The dating-site operator had a fine third quarter.
It notched beats on both the top and bottom lines for the period.
On Friday, specialized dating site operator Grindr (NYSE: GRND) proved to be quite the match for bullish investors. Its share price leaped skyward by 11%, due almost entirely to a handsome-looking quarterly earnings report. This rise trounced the slight (0.1%) increase of the S&P 500 index that trading session.
Grindr, which runs arguably the best-known dating website targeting a gay audience, posted its third-quarter figures well before market open Friday.
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The company's revenue for the period was $115.8 million, well higher than the slightly over $89 million in posted in the same period of 2024. Net income according to generally accepted accounting principles (GAAP) rose to $31 million from the year-ago tally of $25 million. On a non-GAAP (adjusted) basis, profitability increased by a robust 78% year over year to $0.16 per share.
Analysts had modeled growth for Grindr, but not at those levels. On average, they'd estimated it would earn a bit over $113 million on the top line, filtering down into an adjusted net profit of $0.12 per share.
In a letter to shareholders detailing the quarter's performance, Grindr said 2025 has easily been the best in its history in terms of financials. Operationally, it attributed the recent rises to "accelerating product velocity and durable engagement growth."
With the solid third quarter at its back, Grindr is now expecting full-year revenue growth of 26% over the 2024 result. Meanwhile, guidance for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) is $191 million to $193 million for the year.
Grindr has firmly established itself as a key player in its niche, although those hot growth figures should cool somewhat as it becomes something of an incumbent. Still, its performance is impressive, and makes it well worth considering as an investment.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.