On May 15, 2026, Perry Creek Capital disclosed a purchase of 1,349,493 shares of Grindr (GRND +0.70%), with an estimated transaction value of $15.91 million based on quarterly average pricing.
What happened
According to a SEC filing dated May 15, 2026, Perry Creek Capital increased its stake in Grindr by 1,349,493 shares. The estimated value of this purchase, calculated using the average closing price for the first quarter of 2026, was $15.91 million. The total value of the position at quarter-end reached $21.51 million, with the net position change reflecting both share accumulation and price movement over the quarter.
What else to know
- This filing reflects a buy, bringing the post-trade Grindr stake to 13.4% of Perry Creek’s 13F assets under management as of March 31, 2026..
- Top holdings after the filing:
- NYSE:FAF: $34.66 million (21.6% of AUM)
- NASDAQ:ICLR: $27.11 million (16.9% of AUM)
- NYSE:PFGC: $26.10 million (16.3% of AUM)
- NYSE:GRND: $21.51 million (13.4% of AUM)
- NYSE:PK: $18.55 million (11.6% of AUM)
- As of Friday, Grindr shares were priced at $12.50, down 49% over the past year and well underperforming the S&P 500, which is instead up about 28% in the same period.
Company overview
| Metric | Value |
|---|---|
| Market capitalization | $2.2 billion |
| Revenue (TTM) | $475.90 million |
| Net income (TTM) | $94.48 million |
| Price (as of Friday) | $12.50 |
Company snapshot
- Grindr offers a social networking platform serving the LGBTQ community, with both free ad-supported and premium subscription services.
- The firm generates revenue primarily through subscription fees and advertising placements on its digital platform.
- It targets gay, bi, trans, and queer individuals seeking community engagement and social connection.
Grindr Inc. operates a digital platform focused on the LGBTQ community and uses a dual revenue model consisting of subscriptions and advertising.
What this transaction means for investors
This purchase ultimately looks like a bet that Wall Street is focusing too much on Grindr's stock chart and not enough on its business fundamentals. Perry Creek grew its position to be one of the fund's largest holdings, suggesting conviction that the company's growth story remains intact despite a difficult year for the stock.
The numbers are certainly moving in the right direction. First-quarter revenue jumped 38% year over year to $129.9 million, while adjusted EBITDA climbed 44% to $58.5 million. Perhaps most importantly, management was confident enough to raise its full-year outlook, now expecting at least $535 million in revenue and at least $227 million in adjusted EBITDA.
CEO George Arison said the company is investing aggressively in future growth while improving the core user experience. He highlighted upcoming initiatives, including the global launch of Edge and new features within the Right Now product, both designed to deepen engagement and expand monetization opportunities.
The stock's decline likely reflects concerns about valuation, competition, and execution rather than deteriorating operations. In fact, Grindr's adjusted EBITDA margin expanded to 45% during the quarter. And if Grindr can continue evolving from a dating app into a broader digital platform for its community, the opportunity may prove to be underappreciated.
