GRND · Grindr Inc.

Grindr delivered exceptional Q1 2026 results, with revenue growing 38% year-over-year to $130 million — exceeding analyst expectations and reflecting strong execution across both core app monetization and advertising. App-based revenue rose 33% to $107 million, driven by subscriber growth across XTRA and Unlimited tiers and higher pricing rolled out in Q3 2025; Average Paying Users increased 19% to 1.4 million and ARPPU rose 12% to $25.63, confirming sustained pricing power and user quality. Advertising revenue surged 68% to $23 million, aided by a large, full-year health brand campaign — validating Grindr’s expanding appeal to direct brand partners. Net income of $27 million (21% margin) was flat in absolute terms but reflected margin compression versus 29% in Q1 2025, primarily due to higher interest and tax expense, as Q1 2025 included a $9.9 million non-recurring gain from warrant liability revaluation. Adjusted EBITDA of $58 million (45% margin) grew 44% YoY, demonstrating operating leverage despite $11 million higher operating expenses — attributed to planned investments in talent and technical infrastructure. Management raised full-year 2026 guidance to at least $535 million revenue and $227 million Adjusted EBITDA, citing Q1 momentum and the health campaign, while noting revenue growth will moderate later in the year as it anniversaries prior pricing actions. The company also advanced its capital return strategy, retiring 8.3 million shares in Q1 and maintaining $350 million of remaining repurchase capacity under its expanded $400 million authorization — underscoring confidence in valuation and cash generation. Forward-looking commentary emphasized product-led growth drivers: Edge (a new AI-powered premium tier expected to be the largest revenue driver in 2027), Maps expansion, Health Center launch, and cultural partnerships like the Madonna vinyl collaboration — all reinforcing Grindr’s strategic shift from a dating app to a broader platform for gay life.