grnd-20250331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

________________________

FORM 10-Q

________________________

(Mark One)


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to _________

Commission file number 001-39714

________________________

Grindr Inc.

(Exact name of registrant as specified in its charter)

________________________


Delaware						92-1079067
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

PO Box 69176, 750 N. San Vicente Blvd., Suite RE 1400 West Hollywood, California						90069
(Address of Principal Executive Offices)						(Zip Code)

(310) 776-6680

Registrant's telephone number, including area code

N/A

(Former name, former address and former fiscal year, if changed since last report)

________________________

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.0001 par value per share	GRND	New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days. Yes x No ☐

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	x
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	x

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

The registrant had 195,884,554 shares of common stock outstanding as of May 5, 2025.

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TABLE OF CONTENTS


		Page
Special Note Regarding Forward-Looking Statements		2
PART I.	FINANCIAL INFORMATION	5
Item 1.	Financial Statements (Unaudited)	5
	Condensed Consolidated Balance Sheets	5
	Condensed Consolidated Statement of Operations and Comprehensive Income (Loss)	6
	Condensed Consolidated Statements of Stockholders’ Equity (Deficit)	7
	Condensed Consolidated Statement of Cash Flows	8
	Notes to Unaudited Condensed Consolidated Financial Statements	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	38
Item 4.	Controls and Procedures	38
PART II.	OTHER INFORMATION	40
Item 1.	Legal Proceedings	40
Item 1A.	Risk Factors	40
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	40
Item 3.	Defaults Upon Senior Securities	40
Item 4.	Mine Safety Disclosures	40
Item 5.	Other Information	41
Item 6.	Exhibits	42
	Signatures	43

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SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

Some of the statements contained in this Quarterly Report on Form 10-Q constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. These forward-looking statements include statements regarding our intentions, beliefs, current expectations or projections concerning, among other things, results of operations, financial condition, liquidity, prospects, growth, strategies and the markets in which we operate. In some cases, you can identify these forward-looking statements by the use of terminology such as “anticipates,” “approximately,” “believes,” “continues,” “could,” “estimates,” “expects,” “goal,” “intends,” “may,” “outlook,” “plans,” “potential,” “predicts,” “projects,” “seeks,” “should,” “will” or the negative version of these words or other comparable words or phrases.

The forward-looking statements contained in this Quarterly Report on Form 10-Q reflect our current views about our business and future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause actual results to differ materially from those expressed in any forward-looking statement. There are no guarantees that any transactions or events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth in or contemplated by the forward-looking statements:

•our ability to retain existing users and add new users;

•the impact of the regulatory environment and complexities with compliance related to such environment, including maintaining compliance with privacy, data protection, and online safety laws and regulations, as well as laws that may apply to any new products or services we introduce in the health and wellness sector;

•our ability to address privacy concerns and protect systems and infrastructure from cyber-attacks and prevent unauthorized data access;

•our ability to identify and consummate strategic transactions including strategic partnerships, acquisitions, or investments in complementary products, services, or technologies, including outside of our core product; and our ability to realize the intended benefit of such transactions;

•our success in retaining or recruiting directors, officers, key employees, or other key personnel, and our success in managing any changes in such roles;

•our ability to respond to general economic conditions;

•competition in the dating and social networking products and services industry;

•our ability to adapt to changes in technology and user preferences in a timely and cost-effective manner;

•our ability to successfully adopt generative artificial intelligence (“AI”) and machine learning (“ML”) processes and algorithms into our daily operations, including by deploying generative AI and ML into our products and services;

•our dependence on the integrity of third-party systems and infrastructure;

•our ability to protect our intellectual property rights from unauthorized use by third parties;

•whether the concentration of our stock ownership and voting power limits our stockholders’ ability to influence corporate matters;

•the timing, price and quantity of repurchases of shares of our common stock under our repurchase program, and our ability to fund any such repurchases; and

•the effects of macroeconomic and geopolitical events on our business, such as health epidemics, pandemics, natural disasters, the impacts of changing tariff policies and trade tensions, and wars or other regional conflicts.

In addition, statements that “Grindr believes” or “we believe” and similar statements reflect our beliefs and opinions on the relevant subjects as of the date of any such statement. These statements are based upon information available to us as of the date they are made, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and such statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.

While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. Except to the extent required by applicable law, we are under no obligation (and expressly disclaim any such obligation) to update or revise our forward-looking statements whether as a result of new information, future events, or otherwise. For a further discussion of these and other factors that could cause our future results, performance, or transactions to differ significantly from those expressed in any forward-looking statement, please see the section titled “Risk Factors” included under Part I, Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2024, as amended. Any forward-looking statement speaks only as of the date on which it is made, and you should not place undue reliance on any forward-looking

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statements, which are based only on information currently available to us (or to third parties making the forward-looking statements).

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CERTAIN OPERATING AND FINANCIAL METRICS

In this Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, we refer to operating and financial metrics that our management team uses to evaluate our business. Our key operating measures include Paying Users, Average Paying Users, Average Monthly Active Users (“Average MAUs”), Average Paying User Penetration, Average Direct Revenue per Average Paying User (“ARPPU”), and Average Total Revenue Per User (“ARPU”). We define our key operating measures and how we calculate them in Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Operating and Financial Metrics.” We also refer to non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA margin, free cash flow, and free cash flow conversion. We describe how we calculate these non-GAAP financial measures and provide reconciliations to the most comparable GAAP financial measures in Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures.”

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PART I – FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements

Grindr Inc. and subsidiaries

Condensed Consolidated Balance Sheets (unaudited)

(in thousands, except share data)


	March 31,		December 31,
	2025		2024
Assets
Current Assets
Cash and cash equivalents	$	255,868	$	59,152
Accounts receivable, net of allowance of $93 and $39, at March 31, 2025, and December 31, 2024, respectively	53,235		49,599
Prepaid expenses	6,166		2,747
Deferred charges	3,987		3,807
Other current assets	458		1,679
Total current assets	319,714		116,984
Restricted cash	605		605
Property and equipment, net	1,559		1,667
Capitalized software development costs, net	8,686		8,750
Intangible assets, net	67,608		69,872
Goodwill	275,703		275,703
Deferred tax assets	1,242		1,242
Right-of-use assets	3,039		3,053
Other assets	1,289		1,214
Total assets	$	679,445	$	479,090
Liabilities and Stockholders’ Equity (Deficit)
Current Liabilities
Accounts payable	$	2,186	$	3,261
Accrued expenses and other current liabilities	37,750		29,578
Current maturities of long-term debt, net	15,000		15,000
Deferred revenue	20,848		19,970
Total current liabilities	75,784		67,809
Long-term debt, net	272,021		275,580
Warrant liability	—		252,178
Lease liability	744		963

Other non-current liabilities	11,080		14,130
Total liabilities	$	359,629	$	610,660
Commitments and Contingencies (Note 14)
Stockholders’ Equity (Deficit)
Preferred stock, par value $0.0001; 100,000,000 shares authorized; none issued and outstanding at March 31, 2025, and December 31, 2024, respectively	$	—	$	—
Common stock, par value $0.0001; 1,000,000,000 shares authorized; 201,936,383 and 178,567,403 shares issued at March 31, 2025, and December 31, 2024, respectively; 200,237,600 and 177,193,667 outstanding at March 31, 2025, and December 31, 2024, respectively	20		18
Treasury stock	(19,810)		(14,295)
Additional paid-in capital	504,399		74,519
Accumulated deficit	(164,793)		(191,812)
Total stockholders’ equity (deficit)	$	319,816	$	(131,570)
Total liabilities and stockholders’ equity (deficit)	$	679,445	$	479,090

See accompanying notes to unaudited condensed consolidated financial statements.

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Grindr Inc. and Subsidiaries

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (unaudited)

(in thousands, except per share and share data)


	Three Months Ended March 31,
	2025		2024
Revenue	$	93,938	$	75,345
Operating costs and expenses
Cost of revenue (exclusive of depreciation and amortization shown separately below)	24,542		19,620
Selling, general and administrative expense	30,240		26,609
Product development expense	10,287		5,741
Depreciation and amortization	3,477		4,119
Total operating expenses	68,546		56,089
Income from operations	25,392		19,256
Other income (expense)
Interest expense, net	(3,875)		(7,185)
Other income (expense), net	148		(117)
Gain (loss) in fair value of warrant liability	9,905		(18,680)
Total other income (loss), net	6,178		(25,982)
Net income (loss) before income tax	31,570		(6,726)
Income tax provision	4,551		2,680
Net income (loss) and comprehensive income (loss)	$	27,019	$	(9,406)
Net income (loss) per share
Basic	$	0.14	$	(0.05)
Diluted	$	0.09	$	(0.05)
Weighted-average shares outstanding:
Basic	189,767,679		175,516,307
Diluted	201,048,090		175,516,307

See accompanying notes to unaudited condensed consolidated financial statements.

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Grindr Inc. and subsidiaries

Condensed Consolidated Statements of Stockholders’ Equity (Deficit) (unaudited)

(in thousands, except per share amounts and share data)


	Preferred Stock (Par value $0.0001)			Common Stock (Par value $0.0001)			Treasury Stock			Additional paid-in capital		Accumulated deficit		Total stockholders’ deficit
	Shares	Amount		Shares	Amount		Shares	Amount
Balance at December 31, 2023	—	$	—	175,377,711	$	18	357,240	$	(2,154)	$	44,655	$	(60,811)	$	(18,292)
Net loss and comprehensive loss	—	—		—	—		—	—		—		(9,406)		(9,406)
Stock-based compensation	—	—		—	—		—	—		6,259		—		6,259
Vested restricted stock units	—	—		363,793	—		—	—		—		—		—
Exercise of stock options	—	—		164,295	—		—	—		916		—		916
Common stock withheld related to net settlement of equity awards	—	—		—	—		157,276	(1,494)		—		—		(1,494)
Balance at March 31, 2024	—	$	—	175,905,799	$	18	514,516	$	(3,648)	$	51,830	$	(70,217)	$	(22,017)


	Preferred Stock (Par value $0.0001)			Common Stock (Par value $0.0001)			Treasury Stock			Additional paid-in capital		Accumulated deficit		Total stockholders’ (deficit) equity
	Shares	Amount		Shares	Amount		Shares	Amount
Balance at December 31, 2024	—	$	—	178,567,403	$	18	1,373,736	$	(14,295)	$	74,519	$	(191,812)	$	(131,570)
Net income and comprehensive income	—	—		—	—		—	—		—		27,019		27,019
Stock-based compensation	—	—		—	—		—	—		6,282		—		6,282
Vested restricted stock units	—	—		770,713	—		—	—		7,783		—		7,783
Exercise of stock options	—	—		133,581	—		—	—		616		—		616
Exercise of warrants	—	—		30,733,623	3		—	—		556,337		—		556,340
Repurchase and retirement of common stock	—	—		(8,268,937)	(1)		—	—		(141,138)		—		(141,139)
Common stock withheld related to net settlement of equity awards	—	—		—	—		325,047	(5,515)		—		—		(5,515)
Balance at March 31, 2025	—	$	—	201,936,383	$	20	1,698,783	$	(19,810)	$	504,399	$	(164,793)	$	319,816

See accompanying notes to unaudited condensed consolidated financial statements.

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Grindr Inc. and subsidiaries

Condensed Consolidated Statements of Cash Flows (unaudited)

(in thousands)


	Three Months Ended March 31,
	2025		2024
Operating activities
Net income (loss) and comprehensive income (loss)	$	27,019	$	(9,406)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Stock-based compensation	10,947		7,869
(Gain) loss in fair value of warrant liability	(9,905)		18,680
Amortization of debt discount and issuance costs	223		231

Depreciation and amortization	3,477		4,119
Provision for expected credit losses	54		(287)
Deferred income taxes	—		(107)
Non-cash lease expense	636		316
Changes in operating assets and liabilities:
Accounts receivable	(3,690)		(1,540)
Prepaid expenses and deferred charges	(3,599)		(2,544)
Other current assets	1,221		1,648
Other assets	(107)		(37)
Accounts payable	(1,229)		(398)
Accrued expenses and other current liabilities	(1,291)		2,390
Deferred revenue	878		(111)
Lease liability	(841)		(385)
Other liabilities	—		11
Net cash provided by operating activities	23,793		20,449
Investing activities
Purchase of property and equipment	(124)		(195)
Additions to capitalized software development costs	(504)		(953)
Net cash used in investing activities	$	(628)	$	(1,148)

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Grindr Inc. and subsidiaries

Condensed Consolidated Statements of Cash Flows (unaudited) (continued)

(in thousands)


	Three Months Ended March 31,
	2025		2024
Financing activities
Proceeds from the exercise of stock options	$	619	$	916
Repurchases of common stock under the stock repurchase program	(131,984)		—
Withholding taxes paid on stock-based compensation	(5,400)		(1,312)
Proceeds from the exercise of warrants	314,124		—
Payment for the redemption of warrants	(58)		—

Principal payments on debt	(3,750)		(25,750)

Net cash provided by (used in) financing activities	173,551		(26,146)
Net increase (decrease) in cash, cash equivalents and restricted cash	196,716		(6,845)
Cash, cash equivalents and restricted cash, beginning of the period	59,757		28,998
Cash, cash equivalents and restricted cash, end of the period	$	256,473	$	22,153

Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents	$	255,868	$	21,548
Restricted cash	605		605
Cash, cash equivalents and restricted cash	$	256,473	$	22,153

Supplemental disclosure of cash flow information:
Cash interest paid	$	1,858	$	2,672
Income taxes paid	$	—	$	4
Supplemental disclosure of non-cash investing activities:
Capitalized software development costs accrued but not paid	$	347	$	522
Supplemental disclosure of non-cash financing activities:
Repurchase of common stock for net settlement of equity awards	$	89	$	182
Issuance of common stock for the settlement of KPI Awards	$	3,609	$	2,350
Issuance of common stock for the settlement of certain market condition liability-classified awards	$	4,173	$	—
Issuance of common stock for the cashless exercise of warrants	$	63,029	$	—
Issuance of common stock for the exercise of warrants	$	179,186	$	—
Repurchase of common stock committed but not settled	$	9,155	$	—

See accompanying notes to unaudited condensed consolidated financial statements.

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Grindr Inc. and subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

(in thousands, except per share amounts and share data)

1.Nature of Business

Grindr Inc.’s (“Grindr” or the “Company”) mission is to build the Global Gayborhood in Your Pocket™ and, through its success, to make a world where the lives of its global LGBTQ community are free, equal, and just. The Company operates the Grindr platform, a global social networking platform primarily serving and addressing the needs of gay, bisexual, and sexually explorative adults around the world. The Grindr platform is available as a mobile application through Apple’s App Store and Google Play. The Company offers both a free, ad-supported service and a premium subscription version. The Company is headquartered in West Hollywood, California, and has additional offices in the San Francisco Bay Area, Chicago, and New York City.

Grindr was originally incorporated in the Cayman Islands on July 27, 2020, under the name Tiga Acquisition Corp. (“Tiga”), a special-purpose acquisition company for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or engaging in any other similar business combinations with one or more businesses or entities. On May 9, 2022, Grindr Group LLC and its subsidiaries (“Legacy Grindr”) entered into an Agreement and Plan of Merger (as amended on October 5, 2022, the “Merger Agreement”) with Tiga, in which Legacy Grindr would become a wholly owned subsidiary of Tiga (the “Business Combination”). On November 17, 2022, Tiga was redomiciled to the United States. Upon the consummation of the Business Combination on November 18, 2022 (the “Closing”), Tiga was renamed to “Grindr Inc.”

2.Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with U.S. GAAP and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and disclosures normally included in the condensed consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and accompanying notes for the year ended December 31, 2024. The unaudited condensed consolidated financial statements are unaudited and have been prepared on a basis consistent with that used to prepare the audited annual consolidated financial statements and include, in the opinion of management, all adjustments, consisting of normal and recurring items, necessary for the fair statement of the condensed consolidated financial statements. The condensed consolidated financial statements include the accounts of the Company, and its wholly owned subsidiaries after elimination of intercompany transactions and balances. The operating results for the three months ended March 31, 2025, are not necessarily indicative of the results expected for the full year ending December 31, 2025.

Accounting Estimates

Management of the Company is required to make certain estimates, judgments, and assumptions during the preparation of its condensed consolidated financial statements in accordance with U.S. GAAP. These estimates, judgments, and assumptions impact the reported amounts of assets, liabilities, revenues, and expenses, and the related disclosure of contingent assets and liabilities. Actual results could differ from these estimates. On an ongoing basis, the Company evaluates its estimates and judgments including those related to: the definite-lived intangible assets; the recoverability of goodwill and indefinite-lived intangible assets; the fair value of common stock warrant liabilities; valuation allowance for deferred tax assets; legal contingencies; the incremental borrowing rate for the Company's leases; and the valuation of stock-based compensation.

Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs.

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Grindr Inc. and subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

(in thousands, except per share amounts and share data)

The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last is considered unobservable:


Level 1 -			Observable inputs obtained from independent sources, such as quoted market prices for identical assets and liabilities in active markets.

Level 2 -			Other inputs, which are observable directly or indirectly, such as quoted market prices for similar assets or liabilities in active markets, quoted market prices for identical or similar assets or liabilities in markets that are not active, and inputs that are derived principally from or corroborated by observable market data.

Level 3 -			Unobservable inputs for which there is little or no market data and require the Company to develop its own assumptions, based on the best information available in the circumstances, about the assumptions market participants would use in pricing the assets or liabilities.

Recurring Fair Value Measurements

The following methods and assumptions were used to estimate the fair value of each class of financial assets and liabilities for which it is practicable to estimate fair value:

•Money market funds and U.S. treasury bills — The carrying amount of money market funds and U.S. treasury bills approximates fair value and is classified within Level 1 because the fair value is determined through quoted market prices.

•Warrant liability — Public Warrants (as defined in Note 7) are classified within Level 1 as these securities are traded on an active public market. Private Warrants (as defined in Note 7) are classified within Level 2. For the periods presented, the Company utilized the value of the Public Warrants as an approximation of the value of the Private Warrants as they are substantially similar to the Public Warrants, but not directly traded or quoted on an active market. The Company completed the redemption of all outstanding Public Warrants and Private Warrants in February 2025, see Note 7 for additional information.

The Company’s remaining financial instruments that are measured at fair value on a recurring basis consist primarily of cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses, and other current liabilities. The Company believes their carrying values are representative of their fair values due to their short-term maturities. The fair values of the Company’s credit agreement balances as disclosed in Note 5 were measured based on prices quoted from a third-party financial institution.

Nonrecurring Fair Value Measurements

Assets acquired and liabilities assumed in business combinations are initially measured at fair value on the acquisition date on a nonrecurring basis using Level 3 inputs. The Company is required to measure certain assets at fair value on a nonrecurring basis after initial recognition. These include goodwill, intangible assets, and long-lived assets, which are measured at fair value on a nonrecurring basis as a result of impairment reviews. Impairment is assessed annually in the fourth quarter or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit or assets below the carrying value. The fair value of the reporting unit or asset group is determined primarily using cost and market approaches (Level 3).

Revenue Recognition

Revenue is recognized when or as a customer obtains control of promised services. The amount of revenue recognized reflects the consideration which the Company expects to be entitled to in exchange for these services.

The Company derives all of its revenue from direct revenue and indirect revenue, each, as described below. The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, (ii) contracts with variable consideration that is allocated entirely to unsatisfied performance obligations or to a wholly unsatisfied promise accounted for under the series guidance, and (iii) contracts for which the Company recognizes revenue for the amount at which the Company has the right to invoice for services performed.

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Grindr Inc. and subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

(in thousands, except per share amounts and share data)

Direct Revenue

Direct revenue consists of subscription revenue. Subscription revenue is generated through the sale of subscriptions that are currently offered or renewed in one-week, one-month, three-month, six-month, and twelve-month lengths. Subscription revenue is initially deferred and is recognized using the straight-line method over the term of the applicable subscription period. Direct revenue also consists of premium add-on revenue generated through the sale of an add-on feature on a pay-per-use, or a-la-carte, basis. Premium features are activated upon purchase and are available to use for the customer for a short duration, generally, within one day. Revenue from premium add-ons is recognized upon usage of the premium add-on. Direct revenue is recorded net of taxes, credits, and chargebacks. Customers pay in advance, primarily through mobile app stores. Subject to certain conditions identified in the Company’s terms and conditions, generally all purchases are final and nonrefundable.

Indirect Revenue

Indirect revenue consists of advertising revenue and other non-direct revenue. The Company has contractual relationships with third-party advertising service providers and also directly with advertisers to display advertisements on the Grindr platform. For all advertising arrangements, the Company’s performance obligation is to provide the inventory for advertisements to be displayed on the Grindr platform. For contracts made directly with advertisers, the Company is also obligated to serve the advertisements on the Grindr platform. Providing the advertising inventory and serving the advertisement is considered a single performance obligation, as the advertiser cannot benefit from the advertising space without its advertisements being displayed.

The pricing and terms for all advertising arrangements are governed by either a master contract or insertion order. The transaction price in advertising arrangements is generally the product of the number of advertising units delivered (e.g., impressions, offers completed, videos viewed, etc.) and the contractually agreed upon price per advertising unit. Further, for advertising transactions with advertising service providers, the contractually agreed upon price per advertising unit is generally based on the Company’s revenue share or fixed revenue rate as stated in the contract. The Company recognizes revenue when the advertisement is displayed to users. The number of advertising units delivered is determined at the end of each month, which resolves any uncertainty in the transaction price during the reporting period. Revenue from advertising transactions with advertising service providers is recognized net of the amounts retained by the advertising service provider as the Company does not know and expects not to know the gross amount paid by advertisers.

Accounts Receivable, net of allowance for credit losses

Grindr users generally access the Grindr platform and pay for subscriptions and premium add-on features through Apple’s App Store or Google Play. The Company evaluates the credit worthiness of these two mobile app stores on an ongoing basis and does not require collateral from these entities. Accounts receivable also include amounts billed and currently due from advertising customers. The Company maintains an allowance for credit losses to provide for the estimated amount of accounts receivable that will not be collected. The allowance for credit losses is based upon historical collection trends adjusted for economic conditions using reasonable and supportable forecasts.

As of March 31, 2025, and December 31, 2024, the accounts receivable balances, net of allowances, were $53,235 and $49,599, respectively. The opening balance of accounts receivable, net of allowances, was $33,906 as of January 1, 2024.

Deferred Revenue

Deferred revenue consists of payments that are received in advance of the Company’s performance. The Company classifies subscription deferred revenue as current and recognizes revenue straight-line over the terms of the applicable subscription period or expected completion of the performance obligation, which range from one week to twelve months. As of March 31, 2025, and December 31, 2024, the deferred revenue balances were $20,848 and $19,970, respectively. The opening balance of deferred revenue was $19,181 as of January 1, 2024.

For the three months ended March 31, 2025, the Company recognized $13,855 of revenue that was included in the deferred revenue balance as of December 31, 2024. For the three months ended March 31, 2024, the Company recognized $13,184 of revenue that was included in the deferred revenue balance as of December 31, 2023.

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Grindr Inc. and subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

(in thousands, except per share amounts and share data)

Disaggregation of Revenue

The following tables summarize revenue from contracts with customers:


	Three Months Ended March 31,
	2025		2024
Direct revenue	$	80,082	$	64,378
Indirect revenue	13,856		10,967
	$	93,938	$	75,345


	Three Months Ended March 31,
	2025		2024
North America (1)	$	57,799	$	45,503
Europe	21,146		18,107
Rest of the world	14,993		11,735
	$	93,938	$	75,345

(1)North America includes revenue generated from the U.S. and Canada.

During the three months ended March 31, 2025, and 2024, revenue generated from the U.S., the Company's country of domicile, amounted to $55,278 and $43,387, respectively.

Segment Information

The chief executive officer (“CEO”) is the Company’s chief operating decision maker (“CODM”). The CODM allocates resources and assesses financial performance based upon discrete financial information at the consolidated level. The Company manages its activities related to developing and maintaining its product on a consolidated basis. There are no segment managers; instead, there are divisional leaders who report to the Company's CODM, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources. While the Company derives revenues from international markets, expenses are not allocated to these international markets nor does the CODM review any other financial data for these markets. Accordingly, the Company determined that the Company operates as a single operating and reportable segment.

The CODM assesses performance for the Company’s single operating segment based on net income (loss) that is also reported on the condensed consolidated statement of operations and comprehensive income (loss) as “Net income (loss) and comprehensive income (loss)”. Significant segment expenses that are regularly reviewed by the CODM include: cost of revenue; stock-based compensation; employee compensation (e.g. payroll, benefits, commissions) and contractor expense, excluding stock-based compensation; sales and marketing expense (excluding commissions); professional services expense; and general and administrative expense (all other non-compensation corporate overhead). The measure of segment assets is reported on the consolidated balance sheets as “Total assets”. Substantially all of the Company’s long-lived assets are attributed to operations in the U.S.

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SEC Form 10-Q filed by Grindr Inc.