Grindr (NYSE:GRND) raised its 2026 financial outlook after third-quarter revenue rose 22%, and issued an initial 2027 forecast that incorporates its forthcoming Edge premium tier and the acquisition of telehealth provider PurposeMed, the parent of the Freddie brand.
The company expects at least $560 million in 2026 revenue, up from its prior outlook of approximately $540 million, and at least $236 million in adjusted EBITDA, compared with approximately $232 million previously. For 2027, Grindr forecast revenue of at least $705 million and adjusted EBITDA of at least $275 million.
Chief Financial Officer John North said the 2027 revenue forecast implies growth of approximately 26% from the company’s 2026 guidance. He said the outlook includes investments to expand Freddie’s clinical and pharmacy operations in the U.S., which are expected to modestly affect Grindr’s consolidated margin while adding to adjusted EBITDA dollars.
Third-Quarter Growth and Litigation Charge
Third-quarter revenue reached $141 million, while adjusted EBITDA rose 13% to $62 million, representing a 44% margin. The adjusted EBITDA margin was 47% a year earlier, when results benefited from higher capitalized product development expenses, North said.
App-based revenue increased 22% to $118 million, supported by demand for Grindr’s XTRA and Unlimited subscriptions and consumable products. Average paying users rose 11% to 1.4 million, while average revenue per paying user increased 10% to $27.15. Advertising revenue grew 23% to $24 million.
Grindr reported a $7 million GAAP net loss, driven by a $33 million one-time settlement charge related to historical U.K. litigation over data practices before 2020 and $3 million in Freddie transaction costs. Excluding litigation and transaction costs, net income was $21 million, North said.
The company repurchased approximately 13 million shares for $180 million during the first nine months of 2026. After accounting for roughly 4 million shares issued as part of the Freddie purchase, the activity resulted in a net reduction of approximately 9 million shares, North said.
Edge Launch and Premium Plans
Chief Executive Officer George Arison said early access to Edge, an AI-powered premium tier, begins November 10, followed by a global launch November 17. The introductory price is $120 a month. Nearly 400,000 users registered for early access within 72 hours of the company opening registrations, he said.
Arison described Edge as a potential $100 million to $150 million revenue opportunity over many years on what he called conservative estimates. He said Grindr would initially cap membership at no more than 1% of monthly active users and expects to achieve a portion of its long-term opportunity in the first year.
The company is also developing a higher-priced VIP offering that could combine in-app features with events and other offline experiences. Arison said the 2027 guidance includes no revenue assumption for VIP.
Freddie Integration and Patient Growth
Grindr has completed its acquisition of PurposeMed, which offers HIV prevention services under the Freddie brand. Arison said the company expects approximately 12,000 U.S. patients at year-end and believes existing and planned native app placements could bring that number to 50,000 over the medium term.
At more than $4,800 in annual revenue per patient, 50,000 U.S. patients receiving telehealth and pharmacy services for a full year would generate approximately $240 million in annual revenue, Arison said. He projected medium-term adjusted EBITDA margins of at least 40% at scale, while noting that reaching that level will take time.
For 2027, the company plans to focus on integrating Freddie and expanding pharmacy capacity before accelerating patient growth. Arison said filling prescriptions through Freddie-affiliated pharmacies rather than third-party pharmacies can produce approximately $2,400 more in annual revenue per patient who remains for a full year.
Grindr is using native placements in its app to promote Freddie and plans additional integrations, including potential verified health-information badges shared only with users’ consent. Arison said fuller integration of Freddie’s prescription process into the app is planned for 2027, while badges and premium access for Freddie patients will take longer to build.
Arison also said advertising growth should moderate next year, partly because Grindr expects to lose approximately $10 million in telehealth direct advertising revenue generated in 2026 as Freddie comes on board. The company plans to present longer-term financial goals at an investor day in June 2027.
About Grindr (NYSE:GRND)
Grindr Inc (NYSE:GRND) operates a social networking and dating platform designed primarily for the LGBTQ+ community. Its mobile application helps users discover and connect with people nearby, communicate through messaging, and build social and dating relationships.
The company offers a free, advertising-supported version of its app along with subscription services that provide additional features, including expanded browsing and communication capabilities. Grindr also provides related digital products and services intended to support user interaction and engagement on its platform.
Founded in 2009, Grindr serves users in markets around the world and has developed one of the largest global LGBTQ+ social networking communities.
