Grindr Targets At Least $705 Million In 2027 Sales With Edge And Freddie
The app company raises its 2026 outlook as paying users grow, but a U.K. settlement helps push the third quarter into a loss.
Grindr, which runs a social networking app mainly for gay, bisexual and sexually explorative adults, projects at least $705 million in 2027 revenue as it adds a premium AI subscription and expands into healthcare. The company also raised its 2026 sales forecast Thursday to at least $560 million, from approximately $540 million, according to its SEC filing and accompanying results.
More Paying Users, Less Quarterly Profit
Third-quarter revenue grew 22% from a year earlier to $141 million. App revenue reached $118 million, up 22%, with XTRA and Unlimited subscriptions and paid add-ons driving growth; advertising brought in $24 million, up 23%.
Average paying users rose 11% to 1.4 million, while average app revenue per paying user increased 10% to $27.15. Grindr's free app earns money from premium subscriptions, add-ons and advertising; users now spend almost 70 minutes a day on it on average, the company said.
The bottom line moved the other way: Grindr lost $7 million, compared with a $31 million year-earlier profit. The quarter included a $33 million settlement charge and $3 million in deal costs. The U.K. settlement, announced in September, concerns data practices before 2020 that Grindr says predated its current ownership and management.
Net income excluding litigation and transaction costs was $21 million, versus $31.613 million a year earlier. Adjusted earnings before interest, taxes, depreciation and amortization—also excluding stock pay and certain other costs—rose 13% to $62 million, but the margin fell to 44% from 47%.
Grindr now expects at least $236 million by that adjusted earnings measure for 2026, versus approximately $232 million previously. The company says the higher forecast places it within the $234 million–$252 million range it originally targeted for 2027 at its 2024 Investor Day.
Edge Starts At $120.00 A Month
Edge, Grindr's AI-powered premium subscription, will start early access Tuesday and launch globally on November 17 at an introductory monthly price of $120.00. Its features include personalized recommendations, compatibility and reply insights, and a way to revisit past connections.
Nearly 400,000 users registered within 72 hours of registration opening on October 20, against a first-week stretch goal of 100,000. Grindr plans to cap Edge membership at 1% of global monthly active users and expects subscribers to reach roughly one-third to two-thirds of 1% during its first three to four years.
Chairman and CEO George Arison said: “We are carrying that momentum straight into 2027, where we are providing our initial outlook a quarter earlier than usual.”
Freddie Adds Patients And Pharmacy Revenue
Grindr bought PurposeMed, Freddie's parent, Monday. The profitable telehealth business provides HIV-prevention medication known as PrEP and joins Woodwork, Grindr's telehealth subscription service launched in May 2025.
Freddie served more than 25,000 patients across Canada and the U.S. at September's end. Grindr expects Freddie's full-year 2026 revenue to reach $80 million, with approximately $10 million in adjusted earnings before interest, taxes, depreciation and amortization. Only a minor contribution from Freddie is included in Grindr's 2026 forecast.
For 2027, Grindr expects at least $275 million in consolidated adjusted earnings on the projected $705 million in sales, which it says represents 26% annual revenue growth. Freddie is expected to add adjusted earnings dollars, initially at a lower margin as Grindr expands clinical and pharmacy capacity and shifts U.S. prescriptions toward PurposeMed's own pharmacies.
The acquisition included $60 million in stock consideration, approximately 4 million shares restricted from resale for 12 months. Against approximately 13 million shares repurchased for $180 million during the first nine months of 2026, Grindr reports a net reduction of approximately 9 million shares before other share activity.
Grindr plans to set out Freddie's longer-term growth plan and its financial goals for 2028 and beyond at its June 2027 Investor Day.
Sources
- 8-K Filing — Grindr Inc. (GRND) — SEC EDGAR
- Exhibit exhibit991-q32026pressrele.htm — Grindr Inc. 8-K exhibit — SEC EDGAR
- Exhibit shl2026_q3.htm — Grindr Inc. 8-K exhibit — SEC EDGAR
- Grindr (GRND) Q3 2026 Earnings Call Transcript - The Globe and Mail — theglobeandmail.com
- Grindr Inc. Reports Third Quarter 2026 Revenue Growth of 22%, Raises 2026 Guidance and Provides Initial 2027 Outlook — businesswire.com
