Grindr’s aggressive investment in artificial intelligence is beginning to show results, with the LGBTQ-focused dating platform reporting stronger revenue, higher subscriber numbers and a major boost in engineering productivity. CEO George Arison said the company’s strategy of using AI across its operations is creating new opportunities while helping its teams develop software faster. Grindr reported second-quarter revenue of $138 million, a 33% increase from the same period last year, and raised its 2026 revenue forecast to about $540 million.
The company says AI has significantly changed how its engineering team works. Grindr estimated that total engineering output increased about 2.5 times between July 2025 and April 2026, despite keeping its engineering workforce roughly the same size. According to the company, achieving a similar level of output before generative AI would have required about 200 additional engineers and roughly $60 million in annual costs. Grindr is now using tools including coding assistants and AI software from companies such as Cursor, Anthropic and Devin to accelerate development.
AI is also becoming a new source of premium revenue for Grindr through its Edge companion. The company is currently testing different prices in selected markets, including New York, where the AI-powered service can cost as much as $350 per month. Interestingly, early results have challenged management’s expectations. Grindr initially expected Edge to mainly attract existing top-tier subscribers, but the company says interest has also come from users on lower-priced plans and even people who were not previously paying subscribers.
The early response could become an important test of whether consumers are willing to pay significantly more for AI-powered digital experiences. Grindr has not revealed how many users have subscribed to Edge or where its final pricing will settle, but Arison said the company is pleased with the results so far. Meanwhile, the company has raised its 2026 adjusted EBITDA forecast to approximately $232 million, up from its previous estimate of $227 million, suggesting that its AI investments are increasingly being tied to measurable business performance.
Grindr’s growth is also being supported by stronger subscriber retention and higher spending among paying users. The number of paying users reached 1.4 million in the second quarter, up 16% from a year earlier, while average revenue per paying user rose 12% to $25.51. With churn coming in lower than expected despite price increases, Grindr is betting that AI can do more than enhance its dating platform—it could reshape the company’s economics, speed up product development and create an entirely new premium business.
source: cnbc
