Grindr reported second-quarter revenue of $138 million, representing 33% growth compared to the prior year period. The company also raised its full-year revenue guidance to approximately $540 million, up from the previously stated $535 million, and adjusted EBITDA guidance to approximately $232 million, up from $227 million.
CEO George Arison attributed the performance to the company’s strategy of deploying artificial intelligence throughout its operations. Beyond consumer-facing features like the new premium AI companion Edge, Grindr has integrated AI tools into its engineering and software development processes. According to the company’s earnings presentation, total engineering output increased roughly 2.5 times between July 2025 and April 2026 while the engineering team maintained approximately the same size. The company estimated that achieving similar output without generative AI would have required roughly 200 additional engineers and approximately $60 million in annual costs.
Arison indicated the company expects to spend $6 million on AI tokens during the year and views the investment as highly justified. He stated the productivity gains from AI tools are approximately 10 times greater than the cost of the tokens themselves. The company has implemented coding assistants and software development tools from Cursor, Anthropic’s Claude, and Devin without eliminating positions.
The Edge premium subscription tier, which is being tested in select markets including New York at prices reaching $350 per month, has generated unexpected adoption patterns. While management initially anticipated primarily existing top-tier subscribers would upgrade to Edge, the company found that broader customer segments, including users with lower-tier subscriptions and non-subscribers, have also adopted the service. Paying user count grew to 1.4 million in the second quarter, up 16% year-over-year, while average revenue per paying user reached $25.51, representing 12% year-over-year growth. Subscriber retention has exceeded expectations despite price increases across premium tiers.
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