Grindr, under chief executive George Arison, is pushing to become an "everything app" for gay men, expanding beyond dating and hookups into healthcare services such as HIV prevention and ED medication, as well as travel and community features. The strategy comes as the company, which Arison took over in 2022 after years of ownership turmoil including forced divestiture from Chinese owners, has posted strong revenue growth largely by charging existing users more rather than expanding its user base. Investors remain split on whether the diversification will pay off, with the stock still trading at a marked discount to its peers despite recent upgrades.

Revenue is on track to roughly triple from $195 million in 2022 to a guided $540 million-plus this year, with adjusted EBITDA margins above 40%, while paying users made up just 9% of the 1.4 million user base in the second quarter. Grindr is also launching a pricier "EDGE" subscription tier later this year, which has drawn some criticism online. Arison argues the stock, trading at roughly 11 times 2027 EBITDA (about 35% below peers), suffers from an unjustified "Grindr discount" tied to its identity as a gay dating app, though Morgan Stanley, Goldman Sachs and Raymond James have all raised their price targets this year, with the stock climbing around a third over the past six months.