Grindr Reaffirms Revenue Growth Outlook Amid AI Product Launches and Leadership Transition

Grindr reaffirms its revenue growth outlook of over 26% amid AI product launches and leadership transition. CEO George Arison highlights the company's strong execution and long-term vision, which includes the launch of transformative products that expand user experiences. The company is focused on accelerating execution towards its vision.

Grindr Inc. (GRND) has reaffirmed its revenue growth outlook for 2025, projecting a 26% increase or greater, amidst the launch of transformative AI products and a leadership transition. CEO George Arison highlighted the company's strong execution and long-term vision, which includes expanding user experiences through new product features.

During the Q2 2025 earnings call, Arison emphasized that 2025 is about accelerating execution towards their long-term vision, including the launch of mobile mapping features in both Right Now and Explore. These features have shown strong engagement and faster-than-expected monetization. The Explore feature now includes Heatmaps in 21 markets, offering dynamic city-level views of user activity. Arison also introduced a three-layered AI foundation called gAI (Gay I), which combines custom models, an architectural layer tailored to gay-specific contexts, and application features. The goal is to keep shipping features that wouldn't be possible without this stack, like A-List, while developing other products that match its level of ambition and value.

Grindr reported Q2 total revenue of $104 million, with adjusted EBITDA of $45 million, maintaining a 43% margin. Direct revenue reached $87 million, while indirect revenue was $17 million. Average monthly active users (MAU) were 14.9 million, average paying users were 1.2 million, and average direct revenue per paying user was $23.65. Operating expense in Q2, excluding $27 million in cost of revenue, was $53 million, primarily driven by stock-based compensation. Net income was $17 million for Q2 compared to a net loss of $22 million in the same period last year. Free cash flow was $37 million, and the company ended the quarter with $121 million in cash and cash equivalents.

The company also announced the transition of CFO Vandana Mehta-Krantz, who will continue in her role during the search for her successor. Mehta-Krantz reported that total revenue grew 27% year-over-year to $104 million, and the adjusted EBITDA margin was 43% or $45 million, right in line with their raised full year guidance provided last quarter, which they are reaffirming.

Management highlighted ongoing investment in product and engineering as a driver of higher operating expenses. Arison addressed challenges with third-party data accuracy in measuring MAU, emphasizing the company’s unique device-based measurement approach. Brand hesitancy in direct advertising business was noted as a challenge, with Arison stating, "what happened 2 years ago with an hashed set us back in a pretty significant way." Pricing experiments are ongoing, but management reiterated that changes will not materially impact 2025 results.

Grindr’s second quarter featured continued strong revenue and user growth, successful product launches including mapping and AI-powered features, and robust progress in indirect revenue streams. The company reaffirmed its raised full-year guidance, highlighted ongoing product innovation, and addressed a CFO transition while maintaining operational momentum. Management emphasized confidence in its execution, with no material impact expected from pricing experiments in 2025 and continued investment in expanding both user engagement and monetization opportunities.

References:
[1] https://seekingalpha.com/news/4482381-grindr-reaffirms-26-percent-revenue-growth-outlook-amid-ai-product-launches-and-leadership
[2] https://www.investing.com/news/company-news/grindr-august-2025-slides-ainative-super-app-strategy-faces-market-skepticism-93CH-4179147