Grindr Inc. Common Stock (GRND)

FairStock Score: 64/100 — STEADY

Key Financials

Strengths

• Generates $121 million in annual free cash flow (5.0% yield on market cap)
• High return on equity of 58.9% demonstrating efficient capital deployment
• Revenue growth of 29.0% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($2) with negative 711% margin of safety—limited downside protection
• High leverage at 468.76x debt-to-equity increases financial risk and interest expense burden

AI Analysis

Grindr Inc. Common Stock is a small-cap technology company valued at $2.4 billion. The business generates $476 million in annual revenue with a 4.3% net margin and $121 million in free cash flow. From a quality standpoint, Grindr shows healthy Altman Z-Score of 3.4 and extraordinary 59% return on equity. On valuation, the stock is trading at a premium 31.6x earnings, with trades far above its Graham Number ($2) with no margin of safety. Growth dynamics show revenue growing at 29.0% and profit growth of 116.4%. Our composite FairStock Score of 64/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Grindr's 29% revenue growth trajectory could accelerate as it captures additional market share in the technology sector. With $121 million in annual free cash flow (5.0% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 32x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer