Grindr Inc.

Previous wording

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 and elsewhere in this Quarterly Report on Form 10-Q, particularly in “Special Note Regarding Forward-Looking Statements.”

Current wording

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,” set forth in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025, and any updates thereto set forth in Quarterly Reports on Form 10-Q filed thereafter.

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 1.4 million Average Paying Users for the three months ended March 31, 2026, as compared to 1.2 million Average Paying Users for the three months ended March 31, 2025. 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 1.4 million Average Paying Users for the three and six months ended June 30, 2026, as compared to 1.2 million Average Paying Users for the three and six months ended June 30, 2025. Through gayborhood expansion initiatives, we are developing new products for users to engage with through 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 app-based revenue, previously referred to as direct revenue, representing 82.1% and 85.2% of total revenue for the three months ended March 31, 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.

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 app-based revenue representing 82.0% and 83.4% of total revenue for the three months ended June 30, 2026, and 2025, respectively, and 82.0% and 84.3% of total revenue for the six months ended June 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.

Previous wording

In addition to our revenue generated from subscription fees and consumable purchases, we also generate advertising revenue, previously referred to as indirect revenue, representing 17.9% and 14.8% of total revenue for the three months ended March 31, 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.

Current wording

In addition to our revenue generated from subscription fees and consumable purchases, we also generate advertising revenue representing 18.0% and 16.6% of total revenue for the three months ended June 30, 2026, and 2025, respectively, and 18.0% and 15.7% of total revenue for the six months ended June 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.

Previous wording

We generated $129.9 million and $93.9 million of revenue for the three months ended March 31, 2026, and 2025, respectively, representing a period-over-period growth of 38.3% as compared to the three-month period in 2025.

Current wording

We generated $138.1 million and $104.2 million of revenue for the three months ended June 30, 2026, and 2025, respectively, and we generated $268.1 million and $198.2 million of revenue for the six months ended June 30, 2026, and 2025, respectively, representing a period-over-period growth of 32.5% and 35.3% as compared to the three-month and six-month periods in 2025, respectively.

Previous wording

We had 1.4 million and 1.2 million Average Paying Users, for the three months ended March 31, 2026, and 2025, respectively, representing a period-over-period growth of 18.6% as compared to the three-month period in 2025.

Current wording

We had 1.4 million and 1.2 million Average Paying Users, for the three and six months ended June 30, 2026, and 2025, respectively, representing a period-over-period growth of 16.1% and 17.2% as compared to the three-month and six-month periods in 2025, respectively.

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. A hearing commenced in May 2025 and concluded in May 2026. 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. A hearing commenced in May 2025 and concluded in May 2026. The 2024 complaint and hearing that concluded in May 2026 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.

Previous wording

•Net income of $26.8 million and $27.0 million, respectively. The decrease for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, was $0.2 million, or 0.7%. This resulted in a net income margin of 20.6% and 28.8%, respectively.

Current wording

•Net income of $17.7 million and $16.6 million, respectively. The increase for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, was $1.1 million, or 6.6%. This resulted in a net income margin of 12.8% and 16.0%, respectively.

Previous wording

•Adjusted EBITDA of $58.5 million and $40.7 million, respectively. The increase for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, was $17.8 million, or 43.7%. This resulted in an Adjusted EBITDA margin of 45.0% and 43.3%, respectively. See“Non-GAAP Financial Measures—Adjusted EBITDA”below for more details on the calculations and reconciliations.

Current wording

•Adjusted EBITDA of $57.6 million and $45.2 million, respectively. The increase for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, was $12.4 million, or 27.4%. This resulted in an Adjusted EBITDA margin of 41.7% and 43.4%, 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 March 31, 2026, and 2025, our Average Paying Users were 1.4 million and 1.2 million, respectively, representing an increase of 18.6% 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 June 30, 2026, and 2025, our Average Paying Users were 1.4 million and 1.2 million, respectively, representing an increase of 16.1% 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

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 March 31, 2026, we had 183 employees globally, 176 of which were full-time employees. In 2026, we continue to expand and enhance our team with new employees and contractors. In doing so, we grew the size of our engineering team, including the expansion of a dedicated contractor team in Colombia to 34 as of March 31, 2026. 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 market and believe our operating culture is a key differentiator in attracting, developing, and retaining high-performing employees.

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 June 30, 2026, we had 178 employees globally, 172 of which were full-time employees. We have continued to expand and enhance our team with new employees and contractors. In doing so, we grew the size of our engineering team, which includes a dedicated team of 33 contractors in Colombia as of June 30, 2026. 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 market and believe our operating culture is a key differentiator in attracting, developing, and retaining high-performing employees.

Previous wording

The Grindr platform has MAUs in over 190 countries and territories. Our international revenue represents 43.0% and 41.2% of total revenue for the three months ended March 31, 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.

Current wording

The Grindr platform has MAUs in over 190 countries and territories. Our international revenue represents 43.0% and 42.0% of total revenue for the three months ended June 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.

Previous wording

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.

Current wording

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.

Previous wording

Three Months Ended March 31, 2026, Compared to Three Months Ended March 31, 2025

Current wording

Three and Six Months Ended June 30, 2026, Compared to Three and Six Months Ended June 30, 2025

Previous wording

Revenue for the three months ended March 31, 2026, and 2025, was $129.9 million and $93.9 million, respectively. The increase in revenue period-over-period was $36.0 million, or 38.3%.

Current wording

Revenue for the three months ended June 30, 2026, and 2025, was $138.1 million and $104.2 million, respectively. The increase in revenue period-over-period was $33.9 million, or 32.5%.

Previous wording

For the three months ended March 31, 2026, and 2025, app-based revenue was $106.6 million and $80.0 million, respectively. The increase in app-based revenue of $26.6 million, or 33.3%, was driven by the period-over-period increases in both ARPPU of $2.77 and Average Paying Users of 217 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 12.1%, or $2.77, to $25.63 for the three months ended March 31, 2026, from $22.86 for the three months ended March 31, 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 March 31, 2026, Average Paying Users increased by 217 thousand, from 1.2 million for the three months ended March 31, 2025, to 1.4 million for the three months ended March 31, 2026.

Current wording

For the three months ended June 30, 2026, and 2025, app-based revenue was $113.3 million and $86.9 million, respectively. The increase in app-based revenue of $26.4 million, or 30.4%, was driven by the period-over-period increases in both ARPPU of $2.86 and Average Paying Users of 197 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 12.1%, or $2.86, to $26.51 for the three months ended June 30, 2026, from $23.65 for the three months ended June 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 June 30, 2026, Average Paying Users increased by 197 thousand, from 1.2 million for the three months ended June 30, 2025, to 1.4 million for the three months ended June 30, 2026.

Previous wording

For the three months ended March 31, 2026, and March 31, 2025, advertising revenue was $23.3 million and $13.9 million, respectively. The increase in advertising revenue of $9.4 million, or 67.6%, was primarily driven by broad-based strength across geographies and ad formats, including certain large campaigns onboarded during the quarter.

Current wording

For the three months ended June 30, 2026, and 2025, advertising revenue was $24.8 million and $17.3 million, respectively. The increase in advertising revenue of $7.5 million, or 43.4%, was primarily driven by strong CPMs across North America, third-party partnerships, as well as onboarding additional campaigns during the year.

Previous wording

Cost of revenue for the three months ended March 31, 2026, and 2025, was $32.6 million and $24.5 million, respectively. The $8.1 million increase, or 33.1%, was primarily due to growth in distribution fees of $6.0 million (consistent with app-based revenue growth), and increased infrastructure costs of $1.6 million.

Current wording

Cost of revenue for the three months ended June 30, 2026, and 2025, was $34.6 million and $27.4 million, respectively. The $7.2 million increase, or 26.3%, was primarily due to growth in distribution fees of $6.0 million (consistent with app-based revenue growth), and increased infrastructure costs of $0.9 million.

Previous wording

Selling, general and administrative expense for the three months ended March 31, 2026, and 2025, was $37.7 million and $30.2 million, respectively. The $7.5 million increase, or 24.8%, was primarily due to an increase of $2.5 million in professional, legal, and contractor fees; an increase of $2.2 million in marketing expenses; and an increase in salaries and benefits expense of $0.7 million primarily due to increased stock-based compensation.

Current wording

Selling, general and administrative expense for the six months ended June 30, 2026, and 2025, was $87.6 million and $66.7 million, respectively. The $20.9 million increase, or 31.3%, was primarily due to an increase of $7.4 million in marketing expenses; an increase of $7.0 million in salaries and benefits expense; and an increase of $1.8 million in professional, legal, and contractor fees.

Previous wording

Product development expense for the three months ended March 31, 2026, and 2025, was $15.9 million and $10.3 million, respectively. The $5.6 million increase, or 54.4%, was primarily due to an increase in personnel-related expenses of $5.3 million from the increased headcount, including an increase in stock-based compensation expense of $3.4 million.

Current wording

Product development expense for the three months ended June 30, 2026, and 2025, was $20.3 million and $12.9 million, respectively. The $7.4 million increase, or 57.4%, was primarily due to an increase in personnel-related expenses of $7.4 million from the increased headcount, including an increase in stock-based compensation expense of $3.5 million.

Previous wording

Depreciation and amortization for the three months ended March 31, 2026, and 2025, was $1.0 million and $3.5 million, respectively. The $2.5 million decrease, or 71.4%, 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.

Current wording

Depreciation and amortization for the three months ended June 30, 2026, and 2025, was $0.9 million and $3.1 million, respectively. The $2.2 million decrease, or 71.0%, 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

Interest expense, net for the three months ended March 31, 2026, and 2025, was $6.6 million and $3.9 million, respectively. The $2.7 million increase, or 69.2%, was primarily due to an increase in interest expense of $1.6 million from higher debt balances and a decrease in interest income of $1.1 million from our investment in U.S. treasury bills in the first quarter of 2025.

Current wording

Interest expense, net for the three months ended June 30, 2026, and 2025, was $6.5 million and $3.6 million, respectively. The $2.9 million increase, or 80.6%, was primarily due to an increase in interest expense of $1.5 million from higher debt balances and a decrease in interest income of $1.4 million from our investment in U.S. treasury bills in the first quarter of 2025.

Previous wording

Other (expense) income, net for the three months ended March 31, 2026, and 2025, was expense of $0.2 million and income of $0.1 million, respectively.

Current wording

Other (expense) income, net for the three months ended June 30, 2026, and 2025, was expense of $2.0 million and income of $0.5 million, respectively. The $2.5 million change was primarily due to $1.0 million in fair value change in derivative instruments, and $0.8 million in credit loss recognized from a loan to our equity method investee.

Previous wording

Income tax provision for the three months ended March 31, 2026, and 2025, was $9.2 million and $4.6 million, respectively, resulting in an effective tax rate of 25.5% and 14.4%, respectively. The increase in effective tax rate was primarily due to the mark-to-market warrant liability adjustment, and Section 162(m) officer compensation.

Current wording

Income tax provision for the six months ended June 30, 2026, and 2025, was $14.3 million and $9.2 million, respectively, resulting in an effective tax rate of 24.3% and 17.4%, respectively. The increase in effective tax rate was primarily due to the mark-to-market warrant liability adjustment, and Section 162(m) officer compensation.

Previous wording

Net income for the three months ended March 31, 2026, and 2025, was $26.8 million and $27.0 million, respectively. Net income decreased by $0.2 million.

Current wording

Net income for the three months ended June 30, 2026, and 2025, was $17.7 million and $16.6 million, respectively. Net income increased by $1.1 million.

Previous wording

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 income excluding income tax provision; interest expense, net; depreciation and amortization; stock-based compensation expense; change in fair value of warrant liability; and employee transition costs, litigation-related costs, transaction-related costs, and other items, 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.

Current wording

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 income excluding income tax provision; interest expense, net; depreciation and amortization; stock-based compensation expense; equity method investee losses and related credit loss; change in fair value of warrant liability; and employee transition costs, litigation-related costs, transaction-related costs, and other items, 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.

Previous wording

The following table presents the reconciliation of net income to Adjusted EBITDA for the three months ended March 31, 2026, and 2025:

Current wording

The following table presents the reconciliation of net income to Adjusted EBITDA for the three and six months ended June 30, 2026, and 2025:

Previous wording

(1)Litigation-related costs that are unrelated to our core ongoing business operations primarily represent external legal fees associated with outstanding litigation or regulatory matters outside of the ordinary course, such as fees incurred in connection with the Norwegian Data Protection Authority fine and CWA unionization.

Current wording

(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.

Previous wording

(3)Employee transition costs relate to costs associated with the transition of our former Chief Financial Officer, including lower than anticipated costs for certain amounts in the severance arrangement; and severance incurred for employees who elected not to relocate or participate in our RTO Plan and other severance arrangements.

Current wording

(3)Employee transition costs relate to costs associated with the transition of our former Chief Financial Officer, and severance incurred for employees who elected not to relocate or participate in our RTO Plan and certain other severance arrangements.

Previous wording

(4)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.

Current wording

(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.

Previous wording

The following table presents the reconciliation of net cash provided by operating activities to free cash flow for the three months ended March 31, 2026, and 2025:

Current wording

The following table presents the reconciliation of net cash provided by operating activities to free cash flow for the three and six months ended June 30, 2026, and 2025:

Previous wording

Cash Flows for the Three Months Ended March 31, 2026

Current wording

Cash Flows for the Six Months Ended June 30, 2026

Previous wording

During the three months ended March 31, 2026, our operations provided $33.5 million of cash, which was primarily attributable to our net income of $26.8 million, adjusted for non-cash items, including $15.0 million in stock-based compensation and $1.0 million in depreciation and amortization, and the cash flow impact from a change in operating asset and liabilities of $10.3 million, primarily from a $1.5 million decrease in accrued expenses and other current liabilities due to timing of payments and a $2.2 million increase in accounts receivable due to increase in app-based revenue and advertising revenue during the year.

Current wording

During the six months ended June 30, 2026, our operations provided $74.3 million of cash, which was primarily attributable to our net income of $44.5 million, adjusted for non-cash items, including $35.6 million in stock-based compensation and $1.9 million in depreciation and amortization, and the cash flow impact from a change in operating asset and liabilities of $11.7 million, primarily from a $4.3 million decrease in accrued expenses and other current liabilities due to timing of payments and a $1.7 million increase in accounts receivable due to increase in app-based revenue and advertising revenue during the year.

Previous wording

During the three months ended March 31, 2025, our operations provided $23.8 million of cash, which was primarily attributable to our net income, adjusted for non-cash items, including $3.5 million in depreciation and amortization, and $10.9 million in stock-based compensation, partially offset by a $9.9 million gain in fair value of warrant liability, and the cash flow impact from a change in operating asset and liabilities of $8.7 million, primarily from a $1.3 million decrease in accrued expenses and other current liabilities due to timing of payments and a $3.7 million increase in accounts receivable due to an increase in app-based revenue and advertising revenue during the year.

Current wording

During the six months ended June 30, 2025, our operations provided $61.3 million of cash, which was primarily attributable to our net income of $43.7 million, adjusted for non-cash items, including $27.5 million in stock-based compensation, and $6.5 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 asset and liabilities of $8.4 million, primarily from $4.0 million increase in accrued expenses and other current liabilities due to timing of payments and $7.6 million increase in accounts receivable due to increase in app-based revenue and advertising revenue during the year.

Previous wording

Net cash used in investing activities for the three months ended March 31, 2025, consisted primarily of additions to capitalized software of $0.5 million.

Current wording

Net cash used in investing activities for the six months ended June 30, 2026, consisted primarily of additions to capitalized software of $4.4 million and a loan to our equity method investee of $4.0 million.

Previous wording

Net cash used in investing activities for the three months ended March 31, 2026, consisted primarily of additions to capitalized software of $1.6 million.

Current wording

Net cash used in investing activities for the six months ended June 30, 2025, consisted primarily of additions to capitalized software of $1.2 million.

Previous wording

Net cash used in financing activities for the three months ended March 31, 2026, which was $95.1 million, was due to payments for purchasing equity instruments of $99.9 million, principal payments of debt of $5.0 million, and payments to tax authorities for employee equity awards of $1.2 million. The payments were offset by proceeds from the settlement from equity instruments of $10.9 million.

Current wording

Net cash used in financing activities for the six months ended June 30, 2026, which was $146.4 million, was due to payments for purchasing equity instruments of $159.9 million, principal payments of debt of $10.0 million, and payments to tax authorities for employee equity awards of $9.4 million. The payments were offset by proceeds from the settlement of equity instruments of $32.2 million.

Previous wording

Net cash provided by financing activities for the three months ended March 31, 2025, which was $173.6 million, was primarily due to proceeds from the exercise of warrants of $314.1 million. 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. The proceeds from the exercise of warrants were partially offset by payments for the repurchases of common stock under our stock repurchase program of $132.0 million, payments to tax authorities for employee equity awards of $5.4 million and principal payments of debt of $3.8 million.

Current wording

Net cash provided by financing activities for the six months ended June 30, 2025, which was $1.9 million, was due to proceeds from the exercise of warrants of $314.1 million. 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. The proceeds from the exercise of warrants were offset by payments for the repurchases of common stock under our stock repurchase program of $290.7 million, principal payments of debt of $7.5 million, and payments to tax authorities for employee equity awards of $15.4 million.

Previous wording

Since our inception, we have financed our operations and capital expenditures primarily through cash flows generated by operations, borrowings under our credit facilities, and the sale of equity. 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.

Current wording

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.

Previous wording

As of March 31, 2026, we had cash and cash equivalents of $23.8 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.

Current wording

As of June 30, 2026, we had cash and cash equivalents of $6.5 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.