Grindr Stock Is Down 49%. Here's Why One Investor Added $15.9 Million
Key Points
Perry Creek Capital bought 1,349,493 Grindr shares; the estimated trade size was $15.91 million based on average prices from January to March 2026.
The quarter-end value of the Grindr stake rose by $15.69 million, reflecting both new purchases and price changes during the period.
This transaction accounted for a roughly 10% shift in the fund’s 13F reportable assets under management.
- 10 stocks we like better than Grindr ›
On May 15, 2026, Perry Creek Capital disclosed a purchase of 1,349,493 shares of Grindr (NYSE:GRND), with an estimated transaction value of $15.91 million based on quarterly average pricing.
What happened
According to a SEC filing dated May 15, 2026, Perry Creek Capital increased its stake in Grindr by 1,349,493 shares. The estimated value of this purchase, calculated using the average closing price for the first quarter of 2026, was $15.91 million. The total value of the position at quarter-end reached $21.51 million, with the net position change reflecting both share accumulation and price movement over the quarter.
What else to know
- This filing reflects a buy, bringing the post-trade Grindr stake to 13.4% of Perry Creek’s 13F assets under management as of March 31, 2026..
- Top holdings after the filing:
- NYSE:FAF: $34.66 million (21.6% of AUM)
- NASDAQ:ICLR: $27.11 million (16.9% of AUM)
- NYSE:PFGC: $26.10 million (16.3% of AUM)
- NYSE:GRND: $21.51 million (13.4% of AUM)
- NYSE:PK: $18.55 million (11.6% of AUM)
- As of Friday, Grindr shares were priced at $12.50, down 49% over the past year and well underperforming the S&P 500, which is instead up about 28% in the same period.
Company overview
| Metric | Value |
|---|---|
| Market capitalization | $2.2 billion |
| Revenue (TTM) | $475.90 million |
| Net income (TTM) | $94.48 million |
| Price (as of Friday) | $12.50 |
Company snapshot
- Grindr offers a social networking platform serving the LGBTQ community, with both free ad-supported and premium subscription services.
- The firm generates revenue primarily through subscription fees and advertising placements on its digital platform.
- It targets gay, bi, trans, and queer individuals seeking community engagement and social connection.
Grindr Inc. operates a digital platform focused on the LGBTQ community and uses a dual revenue model consisting of subscriptions and advertising.
What this transaction means for investors
This purchase ultimately looks like a bet that Wall Street is focusing too much on Grindr's stock chart and not enough on its business fundamentals. Perry Creek grew its position to be one of the fund's largest holdings, suggesting conviction that the company's growth story remains intact despite a difficult year for the stock.
The numbers are certainly moving in the right direction. First-quarter revenue jumped 38% year over year to $129.9 million, while adjusted EBITDA climbed 44% to $58.5 million. Perhaps most importantly, management was confident enough to raise its full-year outlook, now expecting at least $535 million in revenue and at least $227 million in adjusted EBITDA.
CEO George Arison said the company is investing aggressively in future growth while improving the core user experience. He highlighted upcoming initiatives, including the global launch of Edge and new features within the Right Now product, both designed to deepen engagement and expand monetization opportunities.
The stock's decline likely reflects concerns about valuation, competition, and execution rather than deteriorating operations. In fact, Grindr's adjusted EBITDA margin expanded to 45% during the quarter. And if Grindr can continue evolving from a dating app into a broader digital platform for its community, the opportunity may prove to be underappreciated.
Should you buy stock in Grindr right now?
Before you buy stock in Grindr, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Grindr wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $463,900!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,294,401!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of May 30, 2026.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Icon Public and Park Hotels & Resorts. The Motley Fool has a disclosure policy.
Recommended Articles
