Grindr (GRND) investor relations material

Deal rationale and strategic fit

• Acquisition of PurposeMed (Freddie) accelerates expansion into healthcare, leveraging a large user base already engaged with HIV PrEP and related health needs, and integrates a leading telehealth provider into a major LGBTQ+ platform.

• The deal supports a vision to make HIV prevention simple and accessible, targeting millions of users who could benefit from PrEP.

• Integrating Freddie's telehealth and pharmacy services with the app aims to simplify access to PrEP and other medications, driving user engagement and retention.

• Combines technology, clinical care, and community engagement to accelerate progress toward ending the HIV epidemic.

• The move aligns with a broader strategy to build a platform of businesses serving the gay community, enhancing both health outcomes and core app profitability.

Financial terms and conditions

• Purchase price is $250 million upfront ($190 million cash, $60 million stock), with up to $70 million additional cash tied to 2027 performance targets, payable in 2028.

• Both Boards have approved the transaction, expected to close in Q4 2026, subject to closing conditions and regulatory approvals.

• Freddie expects over $80 million in revenue and $10 million+ adjusted EBITDA for 2026; U.S. expansion margins currently reflect infrastructure investment.

• The acquisition is expected to have an immaterial impact on 2026 financial results.

Synergies and expected cost savings

• No direct operational synergies; margin improvement is expected from scaling patient volume and leveraging existing infrastructure.

• Integration will create a unified health experience, combining telehealth, pharmacy, and patient support within the app.

• Integration will enable recurring revenue through telehealth and pharmacy services, with per-patient annual revenue exceeding $4,800.

• Expected to drive revenue growth and margin improvements through expanded patient access and recurring care.