Grindr Inc. (NYSE:GRND) Projects Near-Term Bounce Despite Overvalued Multiple

Grindr shows technical signs of a short-term rebound while fundamental metrics and WMDST’s valuation label the stock over-valued. Momentum indicators and recent corporate actions create a mixed immediate outlook for swing traders.

Recent News

Nov 24–26, 2025: Negotiations to take Grindr private at ~$18 per share ended after the special committee cited financing uncertainty; the buyout proponents subsequently withdrew the bid. Dec 16, 2025: Company expanded and extended its credit facility, increasing total capacity and maturity. Feb 2–3, 2026: Grindr announced Olympic-specific privacy and safety measures for LGBTQ+ athletes at the 2026 Winter Games. Feb 16, 2026: A former board chair disclosed sales of shares following the collapse of buyout talks.

Technical Analysis

ADX: ADX at 44.92 indicates a very strong trend in place; such strength increases the potential for a decisive directional move over the near term and raises the risk of extended momentum in the prevailing direction.

DI+/DI-: DI+ shows an increasing trend while DI- shows a decreasing trend, signaling that downward pressure has eased and directional strength is shifting toward buyers; that shift aligns with an expectation for short-term upside attempts against the stock’s over-valued backdrop.

MACD: MACD equals -0.66 while the MACD trend increases and the signal line sits at -0.63; negative but rising MACD indicates bearish momentum has begun to abate and bullish momentum is developing, although a confirmed MACD crossover above the signal line has not yet occurred.

MRO (Momentum/Regression Oscillator): MRO at -29.18 (and decreasing) places price below the calculated target, implying a material offset that typically precedes a move higher toward fair value; the magnitude suggests notable upside potential if momentum flips.

RSI: RSI at 34.63 with an increasing trend points toward a near-oversold rebound setup; upward RSI momentum supports a short-term bounce scenario while remaining below neutral range.

Price vs. Moving Averages & Ichimoku: Last close at $10.42 sits below the 20-day average ($10.60), 50-day ($12.41) and 200-day ($16.57), and below the Ichimoku Tenkan (10.87) and Kijun (11.54), indicating the broader bias remains bearish despite short-term recovery signals.

Bollinger & Support: Price trades near the lower Bollinger band (1× lower $9.96), suggesting limited downside bandwidth in the immediate session but confirming vulnerability to renewed selling if support breaks. SuperTrend upper at $10.91 currently acts as nearby resistance.

Volume & Volatility: Today’s volume (1,140,592) runs below recent averages (10-day ~1.91M; 200-day ~1.97M), which reduces conviction in any single-session breakout; 42-day volatility equals 2% and 52-week volatility 3%, indicating comparatively muted realized volatility for a social-media equity.

 


Fundamental Analysis

Profitability: Operating margin stands at 39.08% and EBIT margin at 38.52%; EBIT margin improved quarter-over-quarter by +61.49% but fell year-over-year by -6.19%. High gross margin of 75.02% supports operating leverage, yet the YoY compression in EBIT indicates margin pressure against last year’s comparables.

Revenue & Growth: Total revenue equals $115,766,000 with YoY revenue growth of +30.68% and QoQ growth of +1.21%, demonstrating strong top-line expansion that underpins current free cash flow generation.

Cash Flow & Liquidity: Operating cash flow reached $55,449,000 and free cash flow $51,243,000, producing a free cash flow yield of 1.835%, which sits above the industry peer mean of 0.813% and reflects healthy cash conversion despite a negative cash conversion ratio. However, the current ratio equals 0.82 and the cash ratio 0.067, indicating constrained short-term liquidity and higher reliance on financing.

Capital Structure: Total debt totals $283,240,000 with net debt $273,581,000; debt-to-assets equals 64.49% and debt-to-equity 399.19%, while debt-to-EBITDA measures 6.18x. Interest coverage at 9.55x provides breathing room on interest obligations but leverage metrics remain elevated relative to common operating-company norms.

Valuation & Earnings: GAAP EPS came in at $0.17 versus an estimate of $0.11, an EPS surprise of +54.55%. Trailing PE equals 94.61x and forward PE 157.20x; price-to-book stands at 39.36x. WMDST values the stock as over-valued, a conclusion driven by rich multiples (PE, P/B, enterprise multiple ~66.95) that outpace typical coverage comparables despite solid revenue growth and positive free cash flow generation.

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 26.0 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 0.17
 EPS Difference 0.06
 EPS Surprise 54.545 %
 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: 229.272
GRND: 94.608
mean: 80.877
median: 57.03
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: -1.837 %
low: -250.0 %
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 %

Six-Week Outlook

Technical convergence—rising DI+, an increasing MACD, an improving RSI and a negative MRO—points to probable short-term mean reversion toward technical resistance near the SuperTrend upper (~$10.91) and the 20-day average ($10.60). Volume below recent averages limits conviction for a sustainable breakout. Fundamental profile—strong YoY revenue growth (+30.68%) and positive free cash flow but very high leverage and stretched multiples—keeps the longer near-term bias cautious. Swing traders should expect volatile, range-bound action with potential short-covering rallies rather than a sustained trend reversal while WMDST’s over-valued assessment remains in force.

About Grindr Inc.

Grindr Inc. (NYSE:GRND) develops a prominent social networking platform specifically designed for the LGBTQ community worldwide. Founded in 2009 and headquartered in West Hollywood, California, Grindr connects individuals through its mobile application, utilizing location-based technology to facilitate meaningful interactions. The platform accommodates a range of user interests, including friendship, dating, and community involvement. Grindr provides a free version supported by advertisements, along with a premium subscription service to meet diverse user preferences. Its user-friendly design and accessible interface attract millions, fostering a dynamic digital community. By emphasizing inclusivity and ongoing innovation, Grindr adapts to the changing needs of its users, maintaining its position as a crucial resource for LGBTQ individuals seeking connection. As a publicly traded company, Grindr actively seeks international growth and enhancement of user experiences. The company’s commitment to creating a safe and inclusive environment for its community supports its potential for continued growth within the digital networking industry.



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