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, 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.

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” 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.

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 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.

Current wording

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.

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 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.

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 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.

Previous 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.

Current wording

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.

Previous 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.

Current wording

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.

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. 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.

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 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.

Previous wording

•Adjusted EBITDA of $116.1 million and $85.9 million, respectively. The increase for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was $30.2 million, or 35.2%. This resulted in an Adjusted EBITDA margin of 43.3% 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 $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.

Previous 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.

Current wording

•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.

Previous wording

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.

Current wording

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.

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, 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.

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. 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.

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, 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.

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, 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.

Previous wording

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.

Current wording

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.

Previous 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.

Current wording

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.

Previous wording

Selling, general and administrative expenses. Selling, general and administrative expenses consists primarily of compensation and other employee-related costs, professional fees, 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.

Current wording

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.

Previous wording

Other (expense) income, net. Other (expense) income, 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, changes in the fair value of derivative instruments, and credit losses on our loan receivable from our equity method investee.

Previous wording

Income tax 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.

Current wording

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.

Previous wording

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

Current wording

Three and Nine Months Ended September 30, 2026, Compared to Three and Nine Months Ended September 30, 2025

Previous 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%.

Current wording

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%.

Previous 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.

Current wording

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.

Previous 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.

Current wording

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.

Previous wording

Revenue for the six months ended June 30, 2026, and 2025, was $268.1 million and $198.2 million, respectively. The increase in revenue period-over-period was $69.9 million, or 35.3%.

Current wording

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%.

Previous wording

For the six months ended June 30, 2026, and 2025, app-based revenue was $219.9 million and $167.1 million, respectively. The increase in app-based revenue of $52.8 million, or 31.6%, was driven by the period-over-period increases in both ARPPU of $2.81 and Average Paying Users of 206 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 $2.81, to $26.07 for the six months ended June 30, 2026, from $23.26 for the six 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 six months ended June 30, 2026, Average Paying Users increased by 206 thousand, from 1.2 million for the six months ended June 30, 2025, to 1.4 million for the six months ended June 30, 2026.

Current wording

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.

Previous wording

For the six months ended June 30, 2026, and 2025, advertising revenue was $48.2 million and $31.1 million, respectively. The increase in advertising revenue of $17.1 million, or 55.0%, was primarily driven by strong CPMs across North America, third-party partnerships, as well as onboarding additional campaigns during the year.

Current wording

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.

Previous 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.

Current wording

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.

Previous wording

Cost of revenue for the six months ended June 30, 2026, and 2025, was $67.2 million and $52.0 million, respectively. The $15.2 million increase, or 29.2%, was primarily due to growth in distribution fees of $12.0 million (consistent with app-based revenue growth), and increased infrastructure costs of $2.5 million.

Current wording

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.

Previous 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.

Current wording

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.

Previous 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.

Current wording

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.

Previous 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.

Current wording

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.

Previous wording

Interest expense, net for the six months ended June 30, 2026, and 2025, was $13.1 million and $7.4 million, respectively. The $5.7 million increase, or 77.0%, was primarily due to an increase in interest expense of $3.1 million from higher debt balances and a decrease in interest income of $2.6 million from our investment in U.S. treasury bills in the first quarter of 2025.

Current wording

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.

Previous wording

Other (expense) income, net for the six months ended June 30, 2026, and 2025, was expense of $2.2 million and income of $0.7 million, respectively. The $2.9 million change was primarily due to $0.8 million in credit loss recognized from a loan to our equity method investee, and $0.7 million in fair value change in derivative instruments.

Current wording

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.

Previous 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.

Current wording

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.

Previous 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.

Current wording

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.

Previous wording

Income tax provision for the three months ended June 30, 2026, and 2025, was $5.1 million and $4.7 million, respectively, resulting in an effective tax rate of 22.5% and 21.9%, respectively. The increase in effective tax rate was primarily due to Section 162(m) officer compensation.

Current wording

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.

Previous wording

Net income for the six months ended June 30, 2026, and 2025, was $44.5 million and $43.7 million, respectively. Net income increased by $0.8 million.

Current wording

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.

Previous 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.

Current wording

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.

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; 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.

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 (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.

Previous 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:

Current wording

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:

Previous wording

(2)Transaction-related costs consist of legal, consulting, and other professional fees related to potential transactions.

Current wording

(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.

Previous 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.

Current wording

(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.

Previous wording

(4)Equity method investee losses and related credit loss are related to our share of losses from our investment in our equity method investee and credit loss in relation to the loan receivable to our equity method investee.

Current wording

(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.