Financial Data and Key Metrics Changes - In Q2 2025, total revenue grew 27% year over year to $104 million, with an adjusted EBITDA margin of 43% or $45 million, aligning with the raised full-year guidance [11][14] - Direct revenue for the quarter was $87 million, up 24% year over year, driven by subscription offerings and optimizations [12] - Average monthly active users (MAUs) increased by 6% year over year to 14.9 million, while average paying users rose 16% to 1.2 million [12] - Net income for Q2 was $17 million, representing 16% of revenue, compared to a net loss of $22 million in the same period last year [13] Business Line Data and Key Metrics Changes - Direct revenue growth was led by subscription offerings, with average direct revenue per paying user increasing 7% to $23.65 [12] - Indirect revenue reached $17 million, up 39% year over year, driven by new third-party advertising partners and traction in international markets [12] Market Data and Key Metrics Changes - The company noted strong engagement in the Explore feature, with over 25% of users utilizing it monthly, and launched Explore heat maps across 21 markets [6][12] - The company is focusing on expanding its presence in developing markets like India and the Philippines, where there is significant growth potential [27] Company Strategy and Development Direction - The company aims to build one of the leading AI-native consumer companies, leveraging GenAI to enhance user experiences and drive long-term revenue growth [7] - The introduction of mapping features is expected to enhance local discovery and user engagement, with plans for future product initiatives [31] - The company is committed to improving its marketing strategies in various regions, particularly in Latin America and Asia, to better penetrate those markets [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong results while executing its long-term vision [5][10] - The company reaffirmed its full-year 2025 outlook of at least 26% revenue growth and an adjusted EBITDA margin of at least 43% [14] Other Important Information - The CFO transition is underway, with the current CFO continuing in her role until a successor is identified [9] - The company has repurchased $325 million in common stock year to date, with $175 million remaining under the share repurchase program [14] Q&A Session Summary Question: What drove the MAU growth in Q2? - Management highlighted three drivers: strong engagement among younger user cohorts, reliance on unique device counting for MAUs, and organic growth from brand recognition [20][21][24] Question: Can you elaborate on the acceleration in indirect revenue? - The CEO noted that indirect revenue growth was driven by increased ad placements and new third-party advertising partnerships, with a focus on maintaining CPM levels [38][39] Question: What are the key drivers behind the increase in operating expenses? - The CFO indicated that increased operating expenses reflect investments in product development and marketing, as well as a more predictable expense profile [43][44] Question: Are there any early learnings from pricing experiments? - Management emphasized that pricing changes will not materially impact 2025 and that the focus is on driving revenue growth through product enhancements [46][47]

Grindr's AI-Native Strategy - Grindr is building a global super app for gay & bi men, enhancing the core use case with AI and creating new DTC businesses[6] - The company is developing Grindr AI (gAI), a full-stack foundation with three layers: Application, Architecture, and Foundational Models[13] - gAI is designed to capture gay cultural context, behavior patterns, and intent signals at scale, driving user experiences and competitive advantage[17] User Base and Engagement - Grindr has a valuable, trendsetting user base with unmatched reach and engagement[9] - The platform is present in 190+ countries and territories[10] - Users send over 130 billion chats annually[10, 31, 37] - Grindr boasts 2.5 billion+ album shares[10] - The median household income for male-male couples on Grindr is $128,000, compared to $75,000 for all households[10] - Grindr has 14.9 million monthly active users who spend approximately an hour a day on the app[37] A-List and gAI Deployment - A-List, Grindr's first AI-native product at scale, redefines how users connect by prioritizing high-potential chats and summarizing conversations[29, 31] - Agentic AI is supporting the engineering team, boosting productivity per workload by up to 10x and contributing up to 20% of shipped code[32]

[Executive Summary & Q2 2025 Financial Highlights](index=1&type=section&id=Executive%20Summary) Grindr Inc. presents its Q2 2025 financial results, highlighting strong performance and strategic focus on product innovation and AI roadmaps [Q2 2025 Performance Overview](index=1&type=section&id=Q2%202025%20Performance%20Overview) Grindr Inc. reported strong financial results for the second quarter of 2025, demonstrating significant revenue growth and healthy profit margins, which keeps the company on track to achieve its 2025 outlook Q2 2025 Key Financial Highlights | Metric | Value ($ Million) | | :-------------------- | :---------- | | Revenue | $104 Million | | Revenue Growth (YoY) | 27% | | Net Income | $17 Million | | Net Income Margin | 16% | | Adjusted EBITDA | $45 Million | | Adjusted EBITDA Margin | 43% | [CEO Commentary & Strategic Focus](index=1&type=section&id=CEO%20Commentary%20%26%20Strategic%20Focus) CEO George Arison highlighted the company's strong quarterly performance, emphasizing continued execution on product innovation and AI roadmaps. He underscored Grindr's unique assets and capabilities positioning it to build a leading AI-native consumer platform, aiming to maintain competitive advantage and long-term shareholder value - Grindr is firmly on track to achieve its **2025 outlook**, delivering on performance objectives[1](index=1&type=chunk) - The company is executing at a high level on product innovation and **AI roadmaps**[1](index=1&type=chunk) - Grindr aims to build a leading **AI-native consumer platform** to maintain competitive advantage and long-term shareholder value[1](index=1&type=chunk) [Earnings Webcast Information](index=1&type=section&id=Earnings%20Webcast%20Information) Details regarding Grindr's Q2 2025 earnings webcast and its availability for replay are provided [Webcast Details](index=1&type=section&id=Webcast%20Details) Grindr hosted a live webcast on August 7, 2025, to discuss its second quarter 2025 financial results. An archived version of the conference call is also available on the company's Investor Relations website - Grindr hosted a live webcast on **Thursday, August 7, 2025, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time)** to discuss Q2 2025 financial results[2](index=2&type=chunk) - The webcast and its archived version are accessible on Grindr's Investor Relations website: **https://investors.grindr.com/**[2](index=2&type=chunk) [Forward-Looking Statements & Risk Factors](index=2&type=section&id=Forward-Looking%20Statements%20%26%20Risk%20Factors) This section outlines cautionary forward-looking statements and enumerates key risks that could materially impact future financial results [Disclaimer](index=2&type=section&id=Disclaimer) This section serves as a cautionary note, indicating that the press release contains forward-looking statements about future events and financial performance. These statements are subject to numerous known and unknown risks, uncertainties, and changes in circumstances that could cause actual results to differ materially from expectations. Investors are advised not to place undue reliance on these statements, and the company disclaims any obligation to update them - Forward-looking statements relate to expectations, beliefs, projections, future plans, and strategies, and are **not historical facts**[3](index=3&type=chunk) - Actual results may differ materially due to numerous known and unknown risks, uncertainties, assumptions, and changes in circumstances[4](index=4&type=chunk) - The company is under no obligation to update or revise forward-looking statements, and investors should **not unduly rely on them**[6](index=6&type=chunk)[8](index=8&type=chunk) [Key Risk Factors](index=2&type=section&id=Key%20Risk%20Factors) Grindr identifies a range of factors that could significantly impact its future results, including challenges related to user retention, regulatory compliance, data security, strategic growth initiatives, personnel management, market competition, technological adaptation, and broader macroeconomic conditions - Key risk factors include[7](index=7&type=chunk) - Ability to retain existing users and add new users[7](index=7&type=chunk) - Impact of regulatory environment and compliance complexities (privacy, data protection, online safety)[7](index=7&type=chunk) - Ability to address privacy concerns and protect systems from cyber-attacks[7](index=7&type=chunk) - Success in identifying and consummating strategic transactions (partnerships, acquisitions, investments)[7](index=7&type=chunk) - Ability to retain or recruit key personnel and manage changes in roles[7](index=7&type=chunk) - Response to general economic conditions and competition in the dating and social networking industry[7](index=7&type=chunk) - Ability to adapt to changes in technology and user preferences, including successful adoption of **generative AI and ML**[7](index=7&type=chunk) - Dependence on the integrity of third-party systems and infrastructure[7](index=7&type=chunk) - Ability to protect intellectual property rights[7](index=7&type=chunk) - Concentration of stock ownership and voting power limiting stockholders' influence[7](index=7&type=chunk) - Timing, price, and quantity of share repurchases and ability to fund them[7](index=7&type=chunk) - Effects of macroeconomic and geopolitical events[7](index=7&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and reconciles non-GAAP financial measures, Adjusted EBITDA and Free Cash Flow, used to assess core operating performance and liquidity [Adjusted EBITDA and Adjusted EBITDA Margin](index=3&type=section&id=Adjusted%20EBITDA%20and%20Adjusted%20EBITDA%20Margin) Grindr utilizes Adjusted EBITDA and Adjusted EBITDA Margin as non-GAAP financial measures to assess its core operating performance, excluding certain non-cash or non-recurring items. These metrics are crucial for internal evaluation and management compensation, providing a supplemental view to GAAP results [Definition and Purpose](index=3&type=section&id=Adjusted%20EBITDA%20Definition%20and%20Purpose) Adjusted EBITDA is defined as net income (loss) adjusted for income tax, interest, depreciation, amortization, stock-based compensation, changes in fair value of warrant liability, severance, and litigation-related costs not indicative of core operations. This measure is used internally by management to evaluate business performance and for employee compensation, as it excludes non-cash and non-normal operating results - Adjusted EBITDA is a non-GAAP measure used to understand and evaluate **core operating performance**[9](index=9&type=chunk) - It is defined as net income (loss) excluding income tax, interest, depreciation, amortization, stock-based compensation, gain/loss in fair value of warrant liability, severance expense, litigation-related costs, and other non-core items[10](index=10&type=chunk) - Management uses Adjusted EBITDA internally to evaluate business performance and for employee compensation, as it excludes **non-cash and non-normal operating results**[11](index=11&type=chunk) [Reconciliation Table](index=3&type=section&id=Adjusted%20EBITDA%20Reconciliation%20Table) The reconciliation table illustrates the adjustments made from net income (loss) to Adjusted EBITDA for the three and six months ended June 30, 2025 and 2024. It shows a significant improvement from net losses to net income in 2025, while Adjusted EBITDA margins remained relatively stable Reconciliation of Net Income (Loss) to Adjusted EBITDA (in thousands) | ($ in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) | $16,638 | $(22,424) | $43,657 | $(31,830) | | Interest expense, net | 3,564 | 6,669 | 7,439 | 13,854 | | Income tax provision | 4,654 | 4,965 | 9,205 | 7,645 | | Depreciation and amortization | 3,068 | 4,235 | 6,545 | 8,354 | | Litigation-related costs | 754 | 661 | 980 | 1,083 | | Stock-based compensation expense | 16,529 | 7,721 | 27,476 | 15,590 | | Severance expense | — | — | 499 | 58 | | Change in fair value of warrant liability | — | 35,118 | (9,905) | 53,798 | | **Adjusted EBITDA** | **$45,207** | **$36,945** | **$85,896** | **$68,552** | | Revenue | $104,220 | $82,345 | $198,158 | $157,690 | | Net income (loss) margin | 16.0 % | (27.2)% | 22.0 % | (20.2)% | | Adjusted EBITDA Margin | 43.4 % | 44.9 % | 43.3 % | 43.5 % | [Free Cash Flow and Free Cash Flow Conversion](index=4&type=section&id=Free%20Cash%20Flow%20and%20Free%20Cash%20Flow%20Conversion) Free cash flow and free cash flow conversion are non-GAAP liquidity indicators that provide insights into the cash generated from operations after capital expenditures, available for debt repayment or strategic initiatives. These measures help management and investors understand the company's financial flexibility [Definition and Purpose](index=4&type=section&id=Free%20Cash%20Flow%20Definition%20and%20Purpose) Free cash flow is defined as net cash provided by operating activities less capitalized software development costs and purchases of property and equipment. It serves as a liquidity indicator, informing management and investors about cash available for debt obligations and strategic initiatives. Free cash flow conversion is calculated by dividing free cash flow by Adjusted EBITDA - Free cash flow is an indicator of liquidity, showing cash generated from operations after capitalized software development costs and purchases of property and equipment[14](index=14&type=chunk) - It is used to repay debt obligations and/or for strategic initiatives[14](index=14&type=chunk) - Free cash flow conversion is calculated by dividing free cash flow by Adjusted EBITDA for the same period[14](index=14&type=chunk) [Reconciliation Table](index=4&type=section&id=Free%20Cash%20Flow%20Reconciliation%20Table) The reconciliation table demonstrates a significant increase in free cash flow and free cash flow conversion for both the three and six months ended June 30, 2025, compared to the prior year, indicating improved operational cash generation and liquidity Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (in thousands) | ($ in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $37,518 | $15,850 | $61,311 | $36,299 | | Less: Capitalized development software costs and purchases of property and equipment | (880) | (1,696) | (1,508) | (2,844) | | **Free cash flow** | **$36,638** | **$14,154** | **$59,803** | **$33,455** | | Operating cash flow conversion | 225.5 % | (70.7)% | 140.4 % | (114.0)% | | Free cash flow conversion | 81.0 % | 38.3 % | 69.6 % | 48.8 % | [Company Information](index=5&type=section&id=Company%20Information) This section provides information on Grindr's trademarks and an overview of the company's mission and global community impact [Trademarks](index=5&type=section&id=Trademarks) This section clarifies that the press release may contain Grindr's trademarks, and the omission of ® or ™ symbols does not imply a waiver of the company's full legal rights to these trademarks - The press release may contain Grindr trademarks, and the absence of ® or ™ symbols does not indicate a waiver of Grindr's rights to these trademarks[17](index=17&type=chunk) [About Grindr Inc.](index=5&type=section&id=About%20Grindr%20Inc.) Grindr Inc. is a leading global social networking app for the LGBTQ+ community, serving over 14.5 million average monthly active users across 190+ countries. The company is committed to fostering a world where its global community is free, equal, and just, actively advancing human rights, health, and safety through its 'Grindr for Equality' initiative - Grindr has over **14.5 million average monthly active users** and is available in **190+ countries and territories**[18](index=18&type=chunk) - Its mission is to create a world where the lives of its global community are **free, equal, and just**[18](index=18&type=chunk) - Since 2015, 'Grindr for Equality' has advanced human rights, health, and safety for **millions of LGBTQ+ people globally**[18](index=18&type=chunk)

Financial Data and Key Metrics Changes - The preliminary results indicate that the proposal to elect eight directors was carried, and the selection of Ernst and Young LLP as the independent registered public accounting firm for the fiscal year ending 12/31/2025 was ratified [14][15]. Business Line Data and Key Metrics Changes - No specific financial data or key metrics related to individual business lines were provided in the meeting [13]. Market Data and Key Metrics Changes - No specific market data or key metrics were discussed during the meeting [13]. Company Strategy and Development Direction and Industry Competition - The company’s board of directors recommended against the stockholder proposal regarding the adoption of a human rights policy, stating that it is unnecessary as the company already complies with local requirements [12][13]. Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during the meeting [13]. Other Important Information - The meeting included a proposal from the AFL CIO Equity Index Funds urging the board to adopt a human rights policy, which was ultimately not approved [15]. Q&A Session Summary - There were no questions submitted regarding the items presented during the meeting [13].

Group 1: Company Performance - Grindr Inc. has achieved a year-to-date return of approximately 22.7%, significantly outperforming the average gain of 1.8% in the Computer and Technology sector [4] - The Zacks Consensus Estimate for Grindr's full-year earnings has increased by 17.5% over the past three months, indicating a positive earnings outlook [3] - Grindr Inc. currently holds a Zacks Rank of 2 (Buy), suggesting strong potential for future performance [3] Group 2: Industry Comparison - Grindr belongs to the Internet - Software industry, which has seen an average gain of 13% this year, further highlighting Grindr's superior performance [5] - In contrast, Nutanix, another stock in the Computer and Technology sector, has a year-to-date return of 19.8% and also holds a Zacks Rank of 2 (Buy) [4][5] - The Computers - IT Services industry, which includes Nutanix, has experienced a decline of 9% since the beginning of the year, showcasing the relative strength of Grindr's performance [6]

Financial Data and Key Metrics Changes - Grindr raised its 2025 revenue guidance to a growth rate of 26% or better, reflecting strong performance in the first quarter and confidence in ongoing initiatives [10][11] - EBITDA margins are expected to remain stable throughout the year, influenced by numerous initiatives and AI-related costs [10][11] Business Line Data and Key Metrics Changes - The company reported significant success with its weekly subscription tier and boost offerings, which have been described as "absolute home runs" [8] - Grindr's user engagement metrics are notably high, with users sending 31 billion chats in 2024 and an average engagement time exceeding 60 minutes [4][5] Market Data and Key Metrics Changes - Approximately 75% of Grindr's monthly active users (MAUs) are located internationally, indicating a strong global presence [15] - The company sees potential for growth in international markets, which are currently under-monetized compared to the U.S. market [53][54] Company Strategy and Development Direction - Grindr is focused on expanding its product roadmap, with over 30 to 40 new products and initiatives planned for 2025, including AI-driven features [9][42] - The company aims to enhance user experience and community engagement, which is integral to its business model [40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's resilience in the face of potential economic downturns, citing the community's strong engagement and higher income demographics [56][58] - The management is bullish on the potential for monetization growth, particularly in international markets, and is exploring new product offerings to enhance user engagement [54][55] Other Important Information - Grindr is investing in AI technologies to improve both user experience and internal efficiencies, with a focus on chat AI and other features [34][36] - The company is actively hiring in key areas such as AI, machine learning, and product development to support its growth strategy [22][24] Q&A Session Summary Question: How does Grindr differentiate itself from other dating apps? - Grindr's broader use case and high engagement metrics set it apart, with a focus on community connectivity and user experience [3][4] Question: What is the outlook for revenue and EBITDA growth? - The company has set long-term targets of 20% to 25% annual revenue growth and 39% to 42% EBITDA margins, with current performance tracking positively [11][12] Question: How does Grindr plan to increase payer conversion? - The company is focused on enhancing the value proposition of its offerings to encourage users to transition from free to paid subscriptions [17][21] Question: What are the expectations regarding App Store fees? - Grindr is exploring options to potentially reduce App Store fees but acknowledges the complexities involved in building out direct payment systems [44][48] Question: What is the potential for international market growth? - Management is optimistic about international monetization opportunities, noting that many markets are currently under-monetized compared to the U.S. [51][53] Question: How would Grindr fare in a consumer downturn? - The company believes it may be more resilient due to its community-based model and the higher income levels of its user base [56][58]

Core Viewpoint - Grindr Inc. (GRND) is showing a significantly improving earnings outlook, making it a potentially solid investment choice as analysts continue to raise their earnings estimates [1][2]. Earnings Estimate Revisions - Analysts' optimism regarding Grindr's earnings prospects is leading to higher estimates, which is expected to positively impact the stock price [2]. - The Zacks Rank system, which correlates earnings estimate revisions with stock price movements, indicates that GRND has strong upward revisions in earnings estimates for both the current quarter and the full year [3]. Current-Quarter Estimate - For the current quarter, Grindr is expected to earn $0.11 per share, reflecting a year-over-year increase of +57.14% [7]. - Over the past 30 days, the Zacks Consensus Estimate for Grindr has risen by 22.22%, with one estimate moving higher and no negative revisions [7]. Current-Year Estimate - For the full year, Grindr is projected to earn $0.47 per share, representing a substantial year-over-year change of +422.22% [8]. - The trend for the current year's estimate revisions is also positive, with one estimate moving higher and no negative revisions [8]. Zacks Rank - Grindr currently holds a Zacks Rank 2 (Buy), indicating promising estimate revisions that could lead to significant outperformance compared to the S&P 500 [9]. - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the market [9]. Stock Performance - Grindr shares have increased by 32.7% over the past four weeks, suggesting strong investor confidence in its earnings growth prospects [10].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1][2]. Company Analysis: Grindr Inc. (GRND) - Grindr Inc. currently holds a Momentum Style Score of A, indicating strong potential for momentum investing [3]. - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for outperformance in the market [4]. - Over the past week, GRND shares increased by 9.87%, significantly outperforming the Zacks Internet - Software industry, which rose by 1.43% [6]. - In a longer time frame, GRND shares have shown a monthly price change of 32.67%, compared to the industry's 12% [6]. - Over the past quarter, GRND shares increased by 31.43%, and over the last year, they gained 136.69%, while the S&P 500 moved -5.82% and 9.94%, respectively [7]. - The average 20-day trading volume for GRND is 1,702,926 shares, indicating a bullish trend when combined with rising stock prices [8]. Earnings Outlook - Recent earnings estimate revisions for GRND show positive momentum, with one estimate moving higher for the full year, raising the consensus estimate from $0.40 to $0.47 [10]. - For the next fiscal year, one estimate has also moved upwards, with no downward revisions noted [10]. Conclusion - Given the strong performance metrics and positive earnings outlook, GRND is identified as a promising stock for momentum investing, making it a candidate for short-term investment consideration [12].

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]