Grindr Inc. Q4 FY2025 earnings call

2025 was an exceptional year for Grindr. Core business stayed strong with product expansion. Made real progress on AI with 60%-70% of new code rolled by AI agents and 1.5x productivity improvement. Took steps to drive revenue growth by rolling out new pricing for Extra and Unlimited. 2026 priorities: premium AI experiences, durable core growth, operational rigor through Grindr mode, deliberate investment for durability and upside

2025年 revenue grew 28% year over year to $440 million, and adjusted EBITDA was $196 million. In the fourth quarter, revenue was $126 million, up 29% year over year. Direct revenue was $103 million, and indirect revenue was $23 million for the quarter. Average MAL for 2025 was $15 million. Average paying users were approximately $1.26 million, and ARPU was $24.25

2026 full year expected revenue of greater than $528 million and adjusted EBITDA of greater than $217 million. Q1 expected revenue growth rate and adjusted EBITDA margin to pace well ahead of annual results. Announced a three-year, $400 million expansion of share repurchase authorization extended to March 2029

Forward-looking statements subject to risks and uncertainties, actual results could differ materially from views expressed. Some risks set forth in earnings release and periodic reports filed with the SEC

Q: Regarding 2026 and pricing changes, and Edge testing.

A: Happy with pricing test results, user base accepted price changes well. Edge launched in Q4 last year in Australia with positive feedback, tests ongoing in other markets.

Q: On governance situation after proposed takeout offer.

A: Board views issue as important, Michael Guerin stepped in as lead independent director, adding directors, positive relationship with Ray, board focused on independent operation.

Q: On 20% revenue growth guidance contributors and Edge user value.

A: Revenue growth primarily from product enhancements, pricing changes, and advertising growth. Edge's A-List brings together chat histories and summaries, discovery feature helps find right matches.

Q: On tiering products and marketing.

A: Historically strong free tier, introducing paywalls slowly, now focusing on AI-driven premiumization. Marketing efforts to create cultural shaping moments, increasing brand building internationally.

Q: On Woodwork and MAL.

A: Woodwork not in 2026 revenue guidance, still a startup. Adjusted MAL growth in 2025 due to aggressive unwanted account removal, focus on international growth and older cohort retention.

Q: On engineer investment and unwinding paid walls.

A: AI adoption increasing engineer productivity, 1.5x productivity improvement. Unwinding paid walls and ad triggers to be geographic and user-focused for better user experience