Recent News
June 5: Grindr hosted a global in‑app livestream with Warner Records featuring a Madonna performance and immersive in‑app experiences. June (early): company filed an ESOP/shelf update and attracted shareholder litigation scrutiny related to a buyout termination. April 24: the board nominated three director candidates for the annual meeting; the annual meeting occurred virtually on June 2 and corporate filings disclosed adjustments to the company’s credit facility.
Technical Analysis
Directional indicators present a nascent trend: ADX at 25.61 indicates an emerging trend strength, with DI+ rising and DI‑ falling — a bullish directional bias supportive of near‑term upside toward the upper volatility bands. (DI+ 23.62, DI‑ 22.93; DI+ trend: increasing; DI‑ trend: decreasing.)
MACD shows bullish momentum: MACD at 0.01 with an increasing MACD_trend and a signal line at ‑0.19, indicating a recent MACD cross above its signal line that supports continued short‑term price lift.
MRO displays a dip‑and‑reversal while negative (MRO = ‑25.38), indicating the current price sits below the model target and carries potential to move higher toward fair value levels implied by momentum metrics.
RSI at 47.8 with an increasing trend implies rebuilding buying pressure without reaching overbought conditions, consistent with measured positive momentum rather than an extended rally.
Price sits slightly above several shorter averages (price close $13.14 versus 12‑day EMA $12.64 and 20‑day average $12.04) and marginally above the 200‑day average ($13.02). The 1‑SD upper Bollinger band at $13.21 and 2‑SD upper at $14.39 create nearby resistance; the SuperTrend lower support at $11.91 provides a defined downside reference. Together these mean technicals favor a limited rally into resistance followed by consolidation against the company’s WMDST valuation. (Price close $13.14; priceTargetMean $12.74.)
Fundamental Analysis
Revenue for the period totaled $129,941,000 and operating income registered $42,727,000; operating margin stands at 32.88% and EBIT margin at 32.73%, both reflecting strong unit economics versus historical averages. EBIT margin QoQ improved by 31.43% but fell YoY by 13.27%. The company reported EPS of $0.14 versus an estimate of $0.13, an EPS surprise of approximately 7.69% on the Q1 release.
Profitability metrics show marked strengths alongside capital structure stress. Return on equity reads 31.88%, and return on assets at 5.34% improved QoQ; gross margin sits at 74.92%. Cash flow remains positive: operating cash flow $33,466,000 and free cash flow $31,856,000, producing a free cash flow yield near 1.42% and cash conversion ratio above 5x. The balance sheet shows $23,810,000 in cash and short‑term investments against total debt $394,976,000 and net debt $367,280,000; debt‑to‑equity stands at 470.77, reflecting highly leveraged equity capital.
Valuation multiples present divergence: trailing P/E at 90.49 and P/S near 17.28, while forward P/E sits at 63.13. Price targets among analysts cluster (price target mean $12.74; high $22.49; low $7.13). Book value per share $0.00473 contrasts sharply with the price, producing an elevated P/B of 2,678.27 versus the industry peer mean P/B of 7.42 and industry peer median of 7.96; the company’s EBIT margin of 32.73% compares to an industry peer mean margin of 61.86% and industry peer median of 70.93%. These comparisons show strong operating margins in absolute terms but material divergence versus the stated industry peer mean and median metrics where provided.
The current valuation as determined by WMDST: over‑valued. That assessment aligns with elevated market multiples relative to the company’s modest forward free cash flow yield and its leverage profile, even as recent operating trends and cash generation improved QoQ.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-03-31 |
| REPORT DATE: | 2026-05-07 |
| NEXT REPORT DATE: | 2026-08-06 |
| CASH FLOW | Begin Period Cash Flow | $ 87.7 M |
| Operating Cash Flow | $ 33.5 M | |
| Capital Expenditures | $ -1.61 M | |
| Change In Working Capital | $ -10.35 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -63.23 M | |
| End Period Cash Flow | $ 24.4 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 129.9 M | |
| Forward Revenue | $ 41.4 M | |
| COSTS | ||
| Cost Of Revenue | $ 32.6 M | |
| Depreciation | $ 983.0 K | |
| Depreciation and Amortization | $ 983.0 K | |
| Research and Development | $ 15.9 M | |
| Total Operating Expenses | $ 87.2 M | |
| PROFITABILITY | ||
| Gross Profit | $ 97.3 M | |
| EBITDA | $ 43.5 M | |
| EBIT | $ 42.5 M | |
| Operating Income | $ 42.7 M | |
| Interest Income | — | |
| Interest Expense | $ 6.6 M | |
| Net Interest Income | $ -6.61 M | |
| Income Before Tax | $ 35.9 M | |
| Tax Provision | $ 9.2 M | |
| Tax Rate | 25.5 % | |
| Net Income | $ 26.8 M | |
| Net Income From Continuing Operations | $ 26.8 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.13 | |
| EPS Actual | $ 0.14 | |
| EPS Difference | $ 0.01 | |
| EPS Surprise | 7.692 % | |
| Forward EPS | $ 0.19 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 470.9 M | |
| Intangible Assets | $ 356.9 M | |
| Net Tangible Assets | $ -356.10 M | |
| Total Current Assets | $ 104.5 M | |
| Cash and Short-Term Investments | $ 23.8 M | |
| Cash | $ 23.8 M | |
| Net Receivables | $ 70.2 M | |
| Inventory | — | |
| Long-Term Investments | $ 4.6 M | |
| LIABILITIES | ||
| Accounts Payable | $ 4.2 M | |
| Short-Term Debt | $ 20.0 M | |
| Total Current Liabilities | $ 79.4 M | |
| Net Debt | $ 367.3 M | |
| Total Debt | $ 395.0 M | |
| Total Liabilities | $ 470.1 M | |
| EQUITY | ||
| Total Equity | $ 839.0 K | |
| Retained Earnings | $ -70.31 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 0.00 | |
| Shares Outstanding | 177.199 M | |
| Revenue Per-Share | $ 0.73 | |
| VALUATION | Market Capitalization | $ 2.2 B |
| Enterprise Value | $ 2.6 B | |
| Enterprise Multiple | 60.126 | |
| Enterprise Multiple QoQ | -23.764 % | |
| Enterprise Multiple YoY | -22.611 % | |
| Enterprise Multiple IPRWA | high: 165.258 GRND: 60.126 mean: 48.126 median: 44.874 low: -123.613 |
|
| EV/R | 20.132 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 561.292 | |
| Asset To Liability | 1.002 | |
| Debt To Capital | 0.998 | |
| Debt To Assets | 0.839 | |
| Debt To Assets QoQ | 11.184 % | |
| Debt To Assets YoY | 96.318 % | |
| Debt To Assets IPRWA | high: 1.025 GRND: 0.839 mean: 0.149 median: 0.129 low: 0.001 |
|
| Debt To Equity | 470.77 | |
| Debt To Equity QoQ | 5424.133 % | |
| Debt To Equity YoY | 51767.476 % | |
| Debt To Equity IPRWA | GRND: 470.77 high: 1.386 mean: 0.229 median: 0.189 low: -0.885 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2678.273 | |
| Price To Book QoQ | 5511.669 % | |
| Price To Book YoY | 28551.584 % | |
| Price To Book IPRWA | GRND: 2678.273 high: 7.989 median: 7.963 mean: 7.421 low: -2.74 |
|
| Price To Earnings (P/E) | 90.487 | |
| Price To Earnings QoQ | -25.368 % | |
| Price To Earnings YoY | -45.453 % | |
| Price To Earnings IPRWA | high: 156.78 GRND: 90.487 median: 61.576 mean: 58.921 low: -181.412 |
|
| PE/G Ratio | 2.262 | |
| Price To Sales (P/S) | 17.275 | |
| Price To Sales QoQ | -2.995 % | |
| Price To Sales YoY | -45.717 % | |
| Price To Sales IPRWA | high: 34.805 median: 34.69 mean: 32.368 GRND: 17.275 low: 0.003 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 63.127 | |
| Forward PE/G | 1.578 | |
| Forward P/S | 54.19 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 11.295 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.259 | |
| Asset Turnover Ratio QoQ | -0.119 % | |
| Asset Turnover Ratio YoY | 59.937 % | |
| Asset Turnover Ratio IPRWA | high: 0.578 GRND: 0.259 median: 0.169 mean: 0.162 low: 0.001 |
|
| Receivables Turnover | 1.882 | |
| Receivables Turnover Ratio QoQ | -5.327 % | |
| Receivables Turnover Ratio YoY | 2.99 % | |
| Receivables Turnover Ratio IPRWA | high: 9.116 mean: 1.994 GRND: 1.882 median: 1.746 low: 0.034 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 48.496 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 40.101 | |
| Cash Conversion Cycle Days QoQ | 8.985 % | |
| Cash Conversion Cycle Days YoY | 1.238 % | |
| Cash Conversion Cycle Days IPRWA | high: 186.093 GRND: 40.101 median: 23.301 mean: 23.023 low: -343.976 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 5.185 | |
| CapEx To Revenue | -0.012 | |
| CapEx To Depreciation | -1.638 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 371.9 M | |
| Net Invested Capital | $ 391.9 M | |
| Invested Capital | $ 391.9 M | |
| Net Tangible Assets | $ -356.10 M | |
| Net Working Capital | $ 25.1 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.3 | |
| Current Ratio | 1.315 | |
| Current Ratio QoQ | -32.719 % | |
| Current Ratio YoY | -68.819 % | |
| Current Ratio IPRWA | high: 8.196 mean: 1.989 median: 1.922 GRND: 1.315 low: 0.108 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 9.078 | |
| Cost Of Debt | 1.237 % | |
| Interest Coverage Ratio | 6.438 | |
| Interest Coverage Ratio QoQ | 13.627 % | |
| Interest Coverage Ratio YoY | -29.614 % | |
| Interest Coverage Ratio IPRWA | high: 82.584 median: 39.705 mean: 30.339 GRND: 6.438 low: -65.038 |
|
| Operating Cash Flow Ratio | 0.352 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 8.395 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -11.319 % | |
| Revenue Growth | 3.149 % | |
| Revenue Growth QoQ | -64.289 % | |
| Revenue Growth YoY | -183.461 % | |
| Revenue Growth IPRWA | high: 42.687 % GRND: 3.149 % median: -3.455 % mean: -3.818 % low: -48.267 % |
|
| Earnings Growth | 40.0 % | |
| Earnings Growth QoQ | -197.144 % | |
| Earnings Growth YoY | -135.443 % | |
| Earnings Growth IPRWA | high: 160.0 % median: 81.206 % mean: 65.739 % GRND: 40.0 % low: -229.412 % |
|
| MARGINS | ||
| Gross Margin | 74.916 % | |
| Gross Margin QoQ | 0.096 % | |
| Gross Margin YoY | 1.411 % | |
| Gross Margin IPRWA | high: 100.0 % GRND: 74.916 % mean: 64.697 % median: 62.445 % low: -6.038 % |
|
| EBIT Margin | 32.726 % | |
| EBIT Margin QoQ | 31.43 % | |
| EBIT Margin YoY | -13.267 % | |
| EBIT Margin IPRWA | high: 70.926 % median: 70.926 % mean: 61.864 % GRND: 32.726 % low: -29.087 % |
|
| Return On Sales (ROS) | 32.882 % | |
| Return On Sales QoQ | 32.301 % | |
| Return On Sales YoY | -12.854 % | |
| Return On Sales IPRWA | high: 40.617 % median: 36.121 % mean: 34.948 % GRND: 32.882 % low: -55.832 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 31.9 M | |
| Free Cash Flow Yield | 1.419 % | |
| Free Cash Flow Yield QoQ | 45.688 % | |
| Free Cash Flow Yield YoY | 83.097 % | |
| Free Cash Flow Yield IPRWA | high: 15.098 % GRND: 1.419 % mean: 0.408 % median: 0.265 % low: -18.69 % |
|
| Free Cash Growth | 45.754 % | |
| Free Cash Growth QoQ | -179.783 % | |
| Free Cash Growth YoY | -353.162 % | |
| Free Cash Growth IPRWA | high: 388.901 % GRND: 45.754 % mean: -51.53 % median: -58.796 % low: -396.125 % |
|
| Free Cash To Net Income | 1.191 | |
| Cash Flow Margin | 21.544 % | |
| Cash Flow To Earnings | 1.047 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 5.34 % | |
| Return On Assets QoQ | 27.874 % | |
| Return On Assets YoY | 14.494 % | |
| Return On Assets IPRWA | high: 9.633 % median: 9.633 % mean: 8.621 % GRND: 5.34 % low: -17.322 % |
|
| Return On Capital Employed (ROCE) | 10.863 % | |
| Return On Equity (ROE) | 31.883 | |
| Return On Equity QoQ | 7297.32 % | |
| Return On Equity YoY | 37640.518 % | |
| Return On Equity IPRWA | GRND: 31.883 high: 0.153 median: 0.131 mean: 0.12 low: -0.326 |
|
| DuPont ROE | 111.816 % | |
| Return On Invested Capital (ROIC) | 8.08 % | |
| Return On Invested Capital QoQ | 45.455 % | |
| Return On Invested Capital YoY | 61.632 % | |
| Return On Invested Capital IPRWA | high: 11.327 % median: 11.327 % mean: 9.493 % GRND: 8.08 % low: -10.695 % |
|