EBITDA PerformanceFourth quarter EBITDA was below estimates, affected by investments into advertising, product, and AI.
Share DilutionThe redemption of warrants resulted in a 17% dilution of Grindr's share count, impacting shareholders.
Valuation ConcernsIn our 'blue sky' analysis, which contemplates GRND's share price reaching $35+, investors would have to be willing to pay ~37x EV/2026E EBITDA or ~16x EV/2026E revenue, which may appear more reasonable on an EV/2027E EBITDA and EV/2027E revenue basis.