Match Group Embraces AI to Revitalize Online Dating and Attract Gen Z Users

Match Group posts revenue above estimates as it looks to lure Gen Z with AI Push

Aug 5 (Reuters) - Tinder-parent Match Group's (MTCH.O), opens new tab second-quarter revenue surpassed Wall Street expectations on Tuesday, buoyed by strong performance at Hinge and a renewed strategic focus under new CEO Spencer Rascoff. Shares of the company rose 9% in extended trading. The company credited its revenue beat to the ongoing overhaul, which places greater emphasis on enhancing user experience, including the integration of an "AI-powered core discovery algorithm," to attract and retain users. Despite the topline growth, Match Group reported a 5% decline in paying users to 14.1 million, reflecting broader headwinds in the online dating sector. Industry peers, including Bumble (BMBL.O), opens new tab, have also faced sluggish demand as persistent inflation and a perceived lack of innovation have prompted some consumers to step back from app-based dating. In response, Match and Bumble have been focusing on user experience over numbers by introducing artificial intelligence features such as AI-enabled discovery to make it easier for users to improve their dating outcomes. The company is seeking to revamp its brand image, with a stated goal to "transform Tinder into a low-pressure, serendipitous experience designed for Gen Z." Match, which also owns Hinge and OkCupid, has rolled out new features such as its AI-enabled interactive matching product to cater to the Gen Z audience. The company further said it plans to reinvest approximately $50 million in the second half of 2025 into strategic initiatives, including product testing at Tinder and geographic expansion for Hinge, Azar and The League. For the second quarter, the company posted revenue of $864 million, above analysts' expectations of $853.6 million, according to data compiled by LSEG. This excludes a one-time charge of $14 million. Reporting by Kritika Lamba in Bengaluru; Editing by Alan Barona Our Standards: The Thomson Reuters Trust Principles., opens new tab

Match Group pops 10% as dating company shows early signs of a turnaround

Match Group shares popped more than 10% on Wednesday after the online dating company issued upbeat guidance and said new products are showing promise as it attempts to turnaround its business. The Dallas-based company said it expected revenues between $910 million and $920 million in the current quarter, beating a $890 million estimate from analysts polled by FactSet. "We are operating like a company that is just getting started, and we believe the best chapters of the category and company are still ahead," said CEO Spencer Rascoff during an earnings call Tuesday. "We are moving with urgency, we are obsessed with the product and we are building for the long term." Over the last year, Match and the broader online dating industry have grappled with slowing user engagement. The company has added more tools and features to its apps, including Tinder and Hinge, to lure back customers, especially Gen Z. Match has also been the target of activists investors such as Starboard Value, which has pushed the company to innovate, cut costs and improve profitability or consider going private. In an effort to revamp its business, Match appointed Zillow co-founder Rascoff as its new CEO in February. Under his direction, the company has implemented new artificial intelligence-powered tools and slashed roles. Match also added new features such as AI-powered discovery to many of its services and a double date feature on Tinder. Rascoff on Tuesday said that 90% or customers using this feature are under age 30. The company will also target the younger market with features geared toward college students and is planning to reinvest $50 million into new product development, Rascoff said. In 2026 and 2027, Rascoff said he expects AI innovation and international growth to expand its Hinge platform's leadership as Tinder becomes a "low-pressure, serendipitous experience designed for Gen Z." Hinge, he said, is also on track to deliver quarterly year-over-year growth in 2025. "Across the board, we believe the category will enter a new era, with renewed trust, strong demand and long-term growth potential," he said. Match posted in-line earnings of 49 cents per share. Revenues reached $864, topping the $854 million expected by analysts.

Match Group Investors Swipe Right On Q2 Results, Q3 Guidance - Match Group (NASDAQ:MTCH)

Dating app company Match Group Inc MTCH reported second-quarter financial results after market close Tuesday. MTCH stock is up after-hours. Track it now here. Here are the key highlights What Happens: Match Group reported second-quarter revenue of $864 million, flat year-over-year. The revenue total beat a Street consensus estimate of $853.76 million according to data from Benzinga Pro. The company reported earnings per share of 49 cents, which was in-line with Street estimates. Match's Payers were down 5% year-over-year to 14.1 million, but the company recognized a higher revenue per payer of $20.00. The company said Hinge saw monthly active users up around 20% year-over-year with user growth of 60% year-over-year in European Expansion markets. Hinge's new AI algorithm is helping increase matches and contact exchanges. "Six months ago, we took a hard look at how we work, what we build, and what users want from our apps," Match Group CEO Spencer Rascoff said. "We moved fast to reset the company culturally, organizationally, and strategically." Read Also: App Store Fee Cuts Set To Boost Duolingo, Match, Bumble Earnings What's Next: Rascoff said there has been "meaningful product progress at Tinder" along with momentum at Hinge, which are helping the company position for long-term success. "As we look ahead to our resurgence phase in 2026 and 2027, we are focused on delivering app experiences that feel modern, human and built for today's users," Rascoff said. "We are also working to spark a resurgence of trust, relevance, and confidence among both our users and investors." The company plans on reinvesting savings of $50 million in the second half into strategic initiatives across the company's portfolio. This includes product testing at Tinder and geographic expansion for some other apps like Hinge. Match also said a new dating concept would get some of the investment. The company is guiding for third quarter revenue of $910 million to $920 million, up 2% to 3% year-over-year. The revenue guidance is higher than a Street estimate of $889.21 million, according to data from Benzinga Pro. MTCH Price Action: Match stock is up 4.50% to $35.25 in after-hours trading Tuesday versus a 52-week trading range of $26.39 to $38.77. Read Next: Bumble Is 'Breaking Up' With 30% Staff, Investors Swipe Right Photo: Shutterstock MTCHMatch Group Inc$35.254.04%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum30.91Growth55.73QualityN/AValue30.20Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Match Group (MTCH) Q2 Revenue Tops 1% | The Motley Fool

Match Group (MTCH -0.44%), a leading provider of online dating products and services including Tinder and Hinge, released its second quarter results on August 5, 2025. The earnings showed GAAP revenue of $864 million, exactly flat with the prior year's quarter but $9.92 million, or 1.16%, ahead of consensus estimates (GAAP). GAAP earnings per share came in at $0.49, precisely matching analyst expectations. Management highlighted continued progress in its turnaround strategy, notably strong growth at Hinge, but the quarter also reflected ongoing declines in Tinder payers and margins. Overall, the quarter gave evidence of positive momentum in product innovation but showed lingering challenges around user trends and profitability. Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report. Match Group operates a diverse portfolio of online dating platforms, serving a wide range of users across global markets. Its most prominent brands include Tinder, designed for casual connections, and Hinge, which targets relationship-minded users. Other brands -- such as Match, Azar, and The League -- add geographical and demographic breadth. Success for the company has centered around three focus areas: brand portfolio strategy, technological innovation, and user safety. Differentiated brands allow for targeted user experiences, while ongoing investment in artificial intelligence (AI) and trust features aim to keep users engaged. Management consistently highlights safety and compliance, given the sensitive nature of user information. Match Group delivered GAAP revenue slightly ahead of expectations, while profitability metrics declined from the previous year. Adjusted operating income stood at $290 million, down 5%. Free cash flow (non-GAAP) increased almost 7% to $409 million for the six months ended June 30, 2025, highlighting strong financial discipline. Tinder, the group's largest revenue driver and a product focused on social discovery, continued to show a decrease in both monthly active users and payers. Specifically, total payers across the company dropped to 14.1 million, down 5% year-over-year. However, spending per paying user (RPP) rose 5% year-over-year, indicating that the company is increasing user monetization despite shrinking volume. Revenue in this segment grew 25% year-over-year, driven by a nearly 20% increase in global monthly active users and a 60% rise in users in European expansion markets. The platform also saw a 15% boost in contacts and matches due to its new AI-powered Core Discovery Algorithm, which debuted in March 2025. Technological innovation featured prominently, with significant reinvestment in AI capabilities. Tinder rolled out new features including AI-enabled Discovery and a redesigned Recommendations engine. At the same time, user trust remained a critical priority, reflected in expanded rollout of Face Check verification across Tinder and enhancements in AI-based bot detection. Across the group, cost reductions were underway -- Match Group reported $100 million in annualized savings, with $50 million of that being reinvested in further product and market expansion, especially at Tinder and Hinge, in the second half of 2025. The company also continued returning capital to shareholders, repurchasing 13.7 million shares year to date through June 30, 2025, for $420 million and paying out $95 million in dividends. Management offered clear forward guidance for Q3 2025, expecting total revenue of $910 million to $920 million, a projected rise of 2% to 3%, and adjusted operating income of $330 million to $335 million, representing a 3% decline. For FY2025, targets remain for revenue of $3.375 to $3.5 billion and an adjusted operating income margin of roughly 36.5%, excluding restructuring costs. These projections do not factor in any potential gains from ongoing efforts to reduce Apple App Store payment fees, although management did note the possibility for future upside. The main area for investors to watch remains Tinder's user trends and the group's overall ability to grow its base of payers. While Hinge continues to deliver strong organic growth, flat total revenue and shrinking margins at the group level put pressure on longer-term expansion. Technology differentiation is a moving target, with competitors ramping up their own AI features. As Match Group progresses through its transformation strategy and global expansions, the effectiveness of its product innovation and trust initiatives will be critical. MTCH currently pays a quarterly dividend of $0.19 per share.