495,000, an increase from $22,642,000 in 2024[24] - Stock-based compensation expenses for Q3 2025 totaled $6,019, compared to $7,052 in Q3 2024, while for the nine months ended September 30, 2025, it was $33,495 compared to $22,642 in the same period of 2024[92] - The Company issued 228,785 fully vested RSUs to executives in Q1 2025 with a total fair value of $4,173 upon achieving a market capitalization threshold[77] Cash Flow and Financing - Net cash provided by operating activities for the nine months ended September 30, 2025, was $116,760,000, compared to $65,424,000 in 2024[24] - The company experienced a net cash decrease of $52,825,000 in cash, cash equivalents, and restricted cash for the nine months ended September 30, 2025[25] - Net cash used in financing activities for the nine months ended September 30, 2025, was $163.9 million, significantly higher than $50.6 million in 2024, primarily due to stock repurchases[186] User Metrics - The company had 15.1 million Average Monthly Active Users (MAUs) for the three months ended September 30, 2025, up from 14.6 million in the same period in 2024, indicating a growth of 3.4%[119] - Average Paying Users increased to 1.3 million for the three months ended September 30, 2025, compared to 1.1 million in the same period in 2024, reflecting a growth of 16.9%[120] Legal and Regulatory - The company is currently involved in legal proceedings, including a class action in Israel settled in February 2025, which was approved by the court in July 2025[110] - A non-binding, unsolicited take-private proposal was received from shareholders to acquire all outstanding shares for $18.00 per share in cash[114] - The company is currently evaluating the impact of new accounting standards issued by the FASB, which may affect future financial disclosures[48][49][50] Strategic Initiatives - The company plans to grow its user base and revenues by introducing new and innovative products and services globally[121] - The company is investing in artificial intelligence and machine learning to enhance user experience and improve matching capabilities[131] - The company plans to continue expanding its team, particularly in applied science, data engineering, and AI/ML[132]

Financial Performance - Grindr reported third quarter 2025 revenue of $116 million, representing a 30% year-over-year growth[1] - Net income for the quarter was $31 million, with a net income margin of 27%[1] - Adjusted EBITDA reached $55 million, resulting in an adjusted EBITDA margin of 47%[1] - The company expects full-year 2025 adjusted EBITDA to be between $191 million and $193 million, with an adjusted EBITDA margin above 43%[1] - Grindr reaffirmed its revenue growth outlook of 26% or greater for the full year 2025[1] - Free cash flow for the third quarter was $51.2 million, with a free cash flow conversion rate of 93.5%[17] - Net cash provided by operating activities was $55.4 million for the third quarter, up from $29.1 million in the same period last year[17] User Engagement - The average monthly active users (MAU) exceeded 15 million, indicating strong user engagement and growth[20] Strategic Initiatives - The company is focused on enhancing user experience through significant innovations in the Grindr app over the past three years[1] - Grindr is actively exploring strategic transactions, including partnerships and acquisitions, to expand its product offerings and market presence[6]

Core Points - Grindr Inc. announced the resignation of James Lu from the Board of Directors to focus on personal business priorities, with J. Michael Gearon, Jr. appointed as Lead Independent Director [1][2] - Lu expressed optimism about Grindr's future and emphasized his commitment to the company despite his resignation, highlighting his ongoing engagement with the Board [2][4] - A non-binding proposal to take Grindr private at $18.00 per share was submitted by Lu and co-bidders, which the Special Committee is currently evaluating [3][5] Company Updates - James Lu has served as Chairperson for over five years and contributed significantly to Grindr's growth and public market entry [2][4] - The Board is actively seeking new candidates for board membership to enhance its skills and expertise [2] - Grindr has over 15 million average monthly active users and operates in more than 190 countries, focusing on LGBTQ+ community support and human rights [7]

Core Viewpoint - Bleichmar Fonti & Auld LLP is investigating Grindr Inc.'s board of directors and majority stockholders for potential breaches of fiduciary duties related to a proposed take-private transaction that may disadvantage minority shareholders [1][5]. Group 1: Investigation Details - The investigation focuses on majority stockholders James Fu Bin Lu and George Raymond Zage, III, who are proposing a transaction to take Grindr private, potentially cashing out minority shareholders while retaining their ownership [3][5]. - On October 24, 2025, Lu and Zage offered to purchase minority shareholders' shares for $18.00 each [3]. - There is no indication that the final deal will require a majority-of-the-minority stockholder vote, raising concerns about the effectiveness of the special committee appointed to oversee the transaction [4]. Group 2: Legal Options for Shareholders - Current shareholders of Grindr are encouraged to seek additional information and may have legal options available to them [2][6]. - BFA Law operates on a contingency fee basis, meaning shareholders will not incur costs unless the firm secures a favorable outcome [6].

Core Viewpoint - Bleichmar Fonti & Auld LLP is investigating Grindr Inc.'s board of directors and majority stockholders for potential breaches of fiduciary duties related to a proposed take-private transaction that may disadvantage minority shareholders [1][5]. Group 1: Investigation Details - The investigation focuses on majority stockholders James Fu Bin Lu and George Raymond Zage, III, who are proposing a transaction to take Grindr private, potentially cashing out minority shareholders while retaining their ownership [3][5]. - On October 24, 2025, Lu and Zage offered to purchase minority shareholders' shares for $18.00 per share [3]. - There is no indication that the final deal will require a majority-of-the-minority stockholder vote, raising concerns about the effectiveness of the special committee appointed to oversee the transaction [4]. Group 2: Legal Options for Shareholders - Current shareholders of Grindr are encouraged to seek additional information and may have legal options available to them [2][6]. - BFA Law operates on a contingency fee basis, meaning shareholders will not incur costs unless the firm secures a favorable outcome [6]. Group 3: Firm Background - Bleichmar Fonti & Auld LLP is recognized as a leading international law firm specializing in securities class actions and shareholder litigation, with a strong track record of recovering significant amounts for clients [8].

Group 1 - The DJS Law Group is investigating claims on behalf of investors of Grindr Inc. for potential breaches of fiduciary duty by its directors and management [1] - The investigation is focused on whether the Grindr board has breached its fiduciary duties to investors [1] - Shareholders who have suffered losses are encouraged to contact the DJS Law Group to participate in the investigation [1] Group 2 - DJS Law Group specializes in enhancing investor returns through balanced counseling and aggressive advocacy, focusing on securities class actions and corporate governance litigation [2] - The firm represents some of the largest hedge funds and alternative asset managers globally, emphasizing the value of litigation claims as significant assets [2]

Core Viewpoint - Berman Tabacco is investigating the proposal by controlling stockholders of Grindr Inc. to take the company private by cashing out public stockholders at $18.00 per share [1][2][3] Investigation Details - On October 14, 2025, Grindr received a letter from controlling stockholders George Raymond Zage, III and James Fu Bin Lu expressing interest in a going-private transaction [2] - On October 24, 2025, Zage and Lu made an offer to purchase all Grindr shares from minority stockholders for $18.00 per share [2] - Concerns have been raised regarding the independence of the special committee appointed by Grindr to review the transaction, especially since it previously authorized stock buybacks that increased Zage's ownership past 50% [2] - There is no indication that the transaction will require the affirmative vote of a majority of minority stockholders [2] Legal Investigation - Berman Tabacco is examining whether Grindr's controlling stockholders and board of directors have breached their fiduciary duties to stockholders in relation to the proposed transaction [3]

Core Viewpoint - Bleichmar Fonti & Auld LLP is investigating Grindr Inc.'s board of directors and majority stockholders for potential breaches of fiduciary duties related to a proposed take-private transaction that may disadvantage minority shareholders [1][5]. Group 1: Investigation Details - The investigation focuses on majority stockholders James Fu Bin Lu and George Raymond Zage, III, who are proposing a transaction to take Grindr private, potentially cashing out minority shareholders while retaining their ownership [3][5]. - Lu and Zage have secured debt financing of up to $1 billion, contingent on the deal being at or above $15 per share [3]. - There is no indication that the final deal will require a majority-of-the-minority stockholder vote, raising concerns about the effectiveness of the special committee appointed by the company [4]. Group 2: Legal Options for Shareholders - Current shareholders of Grindr are encouraged to seek additional information and may have legal options available to them [2][6]. - BFA Law operates on a contingency fee basis, meaning shareholders will not incur court costs or litigation expenses unless the firm secures a favorable outcome [6].