Grindr Raises 2026 Outlook to $560 Million, Nears 2027 Target Early
Key Facts
Grindr raised its 2026 revenue outlook to $560 million and adjusted EBITDA to $236 million, saying in its shareholder letter that the new guidance puts it within its 2027 earnings target range about a year ahead of schedule. The company added that projected 2026 revenue equals about 93% of its 2027 target. The announcement came as the company issued its first 2027 outlook alongside third-quarter 2026 results. Management said the higher outlook puts earnings within the range it envisioned reaching in 2027 at its 2024 Investor Day. The company’s shares closed at $13.64 in the Nov. 5 session, according to EL7 data.
The new outlook includes revenue of at least $560 million, up from about $540 million previously, and adjusted EBITDA of at least $236 million, compared with about $232 million in the prior estimate. The 2027 earnings target range puts the company between $234 million and $252 million, according to targets announced at its 2024 Investor Day. The 2026 revenue outlook is about 93% of the 2027 target. The 2027 adjusted EBITDA margin outlook is in line with the company’s long-term framework of 39% to 42%, set at the same Investor Day. The comparison shows the company nearing its multiyear targets early, while revenue remains below the full 2027 goal.
Grindr reported a third-quarter adjusted EBITDA margin of 44%, compared with 47% in the same period of 2025. The company said the prior-year margin benefited in part from higher product development expenses that were capitalized. In contrast, the quarter’s results turned to a net loss of $7 million, after a net profit of $31 million a year earlier. The current-quarter loss included a $33 million cost to settle a lawsuit in the United Kingdom. The contrast between higher annual guidance and a lower margin and net loss puts the quarter’s performance in the context of the expansion and investment the company expects.
The company says user activity provides a foundation for growth in its core business: average monthly active users rose 13% between 2024 and 2025, while users spent an average of nearly 70 minutes a day on the app. Grindr is also expanding its paid service Edge, which it described as an AI-powered premium tier. It opened early-access registration on Oct. 20 and said nearly 400,000 users signed up within 72 hours, almost four times its ambitious target of 100,000 registrations in the first week. The company identified expanding Edge revenue and continuing to develop AI products among its priorities for 2027. Early access to Edge is due to begin on Nov. 10, with a global launch on Nov. 17.
In its healthcare expansion, Grindr completed its acquisition of PurposeMed, the parent company of the Freddie brand, on Nov. 2. It expects Freddie to add meaningful revenue and adjusted EBITDA in 2027, but at a lower margin initially. The company said the investment needed to expand the business will weigh on its combined margin percentage. Grindr lists successfully integrating Freddie and rapidly expanding the number of patients receiving HIV pre-exposure prophylaxis in the United States among its three priorities for next year. The early disclosure of its 2027 outlook, a full quarter ahead of its usual timing, also helps investors and analysts estimate Edge and Freddie’s contributions. Management identified healthcare integration, Edge expansion and investment in the core app as its focus areas for next year.