Grindr Inc. (GRND): A Bull Case Theory

We came across a bullish thesis on Grindr Inc. on Bristlemoon Capital’s Substack. As of 9ᵗʰ July, Grindr Inc.’s share was trading at $22.13. GRND’s forward P/E was 50.30 according to Yahoo Finance.

Grindr (GRND), a dating app primarily for gay and bisexual men, has established a monopoly in its niche market. The app’s user base spans over 190 countries, with 14.7 million monthly active users (MAUs). Grindr’s product design emphasizes speed and proximity, allowing users to quickly find and interact with others nearby. This approach drives extremely high user engagement, with users spending an average of 70 minutes per day on the app, significantly outpacing other dating apps. The app’s business model is a freemium subscription model augmented by advertising, generating revenue through paid premium subscriptions and in-app purchases.

Grindr’s user demographics show that its users have higher disposable income compared to straight households, with gay households having twice the income of straight households. However, there are concerns about the accuracy of these demographic statistics, as many Grindr users are closeted and may not be captured in these studies. The app’s interface and user experience differ significantly from heterosexual dating apps like Tinder and Bumble, with Grindr allowing minimal profiles and no matching required. This leads to a flood of interactions, driving up engagement but also creating challenges in terms of user safety and monetization. The company’s growth algorithm and user engagement metrics are impressive, but there are reservations about the management team’s ability to execute on their strategic vision.

Despite concerns about the management team and potential challenges in increasing payer penetration, Grindr’s strong engagement metrics and dominant market position present a compelling investment opportunity. The app’s high advertising revenue mix and potential for increased monetization through premium subscriptions and in-app purchases are attractive. However, the company’s approach to user safety and verification, particularly regarding underage users and bad actors, poses risks. Overall, Grindr’s unique position in the gay dating app market and its potential for growth make it an interesting investment opportunity, but one that requires careful consideration of its challenges and risks.

Previously, we covered a bullish thesis on Grindr Inc. by Welfare Capital in April 2025, which highlighted the company’s potential as a backdoor play on the AI energy boom due to its critical energy infrastructure assets. The stock has appreciated by 17.21% since our coverage. This is because the previous thesis – emphasizing Grindr’s role in powering AI infrastructure – did not play out as Grindr’s core business is a dating app, not energy infrastructure. Bristlemoon Capital shares a similar view on Grindr, emphasizing its monopoly in the niche market, high user engagement, and potential for growth, but focuses on the company’s core dating app business.

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Disclosure: None.