Grindr Inc. (NYSE:GRND) Reaccelerates Momentum, Poised To Extend Near-Term Advance

Positive momentum indicators and improving cash conversion support a constructive near-term outlook, though valuation metrics signal a material premium. Operational cash generation and margin strength provide the fundamental underpinning for continued upside pressure.

Recent News

Grindr scheduled a virtual annual meeting for June 2, 2026 and filed related proxy materials in late April; the board set annual advisory votes on executive compensation. The company disclosed an expanded credit facility to $600 million and updated governance filings in the same proxy period. Insider activity included a Rule 10b5-1 sale by a senior officer in mid-June, and the company filed an 8‑K on June 25, 2026 reporting recent corporate disclosures and developments.

Technical Analysis

Directional strength: ADX at 29.11 indicates a strong trend environment; DI+ at 28.35 increasing while DI- at 17.17 decreasing signals bullish directional pressure that supports continuation of the recent advance and raises the odds of further short-term appreciation relative to the current valuation.

Momentum ensemble: MACD at 0.33 and rising with the MACD above its 0.07 signal line constitutes a bullish momentum crossover, which aligns with price trading above short- and medium-term averages and favors near-term positive price bias.

MRO context: MRO reads -12.95 (negative) with an increasing trend; the negative value indicates price sits below the model target and therefore implies potential upside pressure toward the target as momentum improves.

Relative strength: RSI at 51.9 and rising sits in neutral-to-mildly-bullish territory, suggesting room to run before overbought conditions and supporting the near-term continuation implied by MACD and DI+.

Price structure & moving averages: Closing price $14.37 trades above the 12‑day EMA $13.45, the 20‑day average $13.11, and the 200‑day average $12.98; short-term averages rising points to a constructive price posture and positions the stock above the super-trend support at $13.24.

Volatility & volume: 42‑day and 52‑week volatility sit at 3%; current daily volume (~903,370) runs below 10/50/200‑day averages, implying continuation likely needs increased participation to sustain moves toward the $15–$24 range implied by recent targets and bands.

 


Fundamental Analysis

Profitability: Operating margin $0.32882 (32.88%) and EBIT margin $0.32726 (32.73%) remained strong on the quarter, with EBIT $ $42,525,000 and EBITDA $ $43,508,000. EBIT margin increased QoQ by 31.43% but declined YoY by 13.27%, signaling recent operational leverage but weaker year-over-year comparatives. The company’s operating margin sits below the industry peer mean of 34.948% (industry peer median 36.121%).

Revenue and earnings: Total revenue $ $129,941,000 for the period; reported EPS $0.14 versus an estimate $0.13, yielding an EPS surprise of 7.69%. Reported revenue growth (general) equals 3.15%, while quarter-over-quarter revenue change shows -64.29% and year-over-year revenue change shows -183.46% per the provided labels; those QoQ and YoY figures represent material sequential and annual swings and help explain guidance revisions disclosed in the fiscal commentary.

Cash flow and liquidity: Operating cash flow $ $33,466,000 and free cash flow $ $31,856,000 produce a free cash flow yield of 1.42% and a cash conversion ratio of 5.19; cash and short‑term investments total $ $23,810,000 with a cash ratio of 29.97% and current ratio 1.32. Net debt sits at $367,280,000, driving debt to EBITDA of 9.08 and debt to assets of 83.87%, which indicates a materially leveraged balance sheet despite positive operating cash generation.

Returns & capital efficiency: Return on equity stands at 31.88% with return on assets 5.34% and return on invested capital 8.08%, reflecting high equity returns driven by a very small equity base (total equity $839,000) and substantial intangible assets $356,943,000.

Valuation context: Price multiples run rich: P/E ~90.49, forward P/E ~63.13, PS ~17.28 and price/book ~2,678.27. The price/book ratio sits substantially above the industry peer mean of 7.42 and the median of 7.96. Enterprise multiple ~60.13 and forward PS ~54.19 reflect an elevated valuation profile. The current valuation as determined by WMDST: over-valued.

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 %

Six-Week Outlook

For swing traders, the technical bias favors continuation: bullish DI+/DI- dynamics, a MACD crossover, rising short‑term EMAs, and a negative-but-rising MRO together point to a higher probability of additional gains over the next six weeks, conditional on pickup in volume. Near-term support aligns near the super-trend lower at $13.24 and the 20‑day average $13.11; resistance and upside context sit between the recent intraday high ~$14.66 and analyst target mean ~$13.78, with higher targets extending toward the upper band around $24. Traders should monitor volume to confirm extensions and watch leverage metrics and cash/debt disclosures for shifts in fundamental risk that could re-price the elevated valuation quickly.

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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