Grindr reported second-quarter revenue of $138 million, up 33% from a year ago, and raised its full-year guidance as CEO George Arison said the company's artificial intelligence investments are delivering measurable returns. The LGBTQ-focused dating platform on Thursday increased its 2026 revenue guidance to approximately $540 million from $535 million and adjusted EBITDA guidance to approximately $232 million from $227 million. Arison attributed the results to dual AI deployment: consumer-facing features like the premium Edge companion and internal engineering tools that increased technical output roughly 2.5 times between July 2025 and April 2026 while maintaining the same-sized team. The performance comes as software companies face pressure to demonstrate tangible financial returns from generative AI spending.
Grindr Reports 33% Revenue Growth and Raises Full-Year Guidance
Grindr reported second-quarter revenue of $138 million, representing a 33% increase from the same period a year ago. The company raised its full-year 2026 guidance, now expecting revenue of approximately $540 million, up from the previous estimate of $535 million. Adjusted EBITDA guidance increased to approximately $232 million from $227 million. "Our strategy has always been to use AI everywhere we can," Arison said in an interview with CNBC.
Engineering Output Increases 2.5 Times Through AI Tool Adoption
Grindr estimated that total engineering output increased roughly 2.5 times between July 2025 and April 2026 while maintaining roughly the same-sized engineering team, according to the earnings presentation. "Before GenAI, producing that much technical output would have required roughly 200 additional engineers and approximately $60 million in annual cost," the earnings presentation stated. The company deploys coding assistants and software development tools from Cursor, Anthropic's Claude, and Devin. Arison said Grindr is on track to spend $6 million on tokens this year. "I have zero qualms about that because the amount of productivity increase that I'm getting from that is orders of magnitude more, like 10-times more than the money that I'm spending on tokens," Arison said. The company has not eliminated any jobs because of AI adoption, according to Arison.
Edge Premium Tier Testing Attracts Broader Subscriber Mix Than Expected
Grindr is testing pricing for its AI-powered Edge companion in select markets, including New York, where access costs as much as $350 per month. "Our assumption was that only people who are 'Unlimited' subscribers would move up to 'Edge,'" Arison said. "The data so far does not support that. There are people who are not 'Unlimited' subscribers who were also moving to 'Edge', including people who don't subscribe at all." Arison said the company is "happy with the test results so far." The company did not disclose how many users have subscribed to Edge or where pricing will ultimately land. Morgan Stanley in July upgraded the stock to overweight from equal weight and raised its price target from $15 to $18, citing the "ultra-premium" subscription tier.
Paying User Count Reaches 1.4 Million with Lower-Than-Expected Churn
Paying user count grew in the second quarter to 1.4 million, up 16% over last year. Average revenue per paying user reached $25.51, a year-over-year increase of 12%. "Churn is actually lower than we had expected it to be, which has led to more organic growth in the first half of the year," Arison said. The subscriber retention remained stronger than expected despite price increases across Grindr's premium membership tiers, according to Arison.
FAQ
What revenue did Grindr report for the second quarter?
Grindr reported second-quarter revenue of $138 million, up 33% from a year ago. The company raised its full-year 2026 revenue guidance to approximately $540 million from $535 million and adjusted EBITDA guidance to approximately $232 million from $227 million.
How much does Grindr's Edge premium tier cost in testing markets?
Grindr is testing pricing for its AI-powered Edge companion in select markets, including New York, where access costs as much as $350 per month. The company did not disclose final pricing or total subscriber numbers but said it is "happy with the test results so far."
How has AI affected Grindr's engineering productivity?
Grindr estimated that total engineering output increased roughly 2.5 times between July 2025 and April 2026 while maintaining roughly the same-sized engineering team. The company stated that producing the same technical output before GenAI would have required roughly 200 additional engineers and approximately $60 million in annual cost.
