Grindr Posts Muted Q3 Results, Shares Dip on Revenue and User Growth Concerns

Grindr (GRND) delivered a subdued performance in Q3 2025, with total revenue reaching $47.2 million, a 1.8% decline year-over-year and below the $48.5 million consensus estimate. The company attributed the shortfall to reduced subscription conversion rates and a decline in active users, which dipped to 1.62 million, down 3.4% from the prior-year quarter. Despite a 5.2% increase in average revenue per user (ARPU) to $29.14, the overall growth momentum faltered amid continued market saturation and increased competition from platforms like Tinder and Bumble. The decline in user engagement was particularly concerning, as Grindr's monthly active users (MAUs) fell to 3.08 million, a 4.1% decrease from Q3 2024. The company also reported a net loss of $8.6 million for the quarter, wider than the $6.3 million loss in the same period last year, driven by higher marketing expenses and ongoing platform optimization costs. Management cited macroeconomic headwinds and reduced discretionary spending in the LGBTQ+ digital services segment as key challenges. The results triggered a 12.3% drop in GRND’s share price in after-hours trading, marking one of the steepest intraday declines for the stock in the past 18 months. Investors appeared to react to the lack of clear turnaround signals, particularly in user acquisition and retention. Analysts at several firms revised their price targets downward, with one noting that Grindr’s ability to differentiate its offering remains under pressure. The company has not yet provided a formal outlook for Q4 2025, adding further uncertainty.