Grindr Reports 24.7% Revenue Growth to $93.9 Million in Latest Quarter

Grindr Inc. reported significant financial growth in its latest quarterly filing, with revenues reaching $93.9 million for the three months ended March 31, 2025, compared to $75.3 million in the same period last year, marking a 24.7% increase. The company also achieved a net income of $27.0 million, a substantial turnaround from a net loss of $9.4 million in the prior year, reflecting a 387.2% improvement. This growth was driven by an increase in both Average Paying Users, which rose to 1.2 million from 1.0 million, and Average Direct Revenue per Average Paying User (ARPPU), which increased to $22.86 from $21.25.

Operationally, Grindr's user engagement metrics showed positive trends, with Average Monthly Active Users (MAUs) climbing to 14.6 million, up from 13.7 million year-over-year. The company’s direct revenue, which constitutes the majority of its income, accounted for 85.2% of total revenue, primarily generated through subscription services. The introduction of new subscription options, including a weekly plan, contributed to this growth, alongside enhanced advertising strategies that increased indirect revenue by 26.4% to $13.9 million.

In terms of strategic developments, Grindr initiated its first Gayborhood expansion initiative, Woodwork, aimed at providing health and wellness services, specifically targeting erectile dysfunction medication. This initiative is currently in a testing phase and is expected to expand further throughout 2025. Additionally, the company completed the redemption of all outstanding warrants, resulting in significant cash inflow of $314.1 million from warrant exercises, which bolstered its liquidity position.

Grindr's financial health is further evidenced by its cash and cash equivalents, which totaled $255.9 million as of March 31, 2025, a notable increase from $22.2 million a year prior. The company also reported a free cash flow of $23.2 million, indicating strong operational cash generation. Looking ahead, Grindr aims to continue expanding its user base and revenue streams while investing in product development and enhancing user engagement, despite potential challenges from competition and market conditions. The company remains focused on leveraging its brand and user network to drive future growth.