Grindr Inc. reported third‑quarter 2025 results that surpassed analyst expectations, with revenue reaching $116 million—up 30% year‑over‑year—and net income of $31 million, a 27% net‑income margin. Adjusted EBITDA climbed to $55 million, translating to a 47% margin, an increase from the 44.9% margin recorded in Q3 2024. The company’s earnings per share of $0.16 beat the consensus estimate of $0.12 by $0.04, a 33% upside.
The revenue beat of roughly $2.7 million over the consensus estimate of about $113.5 million was driven by a 25% year‑over‑year rise in direct revenue and a 56% jump in indirect revenue, the latter fueled by a one‑time brand campaign in Q4 2024 that is not expected to recur. Strong demand for the app’s advertising products and higher pricing power in the direct segment helped offset the modest cost increases associated with scaling the platform.
Margin expansion can be attributed to a shift toward higher‑margin direct revenue and the operational leverage that comes with scaling. The adjusted EBITDA margin grew to 47% from 44.9% in the prior quarter, while the net‑income margin rose to 27% from 24% year‑over‑year, reflecting disciplined cost management and a favorable mix of revenue streams.
Management reaffirmed its full‑year outlook, projecting adjusted EBITDA between $191 million and $193 million with a margin above 43%, and maintaining a revenue‑growth target of 26% or greater for 2025. The guidance lift signals confidence in sustained demand for the app’s premium features and the continued monetization of its growing user base.
CEO George Arison highlighted the company’s community‑centric approach, noting that “Grindr is often the first place people learn about gay culture and find connections.” He emphasized the importance of AI‑driven product innovation and international expansion as key growth levers, while cautioning that indirect revenue growth may slow in Q4 due to the absence of the one‑time campaign that boosted Q3 performance.
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