Grindr (GRND) investor relations material

Executive summary

• Q2 2026 revenue reached $138.1 million, up 33% year-over-year, with net income of $18 million and Adjusted EBITDA of $58 million, driven by strong user engagement, product improvements, and AI integration.

• Average Paying Users increased 16.1% year-over-year to 1.4 million, and ARPPU rose 12.1% to $26.51.

• App-based revenue accounted for 82% of total revenue, while advertising revenue grew 44% to $25 million.

• Continued investment in AI and product innovation, including the EDGE premium tier and cultural partnerships like the Madonna campaign.

• Notable commercial partnership with Madonna highlighted brand influence and drove one-time marketing spend.

Financial highlights

• Six-month revenue reached $268.1 million, up 35.3% year-over-year; net income was $44.5 million.

• Adjusted EBITDA for Q2 2026 was $58 million (42% margin); for six months, $116.1 million (43.3% margin).

• Free cash flow for the six months was $69.8 million, with a conversion rate of 60.1%.

• Cash and cash equivalents at June 30, 2026, were $6.5 million, with $386.3 million in debt outstanding.

• Operating expenses (excluding cost of revenue) were $71 million, up from $53 million, partly due to one-time marketing for Madonna.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $540 million; Adjusted EBITDA to $232 million.

• Expect moderation in growth rates in H2 2026 due to tough comps and lapping subscription pricing changes.

• 2027 growth expected to be driven by EDGE premium tier and continued product innovation.

• Focus remains on user growth, product innovation, and international expansion.

• Management expects continued operating leverage from AI-driven initiatives and strong operating cash flows to support investments and capital returns.