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Grindr wants to be the everything app for gay men; investors are still deciding whether it can pull it off

4 d ago

Grindr is on track to triple revenue to over $540 million in 2025 under CEO George Arison, driven by AI-powered features and a controversial high-priced EDGE subscription tier, as the gay dating app expands into healthcare and travel to overcome a persistent "Grindr discount" on its stock. Since taking over in 2022, Arison has slashed headcount via a return-to-office mandate, boosted paying users to 1.4 million (9% of the base), and nearly doubled average revenue per user. The company now runs on just 95 technical staff, with 80% of code AI-written and engineering productivity up 2.5x. Later this year, Grindr will launch EDGE, a premium tier tested at roughly $350–$375 per month in Canada, offering AI-driven matchmaking based on user behavior rather than sparse profiles. Arison also pushes healthcare via the Woodwork line (ED meds, GLP-1s) and an in-app AI bot for HIV prevention, with a long-term goal of connecting users to gay doctors via telehealth. Despite Morgan Stanley upgrading the stock to "overweight" in July and price target hikes from Goldman Sachs and Raymond James, Grindr trades at about 11 times 2027 EBITDA—a 35% discount to peers. Arison argues institutional investors undervalue the stock simply because it's a gay dating app, citing a financial model with a literal "Grindr discount" line item.