Recent News
On November 7, 2025 a securities firm announced an investigation into a proposed take-private transaction and potential fiduciary breaches involving majority holders. On November 24, 2025 Grindr disclosed that proposed go-private talks at roughly $18 per share failed to advance because financing clarity proved insufficient. On December 16, 2025 the company publicly emphasized an “AI-first” product strategy and new service initiatives spanning health, travel and local discovery.
Technical Analysis
ADX at 22.95 registers an emerging trend strength, suggesting momentum recently developed but not yet strong; that moderates expectations for abrupt directional moves given the broader context.
DI+ measures 14.31 and trends decreasing while DI– measures 29.75 and trends increasing, a bearish directional split that biases near-term price action lower versus the current valuation level.
MACD sits at -0.38 and trends decreasing with a signal line at -0.27, a negative and falling MACD that confirms bearish momentum and reduces probability of a sustained breakout absent a momentum reversal.
MRO registers -5.07 with a dip-and-reversal pattern, indicating the price sits modestly below the WMDST target and carries potential for a modest corrective bounce toward valuation levels; the magnitude suggests limited upside from this signal alone.
RSI at 39.05 and trending down shows falling participation and room before reaching classical oversold thresholds, implying additional downside risk if selling resumes but also leaving room for a rebound if buying interest returns.
Price closed at $11.97 below the 20-day ($12.59), 50-day ($13.25) and 200-day ($17.25) averages, with the super trend upper band at $12.69 acting as near-term resistance; price sits near the lower Bollinger band ($11.95), which offers immediate support but does not negate the broader bearish setup.
Volume averaged near 10-day and 50-day levels, indicating current moves carry participation roughly in line with recent sessions rather than extreme conviction, which aligns with the ADX reading of an emerging trend.
Fundamental Analysis
Revenue grew 30.68% year-over-year, supporting the narrative of accelerating top-line expansion; quarter-to-quarter revenue growth measured modestly at 1.21% QoQ. Revenue momentum helps justify premium multiples but requires margin durability to support the current valuation.
Operating margin stands at 39.08%, roughly in line with the industry peer mean of 31.411% and above the industry peer median of 15.318%, demonstrating strong operating leverage versus many peers. QoQ operating margin expanded by 67.295% while YoY changed by -4.815 percentage points, indicating recent quarter improvement after a modest annual decline.
EBIT margin reached 38.52%, above the industry peer median of 16.956% and slightly below the industry peer mean of 41.142%, with a QoQ lift of 61.488% and a small YoY decline of 6.191 percentage points; margins contribute materially to free cash flow generation and valuation support.
Free cash flow totaled $51,243,000 and yields 1.835%, a level above the industry peer mean of 0.813% for free cash flow yield; quarterly improvement runs high, with free cash flow yield up roughly 79.90% QoQ and 44.38% YoY, providing financing flexibility even with elevated leverage.
Leverage metrics remain elevated: debt to assets measures 64.492% and debt to EBITDA equals 6.18x, while total debt sits at $283,240,000 and net debt at $273,581,000. Interest coverage approximates 9.55x, which maintains coverage but leaves limited margin for error if operating cash flow weakens. Debt dynamics moved materially QoQ and YoY, with debt-to-assets rising 22.783% QoQ and 1,862.032% YoY (as reported), highlighting recent balance sheet shifts.
Return metrics show concentrated profitability: return on equity stands at 43.456%, well above the industry peer mean of 6.917% and peer high ranges, driven by slim reported equity; return on assets at 6.249% slightly exceeds the industry peer mean of 5.053% and supports the case for efficient asset use despite negative asset growth of 19.801% YoY.
Market multiples show a stretched profile: price-to-earnings at 94.61x and price-to-book at 39.36x sit well above the industry peer mean and range, while EV/Revenue and enterprise multiple metrics also skew high. Forward metrics reflect elevated expectations: forward PE near 157.20x and forward PS around 146.61x. Those multiples imply significant expected growth already priced into the equity.
WMDST values the stock as over-valued based on the combination of premium multiples, high leverage metrics, and the requirement for continued margin and revenue expansion to justify the current market capitalization.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-06 |
| NEXT REPORT DATE: | 2026-02-05 |
| CASH FLOW | Begin Period Cash Flow | $ 121.4 M |
| Operating Cash Flow | $ 55.4 M | |
| Capital Expenditures | $ -4.21 M | |
| Change In Working Capital | $ 16.4 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -114.50 M | |
| End Period Cash Flow | $ 6.9 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 115.8 M | |
| Forward Revenue | $ 25.5 M | |
| COSTS | ||
| Cost Of Revenue | $ 28.9 M | |
| Depreciation | $ 1.3 M | |
| Depreciation and Amortization | $ 1.3 M | |
| Research and Development | $ 11.1 M | |
| Total Operating Expenses | $ 70.5 M | |
| PROFITABILITY | ||
| Gross Profit | $ 86.8 M | |
| EBITDA | $ 45.8 M | |
| EBIT | $ 44.6 M | |
| Operating Income | $ 45.2 M | |
| Interest Income | — | |
| Interest Expense | $ 4.7 M | |
| Net Interest Income | $ -4.67 M | |
| Income Before Tax | $ 39.9 M | |
| Tax Provision | $ 9.1 M | |
| Tax Rate | 22.759 % | |
| Net Income | $ 30.8 M | |
| Net Income From Continuing Operations | $ 30.8 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.11 | |
| EPS Actual | $ 0.16 | |
| EPS Difference | $ 0.05 | |
| EPS Surprise | 45.455 % | |
| Forward EPS | $ 0.15 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 439.2 M | |
| Intangible Assets | $ 354.0 M | |
| Net Tangible Assets | $ -283.00 M | |
| Total Current Assets | $ 77.3 M | |
| Cash and Short-Term Investments | $ 6.3 M | |
| Cash | $ 6.3 M | |
| Net Receivables | $ 58.8 M | |
| Inventory | — | |
| Long-Term Investments | $ 2.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 4.1 M | |
| Short-Term Debt | $ 15.0 M | |
| Total Current Liabilities | $ 93.9 M | |
| Net Debt | $ 273.6 M | |
| Total Debt | $ 283.2 M | |
| Total Liabilities | $ 368.2 M | |
| EQUITY | ||
| Total Equity | $ 71.0 M | |
| Retained Earnings | $ -117.32 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 0.38 | |
| Shares Outstanding | 184.495 M | |
| Revenue Per-Share | $ 0.63 | |
| VALUATION | Market Capitalization | $ 2.8 B |
| Enterprise Value | $ 3.1 B | |
| Enterprise Multiple | 66.951 | |
| Enterprise Multiple QoQ | -50.28 % | |
| Enterprise Multiple YoY | 26.218 % | |
| Enterprise Multiple IPRWA | high: 279.681 GRND: 66.951 mean: 59.397 median: 55.385 low: -157.057 |
|
| EV/R | 26.516 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 6.19 | |
| Asset To Liability | 1.193 | |
| Debt To Capital | 0.8 | |
| Debt To Assets | 0.645 | |
| Debt To Assets QoQ | 22.783 % | |
| Debt To Assets YoY | 1862.032 % | |
| Debt To Assets IPRWA | high: 0.89 GRND: 0.645 mean: 0.095 median: 0.057 low: 0.001 |
|
| Debt To Equity | 3.992 | |
| Debt To Equity QoQ | 160.478 % | |
| Debt To Equity YoY | -456.689 % | |
| Debt To Equity IPRWA | GRND: 3.992 high: 1.778 mean: 0.145 median: 0.064 low: -0.923 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 39.36 | |
| Price To Book QoQ | 105.588 % | |
| Price To Book YoY | -124.04 % | |
| Price To Book IPRWA | GRND: 39.36 high: 11.238 mean: 7.741 median: 7.289 low: -1.614 |
|
| Price To Earnings (P/E) | 94.608 | |
| Price To Earnings QoQ | -63.198 % | |
| Price To Earnings YoY | -31.637 % | |
| Price To Earnings IPRWA | high: 247.775 GRND: 94.608 mean: 80.884 median: 67.083 low: -128.849 |
|
| PE/G Ratio | 0.946 | |
| Price To Sales (P/S) | 24.124 | |
| Price To Sales QoQ | -30.032 % | |
| Price To Sales YoY | -1.802 % | |
| Price To Sales IPRWA | high: 36.022 mean: 29.226 median: 27.551 GRND: 24.124 low: 0.003 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 157.196 | |
| Forward PE/G | 1.572 | |
| Forward P/S | 146.609 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 7.165 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.235 | |
| Asset Turnover Ratio QoQ | 38.123 % | |
| Asset Turnover Ratio YoY | 17.069 % | |
| Asset Turnover Ratio IPRWA | high: 0.5 GRND: 0.235 mean: 0.189 median: 0.182 low: 0.003 |
|
| Receivables Turnover | 1.998 | |
| Receivables Turnover Ratio QoQ | 5.725 % | |
| Receivables Turnover Ratio YoY | -5.77 % | |
| Receivables Turnover Ratio IPRWA | high: 11.52 mean: 2.135 GRND: 1.998 median: 1.643 low: 0.143 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 45.68 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 35.899 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 125.332 GRND: 35.899 median: 15.557 mean: 3.845 low: -343.916 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -6.981 | |
| CapEx To Revenue | -0.036 | |
| CapEx To Depreciation | -3.333 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 335.9 M | |
| Net Invested Capital | $ 350.9 M | |
| Invested Capital | $ 350.9 M | |
| Net Tangible Assets | $ -283.00 M | |
| Net Working Capital | $ -16.58 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.067 | |
| Current Ratio | 0.823 | |
| Current Ratio QoQ | -66.767 % | |
| Current Ratio YoY | -43.715 % | |
| Current Ratio IPRWA | high: 8.871 mean: 1.817 median: 1.611 GRND: 0.823 low: 0.217 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 6.178 | |
| Cost Of Debt | 1.263 % | |
| Interest Coverage Ratio | 9.552 | |
| Interest Coverage Ratio QoQ | 36.957 % | |
| Interest Coverage Ratio YoY | 66.686 % | |
| Interest Coverage Ratio IPRWA | high: 197.383 mean: 82.816 GRND: 9.552 median: 8.247 low: -113.554 |
|
| Operating Cash Flow Ratio | 0.348 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 9.782 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -19.801 % | |
| Revenue Growth | 11.078 % | |
| Revenue Growth QoQ | 1.206 % | |
| Revenue Growth YoY | 30.683 % | |
| Revenue Growth IPRWA | high: 25.814 % GRND: 11.078 % mean: 6.717 % median: 4.74 % low: -21.192 % |
|
| Earnings Growth | 100.0 % | |
| Earnings Growth QoQ | -600.0 % | |
| Earnings Growth YoY | -159.091 % | |
| Earnings Growth IPRWA | high: 177.966 % GRND: 100.0 % median: 11.765 % mean: -1.8 % low: -200.0 % |
|
| MARGINS | ||
| Gross Margin | 75.019 % | |
| Gross Margin QoQ | 1.787 % | |
| Gross Margin YoY | 0.905 % | |
| Gross Margin IPRWA | high: 97.596 % GRND: 75.019 % mean: 65.055 % median: 54.61 % low: -1.845 % |
|
| EBIT Margin | 38.515 % | |
| EBIT Margin QoQ | 61.488 % | |
| EBIT Margin YoY | -6.191 % | |
| EBIT Margin IPRWA | high: 49.713 % mean: 41.142 % GRND: 38.515 % median: 16.956 % low: -49.635 % |
|
| Return On Sales (ROS) | 39.08 % | |
| Return On Sales QoQ | 67.295 % | |
| Return On Sales YoY | -4.815 % | |
| Return On Sales IPRWA | high: 49.713 % GRND: 39.08 % mean: 31.411 % median: 15.318 % low: -59.443 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 51.2 M | |
| Free Cash Flow Yield | 1.835 % | |
| Free Cash Flow Yield QoQ | 79.902 % | |
| Free Cash Flow Yield YoY | 44.375 % | |
| Free Cash Flow Yield IPRWA | high: 14.053 % GRND: 1.835 % median: 0.868 % mean: 0.813 % low: -14.281 % |
|
| Free Cash Growth | 39.863 % | |
| Free Cash Growth QoQ | -31.461 % | |
| Free Cash Growth YoY | -58.9 % | |
| Free Cash Growth IPRWA | high: 483.929 % mean: 266.0 % median: 164.246 % GRND: 39.863 % low: -537.101 % |
|
| Free Cash To Net Income | 1.662 | |
| Cash Flow Margin | 28.245 % | |
| Cash Flow To Earnings | 1.06 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 6.249 % | |
| Return On Assets QoQ | 130.42 % | |
| Return On Assets YoY | 12.839 % | |
| Return On Assets IPRWA | high: 8.647 % GRND: 6.249 % mean: 5.053 % median: 2.758 % low: -11.32 % |
|
| Return On Capital Employed (ROCE) | 12.913 % | |
| Return On Equity (ROE) | 0.435 | |
| Return On Equity QoQ | 390.197 % | |
| Return On Equity YoY | -123.599 % | |
| Return On Equity IPRWA | GRND: 0.435 high: 0.135 mean: 0.069 median: 0.037 low: -0.144 |
|
| DuPont ROE | 23.843 % | |
| Return On Invested Capital (ROIC) | 9.816 % | |
| Return On Invested Capital QoQ | 138.137 % | |
| Return On Invested Capital YoY | -107.919 % | |
| Return On Invested Capital IPRWA | high: 16.42 % GRND: 9.816 % mean: 7.878 % median: 3.592 % low: -14.369 % |
|