Grindr Inc. — Third Quarter 2026 Earnings Summary

Financial Performance

• Third quarter 2026 revenue was $141.4 million, representing a 22% year-over-year increase compared to $115.8 million in the same period of 2025.
• Adjusted EBITDA for the three months ended September 30, 2026, was $61.7 million, an increase from $54.8 million in the prior year period.
• Adjusted EBITDA margin for the quarter was 43.7%, down from 47.4% in the third quarter of 2025.
• Net loss for the quarter was $6.6 million, compared to net income of $30.8 million in the prior year period.
• Nine-month revenue through September 30, 2026, totaled $409.5 million, up from $313.9 million in the same period of 2025.
• Nine-month Adjusted EBITDA through September 30, 2026, was $177.9 million, compared to $140.7 million in the prior year period.
• Nine-month Adjusted EBITDA margin was 43.4%, down from 44.8% in the prior year period.
• Net income excluding litigation-related and transaction-related costs for the quarter was $21.0 million, compared to $31.6 million in the prior year period.
• Net income excluding litigation-related and transaction-related costs for the nine months was $68.2 million, compared to $76.3 million in the prior year period.
• Litigation-related costs for the quarter were $32.3 million, compared to $0.8 million in the prior year period.
• Transaction-related costs for the quarter were $3.5 million, compared to $0 in the prior year period.
• Stock-based compensation expense for the quarter was $19.3 million, compared to $6.0 million in the prior year period.

Guidance and Future Outlook

• Full-year 2026 revenue guidance has been raised to $560 million.
• Full-year 2026 Adjusted EBITDA guidance has been raised to $236 million.
• The company provided its initial outlook for 2027, projecting revenue of at least $705 million.
• The initial 2027 outlook includes Adjusted EBITDA of at least $275 million.
• The raised 2026 guidance places the company within its 2024 Investor Day financial targets nearly a full year early.

Business Segments and Product Lines

• Launched "Edge," an AI-native premium tier designed for power users, to provide additional value.
• Completed the acquisition of PurposeMed Inc., the parent company of the Freddie brand, to expand Grindr Health.
• The Freddie acquisition brings an established, profitable telehealth business focused on expanding access to PrEP.
• Grindr Health integrates technology and clinical expertise to facilitate access to health and wellness care.
• Average monthly active users remain strong, with nearly 16 million users globally.

Market and Competitive Landscape

• The company operates in the dating, social networking, and telehealth/digital healthcare industries.
• Grindr serves as the "Global Gayborhood in Your Pocket," aiming to bring physical gayborhood connections into the app.
• The company notes competition in dating, social networking, telehealth, and digital healthcare sectors.

Risks and Challenges

• Risks include the ability to retain existing users and add new users, and the market acceptance of new premium products and pricing changes.
• Legal and regulatory compliance risks involve privacy, data protection, online safety, healthcare laws, telehealth, and prescribing regulations.
• Cybersecurity risks include protecting systems from attacks and preventing unauthorized access to health information.
• Integration risks are associated with the acquisition of PurposeMed Inc. and realizing intended benefits from strategic transactions.
• Macroeconomic and geopolitical events, including anti-LGBTQ policies, could restrict app access in certain countries.
• Risks related to debt repayment prior to maturity and the concentration of stock ownership and voting power.
• Dependence on third-party systems and the ability to adapt to technology changes and user preferences.

Management Commentary and Tone

• CEO George Arison described Q3 2026 as an "outstanding quarter" with strong user engagement and momentum across the core business.
• Management expressed confidence in carrying momentum into 2027, noting the early achievement of 2024 Investor Day targets.
• The tone indicates a focus on driving long-term shareholder value while expanding the ecosystem through new products and acquisitions.

Other Key Points

• Grindr acquired PurposeMed Inc. on November 2, 2026, including its partnerships with affiliated clinical networks.
• The company hosts a live webcast for Q3 2026 results on November 5, 2026, at 2:00 p.m. Pacific Time.
• The press release includes detailed reconciliations of non-GAAP financial measures, including Adjusted EBITDA and net income excluding litigation and transaction costs.
• Employee transition costs for the quarter were $0.3 million, related to the transition of the former CFO and severance arrangements.
• Equity method investee losses and related credit losses for the quarter were $1.7 million.
• Other expense for the quarter was $3.7 million, related to the final settlement of a bifurcated derivative in forward repurchase transactions.