By Kritika Lamba
Feb 26 (Reuters) – Grindr on Thursday reported fourth-quarter revenue above estimates and expanded its share repurchase program by $400 million, as the LGBTQ+ dating app bets on artificial intelligence-powered features to drive growth, sending its shares up about 4% after the bell.
The company also said it had entered a deal with its largest shareholder, Ray Zage. This includes an 18-month standstill agreement preventing him from initiating a “going private” transaction unless invited by the board, according to a regulatory filing on Thursday.
“We are going to stay public. And everyone’s aligned on that. I think we have a very clear strategy,” Grindr CEO George Arison told Reuters.
In October, Grindr’s majority shareholders proposed to take the company private, with talks eventually falling apart in November.
The company said it would continue investing heavily in AI-powered initiatives throughout the year, signaling confidence that technology-driven improvements will help enhance user growth and engagement.
The Los Angeles-based company also launched “Edge”, a new premium AI-powered subscription tier aimed to offer the platform’s AI offerings under one product.
“Edge will be the focus for most of the year, trial and testing around the pricing and enhancing the user experience through the comprehensive offering,” Arison said.
While traditional dating apps such as Bumble and Match Group’s Tinder have struggled to retain younger users amid shifting preferences and dating app fatigue, Grindr has managed to maintain its dominant position in the LGBTQ+ dating space.
The company is leaning into AI through its proprietary gAI system, which powers chat summaries, personalized recommendations and profile discovery tools, while differentiating itself by focusing on community-building features and location-based networking rather than just romantic connections.
At the same time, Arison said Grindr would keep “a very robust free product” to attract younger users and improve the overall experience.
The company said it would invest more heavily in 2026 to modernize its core architecture and expand beyond its dating app, including health and wellness services through its Woodwork initiative.
For the full year, the company sees revenue higher than $528 million, largely in line with estimates of $529 million, according to data compiled by LSEG.
Grindr reported fourth-quarter revenue growth of 29% to $126 million, above estimates of $122 million.
(Reporting by Kritika Lamba in Bengaluru; additional reporting by Jaspreet Singh; Editing by Maju Samuel)
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