Grindr Raises Revenue Guidance Following AI-Driven Growth

Grindr reported second-quarter revenue of $138 million, representing a 33% increase over the previous year. Following these results, the company raised its full-year 2026 revenue guidance to approximately $540 million. Paying users grew to 1.4 million during the quarter, while average revenue per paying user rose 12% to $25.51.

CEO George Arison attributed the financial growth to a comprehensive AI strategy. The company utilized tools from Anthropic, Cursor, and Devin to increase engineering output 2.5-fold between July 2025 and April 2026 without adding new staff. On the consumer side, the company is testing Edge, a premium AI companion subscription tier in select markets such as New York, with pricing as high as $350 per month.

Internal data indicates that Edge is attracting a broader customer mix than management initially expected, including non-subscribers. In response to the company's performance and AI integration, Morgan Stanley upgraded Grindr's stock to overweight and increased its price target to $18.