Key Highlights

● Grindr agreed to acquire PurposeMed, parent of Freddie, for US$250 million.

● The price is US$190 million in cash and US$60 million in stock.

● An earn-out of up to US$70 million is tied to 2027 targets.

● Second-quarter revenue was US$138 million, up 33%, with adjusted EBITDA of US$58 million.

Latest verified development

On 30 September 2026 Grindr Inc. (NYSE:GRND) agreed to acquire PurposeMed, the parent of Freddie, a telehealth provider of HIV prevention care, for US$250 million. The consideration is US$190 million in cash and US$60 million in Grindr common stock, with an earn-out of up to US$70 million in cash tied to 2027 performance targets and payable in 2028, which means part of the price depends on future performance. Both boards have approved the deal, and closing is expected in the fourth quarter of 2026, subject to customary conditions.

Grindr operates a social networking and dating app for LGBTQ+ communities, offering a free ad-supported version and a paid premium tier. It has about 178 employees and is headquartered in West Hollywood. A telehealth acquisition of this size is therefore a notable departure from its existing app-based model.

The target

Freddie was founded in Canada in 2020, treats patients across all 50 US states and five Canadian provinces, and has served more than 55,000 patients, according to the release. It expects 2026 revenue above US$80 million and adjusted EBITDA above US$10 million.

The headline price is about 3.1 times that revenue expectation, or about 4 times if the full earn-out is paid. Those ratios rest on company expectations for Freddie rather than audited results, and they do not account for cash or debt acquired.

Financial effect

Grindr expects the effect on its 2026 results to be immaterial and said it would give its 2027 outlook on its third-quarter earnings call in November.

This is the company's first major acquisition and a move from social networking toward healthcare. Healthcare brings regulatory, privacy and clinical-operations obligations different from those of an advertising and subscription app.

Latest reported results

Grindr reported second-quarter 2026 results on 6 August. Revenue was US$138 million, up 33%. Adjusted EBITDA was US$58 million, a 42% margin, against US$45 million a year earlier. The company raised 2026 revenue guidance to US$540 million.

Trailing twelve-month revenue is US$509.8 million, with net income of US$85.7 million. Separately, Grindr agreed on 7 September to pay £26 million to settle a UK lawsuit alleging it shared users' HIV status with advertisers.

Freddie integration and the 2027 earn-out

The cash component of the Freddie purchase is US$190 million, and the earn-out of up to US$70 million rests on Freddie's 2027 targets, so the full cost of up to US$320 million will not be settled until 2028.

Grindr's 2027 outlook, due on its November call, will give the first read on how Freddie sits alongside the app against a 2026 revenue guide of US$540 million.