Perry Creek Capital Initiated a Position in Grindr Worth Nearly $6 Million. Is the Stock a Buy?

By Robert Izquierdo – Mar 10, 2026 at 9:02PM ESTKey PointsPerry Creek Capital bought 429,641 shares in Grindr; estimated trade size $5.82 million (based on quarterly average price).The quarter-end position value increased by $5.82 million due to the new purchase.The position represents 3.49% of 13F reportable assets under management.The position is not among the fund’s top five holdings by size as of quarter end.What happenedAccording to a filing with the Securities and Exchange Commission dated February 17, 2026, Perry Creek Capital LP initiated a new position in Grindr Inc. (GRND 0.58%) by purchasing 429,641 shares during the fourth quarter. The estimated transaction value was approximately $5.82 million, calculated using the average closing price for the period. The quarter-end value of the stake also stood at approximately $5.82 million, incorporating both the purchase and any price changes.What else to knowThis new position in Grindr represents 3.49% of Perry Creek’s 13F reportable assets under management.Top five holdings after the filing:NYSE:FAF: $61.98 million (37.2% of AUM)NYSE:PFGC: $27.40 million (16.5% of AUM)NYSE:PK: $18.43 million (11.1% of AUM)NASDAQ:ICLR: $17.31 million (10.4% of AUM)NYSE:MTN: $10.13 million (6.1% of AUM)As of February 13, 2026, Grindr shares were priced at $10.08, down 45.9% over the past year, underperforming the S&P 500 by 57.66 percentage points.Company OverviewMetricValuePrice (as of market close 2/13/26)$10.08Market Capitalization$2.22 billionRevenue (TTM)$439.90 millionNet Income (TTM)$94.75 millionCompany SnapshotGrindr operates a leading social networking platform for the LGBTQ community, offering both a free, ad-supported service and a premium subscription tier.The company generates revenue through its free, ad-supported service and premium subscription version.Its core user base comprises gay, bi, trans, and queer individuals seeking connection, content sharing, and self-expression.Grindr Inc. is a technology company specializing in software applications for LGBTQ social networking. The company offers both advertising and premium subscriptions as revenue streams.What this transaction means for investorsInvestment firm Perry Creek Capital’s decision to initiate a position in Grindr is noteworthy because it indicates a bullish outlook towards the stock.

While Perry Creek bought in the fourth quarter after shares had fallen significantly from their 52-week high of $25.13 reached last June, the stock continued to drop in 2026, eventually hitting a low of $9.73 in February.Shares fell due to a confluence of factors. In November, a $3.5 billion deal to take the dating app private fell through. In addition, Grindr exited 2025 with substantial debt of more than $375 million compared to total assets of $531 million.Even so, Perry Creek Capital’s buy makes sense. Grindr notched strong 28% year-over-year sales growth to $440 million in 2025. The company also achieved net income of $95 million last year, a dramatic turnaround from a net loss of $131 million in 2024.With the fall in Grindr’s share price, its price-to-sales ratio of five is the lowest in more than a year. This suggests now is a good time to pick up shares.About the AuthorRobert "Izzy" Izquierdo is a contributing Motley Fool stock market analyst covering information technology, consumer discretionary, consumer staples, and communication services sectors. Prior to The Motley Fool, Izzy was head of product management at Target Media Partners, developing and launching multimillion-dollar software used by businesses such as Charter Communications. Prior to that, he worked at Yahoo! and startups on software products in connected TV, AI, consumer apps, and digital advertising. He holds a bachelor’s degree in English literature from UCLA and is certified in software product management.TMFWryWriteStocks MentionedGrindrNYSE: GRND$11.91(-0.58%)-$0.07*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.