Grindr (NYSE:GRND) is a prominent player in the dating app industry, known for its focus on the LGBTQ+ community. Despite its niche market, Grindr competes with major players like Bumble and Match. On March 7, 2025, Grindr reported an earnings per share (EPS) of -$0.70, missing the estimated $0.07. However, its revenue of $97.6 million exceeded expectations of $96.4 million.
Following the Q4 results, Grindr's stock experienced a 15% decline, as highlighted by Seeking Alpha. This drop was due to a slowdown in the addition of paid users and a slight reduction in profit margins. Despite these challenges, Grindr continues to outperform its competitors, maintaining a growth premium in the dating app industry.
Grindr's forecast for fiscal year 2025 indicates a deceleration in revenue growth, with expectations dropping by over 10 points to 24%. This slowdown contrasts with the negative revenue comparisons reported by both Bumble and Match. Despite the deceleration, Grindr's revenue growth remains relatively strong in the industry.
Financially, Grindr has a negative price-to-earnings (P/E) ratio of -51.34, indicating current losses. The price-to-sales ratio is 8.38, showing investor willingness to pay $8.38 for every dollar of sales. The enterprise value to sales ratio is 9.19, reflecting the company's valuation relative to its sales.
Grindr's enterprise value to operating cash flow ratio is 37.48, indicating its valuation in relation to cash flow from operations. The company has a negative earnings yield of -1.95%, consistent with its negative earnings. With a debt-to-equity ratio of -22.19, Grindr has more equity than debt, or potentially negative equity. The current ratio of 1.46 suggests a reasonable level of liquidity to cover short-term liabilities.
