Grindr (GRND) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $130 million, up 38% year-over-year, driven by subscription and advertising growth.

• Net income was $27 million, with a net income margin of 21%.

• Adjusted EBITDA was $58.5 million, with a 45% margin, reflecting strong execution and new feature launches.

• Product improvements, expanded user value, and thoughtful monetization drove performance.

• Strategic partnerships and cultural relevance initiatives, such as the Madonna collaboration, expanded brand reach.

Financial highlights

• App-based revenue was $106.7 million (up 33.3%), and advertising revenue was $23.3 million (up 67.6%) year-over-year.

• Adjusted EBITDA increased to $58.5 million, a 44% rise, with a 45% margin.

• Net income margin stood at 21% in Q1 2026.

• Free cash flow was $31.9 million, with a free cash flow conversion of 54.5%.

• Cost of revenue increased 33.1% to $32.6 million, mainly due to higher distribution fees and infrastructure costs.

Outlook and guidance

• Full-year 2026 revenue outlook raised to at least $535 million; Adjusted EBITDA to at least $227 million.

• EDGE premium tier expected to be the largest revenue driver in 2027, with launch targeted for late 2026 or early 2027.

• Growth rates expected to moderate in the second half, especially Q4, due to tough comps and timing of product launches.

• Management expects continued growth in user base and monetization through new products, pricing strategies, and international expansion.

• Cash and cash equivalents of $23.8 million and access to a $200 million revolving credit facility support capital needs.