Grindr's Q2 2025: Navigating Economic Challenges and Contradictions in Growth Strategy

Impact of economic slowdown on user segments, revenue and EBITDA growth targets, product monetization strategy, and mapping and local discovery are the key contradictions discussed in Grindr Inc's latest 2025Q2 earnings call.



Strong Financial Performance:
- Grindr reported total revenue of $104 million for Q2 2025, up 27% year-over-year, with an adjusted EBITDA margin of 43% or $45 million.
- Growth was driven by the continued strength of subscription offerings and the ramping of new third-party advertising partners.

MAU Growth and User Metrics:
- Grindr's average monthly active users (MAUs) reached 14.9 million in Q2, representing 6% growth year-over-year.
- The increase was primarily attributed to strong engagement from younger cohorts, particularly aged 18 to 29.

Advertising Revenue Expansion:
- Indirect revenue for Grindr was $17 million, up 39% year-over-year, driven by increased third-party advertising partners and early traction in international markets.
- This growth was facilitated by adding more third-party ad providers and new ad formats like rewarded video.

Investment in Product and AI:
- Grindr's operating expenses, excluding cost of revenue, were $53 million, up 43% year-over-year, primarily due to stock-based compensation.
- Investments were focused on product development and building a full-stack foundation called gAI for AI-driven user experiences and long-term revenue growth.