Grindr Inc.

Previous wording

Grindr Inc.’s (“Grindr”, “we”, “us”, “our” or the “Company”) mission is to build the Global Gayborhood in Your Pocket™, and, through our success, to make a world where the lives of our global LGBTQ community are free, equal, and just. We manage and operate the Grindr platform, a global social networking platform primarily serving and addressing the needs of gay, bisexual, and sexually explorative adults around the world. We had 14.9 million Average MAUs and 1.2 million Average Paying Users for the three months ended June 30, 2025, as compared to 14.1 million Average MAUs and 1.1 million Average Paying Users for the three months ended June 30, 2024. We had 14.7 million Average MAUs and 1.2 million Average Paying Users for the six months ended June 30, 2025, as compared to 13.9 million Average MAUs and 1.0 million Average Paying Users for the six months ended June 30, 2024. Through gayborhood expansion initiatives, we are developing new products for users to engage with the Grindr platform, which include new partnership-based digital versions of services typically found in physical gayborhoods. Our social impact division, Grindr for Equality, advances human rights, health, and safety for millions of lesbian, gay, bisexual, transgender, and queer (“LGBTQ”) people in partnership with organizations in every region of the world.

Current wording

Grindr Inc.’s (“Grindr”, “we”, “us”, “our” or the “Company”) mission is to build the Global Gayborhood in Your Pocket™, and, through our success, to make a world where the lives of our global LGBTQ community are free, equal, and just. We manage and operate the Grindr platform, a global social networking platform primarily serving and addressing the needs of gay, bisexual, and sexually explorative adults around the world. We had 15.1 million Average MAUs and 1.3 million Average Paying Users for the three months ended September 30, 2025, as compared to 14.6 million Average MAUs and 1.1 million Average Paying Users for the three months ended September 30, 2024. We had 14.9 million Average MAUs and 1.2 million Average Paying Users for the nine months ended September 30, 2025, as compared to 14.1 million Average MAUs and 1.1 million Average Paying Users for the nine months ended September 30, 2024. Through gayborhood expansion initiatives, we are developing new products for users to engage with the Grindr platform, which include new partnership-based digital versions of services typically found in physical gayborhoods. Our social impact division, Grindr for Equality, advances human rights, health, and safety for millions of lesbian, gay, bisexual, transgender, and queer (“LGBTQ”) people in partnership with organizations in every region of the world.

Previous wording

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 direct revenue, representing 83.4% and 84.9% of total revenue for the three months ended June 30, 2025 and 2024, respectively, and 84.3% and 85.2% of total revenue for the six months ended June 30, 2025 and 2024, respectively. Direct 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 premium add-ons 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.

Current wording

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 direct revenue, representing 83.2% and 86.1% of total revenue for the three months ended September 30, 2025 and 2024, respectively, and 83.9% and 85.5% of total revenue for the nine months ended September 30, 2025 and 2024, respectively. Direct 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 premium add-ons 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.

Previous wording

In addition to our revenue generated from subscription fees and premium add-ons, we also generate indirect revenue, representing 16.6% and 15.1% of total revenue for the three months ended June 30, 2025 and 2024, respectively, and 15.7% and 14.8% of total revenue for the six months ended June 30, 2025 and 2024, respectively. Indirect 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.

Current wording

In addition to our revenue generated from subscription fees and premium add-ons, we also generate indirect revenue, representing 16.8% and 13.9% of total revenue for the three months ended September 30, 2025 and 2024, respectively, and 16.1% and 14.5% of total revenue for the nine months ended September 30, 2025 and 2024, respectively. Indirect 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.

Previous wording

We generated $104.2 million and $82.3 million of revenue for the three months ended June 30, 2025 and 2024, respectively, and we generated $198.2 million and $157.7 million of revenue for the six months ended June 30, 2025 and 2024, respectively, representing a period-over-period growth of 26.6% and 25.7% as compared to the three-month and six-month periods in 2024, respectively.

Current wording

We generated $115.8 million and $89.3 million of revenue for the three months ended September 30, 2025 and 2024, respectively, and we generated $313.9 million and $247.0 million of revenue for the nine months ended September 30, 2025 and 2024, respectively, representing a period-over-period growth of 29.7% and 27.1% as compared to the three-month and nine-month periods in 2024, respectively.

Previous wording

We had 1.2 million and 1.1 million Average Paying Users, for the three months ended June 30, 2025 and 2024, respectively, and we had 1.2 million and 1.0 million Average Paying Users, for the six months ended June 30, 2025 and 2024, respectively, representing a period-over-period growth of 16.0% and 15.9% as compared to the three-month and six-month periods in 2024, respectively.

Current wording

We had 1.3 million and 1.1 million Average Paying Users, for the three months ended September 30, 2025 and 2024, respectively, and we had 1.2 million and 1.1 million Average Paying Users, for the nine months ended September 30, 2025 and 2024, respectively, representing a period-over-period growth of 16.9% and 16.5% as compared to the three-month and nine-month periods in 2024, respectively.

Previous wording

While we have users in over 190 countries and territories, our core markets are currently North America and Europe, from which we derived 84.0% and 84.6% of our total revenues for the six months ended June 30, 2025 and 2024, respectively. 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.

Current wording

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.

Previous wording

After our announcement that we would redeem all of our outstanding warrants, and prior to the conclusion of the redemption notice period at 5:00 p.m. New York City time on the Redemption Date, an aggregate of: (i) 9,469,634 warrants were exercised on a cashless basis in exchange for the issuance of 3,418,518 shares of common stock; and (ii) 27,315,105 warrants were exercised for cash for an aggregate of 27,315,105 shares of common stock at an exercise price of $11.50 per share, for aggregate cash proceeds to us of $314.1 million. At the conclusion of the redemption notice period on the Redemption Date, the remaining 575,086 warrants issued and outstanding were redeemed at a price of $0.10 per warrant for aggregate cash payment from the Company of $58. The public warrants were delisted from the New York Stock Exchange pursuant to a Form 25 filed on February 24, 2025.

Current wording

After our announcement that we would redeem all of our outstanding warrants, and prior to the conclusion of the redemption notice period at 5:00 p.m. New York City time on the Redemption Date, an aggregate of: (i) 9,469,634 warrants were exercised on a cashless basis in exchange for the issuance of 3,418,518 shares of common stock; and (ii) 27,315,105 warrants were exercised for cash for an aggregate of 27,315,105 shares of common stock at an exercise price of $11.50 per share, for aggregate cash proceeds to us of $314.1 million. At the conclusion of the redemption notice period on the Redemption Date, the remaining 575,086 warrants issued and outstanding were redeemed at a price of $0.10 per warrant for aggregate cash payment from the Company of $0.1 million. The public warrants were delisted from the New York Stock Exchange pursuant to a Form 25 filed on February 24, 2025.

Previous wording

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 NLRB issued a complaint on the unfair labor practice charges, and a hearing commenced in May 2025 and is currently ongoing. This complaint is the first step in the administrative process and is not a finding of any wrongdoing, nor is it a decision or ruling of the NLRB.

Current wording

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 NLRB issued a complaint on the unfair labor practice charges, and a hearing commenced in May 2025 and is currently ongoing, the hearing is expected to continue through November 2025. This complaint is the first step in the administrative process and is not a finding of any wrongdoing, nor is it a decision or ruling of the NLRB.

Previous wording

•Net income of $16.6 million and net loss $22.4 million, respectively. The change for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, was $39.0 million, or 174.1%. This resulted in a net income margin of 16.0% and net loss margin 27.2%, respectively.

Current wording

•Net income of $30.8 million and $24.7 million, respectively. The increase for the three months ended September 30, 2025, compared to the three months ended September 30, 2024, was $6.1 million, or 24.7%. This resulted in a net income margin of 26.6% and 27.6%, respectively.

Previous wording

•Adjusted EBITDA of $45.2 million and $36.9 million, respectively. The increase for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, was $8.3 million, or 22.5%. This resulted in an Adjusted EBITDA margin of 43.4% and 44.9%, respectively. See“—Non-GAAP Financial Measures—Adjusted EBITDA”below for more details on the calculations and reconciliations.

Current wording

•Adjusted EBITDA of $54.8 million and $40.1 million, respectively. The increase for the three months ended September 30, 2025, compared to the three months ended September 30, 2024, was $14.7 million, or 36.7%. This resulted in an Adjusted EBITDA margin of 47.4% and 44.9%, respectively. See“—Non-GAAP Financial Measures—Adjusted EBITDA”below for more details on the calculations and reconciliations.

Previous wording

For the six months ended June 30, 2025 and 2024, we generated:

Current wording

For the nine months ended September 30, 2025 and 2024, we generated:

Previous wording

•Net income of $43.7 million and net loss of $31.8 million, respectively. The change for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, was $75.5 million, or 237.4%. This resulted in a net income margin of 22.0% and net loss margin 20.2%, respectively.

Current wording

•Net income of $74.5 million and net loss of $7.1 million, respectively. The change for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, was $81.6 million, or 1149.3%. This resulted in a net income margin of 23.7% and net loss margin 2.9%, respectively.

Previous wording

•Adjusted EBITDA of $85.9 million and $68.6 million, respectively. The increase for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, was $17.3 million, or 25.2%. This resulted in an Adjusted EBITDA margin of 43.3% and 43.5%, respectively. See“—Non-GAAP Financial Measures—Adjusted EBITDA”below for more details on the calculations and reconciliations.

Current wording

•Adjusted EBITDA of $140.7 million and $108.7 million, respectively. The increase for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, was $32.0 million, or 29.4%. This resulted in an Adjusted EBITDA margin of 44.8% and 44.0%, respectively. See“—Non-GAAP Financial Measures—Adjusted EBITDA”below for more details on the calculations and reconciliations.

Previous wording

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. For the three months ended June 30, 2025 and 2024, our Average Paying Users were 1.2 million and 1.1 million, respectively, representing an increase of 16.0% period-over-period. 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.

Current wording

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. For the three months ended September 30, 2025 and 2024, our Average Paying Users were 1.3 million and 1.1 million, respectively, representing an increase of 16.9% period-over-period. 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.

Previous wording

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 foundation that we refer to as Grindr AI (“gAI”), consisting of a model layer, customer architecture layer, and a application layer, in order to deliver a differentiated, high impact user experience.

Current wording

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.

Previous wording

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 June 30, 2025, we had 146 employees globally, 143 of which were full-time employees. In 2025, we continue to expand and enhance our team with new employees and contractors. In doing so, we significantly grew the size of our engineering team, including the expansion of a dedicated contractor team in Colombia. We will continue to selectively supplement immediate capacity and product development needs with contractors, particularly in supporting our engineering function. 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 just for the global 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 industry.

Current wording

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, 2025, we had 151 employees globally, 148 of which were full-time employees. In 2025, we continue to expand and enhance our team with new employees and contractors. In doing so, we significantly grew the size of our engineering team, including the expansion of a dedicated contractor team in Colombia. We will continue to selectively supplement immediate capacity and product development needs with contractors, particularly in supporting our engineering function. 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 just for the global 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 industry.

Previous wording

The Grindr platform has MAUs in over 190 countries and territories. Our international revenue represents 42.0% and 41.9% of total revenue for the three months ended June 30, 2025 and 2024, 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.

Current wording

The Grindr platform has MAUs in over 190 countries and territories. Our international revenue represents 42.9% and 43.1% of total revenue for the three months ended September 30, 2025 and 2024, 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.

Previous wording

Product development expense. Product development expense consists primarily of employee-related and contractor costs for personnel engaged in the design, development, testing, and enhancement of product offerings, related technology, and related software costs.

Current wording

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.

Previous wording

Other income (expense), net. Other income (expense), net consists of realized and unrealized exchange rate gains or losses.

Current wording

Other (expense) income, net. Other (expense) income, net consists of realized and unrealized exchange rate gains or losses.

Previous wording

Three and Six Months Ended June 30, 2025 Compared to Three and Six Months Ended June 30, 2024

Current wording

Three and Nine Months Ended September 30, 2025 Compared to Three and Nine Months Ended September 30, 2024

Previous wording

Revenue for the three months ended June 30, 2025 and 2024, was $104.2 million and $82.3 million, respectively. The increase in revenue period-over-period was $21.9 million, or 26.6%.

Current wording

Revenue for the three months ended September 30, 2025 and 2024, was $115.8 million and $89.3 million, respectively. The increase in revenue period-over-period was $26.5 million, or 29.7%.

Previous wording

For three months ended June 30, 2025 and 2024, direct revenue was $86.9 million and $69.9 million, respectively. The increase in direct revenue of $17.0 million, or 24.3%, was driven by the period-over-period increases in both ARPPU of $1.57 and Average Paying Users of 169 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, and fueled continued demand for our premium add-ons. Weekly Unlimited was introduced late in the first quarter of 2024 and there is a continued period-over-period growth of our weekly XTRA subscription. We continue to strengthen our subscription offerings as we enhanced our Recommendations features and made further merchandising and paywall optimizations. Our shorter duration weekly products gave our users lower priced options for both XTRA and Unlimited subscriptions. ARPPU increased by 7.1%, or $1.57, to $23.65 for the three months ended June 30, 2025, from $22.08 for the three months ended June 30, 2024. 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 expect ARPPU to fluctuate in the near-term as we continue to test different subscription options across different price points and focus on generating more Paying Users. For the three months ended June 30, 2025, Average Paying Users increased by 169 thousand, from 1.1 million for the three months ended June 30, 2024, to 1.2 million for the three months ended June 30, 2025.

Current wording

For three months ended September 30, 2025 and 2024, direct revenue was $96.4 million and $76.9 million, respectively. The increase in direct revenue of $19.5 million, or 25.4%, was driven by the period-over-period increases in both ARPPU of $1.63 and Average Paying Users of 188 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, and fueled continued demand for our premium add-ons. There is a continued period-over-period growth of our weekly XTRA and Unlimited subscriptions. ARPPU increased by 7.1%, or $1.63, to $24.70 for the three months ended September 30, 2025, from $23.07 for the three months ended September 30, 2024. 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. ARPPU increased primarily due to pricing optimization efforts, supplemented by improvements in product mix. 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, 2025, Average Paying Users increased by 188 thousand, from 1.1 million for the three months ended September 30, 2024, to 1.3 million for the three months ended September 30, 2025.

Previous wording

For three months ended June 30, 2025 and 2024, indirect revenue was $17.3 million and $12.4 million, respectively. The increase in indirect revenue of $4.9 million, or 39.5%, was primarily driven by onboarding new third-party advertising partners and increased momentum in our international geographies.

Current wording

For three months ended September 30, 2025 and 2024, indirect revenue was $19.4 million and $12.4 million, respectively. The increase in indirect revenue of $7.0 million, or 56.5%, was primarily driven by onboarding new third-party advertising partners and increased momentum in our international geographies.

Previous wording

Revenue for the six months ended June 30, 2025 and 2024, was $198.2 million and $157.7 million, respectively. The increase in revenue period-over-period was $40.5 million, or 25.7%.

Current wording

Revenue for the nine months ended September 30, 2025 and 2024, was $313.9 million and $247.0 million, respectively. The increase in revenue period-over-period was $66.9 million, or 27.1%.

Previous wording

For six months ended June 30, 2025 and 2024, direct revenue was $167.1 million and $134.3 million, respectively. The increase in direct revenue of $32.8 million, or 24.4%, was driven by the period-over-period increases in both ARPPU of $1.59 and Average Paying Users of 164 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, and fueled continued demand for our premium add-ons. Weekly Unlimited was introduced late in the first quarter of 2024 and there is a continued period-over-period growth of our weekly XTRA subscription. We continue to strengthen our subscription offerings as we enhanced our Recommendations features and made further merchandising and paywall optimizations. ARPPU increased by 7.3%, or $1.59, to $23.26 for the six months ended June 30, 2025, from $21.67 for the six months ended June 30, 2024. 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 expect ARPPU to fluctuate in the near-term as we continue to test different subscription options across different price points and focus on generating more Paying Users. For the six months ended June 30, 2025, Average Paying Users increased by 164 thousand, from 1.0 million for the six months ended June 30, 2024, to 1.2 million for the six months ended June 30, 2025.

Current wording

For nine months ended September 30, 2025 and 2024, direct revenue was $263.3 million and $211.2 million, respectively. The increase in direct revenue of $52.1 million, or 24.7%, was driven by the period-over-period increases in both ARPPU of $1.56 and Average Paying Users of 174 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, and fueled continued demand for our premium add-ons. There is a continued period-over-period growth of our weekly XTRA and Unlimited subscriptions. ARPPU increased by 7.0%, or $1.56, to $23.76 for the nine months ended September 30, 2025, from $22.20 for the nine months ended September 30, 2024. 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. ARPPU increased primarily due to pricing optimization efforts, supplemented by improvements in product mix. 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, 2025, Average Paying Users increased by 174 thousand, from 1.1 million for the nine months ended September 30, 2024, to 1.2 million for the nine months ended September 30, 2025.

Previous wording

For six months ended June 30, 2025 and 2024, indirect revenue was $31.1 million and $23.4 million, respectively. The increase in indirect revenue of $7.7 million, or 32.9%, was primarily driven by onboarding new third-party advertising partners and increased in momentum in our international geographies.

Current wording

For nine months ended September 30, 2025 and 2024, indirect revenue was $50.6 million and $35.8 million, respectively. The increase in indirect revenue of $14.8 million, or 41.3%, was primarily driven by onboarding new third-party advertising partners and increased in momentum in our international geographies.

Previous wording

Cost of revenue for the three months ended June 30, 2025 and 2024, was $27.4 million and $21.0 million, respectively. The $6.4 million increase, or 30.5%, was primarily due to growth in distribution fees of $3.9 million (consistent with direct revenue growth), and increased infrastructure costs of $1.9 million.

Current wording

Cost of revenue for the three months ended September 30, 2025 and 2024, was $28.9 million and $22.9 million, respectively. The $6.0 million increase, or 26.2%, was primarily due to growth in distribution fees of $4.4 million (consistent with direct revenue growth), and increased infrastructure costs of $1.3 million.

Previous wording

Cost of revenue for the six months ended June 30, 2025 and 2024, was $52.0 million and $40.6 million, respectively. The $11.4 million increase, or 28.1%, was primarily due to growth in distribution fees of $7.5 million (consistent with direct revenue growth), and increased infrastructure costs of $2.9 million.

Current wording

Cost of revenue for the nine months ended September 30, 2025 and 2024, was $80.9 million and $63.5 million, respectively. The $17.4 million increase, or 27.4%, was primarily due to growth in distribution fees of $12.0 million (consistent with direct revenue growth), and increased infrastructure costs of $4.2 million.

Previous wording

Selling, general and administrative expense for the three months ended June 30, 2025 and 2024, was $36.5 million and $24.8 million, respectively. The $11.7 million increase, or 47.2%, was primarily due to an increase in personnel related expenses of $6.2 million from the increased in stock-based compensation expense of $6.8 million. In addition, there was an increase of $2.6 million in professional, legal and contractors fees and an increase of $1.0 million in marketing expenses.

Current wording

Selling, general and administrative expense for the three months ended September 30, 2025 and 2024, was $29.3 million and $25.0 million, respectively. The $4.3 million increase, or 17.2%, was primarily due to an increase of $3.7 million in professional, legal, and contractors fees; an increase in salaries and benefits expense of $3.0 million primarily due to increased headcount; and an increase of $0.7 million in marketing expenses. This was offset by the net decrease in stock-based compensation expense of $3.2 million primarily due to the decrease in fair value of liability-classified awards.

Previous wording

Selling, general and administrative expense for the six months ended June 30, 2025 and 2024, was $66.7 million and $51.4 million, respectively. The $15.3 million increase, or 29.8%, was primarily due to an increase in personnel related expenses of $10.7 million from the increased stock-based compensation expense of $9.1 million. In addition, there was an increase of $1.8 million in marketing expenses and an increase of $0.8 million in professional, legal and contractors fees.

Current wording

Selling, general and administrative expense for the nine months ended September 30, 2025 and 2024, was $96.0 million and $76.4 million, respectively. The $19.6 million increase, or 25.7%, was primarily due to an increase in personnel related expenses of $10.7 million from the increased stock-based compensation expense of $5.9 million and salaries and benefits expense of $4.7 million. In addition, there was an increase of $6.4 million in professional, legal and contractors fees and an increase of $2.5 million in marketing expenses.

Previous wording

Product development expense for the three months ended June 30, 2025 and 2024, was $12.9 million and $7.8 million, respectively. The $5.1 million increase, or 65.4%, was primarily due to an increase in contractor fees of $2.3 million to support the engineering function while we continue to scale our team and an increase in personnel related expenses of $2.7 million from the increased headcount, including an increase in stock-based compensation expense of $2.0 million.

Current wording

Product development expense for the three months ended September 30, 2025 and 2024, was $11.1 million and $8.8 million, respectively. The $2.3 million increase, or 26.1%, was primarily due to an increase in personnel related expenses of $1.8 million from the increased headcount, including an increase in stock-based compensation expense of $2.2 million and an increase in contractor fees of $0.7 million to support the engineering function while we continue to scale our team.

Previous wording

Product development expense for the six months ended June 30, 2025 and 2024, was $23.2 million and $13.5 million, respectively. The $9.7 million increase, or 71.9%, was primarily due to an increase in contractor fees of $4.4 million to support the engineering function while we continue to scale our team and an increase in personnel related expenses of $5.5 million from the increased headcount, including an increase in stock-based compensation expense of $2.8 million.

Current wording

Product development expense for the nine months ended September 30, 2025 and 2024, was $34.3 million and $22.3 million, respectively. The $12.0 million increase, or 53.8%, was primarily due to an increase in contractor fees of $5.4 million to support the engineering function while we continue to scale our team and an increase in personnel related expenses of $7.3 million from the increased headcount, including an increase in stock-based compensation expense of $5.0 million.

Previous wording

Depreciation and amortization for the six months ended June 30, 2025 and 2024, was $6.5 million and $8.4 million, respectively. The $1.9 million decrease, or 22.6%, was primarily due to acquired intangibles amortization from an acquisition in June 2020. There was a $2.2 million decrease due to customer relationship intangibles that were amortized under an accelerated amortization schedule, with higher amounts expensed in 2024, customer relationship intangibles were fully amortized in June 2025.

Current wording

Depreciation and amortization for the three months ended September 30, 2025 and 2024, was $1.3 million and $4.2 million, respectively. The $2.9 million decrease, or 69.0%, was primarily due to acquired intangibles amortization from an acquisition in June 2020. All definite-lived intangible assets from the acquisition were fully amortized in June 2025.

Previous wording

Depreciation and amortization for the three months ended June 30, 2025 and 2024, was $3.1 million and $4.2 million, respectively. The $1.1 million decrease, or 26.2%, was primarily due to acquired intangibles amortization from an acquisition in June 2020. There was a $1.3 million decrease due to customer relationship intangibles that were amortized under an accelerated amortization schedule, with higher amounts expensed in 2024, customer relationship intangibles were fully amortized in June 2025.

Current wording

Depreciation and amortization for the nine months ended September 30, 2025 and 2024, was $7.8 million and $12.6 million, respectively. The $4.8 million decrease, or 38.1%, was primarily due to acquired intangibles amortization from an acquisition in June 2020. There was a $5.3 million decrease due to customer relationship intangibles that were amortized under an accelerated amortization schedule, with higher amounts expensed in 2024, customer relationship intangibles were fully amortized in June 2025.

Previous wording

Interest expense, net for the six months ended June 30, 2025 and 2024, was $7.4 million and $13.9 million, respectively. The $6.5 million decrease, or 46.8%, was primarily due to a decrease in interest expense of $3.3 million from lower debt balances and lower interest rates. Additionally, the decrease is due to an increase of interest income of $3.1 million primarily from an increased balance in our investment in U.S. treasury bills.

Current wording

Interest expense, net for the three months ended September 30, 2025 and 2024, was $4.7 million and $6.4 million, respectively. The $1.7 million decrease, or 26.6%, was primarily due to a decrease in interest expense of $1.2 million from lower interest rates and lower debt balances.

Previous wording

Interest expense, net for the three months ended June 30, 2025 and 2024, was $3.6 million and $6.7 million, respectively. The $3.1 million decrease, or 46.3%, was primarily due to a decrease in interest expense of $1.4 million from lower debt balances and lower interest rates. Additionally, the decrease is due to an increase of interest income of $1.7 million primarily from an increased balance in our investment in U.S. treasury bills.

Current wording

Interest expense, net for the nine months ended September 30, 2025 and 2024, was $12.1 million and $20.3 million, respectively. The $8.2 million decrease, or 40.4%, was primarily due to a decrease in interest expense of $4.6 million from lower interest rates and lower debt balances. Additionally, the decrease is due to an increase of interest income of $3.6 million primarily from an increased balance in our investment in U.S. treasury bills.

Previous wording

Other income (expense), net for the six months ended June 30, 2025 and 2024, was income of $0.7 million and expense of $0.3 million, respectively.

Current wording

Other income (expense), net for the nine months ended September 30, 2025 and 2024, was income of $4 thousand and expense of $0.3 million, respectively.

Previous wording

Income tax provision for the three months ended June 30, 2025 and 2024, was $4.7 million and $5.0 million, respectively. The $0.3 million decrease, or 6.0%, was primarily due to the mark-to-market warrant liability adjustment, and Section 162(m) officer compensation.

Current wording

Income tax provision for the three months ended September 30, 2025 and 2024, was $9.1 million and $5.6 million, respectively. The $3.5 million increase, or 62.5%, was primarily due to the mark-to-market warrant liability adjustment, and Section 162(m) officer compensation.

Previous wording

Income tax provision for the six months ended June 30, 2025 and 2024, was $9.2 million and $7.6 million, respectively. The $1.6 million increase, or 21.1%, was primarily due to the mark-to-market warrant liability adjustment, Section 162(m) officer compensation, and the foreign derived intangible income deduction.

Current wording

Income tax provision for the nine months ended September 30, 2025 and 2024, was $18.3 million and $13.2 million, respectively. The $5.1 million increase, or 38.6%, was primarily due to the mark-to-market warrant liability adjustment, Section 162(m) officer compensation, and the foreign derived intangible income deduction.

Previous wording

Net income (loss) for the six months ended June 30, 2025 and 2024, was a net income of $43.7 million and a net loss of $31.8 million, respectively. Net income (loss) changed by $75.5 million mainly due to a $40.5 million increase in revenue and $63.7 million change in the fair value change of warrant liability.

Current wording

Net income for the three months ended September 30, 2025 and 2024, was $30.8 million and $24.7 million, respectively. Net income increased by $6.1 million mainly due to a $26.5 million increase in revenue and a $8.2 million charge in the prior year period, as a result of the fair value change in the warrant liability.