Grindr (US:GRND)2025-11-06 21:35Financial 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]