Grindr Inc.
11/06/2026 | Press release | Distributed by Public on 11/06/2026 15:17
Quarterly Report for Quarter Ending September 30, 2026 (Form 10-Q)
Management's Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q. In addition to the unaudited condensed consolidated financial information, the following discussion contains forward-looking statements that reflect our plans, estimates, beliefs and expectations that involve risks and uncertainties. Our actual results and the timing of events could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to these differences include those discussed below, elsewhere in this Quarterly Report on Form 10-Q, particularly in "Special Note Regarding Forward-Looking Statements" and under "Risk Factors" included under Part II, Item 1A, of this Quarterly Report on Form 10-Q, as well as under "Risk Factors," set forth in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025, as supplemented by the section titled "Risk Factors" included under Part II, Item 1A, of our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026.
Overview
Grindr Inc. ("Grindr", "we", "us", "our" or the "Company"), is on a mission to make a world where the lives of our global community are free, equal, and healthy. We manage and operate the Grindr platform, a global social networking platform primarily serving gay men around the world, helping them express themselves, build relationships, and find community. The Grindr platform had 1.4 million Average Paying Users for each of the three and nine months ended September 30, 2026, compared to 1.3 million and 1.2 million Average Paying Users for the three and nine months ended September 30, 2025, respectively, representing period-over-period growth of 10.9% and 15.0%, respectively. Now, as the Global Gayborhood in Your Pocket™, Grindr is bringing the connections and services of a physical gayborhood into the app to serve more of gay men's everyday needs. Grindr Health brings together technology and clinical expertise to make it easier to access and manage health and wellness care. Since 2015, Grindr for Equality has worked with organizations in every major region of the world to advance human rights, health, and safety for millions of people.
The Grindr mobile application is free to download and provides certain services and features to Grindr's users at no cost. We also offer a variety of additional controls and features for users who enroll in our paid subscriptions and add-on products. A substantial portion of our revenue is from app-based revenue representing 83.1% and 83.2% of total revenue for the three months ended September 30, 2026, and 2025, respectively, and 82.4% and 83.9% of total revenue for the nine months ended September 30, 2026, and 2025, respectively. App-based revenue is derived from users in the form of subscription fees, providing our users access to a variety of features for the period of their subscription. Our current subscription offerings are Grindr XTRA and Grindr Unlimited. We utilize a freemium model to drive increased user acquisition, subscriber conversions, and monetization on the Grindr platform. We also offer consumables on a pay-per-use, or a-la-carte, basis. Leveraging strong brand awareness and our significant user network stemming from our first mover advantage in the gay, bisexual, transgender, and queer ("GBTQ") social networking industry, our historical growth in number of users has been driven primarily by word-of-mouth referrals and other organic means.
In addition to our revenue generated from subscription fees and consumable purchases, we also generate advertising revenue representing 16.9% and 16.8% of total revenue for the three months ended September 30, 2026, and 2025, respectively, and 17.6% and 16.1% of total revenue for the nine months ended September 30, 2026, and 2025, respectively. Advertising revenue includes both first-party and third-party advertising. We provide advertisers with the opportunity to directly reach the GBTQ community, a group with significant global purchasing power and economic potential. We have attracted advertisers from a diverse array of industries, including healthcare, entertainment, gaming, travel, and consumer goods. We offer our partners a diverse range of advertising opportunities to advertisers, including in-app banners, full-screen interstitials, and other customized units, typically sold on a cost per mille ("CPM") basis. Additionally, we contract with a variety of third-party advertising platforms to market and sell digital advertising inventory available on the Grindr platform. We will continue to evaluate opportunities to increase advertising inventory by both enhancing and differentiating our advertising offerings in addition to scaling our advertising volume.
We generated $141.4 million and $115.8 million of revenue for the three months ended September 30, 2026, and 2025, respectively, and we generated $409.5 million and $313.9 million of revenue for the nine months ended September 30, 2026, and 2025, respectively, representing period-over-period growth of 22.1% and 30.5%, respectively.
While we have users in over 190 countries and territories, we intend to grow our user base and revenues by continuing to introduce new and innovative products and services to all of our users across the globe.
Recent Developments
PurposeMed Acquisition
On September 30, 2026, we entered into a Securities Purchase Agreement with 18273618 Canada Inc., a Canadian corporation and wholly owned subsidiary of the Company, PurposeMed Inc. ("PurposeMed"), the shareholders of PurposeMed party thereto (the "Sellers"), and Dr. Husein Moloo, solely in his capacity as the Sellers' representative. PurposeMed is the company behind the Freddie brand, a telehealth platform providing access to pre-exposure prophylaxis ("PrEP") and HIV prevention care.
On November 2, 2026, we completed the acquisition of PurposeMed (the "PurposeMed Acquisition"). Total consideration consisted of $190.0 million in cash, 3,851,684 shares of our common stock, and an earnout of up to $70.0 million in cash, contingent on PurposeMed's business achieving certain financial performance targets for the fiscal year ending December 31, 2027.
Redemption of Warrants and Related Warrant Exercises
On January 23, 2025, we provided notice that we would redeem all of our outstanding warrants, which consisted of (i) 18,560,000 private placement warrants; (ii) 13,799,825 public warrants; (iii) 2,500,000 forward purchase warrants; and (iv) 2,500,000 backstop warrants, on February 24, 2025. After we announced the redemption of the warrants and before the conclusion of the redemption notice period on February 24, 2025, an aggregate of 27,315,105 warrants were exercised for an aggregate of 27,315,105 shares of our common stock at an exercise price of $11.50 per share, for aggregate cash proceeds to us of $314.1 million. In addition, 9,469,634 warrants were exercised on a cashless basis in exchange for the issuance of 3,418,518 shares of our common stock. At the conclusion of the redemption notice period on February 24, 2025, we redeemed the remaining 575,086 warrants issued and outstanding at a price of $0.10 per warrant for aggregate cash payment of $0.1 million. The public warrants were delisted from the New York Stock Exchange on February 24, 2025.
Certain Labor Matters
In July 2023, the Communications Workers of America AFL-CIO ("CWA") filed an election petition with the National Labor Relations Board ("NLRB") seeking to hold a representation election for certain classifications of our employees. CWA subsequently filed several unfair labor practice charges against us with the NLRB, including a request for injunctive relief under Sec. 10(j) of the National Labor Relations Act. Regarding the election petition, the NLRB conducted a secret mail-ballot election and held partial vote counts in November and December 2023. As of the date of filing of this Quarterly Report, the NLRB has not completed tallying all the votes from the election as there are numerous outstanding challenged ballots. In addition, on November 1, 2024, the local regional office of the NLRB issued a complaint on the unfair labor practice charges. A hearing commenced in May 2025 and concluded in May 2026. Post-hearing briefs were filed in October 2026. As of the date of filing of this Quarterly Report, the decision on the merits remains pending. The 2024 complaint, hearing that concluded in May 2026, and October 2026 post-trial briefs are the first steps in the administrative process and the complaint is not a finding of any wrongdoing, nor is it a decision or ruling of the NLRB.
Consolidated Results for the Three Months Ended September 30, 2026 and 2025
For the three months ended September 30, 2026, and 2025, we generated:
•Revenue of $141.4 million and $115.8 million, respectively, an increase of $25.6 million, or 22.1%.
•Net loss of $6.6 million and net income of $30.8 million, respectively, a decrease of $37.4 million, resulting in a net (loss) income margin of (4.7)% and 26.6%, respectively.
•Adjusted EBITDA of $61.7 million and $54.8 million, respectively, an increase of $6.9 million, or 12.6%, resulting in an Adjusted EBITDA margin of 43.7% and 47.4%, respectively. See "Non-GAAP Financial Measures-Adjusted EBITDA and Adjusted EBITDA margin" below for more details on the calculations and reconciliations.
Consolidated Results for the Nine Months Ended September 30, 2026 and 2025
For the nine months ended September 30, 2026 and 2025, we generated:
•Revenue of $409.5 million and $313.9 million, respectively, an increase of $95.6 million, or 30.5%.
•Net income of $37.9 million and $74.5 million, respectively, a decrease of $36.6 million, or 49.1%, resulting in a net income margin of 9.3% and 23.7%, respectively.
•Adjusted EBITDA of $177.9 million and $140.7 million, respectively, an increase of $37.2 million, or 26.4%, resulting in an Adjusted EBITDA margin of 43.4% and 44.8%, respectively. See "Non-GAAP Financial Measures-Adjusted EBITDA and Adjusted EBITDA margin" below for more details on the calculations and reconciliations.
Operating and Financial Metrics
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Three Months Ended September 30, |
Nine Months Ended September 30, |
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(in thousands, except ARPPU)
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2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Key Operating Metrics | |||||||||||||||||||||||
| Average Paying Users | 1,441 | 1,299 | 1,416 | 1,231 | |||||||||||||||||||
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Average App-Based Revenue per Average Paying User ("ARPPU")
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$ | 27.15 | $ | 24.70 | $ | 26.44 | $ | 23.76 | |||||||||||||||
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Three Months Ended September 30, |
Nine Months Ended September 30, |
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| ($ in thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
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Key Financial and Non-GAAP Metrics(1)
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| Revenue | $ | 141,377 | $ | 115,766 | $ | 409,456 | $ | 313,924 | |||||||||||||||
| App-based revenue | $ | 117,544 | $ | 96,346 | $ | 337,467 | $ | 263,371 | |||||||||||||||
| Advertising revenue | $ | 23,833 | $ | 19,420 | $ | 71,989 | $ | 50,553 | |||||||||||||||
| Net (loss) income | $ | (6,599) | $ | 30,834 | $ | 37,894 | $ | 74,491 | |||||||||||||||
| Net (loss) income margin | (4.7) | % | 26.6 | % | 9.3 | % | 23.7 | % | |||||||||||||||
| Adjusted EBITDA | $ | 61,747 | $ | 54,826 | $ | 177,860 | $ | 140,722 | |||||||||||||||
| Adjusted EBITDA margin | 43.7 | % | 47.4 | % | 43.4 | % | 44.8 | % | |||||||||||||||
| Net cash provided by operating activities | $ | 51,221 | $ | 55,449 | $ | 125,492 | $ | 116,760 | |||||||||||||||
| Operating cash flow conversion | NM | 179.8 | % | 331.2 | % | 156.7 | % | ||||||||||||||||
| Free cash flow | $ | 50,831 | $ | 51,243 | $ | 120,647 | $ | 111,046 | |||||||||||||||
| Free cash flow conversion | 82.3 | % | 93.5 | % | 67.8 | % | 78.9 | % | |||||||||||||||
(1)See "Non-GAAP Financial Measures" below for additional information and reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures.
•Average Paying Users. A Paying User is a user that has purchased or renewed a Grindr subscription and/or purchased a consumable on the Grindr platform. We calculate Average Paying Users by adding up the number of Paying Users in each day and then dividing that number by the number of days in the relevant measurement period. A Paying User who is both a subscriber and an add-on purchaser on the same day will be counted as one Paying User. Duplicate Paying Users may exist if the same individual holds more than one Grindr subscription during the same period. We are focused on building new products and improving on existing ones to drive payer conversion. We believe Average Paying Users is a useful metric for assessing the health of our business.
•ARPPU. We calculate Average App-Based Revenue Per Paying User ("ARPPU") based on App-based Revenue in any measurement period, divided by Average Paying Users in such a period and then divided by the number of months in the period. We believe ARPPU is a useful metric for assessing the growth of our business and future revenue trends.
Key Factors Affecting Our Performance
Our results of operations and financial condition have been, and will continue to be, affected by a number of factors that present significant opportunities for us but also pose risks and challenges, including those discussed below and in Part I, "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025, as supplemented by the section titled "Risk Factors" included under Part II, Item 1A, of our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 and this Quarterly Report on Form 10-Q.
Growth in User Base and Paying Users
We acquire new users through investments in generating brand awareness, as well as through word of mouth from existing users and others. We convert these users to Paying Users by offering premium features that maximize the
probability of developing meaningful connections, improve the user experience, and provide more control over the experience. We had 1.4 million Average Paying Users for each of the three and nine months ended September 30, 2026, compared to 1.3 million and 1.2 million Average Paying Users for the three and nine months ended September 30, 2025, respectively, representing period-over-period growth of 10.9% and 15.0%, respectively. We grow Paying Users by acquiring new users and converting new and existing users to purchasers of one of our subscription plans or our add-on offerings. As we scale and our community grows larger, we seek to facilitate more meaningful interactions as a result of the wider selection of potential connections. This in turn increases our product value and can increase conversion to one of our paid products. Our revenue growth depends on growth in Paying Users. While we believe we are in the early days of our opportunity, at some point we may face challenges increasing our Paying Users, including competition from alternative products and services and lower adoption of certain product features.
Growth in ARPPU
We continually work to develop new monetization features and improve existing features in order to increase adoption of consumables and our subscription programs. Many variables will impact our ARPPU, including paid product mix, the geographic location of Paying Users, and the revenue generated from subscription versus consumables revenue. Our pricing is in local currency and may vary between markets. As foreign currency exchange rates fluctuate, transactions carried out in foreign currencies other than the U.S. dollar could negatively impact revenue and distort year-over-year comparability of operating results. To the extent our ARPPU growth slows, our revenue growth will become increasingly dependent on our ability to increase our Average Paying Users.
Investing in Growth While Driving Long-Term Profitability
Key investment areas for us include continuing to expand and enhance our team as well as enhancing our platform and increasing the value we provide our users. Part of our efforts are focused on introducing new products, improving pricing and packaging, and localizing our products in international markets. We are also harnessing artificial intelligence and machine learning, which we refer to as AI/ML, along with prioritizing security and privacy, and improving matching capabilities for successful connections. As part of these ongoing efforts, we are building a full-stack technical foundation that we refer to as Grindr AI ("gAI"), consisting of a data model layer, technical architecture layer, and a consumer application layer, in order to deliver a differentiated, high-impact user experience.
Attracting and Retaining Talent
Our business relies on our ability to attract and retain talent, including, but not limited to, engineers, data scientists, product designers, and product managers. As of September 30, 2026, we had 179 employees globally, 178 of which were full-time employees. Our engineering team also includes 36 dedicated contractors in Colombia as of September 30, 2026. We continue to expand and enhance our team with new employees and contractors, and will continue to selectively supplement immediate capacity and product development needs with contractors. By building a performance-driven culture, we want to unleash Grindr's and each of our employees' full potential. We intend to continue to focus on adding talent at a measured pace, especially in applied science, data engineering, and artificial intelligence and machine learning. We believe that many people want to work at a company committed to creating a world that is fair, equal, and healthy for the global lesbian, gay, bisexual, transgender, and queer ("LGBTQ") community and that aligns with their personal values, and therefore our ability to recruit and retain talent is aided by our mission and brand reputation. We compete for talent within the technology market and believe our operating culture is a key differentiator in attracting, developing, and retaining high-performing employees.
Factors Affecting the Comparability of Our Results
Temporary variability and general advertising demand
Our ability to maintain consistently high advertiser demand for our platform can be affected by temporary trends in advertisers' appetites to engage with our users or our brand. For example, events that result in temporary positive or negative publicity for our company, even if unfounded, may play a significant role in our advertisers' desire to continue to advertise on our platform. Further, general economic conditions may lead to changes in advertising spending in general, which could have a significant impact on our results of operations. Such fluctuations in advertising demand are often unpredictable and likely temporary, but nevertheless could have a significant impact on the financial condition of our business.
Return-to-Office
In 2023, our leadership team announced a transition to a hybrid work model involving a multi-phase return-to-office plan ("RTO Plan") beginning in the fall of 2023, which was largely completed by January 2024 and was fully concluded by
April 30, 2025. Our hybrid work model requires employees to work two days per week in offices where their respective teams are based. The RTO Plan provided employees with a one-time relocation package to support relocation if necessary, or separation packages for employees who chose not to relocate or participate in our RTO Plan.
International Market Pricing and Changes in Foreign Exchange Rates
The Grindr platform has monthly active users in over 190 countries and territories. Our international revenue represents 44.0% and 42.9% of total revenue for the three months ended September 30, 2026, and 2025, respectively, and 43.3% and 42.1% for the nine months ended September 30, 2026, and 2025, respectively. We vary our pricing to align with relative value to local purchasing power and competitors. Our international business typically earns revenue in local currencies. In addition, some of the platforms we work with utilize internally generated foreign exchange rates that may differ from other foreign exchange rates, which could impact our results of operations.
Key Components of Our Results of Operations
Revenue
We currently generate revenue from two revenue streams - app-based revenue and advertising revenue. App-based revenue is revenue generated by our users who pay for subscriptions or consumables to access additional features. Advertising revenue is generated by third parties who pay us to advertise to our users. As we continue to expand our revenue streams, we anticipate increasing monetization from consumables and subscription offerings, contributing to an increase in app-based revenue over time, and increasing our advertising inventory, contributing to an increase in advertising revenue over time.
App-Based Revenue. App-based revenue is reported gross of distribution fees for subscriptions and consumables as we are the primary party obligated in our transactions with customers, and we act as the principal. Our subscription revenue is generated through the sale of subscriptions that are currently offered or renewed in one-week, one-month, three-month, six-month, and twelve-month periods. Customers pay in advance, primarily through mobile app stores, including Apple and Google Play, and, subject to certain conditions identified in our terms and conditions, generally all purchases are final and nonrefundable. Subscription revenues are recognized ratably over the term of the subscription. Consumables revenue is generated through the sale of an add-on feature on a pay-per-use, or a-la-carte, basis. Consumables are activated upon purchase and are available to use by the customer for a short duration, generally, within one day. Revenue from consumables is recognized upon usage of the consumable. App-based revenue is recorded net of taxes, credits, and chargebacks.
Advertising Revenue. Advertising revenue consists of revenue generated by third parties who pay us to advertise to our users. We provide advertisers with the opportunity to target and directly reach the GBTQ community, a group with significant global purchasing power and economic potential. We have attracted advertisers from a diverse array of industries, including healthcare, gaming, travel, entertainment, and consumer goods. We offer a diverse range of advertising opportunities to advertisers, such as in-app banners, full-screen interstitials, and other customized units, typically on a CPM basis. Revenue from advertising transactions with advertising service providers is recognized net of the amounts retained by the advertising service provider as we do not know and expect not to know the gross amount paid by advertisers.
Cost of revenue and operating expenses
Cost of revenue. Cost of revenue consists primarily of the distribution fees we pay to Apple and Google Play, infrastructure costs associated with supporting the Grindr platform, which stem largely from our use of Amazon Web Services, and costs associated with content moderation, which involve ensuring that users are complying with our community standards.
Selling, general and administrative expense. Selling, general and administrative expense consists primarily of compensation and other employee-related costs, professional fees, legal fees and legal settlement costs, sales and marketing expenditures, and general and administrative expenses, including facilities, insurance, and information technology support. We plan to continue efforts to attract new users, retain existing users, and increase monetization of both our new and existing users, which may result in increased sales and marketing expenses in future periods.
Product development expense. Product development expense consists primarily of employee-related and contractor costs for personnel engaged in the design, development, testing, maintenance, and enhancement of product offerings, related technology, and related software costs.
Depreciation and Amortization. Depreciation is primarily related to computers, equipment, and leasehold improvements. Amortization is primarily related to capitalized software development costs and acquired definite-lived intangible assets (customer relationships, technology, etc.).
Other (expense) income
Interest expense, net. Interest expense, net consists of interest expense incurred in connection with our long-term debt and revolving credit facility net of interest earned on cash and cash equivalents including money market funds and U.S. treasury bills.
Other (expense) income, net. Other (expense) income, net consists of realized and unrealized exchange rate gains or losses, changes in the fair value of derivative instruments, and credit losses on our loan receivable from our equity method investee.
Share of net loss of equity method investee. Share of net loss of equity method investee consists of our proportionate share of losses from our investment in our equity method investee.
Gain in fair value of warrant liability. Gain in fair value of warrant liability represents the change in fair value of our public and private warrants. As the private warrants are substantially similar to the public warrants, all of the warrants are remeasured from the publicly traded quotes from the active market. In February 2025, we completed the redemption of all outstanding public and private warrants.
Income tax (benefit) provision
Income tax (benefit) provision represents the income tax expense associated with our operations based on the tax laws of the jurisdictions in which we operate. Our effective tax rates will vary depending on changes in the valuation of our deferred tax assets and liabilities, fluctuations in permanent differences, and changes in tax laws.
Results of Operations
Three and Nine Months Ended September 30, 2026, Compared to Three and Nine Months Ended September 30, 2025
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| ($ in thousands) | 2026 |
% of
Total
Revenue
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2025 |
% of
Total
Revenue
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2026 |
% of
Total
Revenue
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2025 |
% of
Total
Revenue
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| Revenue | $ | 141,377 | 100.0 | % | $ | 115,766 | 100.0 | % | $ | 409,456 | 100.0 | % | $ | 313,924 | 100.0 | % | |||||||||||||||||||||||||||||||
| Operating costs and expenses | |||||||||||||||||||||||||||||||||||||||||||||||
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Cost of revenue (exclusive of depreciation and amortization shown separately below)
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34,587 | 24.5 | % | 28,919 | 25.0 | % | 101,749 | 24.8 | % | 80,869 | 25.8 | % | |||||||||||||||||||||||||||||||||||
| Selling, general and administrative expense | 80,376 | 56.9 | % | 29,256 | 25.3 | % | 167,948 | 41.0 | % | 95,953 | 30.6 | % | |||||||||||||||||||||||||||||||||||
| Product development expense | 20,536 | 14.5 | % | 11,088 | 9.6 | % | 56,774 | 13.9 | % | 34,316 | 10.9 | % | |||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 1,792 | 1.3 | % | 1,262 | 1.1 | % | 3,670 | 0.9 | % | 7,807 | 2.5 | % | |||||||||||||||||||||||||||||||||||
| Total operating expenses | 137,291 | 97.1 | % | 70,525 | 60.9 | % | 330,141 | 80.6 | % | 218,945 | 69.7 | % | |||||||||||||||||||||||||||||||||||
| Income from operations | 4,086 | 2.9 | % | 45,241 | 39.1 | % | 79,315 | 19.4 | % | 94,979 | 30.3 | % | |||||||||||||||||||||||||||||||||||
| Other (expense) income | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | (6,808) | (4.8) | % | (4,668) | (4.0) | % | (19,942) | (4.9) | % | (12,107) | (3.9) | % | |||||||||||||||||||||||||||||||||||
| Other (expense) income, net | (4,318) | (3.1) | % | (654) | (0.6) | % | (6,492) | (1.6) | % | 4 | - | % | |||||||||||||||||||||||||||||||||||
| Share of net loss of equity method investee | (481) | (0.3) | % | - | - | % | (1,590) | (0.4) | % | - | - | % | |||||||||||||||||||||||||||||||||||
| Gain in fair value of warrant liability | - | - | % | - | - | % | - | - | % | 9,905 | 3.2 | % | |||||||||||||||||||||||||||||||||||
| Total (expense) income, net | (11,607) | (8.2) | % | (5,322) | (4.6) | % | (28,024) | (6.8) | % | (2,198) | (0.7) | % | |||||||||||||||||||||||||||||||||||
| Net (loss) income before income tax | (7,521) | (5.3) | % | 39,919 | 34.5 | % | 51,291 | 12.5 | % | 92,781 | 29.6 | % | |||||||||||||||||||||||||||||||||||
| Income tax (benefit) provision | (922) | (0.7) | % | 9,085 | 7.8 | % | 13,397 | 3.3 | % | 18,290 | 5.8 | % | |||||||||||||||||||||||||||||||||||
| Net (loss) income | $ | (6,599) | (4.7) | % | $ | 30,834 | 26.6 | % | $ | 37,894 | 9.3 | % | $ | 74,491 | 23.7 | % | |||||||||||||||||||||||||||||||
| Net (loss) income per share | |||||||||||||||||||||||||||||||||||||||||||||||
| Basic | $ | (0.04) | $ | 0.16 | $ | 0.21 | $ | 0.39 | |||||||||||||||||||||||||||||||||||||||
| Diluted | $ | (0.04) | $ | 0.16 | $ | 0.21 | $ | 0.33 | |||||||||||||||||||||||||||||||||||||||
Revenue
Revenue for the three months ended September 30, 2026, and 2025, was $141.4 million and $115.8 million, respectively. The increase in revenue period-over-period was $25.6 million, or 22.1%.
For the three months ended September 30, 2026, and 2025, app-based revenue was $117.6 million and $96.4 million, respectively. The increase in app-based revenue of $21.2 million, or 22.0%, was driven by the period-over-period increases in both ARPPU of $2.45 and Average Paying Users of 142 thousand. Period-over-period growth for revenue was driven by enhanced paywall optimizations and merchandising strategies, which strengthened subscription adoption across our XTRA and Unlimited tiers. There was continued period-over-period growth in our weekly XTRA and Unlimited subscriptions. ARPPU increased by 9.9%, or $2.45, to $27.15 for the three months ended September 30, 2026, from $24.70 for the three months ended September 30, 2025. Our ARPPU increased as a result of improved product mix, with higher revenue generated by subscription products with higher average monthly-equivalent price, such as weekly Unlimited. We expanded our pricing experiments to a broader share of the subscriber base in key markets, with more purchasers choosing to shift into higher prices. For the three months ended September 30, 2026, Average Paying Users increased by 142 thousand, from 1.3 million for the three months ended September 30, 2025, to 1.4 million for the three months ended September 30, 2026.
For the three months ended September 30, 2026, and 2025, advertising revenue was $23.8 million and $19.4 million, respectively. The increase in advertising revenue of $4.4 million, or 22.7%, was primarily driven by strong CPMs across North America, third-party partnerships, as well as onboarding additional campaigns during the period.
Revenue for the nine months ended September 30, 2026, and 2025, was $409.5 million and $313.9 million, respectively. The increase in revenue period-over-period was $95.6 million, or 30.5%.
For the nine months ended September 30, 2026, and 2025, app-based revenue was $337.5 million and $263.3 million, respectively. The increase in app-based revenue of $74.2 million, or 28.2%, was driven by the period-over-period increases in both ARPPU of $2.68 and Average Paying Users of 185 thousand. Period-over-period growth for revenue was driven by enhanced paywall optimizations and merchandising strategies, which strengthened subscription adoption across our XTRA and Unlimited tiers. There was continued period-over-period growth in our weekly XTRA and Unlimited subscriptions. ARPPU increased by 11.3%, or $2.68, to $26.44 for the nine months ended September 30, 2026, from $23.76 for the nine months ended September 30, 2025. Our ARPPU increased as a result of improved product mix, with higher revenue generated by subscription products with higher average monthly-equivalent price, such as weekly Unlimited. We expanded our pricing experiments to a broader share of the subscriber base in key markets, with more purchasers choosing to shift into higher prices. For the nine months ended September 30, 2026, Average Paying Users increased by 185 thousand, from 1.2 million for the nine months ended September 30, 2025, to 1.4 million for the nine months ended September 30, 2026.
For the nine months ended September 30, 2026, and 2025, advertising revenue was $72.0 million and $50.6 million, respectively. The increase in advertising revenue of $21.4 million, or 42.3%, was primarily driven by strong CPMs across North America, third-party partnerships, as well as onboarding additional campaigns during the period.
Cost of revenue
Cost of revenue for the three months ended September 30, 2026, and 2025, was $34.6 million and $28.9 million, respectively. The $5.7 million increase, or 19.7%, was primarily due to growth in distribution fees of $4.3 million (consistent with app-based revenue growth), and increased infrastructure costs of $1.2 million.
Cost of revenue for the nine months ended September 30, 2026, and 2025, was $101.7 million and $80.9 million, respectively. The $20.8 million increase, or 25.7%, was primarily due to growth in distribution fees of $16.3 million (consistent with app-based revenue growth), and increased infrastructure costs of $3.7 million.
Selling, general and administrative expense
Selling, general and administrative expense for the three months ended September 30, 2026, and 2025, was $80.4 million and $29.3 million, respectively. The $51.1 million increase, or 174.4%, was primarily due to an increase of $32.8 million in legal settlement expense, primarily related to the settlement of the UK Group Action (see Note 14 to our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional information). The increase was also driven by an increase of $10.2 million in stock-based compensation expense, primarily due to a prior-year reduction in the fair value of liability-classified market condition awards, as well as increases of $4.4 million in charitable contributions, $2.2 million in professional and legal fees, and $2.0 million in marketing expenses. These increases were partially offset by a decrease of $2.0 million in salaries and benefits expense.
Selling, general and administrative expense for the nine months ended September 30, 2026, and 2025, was $167.9 million and $96.0 million, respectively. The $71.9 million increase, or 74.9%, was primarily due to an increase of $35.5
million in legal settlement expense, primarily related to the settlement of the UK Group Action (see Note 14 to our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional information). The increase was also driven by an increase of $15.3 million in personnel-related expenses, including an increase of $11.5 million in stock-based compensation expense and an increase of $3.8 million in salaries and benefits expense, as well as increases of $9.4 million in marketing expenses, $4.4 million in charitable contributions, $2.2 million in contractor fees, and $2.0 million in software and information technology expenses.
Product development expense
Product development expense for the three months ended September 30, 2026, and 2025, was $20.5 million and $11.1 million, respectively. The $9.4 million increase, or 84.7%, was primarily due to an increase of $5.7 million in personnel-related expenses, driven by lower capitalization of software development costs and increased headcount, including an increase of $3.1 million in stock-based compensation expense. The increase was also driven by an increase of $3.2 million in contractor and outside service fees, primarily due to lower capitalization of software development costs.
Product development expense for the nine months ended September 30, 2026, and 2025, was $56.8 million and $34.3 million, respectively. The $22.5 million increase, or 65.6%, was primarily due to an increase in personnel-related expenses of $18.5 million from increased headcount, including an increase in stock-based compensation expense of $10.0 million. The increase was also due to an increase of $3.4 million in contractor and outside service fees to support the engineering function.
Depreciation and amortization
Depreciation and amortization for the three months ended September 30, 2026, and 2025, was $1.8 million and $1.3 million, respectively. The $0.5 million increase, or 38.5%, was primarily due to an increase of $0.7 million in amortization of capitalized software development costs, partially offset by lower depreciation of property and equipment.
Depreciation and amortization for the nine months ended September 30, 2026, and 2025, was $3.7 million and $7.8 million, respectively. The $4.1 million decrease, or 52.6%, was primarily due to a decrease of $4.0 million in amortization of acquired intangible assets from an acquisition in June 2020, which were fully amortized in June 2025.
Interest expense, net
Interest expense, net for the three months ended September 30, 2026, and 2025, was $6.8 million and $4.7 million, respectively. The $2.1 million increase, or 44.7%, was primarily due to an increase in interest expense of $1.6 million from higher outstanding debt balances and a decrease in interest income of $0.6 million from lower investment balances.
Interest expense, net for the nine months ended September 30, 2026, and 2025, was $19.9 million and $12.1 million, respectively. The $7.8 million increase, or 64.5%, was primarily due to an increase in interest expense of $4.7 million from higher outstanding debt balances and a decrease in interest income of $3.1 million, primarily due to the absence of interest income from U.S. treasury bills held in the prior-year period.
Other (expense) income, net
Other (expense) income, net for the three months ended September 30, 2026, and 2025, was expense of $4.3 million and $0.7 million, respectively. The $3.6 million change was primarily due to a $3.7 million change in the fair value of derivative instruments and $1.2 million of credit losses recognized on a loan to our equity method investee, partially offset by a $1.2 million favorable change in foreign currency gains and losses.
Other (expense) income, net for the nine months ended September 30, 2026, and 2025, was expense of $6.5 million and income of $4 thousand, respectively. The $6.5 million change was primarily due to $4.3 million in fair value change in derivative instruments, and $2.0 million in credit loss recognized from a loan to our equity method investee.
Share of net loss of equity method investee
Share of net loss of equity method investee represents our proportionate share of losses from our investment in our equity method investee, which is recorded on a one-quarter lag.
Gain in fair value of warrant liability
Gain in fair value of warrant liability represents the change in the fair value of our warrants between each reporting period or upon the exercise and redemption of our warrants. In February 2025, we completed the redemption of all outstanding warrants.
Income tax (benefit) provision
Income tax (benefit) provision for the three months ended September 30, 2026, and 2025, was a benefit of $0.9 million and a provision of $9.1 million, respectively, resulting in an effective tax rate of 12.3% and 22.8%, respectively. The decrease in effective tax rate was primarily due to Section 162(m) officer compensation.
Income tax (benefit) provision for the nine months ended September 30, 2026, and 2025, was $13.4 million and $18.3 million, respectively, resulting in an effective tax rate of 26.1% and 19.7%, respectively. The increase in effective tax rate was primarily due to Section 162(m) officer compensation.
Our effective tax rates in fiscal 2026 and future periods may fluctuate, as a result of changes in actual results versus our estimates; or changes in tax laws, regulations, accounting principles, or interpretations thereof.
Net (loss) income
Net (loss) income for the three months ended September 30, 2026, and 2025, was a net loss of $6.6 million and net income of $30.8 million, respectively. Net (loss) income decreased by $37.4 million.
Net (loss) income for the nine months ended September 30, 2026, and 2025, was $37.9 million and $74.5 million, respectively. Net income decreased by $36.6 million.
Non-GAAP Financial Measures
To supplement our unaudited condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States ("U.S. GAAP" or "GAAP"), we use Adjusted EBITDA, Adjusted EBITDA margin, free cash flow, and free cash flow conversion as described below, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may differ from similarly titled measures used by other companies, are presented to enhance investors' overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP.
Adjusted EBITDA and Adjusted EBITDA margin
Adjusted EBITDA adjusts for the impact of items that we do not consider indicative of the operational performance of our business. We define Adjusted EBITDA as net (loss) income excluding income tax (benefit) provision; interest expense, net; depreciation and amortization; stock-based compensation expense; equity method investee losses and related credit losses; change in fair value of warrant liability; and employee transition costs, litigation-related costs, transaction-related costs, and other expense, in each case, that are unrelated to our core ongoing business operations. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA for a period by revenue for the same period.
Our management uses these measures internally to evaluate the performance of our business and these measures are among the primary metrics by which management and other employees are compensated. We exclude the above items as some are non-cash in nature and others may not be representative of normal operating results. While we believe that Adjusted EBITDA and Adjusted EBITDA margin are useful in evaluating our business, this information should be considered as supplemental in nature and is not meant as a substitute for the related financial information prepared and presented in accordance with U.S. GAAP.
The following table presents the reconciliation of net (loss) income to Adjusted EBITDA for the three and nine months ended September 30, 2026, and 2025:
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||||||||||
| ($ in thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Reconciliation of net (loss) income to Adjusted EBITDA | |||||||||||||||||||||||
| Net (loss) income | $ | (6,599) | $ | 30,834 | $ | 37,894 | $ | 74,491 | |||||||||||||||
| Interest expense, net | 6,808 | 4,668 | 19,942 | 12,107 | |||||||||||||||||||
| Income tax (benefit) provision | (922) | 9,085 | 13,397 | 18,290 | |||||||||||||||||||
| Depreciation and amortization | 1,792 | 1,262 | 3,670 | 7,807 | |||||||||||||||||||
|
Litigation-related costs (1)
|
32,288 | 779 | 35,771 | 1,759 | |||||||||||||||||||
|
Transaction-related costs (2)
|
3,471 | - | 3,617 | - | |||||||||||||||||||
| Stock-based compensation expense | 19,290 | 6,019 | 54,923 | 33,495 | |||||||||||||||||||
|
Employee transition costs (3)
|
273 | 2,179 | 710 | 2,678 | |||||||||||||||||||
|
Equity method investee losses and related credit losses (4)
|
1,681 | - | 3,590 | - | |||||||||||||||||||
|
Change in fair value of warrant liability (5)
|
- | - | - | (9,905) | |||||||||||||||||||
|
Other expense (6)
|
3,665 | - | 4,346 | - | |||||||||||||||||||
| Adjusted EBITDA | $ | 61,747 | $ | 54,826 | $ | 177,860 | $ | 140,722 | |||||||||||||||
| Revenue | $ | 141,377 | $ | 115,766 | $ | 409,456 | $ | 313,924 | |||||||||||||||
| Net (loss) income margin | (4.7) | % | 26.6 | % | 9.3 | % | 23.7 | % | |||||||||||||||
| Adjusted EBITDA margin | 43.7 | % | 47.4 | % | 43.4 | % | 44.8 | % | |||||||||||||||
_________________
(1)Litigation-related costs that are unrelated to our core ongoing business operations primarily represent settlement expenses accrued and external legal fees associated with outstanding litigation or regulatory matters outside of the ordinary course.
(2)Transaction-related costs consist of legal, consulting, and other professional fees related to ongoing or potential transactions, including our acquisition of PurposeMed Inc., which was completed on November 2, 2026.
(3)Employee transition costs relate to costs associated with the transition of our former Chief Financial Officer, severance incurred for employees who elected not to relocate or participate in our RTO Plan, and certain other severance arrangements.
(4)Equity method investee losses and related credit losses are related to our share of losses from our investment in our equity method investee and credit losses in relation to the loan receivable to our equity method investee.
(5)Change in fair value of warrant liability relates to the warrants that were remeasured upon exercise or redemption. In February 2025, we completed the redemption of all outstanding warrants.
(6)Other expense is related to change in fair value of the bifurcated derivative in our forward repurchase transactions entered into in the first quarter of 2026 that was remeasured through final settlement in the third quarter of 2026.
Free Cash Flow and Free Cash Flow Conversion
Free cash flow is an indicator of liquidity that provides information to our management and investors about the amount of cash generated from operations, after capitalized software development costs and purchases of property and equipment, that can be used to repay debt obligations and/or for strategic initiatives. We define free cash flow as net cash provided by operating activities less capitalized software development costs and purchases of property and equipment. Free cash flow conversion is calculated by dividing free cash flow for a period by Adjusted EBITDA for the same period. Free cash flow and free cash flow conversion do not represent our residual cash flow available for discretionary purposes and do not reflect our future contractual commitments.
The following table presents the reconciliation of net cash provided by operating activities to free cash flow for the three and nine months ended September 30, 2026, and 2025:
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||||||||||
| ($ in thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Reconciliation of net cash provided by operating activities to free cash flow | |||||||||||||||||||||||
| Net cash provided by operating activities | $ | 51,221 | $ | 55,449 | $ | 125,492 | $ | 116,760 | |||||||||||||||
| Less: | |||||||||||||||||||||||
| Capitalized software development costs and purchases of property and equipment | (390) | (4,206) | (4,845) | (5,714) | |||||||||||||||||||
| Free cash flow | $ | 50,831 | $ | 51,243 | $ | 120,647 | $ | 111,046 | |||||||||||||||
|
Operating cash flow conversion (1)
|
NM | 179.8 | % | 331.2 | % | 156.7 | % | ||||||||||||||||
|
Free cash flow conversion (2)
|
82.3 | % | 93.5 | % | 67.8 | % | 78.9 | % | |||||||||||||||
_________________
(1)Operating cash flow conversion represents net cash provided by operating activities as a percentage of net (loss) income. Operating cash flow conversion for the three months ended September 30, 2026 is not meaningful ("NM") due to the net loss in the period.
(2)Free cash flow conversion represents free cash flow as a percentage of Adjusted EBITDA.
Liquidity and Capital Resources
Cash Flows for the Nine Months Ended September 30, 2026
The following table summarizes our total cash and cash equivalents, and cash flows:
|
Nine Months Ended September 30, |
|||||||||||
| ($ in thousands) | 2026 | 2025 | |||||||||
| Cash and cash equivalents, including restricted cash (as of the end of period) | $ | 49,425 | $ | 6,932 | |||||||
| Net cash provided by (used in): | |||||||||||
| Operating activities | $ | 125,492 | $ | 116,760 | |||||||
| Investing activities | (8,845) | (5,714) | |||||||||
| Financing activities | (154,872) | (163,871) | |||||||||
| Net change in cash and cash equivalents | $ | (38,225) | $ | (52,825) | |||||||
Cash flows provided by operating activities
Net cash provided by operating activities is primarily dependent on our revenues affected by timing of receipts from subscription and advertising sales. It is also dependent on managing our operating expenses, such as salaries and employee-related costs, selling and marketing expenses, and other general and administrative expenses. We expect to maintain strong operating cash flows given our historical performance. We will continue to invest in the right resources to support longer-term profitable growth. Our operating cash flows should continue to cover our operating and financing costs.
During the nine months ended September 30, 2026, our operations provided $125.5 million of cash, which was primarily attributable to our net income of $37.9 million, adjusted for non-cash items, including $54.9 million in stock-based compensation and $3.7 million in depreciation and amortization, and the cash flow impact from a change in operating assets and liabilities of $18.2 million, primarily from a $33.3 million increase in accrued expenses and other current liabilities due to the accrual for the UK legal settlement, partially offset by a $12.3 million increase in other current assets primarily due to an increase in income taxes receivable, and a $3.2 million increase in accounts receivable due to an increase in app-based revenue and advertising revenue during the period.
During the nine months ended September 30, 2025, our operations provided $116.8 million of cash, which was primarily attributable to our net income of $74.5 million, adjusted for non-cash items, including $33.5 million in stock-based compensation and $7.8 million in depreciation and amortization, partially offset by a $9.9 million gain in fair value of warrant liability, and the cash flow impact from a change in operating assets and liabilities of $8.0 million, primarily
from a $19.7 million increase in accrued expenses and other current liabilities due to timing of payments, net of a $9.2 million increase in accounts receivable due to an increase in app-based revenue and advertising revenue during the period.
Cash flows used in investing activities
Net cash used in investing activities for the nine months ended September 30, 2026, consisted primarily of additions to capitalized software of $4.0 million and a loan to our equity method investee of $4.0 million.
Net cash used in investing activities for the nine months ended September 30, 2025, consisted primarily of additions to capitalized software of $5.2 million.
Cash flows used in financing activities
Net cash used in financing activities for the nine months ended September 30, 2026, which was $154.9 million, was primarily due to payments of $159.9 million for purchasing equity instruments, $15.0 million of principal payments on debt, and $13.1 million of payments to tax authorities for employee equity awards. The payments were partially offset by proceeds of $32.2 million from the settlement of equity instruments.
Net cash used in financing activities for the nine months ended September 30, 2025, which was $163.9 million, was primarily due to payments of $450.5 million for the repurchases of common stock, including commissions, under our stock repurchase program, $17.7 million of payments to tax authorities for employee equity awards, and $11.3 million of principal payments on debt. The payments were partially offset by proceeds of $314.1 million from the exercise of warrants. We announced the redemption of all our outstanding warrants in January 2025, which resulted in a significant amount of our warrants being exercised prior to their redemption in February 2025.
Sources of Liquidity
Since our inception, we have financed our operations and capital expenditures primarily through cash flows generated by operations and borrowings under our credit facilities. To the extent existing cash, investments, and cash from operations are not sufficient to fund future activities, we may need to raise additional funds. We may seek to raise additional funds through equity, equity-linked, or debt financings. If we raise additional funds through the incurrence of additional indebtedness, such indebtedness may have rights that are senior to holders of our equity securities and could contain additional covenants that restrict operations, including our ability to raise additional capital. Any additional equity financing may be dilutive to existing stockholders. We may also enter into investment or acquisition transactions in the future, which could require us to seek additional equity financing, incur indebtedness, or use cash resources.
As of September 30, 2026, we had cash and cash equivalents of $49.4 million. We believe that our cash and cash equivalents, cash flows generated by operations, and borrowings under our revolving credit facility will be sufficient to meet our working capital and capital expenditure needs for the next twelve months.
Senior Secured Credit Facilities
See Note 5 to our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional information.
Our wholly owned subsidiary, Grindr Capital LLC, is the borrower under a credit agreement with JPMorgan Chase Bank, N.A., as the administrative agent, and other lenders party thereto (the "Credit Agreement") that governs a $400.0 million term loan facility and a $200.0 million revolving credit facility, each maturing on January 1, 2031. We borrowed the full $400.0 million under the term loan facility on December 16, 2025, and $385.0 million was outstanding as of September 30, 2026, of which $20.0 million is due within the next twelve months. We had no amounts outstanding under the revolving credit facility as of September 30, 2026, other than $0.4 million of letters of credit, with $199.6 million available. In August 2026, we entered into Amendment No. 2 to the Credit Agreement, which increased the swingline loan sublimit under the revolving credit facility from $10.0 million to $25.0 million and changed the interest rate on swingline loans to Adjusted Daily Simple SOFR plus the applicable margin. We have the option to request that lenders increase the amount available under the revolving credit facility by, or obtain incremental term loans of, up to $100.0 million, subject to the terms of the Credit Agreement and only if existing or new lenders choose to provide additional term or revolving commitments.
In October 2026, we borrowed $152.0 million under the revolving credit facility to fund a portion of the cash consideration for the PurposeMed Acquisition. As of November 4, 2026, $152.0 million was outstanding under the revolving credit facility.
All obligations of Grindr Capital LLC under the Credit Agreement are guaranteed by Grindr Inc. and, subject to certain limited exceptions, our wholly owned domestic subsidiaries, and are secured by substantially all of the assets of Grindr Inc., Grindr Capital LLC, and the subsidiary guarantors.
The term loan amortizes quarterly at 1.25% of the principal amount outstanding on December 16, 2025. The Credit Agreement requires compliance with certain financial covenants, including a maximum total net leverage ratio and a minimum fixed charge coverage ratio, and contains customary restrictive covenants and events of default. We were in compliance with the financial and restrictive covenants under the Credit Agreement as of September 30, 2026.
Uses of Cash
Our principal commitments consist of obligations under the Credit Agreement, operating leases for office space, acquisitions, and our payments for the use of cloud services. In addition, we are subject to pending legal proceedings from time to time. In connection with the settlement of the UK Group Action, we agreed to pay £13.0 million by December 31, 2026, and £13.0 million by March 31, 2027 (the equivalent of approximately $17.2 million each, using the exchange rate as of September 30, 2026), which we expect to fund with cash on hand. See Note 5, Note 6, and Note 14 to our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional information.
The cash consideration for the PurposeMed Acquisition was funded with cash on hand as well as a $152.0 million borrowing under our senior secured revolving credit facility on October 30, 2026. In addition, based on PurposeMed achieving certain financial performance targets for the fiscal year ending December 31, 2027, we may be required to pay up to $70.0 million in cash in contingent consideration, payable in 2028. See Note 15 to our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional information.
In March 2025, our Board of Directors authorized a stock repurchase program to allow for the repurchase of up to $500 million of shares of our common stock for the period from March 7, 2025, to March 6, 2027. In February 2026, our Board of Directors authorized an increase in our stock repurchase program by an additional $400 million and extended the repurchase period to March 6, 2029. Our stock repurchase program does not obligate us to repurchase a minimum amount of shares. Under the program, shares of our common stock may be repurchased in privately negotiated or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the "Exchange Act").
During the nine months ended September 30, 2026, we did not repurchase shares from the open market. During that period, we entered into prepaid written put options, accelerated share repurchase agreements, and forward repurchase transactions with a major financial institution to repurchase shares of our common stock.
On September 9, 2026, we entered into a stock purchase plan with a major financial institution, intended to satisfy the affirmative defense conditions of Rule 10b5-1(c), to repurchase up to $150 million of our common stock under our existing stock repurchase program through open market purchases beginning September 30, 2026, terminating upon the earlier of that amount being purchased or either party's termination. No shares had been repurchased under the plan as of September 30, 2026.
During the nine months ended September 30, 2026, we repurchased and retired 13,038,757 shares of our common stock for an aggregate purchase price of $180.4 million. During the nine months ended September 30, 2025, we repurchased and retired 25,129,289 shares of our common stock for an aggregate purchase price of $450.5 million, including commissions. As of September 30, 2026, $269.1 million in aggregate value of shares of our common stock remains available under the share repurchase program, excluding future commissions.
Subsequent to September 30, 2026, and through November 4, 2026, we repurchased and retired 1,350,000 shares of our common stock in open market transactions under the Rule 10b5-1 plan described above for an aggregate purchase price of $17.7 million, at an average price of $13.12 per share. As of November 4, 2026, $251.4 million in aggregate value of shares of our common stock remains available under the share repurchase program, excluding future commissions. See Note 8 and Note 15 to our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional information.
Critical Accounting Policies and Estimates
We have based our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of
assets and liabilities that are not readily apparent from other sources. Due to the inherent uncertainty involved in making these estimates, actual results reported in future periods could differ from our estimates.
There have been no material changes to our discussion of critical accounting estimates from those set forth in our Annual Report on Form 10-K for the year ended December 31, 2025.
Recently Issued and Adopted Accounting Pronouncements
For a discussion of recent accounting pronouncements, see Note 2 to our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional information.
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