Core Viewpoint - The Schall Law Firm is investigating Bumble Inc. for potential violations of securities laws, particularly focusing on misleading statements and undisclosed information that may have affected investors [2]. Group 1: Company Performance - Bumble Inc. reported a significant 8.7% decline in users in its Q2 2025 financial results, despite efforts to enhance user engagement [2]. - Following the announcement of the user drop, Bumble's shares experienced a loss of over 15.9% the next day [2]. Group 2: Legal Action - The Schall Law Firm is inviting shareholders who suffered losses due to the company's performance to participate in the investigation [2]. - The firm specializes in securities class action lawsuits and shareholder rights litigation, representing investors globally [3].

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud or unlawful business practices by Bumble Inc. and its officers or directors, following a significant drop in the company's paying users and a subsequent decline in stock price [1][3][4]. Group 1: Company Performance - Bumble reported a 8.7% decrease in total paying users, dropping to 3.8 million in Q2 2025, compared to 4 million in Q1 2025 and 4.2 million in Q4 2024 [3]. - The company has introduced new AI-powered features aimed at enhancing trust and safety, but analysts suggest these measures may negatively impact user and payer growth in the short term due to stricter verification processes [3]. Group 2: Market Reaction - Following the release of its Q2 results, Bumble's stock price fell by $1.22, or 15.94%, closing at $6.43 per share on August 7, 2025 [4].

Core Insights - Bumble (BMBL) shares fell 8% in after-hours trading following Q2 2025 earnings, highlighting customer retention issues with paying users down 8.7% to 3.8 million and revenues of $248 million, a 7.6% year-over-year decline [1][9] User Retention Challenges - Total users decreased from approximately 58 million in 2023 to 50 million by mid-2025, while paying users on the Bumble app fell 11% to 2.5 million [2] - Average revenue per paying user increased by 1% to $21.69, but this slight gain does not compensate for the loss of subscribers [2] - Management's shift towards prioritizing quality over quantity has had mixed results, with full-price payers now making up 80% of total subscribers, up from 70% in Q1, yet overall user attrition is accelerating [2] Financial Performance - Adjusted EBITDA rose 26% to $94.6 million, achieving a 38.1% margin due to aggressive cost-cutting measures, including a 30% workforce reduction and $100 million in expense cuts [3] - The company holds $262 million in cash and generated $71 million in quarterly cash flow [3] Future Guidance - Q3 guidance indicates further revenue decline, projected between $240 million and $248 million, reflecting a 9% to 12% year-over-year decrease [4][9] - Management did not provide full-year 2025 guidance, acknowledging the need for several quarters to rebuild momentum [4] Competitive Landscape - Match Group (MTCH) and Grindr (GRND) are experiencing similar user retention challenges, but Match Group maintains over 16 million paying users across its brands, showing greater resilience [5] - Grindr's focus on the LGBTQ+ segment may insulate it from broader market trends affecting mainstream apps, while Match Group's diversified approach helps mitigate single-app volatility [6] Share Price and Valuation - Bumble's shares have dropped 21.9% year-to-date, contrasting with the Zacks Computer and Technology sector's growth of 12.5% and the Zacks Internet - Software industry's 19.3% return [7] - The Zacks Consensus Estimate for Q3 revenues is $244.56 million, indicating a 10.62% year-over-year decline, with earnings expected to rise 11.43% to $0.39 per share [11] - Bumble trades at a forward P/E of approximately 18.8x, significantly below the Zacks Internet - Software industry average of 38.87x [12]

Core Viewpoint - Bumble Inc. is under investigation for potential securities fraud and unlawful business practices following a significant drop in paying users and a subsequent decline in stock price [1][2][3] Group 1: Financial Performance - Bumble reported a total of 3.8 million paying users in Q2 2025, an 8.7% decrease from 4 million in Q1 2025 and 4.2 million in Q4 2024 [2] - The company has introduced new AI-powered features aimed at enhancing trust and safety, but analysts suggest these measures may negatively impact user and payer growth in the short term due to stricter verification processes [2] Group 2: Market Reaction - Following the release of its Q2 results, Bumble's stock price fell by $1.22, or 15.94%, closing at $6.43 per share on August 7, 2025 [3]

Core Insights - Pomerantz LLP is investigating claims on behalf of Bumble Inc. investors regarding potential securities fraud or unlawful business practices by the company and its officers or directors [1] Financial Performance - Bumble reported a decline in total paying users, which dropped by 8.7% to 3.8 million in Q2 2025, compared to 4 million in Q1 2025 and 4.2 million in Q4 2024 [3] - The company has introduced new AI-powered features aimed at enhancing trust and safety, but analysts suggest that these measures may negatively impact user and payer growth in the short term due to stricter verification processes [3] Market Reaction - Following the release of the disappointing Q2 results, Bumble's stock price fell by $1.22 per share, or 15.94%, closing at $6.43 per share on August 7, 2025 [4]

Group 1 - The core viewpoint is that the fundamentals of Bumble (NASDAQ: BMBL) are deteriorating, leading to a recommendation for a sell rating due to increasing competitive pressures [1] - The investment approach emphasizes the importance of long-term durability and affordability in companies, rather than merely focusing on low multiple stocks [1] - There is a recognition that while investing in successful companies carries risks, the potential for significant growth can sometimes outweigh immediate price concerns [1]

Core Insights - Bumble and Meta Platforms are two distinct players in the social connectivity landscape, with Bumble focusing on dating and social networking and Meta operating a suite of social media apps [1][2] - Both companies are at a critical juncture in 2025, with Bumble undergoing a strategic reset and Meta investing heavily in AI and technology [2] Bumble (BMBL) - Bumble is transforming under returning CEO Whitney Wolfe Herd, implementing a 30% workforce reduction and targeting $40 million in annual cost savings [2][4] - The company reported a second-quarter revenue decline of 8% year-over-year to $248 million, but maintained adjusted EBITDA margins of 38% [4][5] - Bumble's strategic pivot focuses on quality over quantity, with a significant increase in full-price payers from 70% to 80% of total payers [5] - Despite challenges, including a projected revenue decline of 9-12% year-over-year for Q3 2025, Bumble plans product launches aimed at differentiation in the competitive dating app market [5] Meta Platforms (META) - Meta Platforms reported second-quarter revenues of $47.52 billion, a 22% increase year-over-year, significantly surpassing analyst expectations [6][7] - The company’s advertising business, which constitutes 98% of total revenues, generated $46.6 billion, benefiting from AI-driven improvements [6][8] - Meta's capital expenditures for 2025 are projected to be between $66 billion and $72 billion, with a strong focus on AI development through its Llama 4 models [8] - The Threads platform has gained traction with 350 million monthly active users, and Reality Labs contributed $370 million in revenues despite a $4.53 billion operating loss [8] Valuation and Performance - Bumble trades at a P/E ratio of 21.75, reflecting a significant discount, while Meta commands a premium valuation with a P/E of approximately 25.98 [9] - Year-to-date, Meta shares have increased by approximately 25.6%, while Bumble shares have declined by 22.6% [13] - Meta's quarterly dividend of 52 cents per share and $50 billion buyback authorization enhance shareholder returns [13] Conclusion - While Bumble shows potential for operational improvement, Meta Platforms is positioned for superior growth due to its dominant market position, robust revenue growth, and leadership in AI [16] - Investors are advised to monitor Meta for attractive entry points while adopting a cautious approach with Bumble until clearer evidence of a successful turnaround emerges [16]

Core Insights - Bumble (BMBL) reported a second-quarter 2025 revenue drop of 7.6% to $248.2 million and an 8.7% decline in total paying users to 3.8 million, indicating challenges in its business transformation [1][9] - The company is focusing on attracting higher-quality users, with full-price payers now representing 80% of total payers, up from 70% in the previous quarter [5] - Bumble's forward P/E ratio is approximately 10.9x, significantly lower than the industry average of 39.76x, suggesting a market that has priced in considerable pessimism [7][9] Financial Performance - Adjusted EBITDA for Q2 2025 was $94.6 million, or 38.1% of revenues, compared to $75.0 million, or 27.9% of revenues, in the prior year, reflecting effective cost management [2] - The company recorded a net loss of $367 million, primarily due to non-cash impairment charges of $404.9 million, indicating a need to recalibrate growth expectations [3] - Cash flow generation was strong at $71 million in Q2, with a solid cash position of $262 million, providing financial flexibility during the transformation [16] Strategic Initiatives - Bumble is undergoing a comprehensive rebuild of its technology infrastructure with an AI-first approach, including enhanced trust and safety features [4] - The strategic pivot towards quality over quantity is expected to yield long-term benefits, although it may result in short-term pain reflected in declining user metrics and revenue guidance [5][15] Industry Context - The global online dating market is projected to grow from approximately $9.3 billion in 2024 to $13.4 billion by 2030, with a CAGR of 6.3% [6] - Bumble's primary competitor, Match Group (MTCH), maintains market dominance with over 16 million paying users, while other players like Grindr and Momo also operate in the space [6] Market Performance - Bumble's shares have declined 22.4% year-to-date, underperforming the Zacks Computer and Technology sector, which has grown by 7.4% [11] - The Zacks Consensus Estimate for third-quarter revenues is projected at $244.2 million, indicating a year-over-year decline of 10.75% [17]

FORM 10-Q [Registrant Information](index=1&type=section&id=Registrant%20Information) Bumble Inc. is a Delaware-registered company, trading on Nasdaq under BMBL, with 104,010,519 Class A and 20 Class B common shares outstanding as of July 31, 2025 - Bumble Inc. is a Delaware-registered company, listed on the Nasdaq Stock Market under the ticker **BMBL**[2](index=2&type=chunk)[3](index=3&type=chunk) Outstanding Common Stock | Metric | Quantity | | :--- | :--- | | Class A Common Stock (Outstanding) | 104,010,519 shares | | Class B Common Stock (Outstanding) | 20 shares | SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS [Forward-Looking Statements and Risks](index=3&type=section&id=Forward-Looking%20Statements%20and%20Risks) This report contains numerous forward-looking statements regarding company operations, financial performance, industry, and business strategies, including global workforce reductions and restructuring plans, subject to risks that may cause actual results to differ materially - This report contains numerous forward-looking statements concerning company operations, financial performance, industry, and business strategies, including global workforce reductions and restructuring plans[7](index=7&type=chunk) - Key risk factors include potential cost overruns or timing differences in workforce reductions and restructuring, failure to achieve anticipated restructuring benefits, user retention and conversion capabilities, market competition, third-party distribution channel fees, talent attraction and retention, brand value and reputation, product changes or new introductions, international operational risks (including geopolitical), data security breaches, AI management challenges, intellectual property protection, legal and regulatory compliance, high debt levels, and changes in macroeconomic conditions such as recession, inflation, and geopolitical conflicts[7](index=7&type=chunk)[8](index=8&type=chunk) Website and Social Media Disclosure [Company Information Distribution Channels](index=5&type=section&id=Company%20Information%20Distribution) The company disseminates information through its official websites (www.bumble.com and ir.bumble.com) and corporate social media accounts (e.g., X and LinkedIn), which investors should monitor for material information - The company publishes information through its official websites (www.bumble.com and ir.bumble.com) and corporate social media accounts such as X and LinkedIn[9](index=9&type=chunk) - Investors should monitor these channels for potentially material information, in addition to press releases, SEC filings, and public conference calls[9](index=9&type=chunk) Certain Definitions [Key Metrics and Terms](index=5&type=section&id=Key%20Metrics%20and%20Terms) This report defines key operating and financial metrics, including Bumble App paying users, Badoo App and other paying users, total paying users, and average revenue per paying user (ARPPU) for each app and overall, excluding paying users and revenue from Official, advertising, partnerships, or affiliates; the Geneva app generated no revenue as of June 30, 2025, and is thus excluded from key operating metrics - This report defines key metrics such as Badoo App and Other Average Revenue Per Paying User (ARPPU), Badoo App and Other Paying Users, Badoo App and Other Revenue, Bumble App ARPPU, Bumble App Paying Users, Bumble App Revenue, Total ARPPU, Total Paying Users, and Total Revenue[10](index=10&type=chunk)[11](index=11&type=chunk) - All key metrics exclude paying users and revenue from Official, advertising, partnerships, or affiliates; the Geneva app generated no revenue as of June 30, 2025, and is therefore not included in key operating metrics[10](index=10&type=chunk) PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=9&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the company's unaudited condensed consolidated financial statements, including balance sheets, statements of operations, comprehensive operations, changes in equity, and cash flows, along with related notes, providing financial position and operating performance as of June 30, 2025 [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's condensed consolidated balance sheets, detailing assets, liabilities, and equity as of June 30, 2025, and December 31, 2024 | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change | Change % | | :--- | :--- | :--- | :--- | :--- | | **Assets** | | | | | | Cash and Cash Equivalents | 261,739 | 204,319 | 57,420 | 28.1% | | Total Current Assets | 398,067 | 342,242 | 55,825 | 16.3% | | Goodwill | 1,129,007 | 1,386,229 | (257,222) | -18.6% | | Intangible Assets, Net | 588,867 | 748,906 | (160,039) | -21.4% | | Total Assets | 2,161,495 | 2,524,887 | (363,392) | -14.4% | | **Liabilities and Stockholders' Equity** | | | | | | Total Current Liabilities | 120,495 | 138,570 | (18,075) | -13.0% | | Long-Term Debt, Net | 609,418 | 611,346 | (1,928) | -0.3% | | Payable to Related Parties Pursuant to Tax Receivable Agreement | 399,740 | 400,926 | (1,186) | -0.3% | | Total Liabilities | 1,157,002 | 1,175,833 | (18,831) | -1.6% | | Equity Attributable to Bumble Inc. Stockholders | 577,611 | 824,535 | (246,924) | -29.9% | | Non-Controlling Interests | 426,882 | 524,519 | (97,637) | -18.6% | | Total Stockholders' Equity | 1,004,493 | 1,349,054 | (344,561) | -25.5% | - As of June 30, 2025, **total assets were $2.16 billion**, a **14.4% decrease** from December 31, 2024, primarily due to goodwill and intangible asset impairments; **cash and cash equivalents increased by 28.1% to $262 million**, while **total stockholders' equity decreased by 25.5% to $1.004 billion**[17](index=17&type=chunk) [Condensed Consolidated Statements of Operations](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section details the company's unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2025 and 2024 | Metric (in thousands) | Q2 2025 | Q2 2024 | YoY Change % | H1 2025 | H1 2024 | YoY Change % | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 248,229 | 268,615 | -7.5% | 495,330 | 536,390 | -7.6% | | Operating Costs and Expenses | 586,572 | 216,661 | 170.7% | 789,023 | 435,646 | 81.1% | | Operating Income (Loss) | (338,343) | 51,954 | -751.1% | (293,693) | 100,744 | -391.5% | | Net Income (Loss) | (366,983) | 37,686 | -1075.5% | (347,152) | 71,559 | -585.8% | | Net Income (Loss) Attributable to Bumble Inc. Stockholders | (253,744) | 27,395 | -1026.2% | (240,300) | 52,012 | -562.0% | | Basic Earnings (Loss) Per Share | (2.45) | 0.22 | -1213.6% | (2.31) | 0.41 | -663.4% | | Diluted Earnings (Loss) Per Share | (2.45) | 0.22 | -1213.6% | (2.31) | 0.41 | -663.4% | - In Q2 2025, **revenue decreased by 7.5% year-over-year to $248 million**, with a **net loss of $367 million**, primarily due to **$405 million in impairment losses**; net loss attributable to Bumble Inc. stockholders was **$254 million**, resulting in **basic and diluted loss per share of $2.45**[20](index=20&type=chunk) - For H1 2025, **revenue decreased by 7.6% year-over-year to $495 million**, with a **net loss of $347 million**, primarily due to **$408 million in impairment losses**; net loss attributable to Bumble Inc. stockholders was **$240 million**, resulting in **basic and diluted loss per share of $2.31**[20](index=20&type=chunk) [Condensed Consolidated Statements of Comprehensive Operations](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Operations) This section presents the company's unaudited condensed consolidated statements of comprehensive operations for the three and six months ended June 30, 2025 and 2024 | Metric (in thousands) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income (Loss) | (366,983) | 37,686 | (347,152) | 71,559 | | Other Comprehensive Income (Loss), Net of Tax | 18,794 | (19) | 30,180 | (2,980) | | Comprehensive Income (Loss) | (348,189) | 37,667 | (316,972) | 68,579 | | Comprehensive Income (Loss) Attributable to Bumble Inc. Stockholders | (240,734) | 27,381 | (219,426) | 49,836 | - In Q2 2025, the company reported a **comprehensive loss of $348 million**, compared to comprehensive income of **$37.7 million** in Q2 2024; for H1 2025, the **comprehensive loss was $317 million**, compared to comprehensive income of **$68.6 million** in H1 2024, primarily due to changes in net loss and foreign currency translation adjustments[23](index=23&type=chunk) [Condensed Consolidated Statements of Changes in Equity](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) This section outlines the company's unaudited condensed consolidated statements of changes in equity for the six months ended June 30, 2025 and 2024 - As of June 30, 2025, **total stockholders' equity was $1.004 billion**, a **25.5% decrease** from **$1.349 billion** on December 31, 2024, primarily due to a **net loss of $240 million** and changes in additional paid-in capital and non-controlling interests from share repurchases, restricted stock unit issuances, and partnership tax and other distributions[32](index=32&type=chunk) - In H1 2025, the company repurchased **4.7 million shares of Class A common stock valued at $28.7 million**, in addition to tax-related payments for tax receivable agreements and employee stock awards[32](index=32&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=17&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the company's unaudited condensed consolidated statements of cash flows for the six months ended June 30, 2025 and 2024 | Metric (in thousands) | H1 2025 | H1 2024 | YoY Change | YoY Change % | | :--- | :--- | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | 114,481 | 35,345 | 79,136 | 223.9% | | Net Cash Used in Investing Activities | (5,920) | (4,531) | (1,389) | 30.7% | | Net Cash Used in Financing Activities | (51,404) | (101,003) | 49,599 | -49.1% | | Net Increase (Decrease) in Cash and Cash Equivalents | 58,631 | (68,972) | 127,603 | -184.9% | | Cash and Cash Equivalents, End of Period | 261,739 | 286,664 | (24,925) | -8.7% | - In H1 2025, **net cash from operating activities significantly increased by 223.9% to $114 million**, primarily due to non-cash adjustments like impairment losses; **net cash used in financing activities decreased by 49.1% to $51.4 million**, mainly due to reduced share repurchases[38](index=38&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=19&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the unaudited condensed consolidated financial statements, offering further context and breakdowns of key accounting policies and financial figures [Note 1 - Organization and Basis of Presentation](index=19&type=section&id=Note%201%20-%20Organization%20and%20Basis%20of%20Presentation) Bumble Inc. provides online dating and social networking services through subscriptions and in-app purchases, operating under an umbrella partnership-C corporation structure where Bumble Inc. consolidates Bumble Holdings' financial statements - Bumble Inc. primarily offers online dating and social networking application services through subscriptions and in-app purchases, serving North America, Europe, and other global regions[41](index=41&type=chunk) - The company was formed on October 5, 2020, to operate Buzz Holdings L.P. and its subsidiaries through an IPO, adopting an umbrella partnership-C corporation structure where Bumble Inc. consolidates Bumble Holdings' financial statements as the general partner[41](index=41&type=chunk)[44](index=44&type=chunk) - As of June 30, 2025, assuming all outstanding common units were exchanged for Class A common stock on a one-for-one basis, **150,161,565 shares of Class A common stock would be outstanding**[45](index=45&type=chunk) [Note 2 - Summary of Selected Significant Accounting Policies](index=21&type=section&id=Note%202%20-%20Summary%20of%20Selected%20Significant%20Accounting%20Policies) This note outlines the company's significant accounting policies, including estimates, cash, goodwill, intangible assets, long-lived assets, share repurchase programs, and revenue recognition, noting goodwill and intangible asset impairment losses in H1 2025 due to strategic adjustments and asset sales - In Q1 2025, the company adjusted "Accumulated Other Comprehensive Income" and "Additional Paid-in Capital" to correct errors related to changes in subsidiary ownership interests, with no material impact on previously reported consolidated statements of operations, comprehensive operations, and cash flows[49](index=49&type=chunk) - The company recognized goodwill and intangible asset impairment losses in H1 2025 due to strategic adjustments and the sale of assets (Fruitz)[59](index=59&type=chunk)[62](index=62&type=chunk) - The company adopted ASU 2024-01 in Q1 2025, clarifying the scope application for profit interests and similar awards, which did not have a material impact on the financial statements[72](index=72&type=chunk) - The company announced its decision in June 2025 to sell the Fruitz app and classified it as an asset held for sale[63](index=63&type=chunk)[64](index=64&type=chunk) Revenue by App | Metric (in thousands) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Bumble App Revenue | 201,380 | 217,984 | 403,202 | 433,740 | | Badoo App and Other Revenue | 46,849 | 50,631 | 92,128 | 102,650 | | Total Revenue | 248,229 | 268,615 | 495,330 | 536,390 | [Note 3 - Income Taxes](index=25&type=section&id=Note%203%20-%20Income%20Taxes) The company's effective tax rates for Q2 and H1 2025 were (1.8)% and (3.7)%, respectively, differing from the 21% U.S. federal statutory rate due to geographic earnings distribution, non-controlling interests, non-deductible equity compensation, Pillar Two minimum tax, and valuation allowances on deferred tax assets Effective Tax Rates | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Effective Tax Rate | (1.8)% | 10.9% | (3.7)% | 14.5% | - The effective tax rate differs from the **21% U.S. federal statutory rate** primarily due to the geographic distribution of earnings, non-controlling interests, non-deductible equity compensation, Pillar Two minimum tax impact, and valuation allowances on certain deferred tax assets[78](index=78&type=chunk)[79](index=79&type=chunk) [Note 4 - Payable to Related Parties Pursuant to a Tax Receivable Agreement](index=25&type=section&id=Note%204%20-%20Payable%20to%20Related%20Parties%20Pursuant%20to%20a%20Tax%20Receivable%20Agreement) The company entered into tax receivable agreements with pre-IPO owners, committing to pay 85% of tax benefits from existing tax basis and other tax attributes; as of June 30, 2025, a $399.7 million liability was recorded, with total expected future payments of $685.3 million over 15 years - The company entered into tax receivable agreements with pre-IPO owners, committing to pay them **85% of the tax benefits** derived from existing tax basis and other tax attributes obtained through the IPO[80](index=80&type=chunk) Tax Receivable Agreement Liability | Metric (in thousands) | June 30, 2025 | | :--- | :--- | | Recorded Tax Receivable Agreement Liability | 399,740 | | Estimated Future Additional Liability | 285,600 | | Estimated Total Liability | 685,300 | - In H1 2025, the tax receivable agreement liability **decreased by $17 million**, primarily due to payments made in Q1 2025 and the impact of share repurchases[81](index=81&type=chunk) [Note 5 - Goodwill and Intangible Assets, Net](index=26&type=section&id=Note%205%20-%20Goodwill%20and%20Intangible%20Assets,%20Net) The company recognized total impairment losses of $404.9 million in Q2 2025, including $258.1 million for goodwill, $140 million for indefinite-lived intangible assets, and $6.8 million related to Fruitz, driven by revised 2025 outlook and strategic adjustments Goodwill and Intangible Assets | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Goodwill, Net | 1,129,007 | 1,386,229 | (257,222) | | Intangible Assets, Net | 588,867 | 748,906 | (160,039) | - In Q2 2025, the company recognized a **goodwill impairment loss of $258.1 million**, primarily due to a revised 2025 outlook and strategic adjustments, along with **$1.8 million** related to Fruitz, an asset held for sale[82](index=82&type=chunk) - In Q2 2025, the company recognized an **impairment loss of $140 million** for indefinite-lived intangible assets and **$5 million** related to Fruitz; an additional **$3.6 million impairment** for finite-lived intangible assets was recognized in Q1 2025 due to the discontinuation of the Official app[84](index=84&type=chunk)[85](index=85&type=chunk) Estimated Amortization | Estimated Amortization (in thousands) | Amount | | :--- | :--- | | Remainder of 2025 | 5,691 | | 2026 | 8,916 | | 2027 | 6,612 | | 2028 | 3,570 | | 2029 and thereafter | 2,520 | | Total | 27,309 | [Note 6 - Asset Held for Sale](index=29&type=section&id=Note%206%20-%20Asset%20Held%20for%20Sale) The company decided to cease operations of the Fruitz app, approving its sale to a third party in June 2025, with the transaction completed in July 2025; Fruitz was classified as an asset held for sale, resulting in a $6.8 million impairment loss, including $1.8 million in goodwill impairment - The company decided to cease operations of the Fruitz app and approved its sale to a third party in June 2025, with the transaction completed in July 2025[89](index=89&type=chunk) - Fruitz was classified as an asset held for sale, and an **impairment loss of $6.8 million** was recognized, including **$1.8 million in goodwill impairment**[90](index=90&type=chunk) Net Assets Held for Sale | Metric (in thousands) | June 30, 2025 | | :--- | :--- | | Net Assets Held for Sale | 2,800 | | Of which: Other Current Assets | 1,400 | | Of which: Other Non-Current Assets | 2,200 | | Of which: Accrued Expenses and Other Current Liabilities | (800) | [Note 7 - Restructuring](index=29&type=section&id=Note%207%20-%20Restructuring) The company announced a 2025 restructuring plan in June, involving approximately 240 layoffs (30% of staff) and an estimated $13 million to $18 million in non-recurring charges; the decision to cease Fruitz and Official app operations in February 2025 incurred $1.4 million in costs, while the 2024 restructuring plan was completed in Q3 2024 with $20.4 million in expenses - In June 2025, the company announced a 2025 restructuring plan, involving approximately **240 layoffs (30% of total employees)**, expected to incur **$13 million to $18 million in non-recurring charges**[91](index=91&type=chunk)[164](index=164&type=chunk)[165](index=165&type=chunk) - In February 2025, the company decided to cease operations of the Fruitz and Official apps, incurring an estimated **$1.4 million in expenses**[92](index=92&type=chunk)[166](index=166&type=chunk) - The 2024 restructuring plan was completed in Q3 2024, resulting in approximately **$20.4 million in non-recurring charges**[93](index=93&type=chunk)[167](index=167&type=chunk) Restructuring Expenses | Restructuring Expenses (in thousands) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Cost of Revenue | 958 | 85 | 994 | 1,006 | | Sales and Marketing Expenses | 1,830 | 163 | 2,025 | 3,247 | | General and Administrative Expenses | 3,354 | 1,482 | 3,429 | 6,072 | | Product Development Expenses | 6,036 | 1,427 | 6,940 | 9,448 | | Total | 12,178 | 3,157 | 13,388 | 19,773 | [Note 8 - Other Financial Data](index=30&type=section&id=Note%208%20-%20Other%20Financial%20Data) This note provides detailed breakdowns of other current assets, accrued expenses and other current liabilities, and other long-term liabilities; as of June 30, 2025, other current assets primarily included capitalized aggregation fees and prepayments, while accrued expenses and other current liabilities were dominated by payroll and related expenses, marketing, and professional services Other Current Assets | Other Current Assets (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Capitalized Aggregation Fees | 9,919 | 10,979 | | Prepayments | 19,015 | 17,079 | | Other Current Assets | 9,999 | 10,178 | | Total | 38,933 | 38,236 | Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Payroll and Related Expenses | 30,659 | 23,443 | | Marketing Expenses | 8,069 | 23,155 | | Professional Services Fees | 6,443 | 5,480 | | Other Accrued Expenses | 4,451 | 5,936 | | Lease Liabilities | 3,423 | 3,099 | | Income Taxes Payable | 5,353 | 2,794 | | Contingent Consideration Liability | 1,969 | 2,550 | | Payable to Related Parties Pursuant to Tax Receivable Agreement | — | 15,806 | | Other Payables | 4,674 | 537 | | Total | 65,041 | 82,800 | [Note 9 - Fair Value Measurements](index=30&type=section&id=Note%209%20-%20Fair%20Value%20Measurements) The company's financial instruments measured at fair value on a recurring basis include money market funds, derivative assets, and equity investments; as of June 30, 2025, the company held $212 million in money market funds and $2 million in derivative assets, with a $2 million contingent consideration liability measured using unobservable inputs (Level 3) Fair Value of Financial Instruments | Financial Instrument (in thousands) | Fair Value June 30, 2025 | Fair Value December 31, 2024 | | :--- | :--- | :--- | | Cash Equivalents - Money Market Funds | 211,764 | 102,309 | | Derivative Assets | 1,982 | 5,852 | | Equity Investments | 1,078 | 1,150 | | Contingent Consideration Liability | 1,969 | 2,550 | - The company uses interest rate derivatives to manage interest rate volatility risk on its debt, which are not designated as accounting hedges, with fair value changes recognized in "Interest income (expense), net"[99](index=99&type=chunk) - The contingent consideration liability is measured using probability-weighted analysis and discount rates, totaling **$2 million** as of June 30, 2025, and is included in "Accrued expenses and other current liabilities"[100](index=100&type=chunk) - In H1 2025, the company recorded **$140 million in indefinite-lived intangible asset impairment**, **$3.6 million in finite-lived intangible asset impairment**, and **$260 million in goodwill impairment**[102](index=102&type=chunk) [Note 10 - Debt](index=32&type=section&id=Note%2010%20-%20Debt) As of June 30, 2025, the company's total net debt was $615 million, primarily comprising a term loan due January 29, 2027; the company also has a $50 million senior secured revolving credit facility, paid $2.875 million in term loan principal in H1 2025, and remains in compliance with all financial debt covenants Debt Composition | Debt Composition (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Term Loan Due January 29, 2027 | 618,437 | 621,313 | | Less: Unamortized Debt Issuance Costs | 3,269 | 4,217 | | Less: Current Portion of Long-Term Debt, Net | 5,750 | 5,750 | | Total Long-Term Debt, Net | 609,418 | 611,346 | - The company has a **$50 million senior secured revolving credit facility** due June 17, 2026, which was available as of June 30, 2025[104](index=104&type=chunk)[106](index=106&type=chunk) - The term loan interest rates are based on adjusted SOFR, with rates of **7.18% and 7.68%** for the original and incremental term loans, respectively, as of June 30, 2025[104](index=104&type=chunk)[106](index=106&type=chunk) - In H1 2025, the company paid **$2.875 million in term loan principal** and was in compliance with all financial debt covenants[106](index=106&type=chunk) [Note 11 - Earnings (Loss) per Share](index=32&type=section&id=Note%2011%20-%20Earnings%20(Loss)%20per%20Share) The company reported basic and diluted loss per share of $2.45 and $2.31 for Q2 and H1 2025, respectively, compared to earnings per share of $0.22 and $0.41 in the corresponding 2024 periods, primarily due to net losses Earnings (Loss) Per Share | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income (Loss) Attributable to Bumble Inc. Stockholders (in thousands) | (253,744) | 27,395 | (240,300) | 52,012 | | Basic Earnings (Loss) Per Share | (2.45) | 0.22 | (2.31) | 0.41 | | Diluted Earnings (Loss) Per Share | (2.45) | 0.22 | (2.31) | 0.41 | - Due to net losses, the company reported **basic and diluted loss per share** for both Q2 and H1 2025[109](index=109&type=chunk) - As of June 30, 2025, **15,693,096 potentially dilutive securities** (including options, restricted stock, and RSUs) were excluded from diluted EPS calculations because their effect was anti-dilutive or issuance conditions were not met[110](index=110&type=chunk) [Note 12 - Stock-based Compensation](index=34&type=section&id=Note%2012%20-%20Stock-based%20Compensation) Stock-based compensation expense for Q2 and H1 2025 was $5.8 million and $10 million, respectively, an increase from 2024, primarily due to forfeitures and layoffs related to the 2024 restructuring plan; as of June 30, 2025, unrecognized compensation cost for time-vesting RSUs was $59.7 million, expected to be recognized over 2.3 years Stock-based Compensation Expense | Stock-based Compensation Expense (in thousands) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Cost of Revenue | 194 | (226) | 348 | 319 | | Sales and Marketing Expenses | 590 | 44 | (249) | (2,818) | | General and Administrative Expenses | 3,507 | 7,892 | (387) | 6,386 | | Product Development Expenses | 1,558 | (5,621) | 10,275 | (1,772) | | Total | 5,849 | 2,089 | 9,987 | 2,115 | - Stock-based compensation expense for Q2 and H1 2025 increased compared to the prior year, primarily due to forfeitures and layoffs related to the 2024 restructuring plan[111](index=111&type=chunk) - As of June 30, 2025, unrecognized compensation cost related to time-vesting RSUs was **$59.7 million**, expected to be recognized over an average period of **2.3 years**[115](index=115&type=chunk) - As of June 30, 2025, the weighted-average exercise price for all stock options was above the market price, resulting in a negative intrinsic value[118](index=118&type=chunk) [Note 13 - Related Party Transactions](index=37&type=section&id=Note%2013%20-%20Related%20Party%20Transactions) The company engages in various related party transactions, including marketing costs, moderation costs, and advertising revenue; in H1 2025, the company repurchased $28.7 million of Class A common stock and common units held by Blackstone-affiliated entities, and also has tax receivable agreements with pre-IPO owners Related Party Transactions | Transaction Type | Financial Statement Line | Q2 2025 (in thousands) | Q2 2024 (in thousands) | H1 2025 (in thousands) | H1 2024 (in thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | | Marketing Costs | Sales and Marketing Expenses | 653 | 1,338 | 2,301 | 2,960 | | Moderation Costs | Cost of Revenue | 2,227 | 1,675 | 4,299 | 3,267 | | Advertising Revenue | Revenue | 543 | 297 | 822 | 608 | | Tax Receivable Agreement Remeasurement Expense | Other Income (Expense), Net | 29 | — | 886 | 230 | - In H1 2025, the company repurchased approximately **2.5 million shares of Class A common stock and 2.0 million common units** held by Blackstone-affiliated entities, totaling **$28.7 million**[121](index=121&type=chunk)[156](index=156&type=chunk) - The company conducts business with Blackstone-affiliated entities such as Liftoff Mobile Inc. (advertising revenue and marketing expenses) and TaskUs Inc. (moderation services)[123](index=123&type=chunk) [Note 14 - Segment and Geographic Information](index=38&type=section&id=Note%2014%20-%20Segment%20and%20Geographic%20Information) The company operates as a single operating segment, with the CEO assessing performance based on consolidated revenue, operating income (loss), and net income (loss); in Q2 and H1 2025, revenue from outside the U.S. accounted for 55.7% and 54.6% of total revenue, respectively - The company operates as a single operating segment, with the CEO evaluating performance based on consolidated revenue, operating income (loss), and net income (loss)[124](index=124&type=chunk) Revenue Geographic Distribution | Revenue Geographic Distribution | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | United States | 44% | 49% | 45% | 49% | | Rest of World | 56% | 51% | 55% | 51% | - The United States is the only country accounting for **10% or more of the company's total revenue**; the United Kingdom, United States, and Czech Republic are countries where **net property and equipment account for 10% or more of the company's total net property and equipment**[125](index=125&type=chunk)[126](index=126&type=chunk) [Note 15 - Commitments and Contingencies](index=38&type=section&id=Note%2015%20-%20Commitments%20and%20Contingencies) The company faces various legal proceedings and government investigations, including a shareholder derivative lawsuit related to the 2021 secondary public offering and a class action lawsuit concerning California's Unruh Civil Rights Act; a $0.4 million reserve has been established for legal claims, and significant cloud service purchase commitments totaling approximately $13.3 million are anticipated - The company faces multiple legal proceedings and government investigations, including a shareholder derivative lawsuit related to the 2021 secondary public offering and a class action lawsuit concerning California's Unruh Civil Rights Act[128](index=128&type=chunk)[131](index=131&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk) - In July 2025, the Delaware Court of Chancery dismissed the shareholder derivative lawsuit related to the 2021 secondary public offering, and the U.S. District Court also dismissed related litigation[134](index=134&type=chunk) - The company has established a **$0.4 million reserve for legal claims** and anticipates future purchase commitments related to cloud services, with remaining commitments totaling approximately **$13.3 million** as of June 30, 2025[139](index=139&type=chunk)[140](index=140&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=42&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section discusses the company's financial condition and operating results as of June 30, 2025, focusing on revenue decline, increased net loss (primarily due to impairment losses), and changes in key operating metrics, while also outlining new growth strategies, macroeconomic impacts, non-GAAP financial measures, and liquidity and capital resources [Overview](index=42&type=section&id=Overview) Bumble Inc. offers online dating and social networking through apps like Bumble, Bumble For Friends, Badoo, and Geneva, implementing a new strategy focused on enhancing member value and achieving long-term sustainable growth through product innovation (including AI), technology modernization, and evolving revenue strategies, while discontinuing Fruitz and Official apps - Bumble Inc. provides online dating and social networking services through applications such as Bumble, Bumble For Friends, Badoo, and Geneva[142](index=142&type=chunk) - The company is implementing a new strategy aimed at enhancing member value and achieving long-term sustainable growth through product innovation (including AI applications), technology modernization, and evolving revenue strategies[151](index=151&type=chunk) - As part of its strategic adjustments, the company has ceased operations of the Official app and sold the Fruitz app in July 2025[142](index=142&type=chunk) [Quarter ended June 30, 2025 Consolidated Results](index=42&type=section&id=Quarter%20ended%20June%2030,%202025%20Consolidated%20Results) In Q2 2025, total revenue was $248.2 million, a 7.5% year-over-year decrease, with a net loss of $367 million, primarily due to $404.9 million in impairment losses; adjusted EBITDA was $94.6 million, with an adjusted EBITDA margin of 38.1% Consolidated Results for Q2 | Metric (in millions) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Revenue | 248.2 | 268.6 | | Bumble App Revenue | 201.4 | 218.0 | | Badoo App and Other Revenue | 46.8 | 50.6 | | Net Loss | (367.0) | 37.7 | | Adjusted EBITDA | 94.6 | 75.0 | | Adjusted EBITDA Margin | 38.1% | 27.9% | - The **net loss of $367 million** includes **$404.9 million in impairment losses**[143](index=143&type=chunk) [Year-to-Date ended June 30, 2025 Consolidated Results](index=42&type=section&id=Year-to-Date%20ended%20June%2030,%202025%20Consolidated%20Results) For H1 2025, total revenue was $495.3 million, a 7.6% year-over-year decrease, with a net loss of $347.2 million, primarily due to $408.5 million in impairment losses; adjusted EBITDA was $159 million, with an adjusted EBITDA margin of 32.1%, and operating cash flow was $114.5 million, with free cash flow at $108.6 million Consolidated Results for H1 | Metric (in millions) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Total Revenue | 495.3 | 536.4 | | Bumble App Revenue | 403.2 | 433.7 | | Badoo App and Other Revenue | 92.1 | 102.7 | | Net Loss | (347.2) | 71.6 | | Adjusted EBITDA | 159.0 | 149.0 | | Adjusted EBITDA Margin | 32.1% | 27.8% | | Net Cash Provided by Operating Activities | 114.5 | 35.3 | | Free Cash Flow | 108.6 | 30.8 | - The **net loss of $347.2 million** includes **$408.5 million in impairment losses**[143](index=143&type=chunk) [Key Operating and Financial Metrics](index=43&type=section&id=Key%20Operating%20and%20Financial%20Metrics) In Q2 2025, total paying users decreased by 8.7% year-over-year to 3.777 million, while total average revenue per paying user (ARPPU) increased by 1.5% to $21.69; Bumble App paying users decreased by 11.3%, and Badoo App and Other paying users decreased by 3.3% Key Operating and Financial Metrics | Metric (in thousands/dollars) | Q2 2025 | Q2 2024 | YoY Change % | H1 2025 | H1 2024 | YoY Change % | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Bumble App Paying Users | 2,499.8 | 2,817.2 | -11.3% | 2,604.1 | 2,773.6 | -6.1% | | Badoo App and Other Paying Users | 1,277.4 | 1,321.4 | -3.3% | 1,291.9 | 1,307.9 | -1.2% | | Total Paying Users | 3,777.2 | 4,138.6 | -8.7% | 3,896.0 | 4,081.5 | -4.5% | | Bumble App ARPPU | 26.85 | 25.79 | 4.1% | 25.81 | 26.06 | -1.0% | | Badoo App and Other ARPPU | 11.57 | 11.93 | -3.0% | 11.14 | 12.14 | -8.2% | | Total ARPPU | 21.69 | 21.37 | 1.5% | 20.94 | 21.60 | -3.0% | - These metrics exclude paying users and revenue from Official, advertising, and partnerships or affiliates; the Geneva app generated no revenue and is therefore not included[145](index=145&type=chunk) [Profitability and Liquidity](index=43&type=section&id=Profitability%20and%20Liquidity) The company assesses profitability and liquidity using net income (loss) and cash flow from operations, supplemented by non-GAAP metrics like Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, and Free Cash Flow Conversion, to provide a more consistent and comparable operational overview - The company uses net income (loss) and cash flow from operating activities to assess profitability and liquidity[147](index=147&type=chunk) - Adjusted EBITDA is defined as net income (loss) excluding income taxes, interest and derivative gains/losses, depreciation and amortization, stock-based compensation expense, employer-related costs, foreign currency gains/losses, fair value changes in contingent consideration, equity investments, transaction and other costs, litigation costs, tax receivable agreement remeasurement expense, impairment losses, and restructuring costs[147](index=147&type=chunk)[215](index=215&type=chunk) - Free Cash Flow is defined as cash flow from operating activities less capital expenditures[148](index=148&type=chunk)[216](index=216&type=chunk) [Key Factors Affecting our Performance](index=44&type=section&id=Key%20Factors%20Affecting%20our%20Performance) Company performance is influenced by a new growth strategy focusing on member value, product innovation, and AI applications (reducing paid user acquisition), macroeconomic conditions (e.g., conflicts in Eastern Europe and the Middle East, recession, tariff changes, and exchange rate fluctuations), and their impact on consumer disposable income and operating costs - The company is implementing a new growth strategy focused on cultivating a healthy member base, enhancing member experience through product innovation (including AI applications), modernizing technology, and evolving revenue strategies[151](index=151&type=chunk) - Strategic adjustments include shifting from paid member acquisition and performance marketing to brand and organic investments, which may negatively impact member growth, revenue, and paying users in the short term[151](index=151&type=chunk) - Macroeconomic conditions, including conflicts in Eastern Europe and the Middle East, slowing economic growth or recession, changes in fiscal and monetary policies (such as tariffs), and foreign currency exchange rate fluctuations, continue to affect company operations and consumer disposable income[153](index=153&type=chunk) [Factors Affecting the Comparability of Our Results of Operations](index=44&type=section&id=Factors%20Affecting%20the%20Comparability%20of%20Our%20Results%20of%20Operations) Key factors affecting comparability include the share repurchase program ($28.7 million repurchased in H1 2025), tax receivable agreements (net decrease of $17 million in liability in H1 2025), impairment losses ($404.9 million recognized in Q2 2025), the Geneva acquisition (completed July 2024), and restructuring plans (layoffs in 2025 and 2024) - Share Repurchase Program: **$28.7 million of Class A common stock was repurchased in H1 2025**, compared to **$84.4 million of Class A common stock and common units repurchased in H1 2024**[156](index=156&type=chunk) - Tax Receivable Agreements: In H1 2025, the tax receivable agreement liability **decreased by $17 million**, primarily due to payments made in Q1 2025 and the impact of share repurchases[158](index=158&type=chunk) - Impairment Losses: **$404.9 million in impairment losses** were recognized in Q2 2025, including goodwill, indefinite-lived intangible assets, and Fruitz (asset held for sale); impairment for the Official app asset group was also recognized in Q1 2025[160](index=160&type=chunk) - Acquisitions: The acquisition of Geneva Technologies Inc. was completed on July 1, 2024, for a **cash consideration of $17.5 million**[163](index=163&type=chunk) - Restructuring: In June 2025, approximately **240 layoffs** were announced, with estimated costs of **$13 million to $18 million**; the decision to cease Fruitz and Official app operations in February 2025 incurred estimated costs of **$1.4 million**; the 2024 restructuring plan was completed, incurring **$20.4 million in costs**[164](index=164&type=chunk)[165](index=165&type=chunk)[166](index=166&type=chunk)[167](index=167&type=chunk) [Components of Results of Operations](index=47&type=section&id=Components%20of%20Results%20of%20Operations) This section details the components of the company's consolidated statements of operations, including revenue (primarily from subscriptions and in-app purchases), cost of revenue (in-app purchase fees, data centers, employee compensation), sales and marketing expenses, general and administrative expenses, product development expenses, depreciation and amortization, impairment losses, interest income (expense) net, other income (expense) net, and income tax provision - Revenue primarily derives from subscriptions and in-app purchases, utilizing a freemium model, and also includes online advertising and partnership revenue[170](index=170&type=chunk)[171](index=171&type=chunk) - Cost of revenue primarily includes in-app purchase fees processed through the Apple App Store and Google Play Store, data center expenses, employee compensation, capitalized aggregation cost impairments, and restructuring costs[172](index=172&type=chunk)[173](index=173&type=chunk) - Sales and marketing expenses primarily include brand marketing, digital and social media spending, field marketing, restructuring costs, and employee compensation[174](index=174&type=chunk) - General and administrative expenses include compensation for executive management, finance, legal, tax, and human resources personnel, transaction costs, fair value changes in contingent consideration, facilities and IT expenses, external professional services fees, legal costs, and restructuring costs[175](index=175&type=chunk) - Product development expenses primarily include compensation for product design, development, testing, and enhancement personnel, as well as restructuring costs[176](index=176&type=chunk) - Impairment losses involve charges for indefinite-lived intangible assets, long-lived assets, finite-lived intangible assets, and goodwill[178](index=178&type=chunk) [Results of Operations](index=49&type=section&id=Results%20of%20Operations) This section provides detailed unaudited condensed consolidated statements of operations and their percentages of revenue; in Q2 and H1 2025, the company experienced year-over-year revenue declines and significant increases in operating costs and expenses, leading to operating losses and net losses Consolidated Statements of Operations | Metric (in thousands) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | 248,229 | 268,615 | 495,330 | 536,390 | | Operating Costs and Expenses | 586,572 | 216,661 | 789,023 | 435,646 | | Operating Income (Loss) | (338,343) | 51,954 | (293,693) | 100,744 | | Net Income (Loss) | (366,983) | 37,686 | (347,152) | 71,559 | | Net Income (Loss) Attributable to Bumble Inc. Stockholders | (253,744) | 27,395 | (240,300) | 52,012 | Consolidated Statements of Operations as a Percentage of Revenue | As a Percentage of Revenue | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | 100.0% | 100.0% | 100.0% | 100.0% | | Operating Costs and Expenses | 236.3% | 80.7% | 159.3% | 81.2% | | Operating Income (Loss) | (136.3%) | 19.3% | (59.3%) | 18.8% | | Net Income (Loss) | (147.8%) | 14.0% | (70.1%) | 13.3% | - Stock-based compensation expense for Q2 and H1 2025 was **$5.8 million and $10 million**, respectively, an increase from the prior year, primarily due to forfeitures and layoffs related to the 2024 restructuring plan[183](index=183&type=chunk) [Comparison of the Three and Six Months Ended June 30, 2025 and 2024](index=50&type=section&id=Comparison%20of%20the%20Three%20and%20Six%20Months%20Ended%20June%2030,%202025%20and%202024) This section compares revenue, operating costs, and expenses for Q2 and H1 2025 versus 2024; total revenue declined primarily due to fewer paying users, partially offset by increased Bumble App ARPPU, while operating costs and expenses significantly rose due to impairment and restructuring charges, and sales and marketing expenses decreased due to strategic shifts Revenue Comparison | Revenue (in thousands) | Q2 2025 | Q2 2024 | YoY Change % | H1 2025 | H1 2024 | YoY Change % | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Revenue | 248,229 | 268,615 | -7.5% | 495,330 | 536,390 | -7.6% | | Bumble App Revenue | 201,380 | 217,984 | -7.6% | 403,202 | 433,740 | -7.1% | | Badoo App and Other Revenue | 46,849 | 50,631 | -7.5% | 92,128 | 102,650 | -10.3% | - Total revenue decreased primarily due to a **reduction in total paying users**, partially offset by an increase in **Total Average Revenue Per Paying User (ARPPU)** and favorable foreign currency exchange rate fluctuations[184](index=184&type=chunk) - Sales and marketing expenses **decreased by 52.5% in Q2 2025 and 30.0% in H1 2025**, primarily due to the company's decision to reduce marketing spend in non-organic channels, reflecting a strategic shift from paid user acquisition to brand and organic investments[194](index=194&type=chunk)[195](index=195&type=chunk)[196](index=196&type=chunk) - Depreciation and amortization expenses **decreased by 61.0% in Q2 2025 and 52.6% in H1 2025**, primarily because the developed technology for Bumble and Badoo was fully amortized in February 2025[201](index=201&type=chunk) - In Q2 and H1 2025, the company recognized total **impairment losses of $404.9 million and $408.5 million**, respectively, primarily including goodwill, indefinite-lived intangible assets, and Fruitz (asset held for sale)[203](index=203&type=chunk) [One Big Beautiful Bill Act](index=54&type=section&id=One%20Big%20Beautiful%20Bill%20Act) The U.S. enacted the "One Big Beautiful Bill Act" on July 4, 2025, introducing broad tax reform, including extensions and modifications to key Tax Cuts and Jobs Act provisions; the company is assessing its full impact on annual effective tax rates and cash tax position but expects no material financial statement impact and no effect on H1 2025 operating results - On July 4, 2025, the U.S. enacted the "One Big Beautiful Bill Act," which includes broad tax reform provisions, such as extensions and modifications to certain key Tax Cuts and Jobs Act provisions[207](index=207&type=chunk) - The company expects the Act to have no material impact on its financial statements and no effect on operating results for the six months ended June 30, 2025, as it was signed after the reporting period[207](index=207&type=chunk) [Pillar Two Minimum Tax](index=55&type=section&id=Pillar%20Two%20Minimum%20Tax) OECD Pillar Two minimum tax rules have taken effect in certain jurisdictions where the company operates and have been included in income tax provisions for Q2 and H1 2025; the company expects to qualify for transitional safe harbor exemptions in most jurisdictions but is still evaluating the long-term financial impact - OECD Pillar Two minimum tax rules have taken effect in certain jurisdictions where the company operates (including the UK and some EU member states) and have been included in income tax provisions for Q2 and H1 2025[208](index=208&type=chunk) - The company expects to qualify for transitional safe harbor exemptions in most jurisdictions but is still evaluating the potential long-term financial impact[208](index=208&type=chunk) - On June 28, 2025, the G7 announced a political agreement indicating that U.S. parented multinational enterprises would not be subject to additional top-up taxes under the OECD Pillar Two global minimum tax rules, and the company is assessing its potential impact[209](index=209&type=chunk) [Non-GAAP Financial Measures](index=55&type=section&id=Non-GAAP%20Financial%20Measures) The company utilizes non-GAAP financial measures such as Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, and Free Cash Flow Conversion for financial performance assessment and planning; these metrics aid investors in understanding business trends but have limitations and should not replace GAAP financial statements - The company uses non-GAAP financial measures such as Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, and Free Cash Flow Conversion to assess financial performance and for planning purposes[210](index=210&type=chunk)[211](index=211&type=chunk) - These non-GAAP metrics help investors better understand business trends but have limitations and should not replace GAAP financial statements, as they do not reflect depreciation and amortization, working capital needs, stock-based compensation expense, or debt principal payments[212](index=212&type=chunk)[217](index=217&type=chunk) Non-GAAP Financial Metrics | Metric (in thousands) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income (Loss) | (366,983) | 37,686 | (347,152) | 71,559 | | Adjusted EBITDA | 94,586 | 75,008 | 158,986 | 149,047 | | Net Income (Loss) Margin | (147.8)% | 14.0% | (70.1)% | 13.3% | | Adjusted EBITDA Margin | 38.1% | 27.9% | 32.1% | 27.8% | | Net Cash Provided by Operating Activities | - | - | 114,481 | 35,345 | | Free Cash Flow | - | - | 108,561 | 30,814 | | Operating Cash Flow Conversion | * | * | * | 49.4% | | Free Cash Flow Conversion | * | * | 68.3% | 20.7% | [Liquidity and Capital Resources](index=58&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company held $261.7 million in cash and cash equivalents, a $57.4 million increase from year-end 2024; primary liquidity sources are cash and operating cash flow, used for operating expenses, capital expenditures, debt repayment, tax receivable agreement payments, and share repurchases, with sufficient financial resources expected for the next 12 months - As of June 30, 2025, the company held **$261.7 million in cash and cash equivalents**, an increase of **$57.4 million** from December 31, 2024[219](index=219&type=chunk) - The company's primary liquidity sources are cash and cash generated from operating activities, with major uses including operating expenses, capital expenditures, debt repayment, tax receivable agreement payments, and share repurchases[219](index=219&type=chunk) - In H1 2025, **net cash provided by operating activities was $114.5 million**, **net cash used in investing activities was $5.9 million**, and **net cash used in financing activities was $51.4 million**[224](index=224&type=chunk) - The company has a **$450 million share repurchase program**, with **$50.1 million remaining** for repurchases as of June 30, 2025[220](index=220&type=chunk) Contractual Obligations | Contractual Obligations (in thousands) | Total | Less than 1 Year | More than 1 Year | | :--- | :--- | :--- | :--- | | Long-Term Debt (including interest) | 618,437 | 5,750 | 612,687 | | Operating Lease Liabilities (including implicit interest) | 12,768 | 3,875 | 8,893 | | Other | 22,089 | 15,478 | 6,611 | | Total | 653,294 | 25,103 | 628,191 | - The company expects total tax receivable agreement payments to reach **$685.3 million over the next 15 years**, with annual payments ranging from **$27.6 million to $58.7 million**[233](index=233&type=chunk) [Critical Accounting Policies and Estimates](index=61&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) The company's critical accounting policies and estimates, discussed in its 2024 10-K annual report, involve significant judgment and rely on uncertain information, with no material changes occurring during the six months ended June 30, 2025 - The company's critical accounting policies and estimates, discussed in its 2024 10-K annual report, involve significant judgment and are based on uncertain information[234](index=234&type=chunk) - No material changes to these accounting policies and estimates occurred during the six months ended June 30, 2025[234](index=234&type=chunk) [Related Party Transactions](index=61&type=section&id=Related%20Party%20Transactions) For a discussion of related party transactions, refer to Note 13 to the unaudited condensed consolidated financial statements included in "Item 1. Financial Statements (Unaudited)" of this quarterly report - For a discussion of related party transactions, refer to Note 13 to the unaudited condensed consolidated financial statements included in "Item 1. Financial Statements (Unaudited)" of this quarterly report[235](index=235&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=61&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces foreign currency exchange rate risk and interest rate risk; in H1 2025, revenue from outside the U.S. accounted for 54.6% of total revenue, with a 10% change in GBP and EUR exchange rates against the USD potentially impacting revenue by approximately $12.3 million, while interest rate swaps fix $350 million of long-term debt at 3.18% to manage interest rate risk, with a 1% increase potentially raising H1 2025 interest expense by $1.4 million - The company primarily faces **foreign currency exchange rate risk and interest rate risk**[235](index=235&type=chunk)[237](index=237&type=chunk) - In H1 2025, revenue from outside the U.S. accounted for **54.6% of total revenue**; a **10% change in GBP and EUR exchange rates** against the USD would result in an approximate **$12.3 million change in revenue**[235](index=235&type=chunk)[236](index=236&type=chunk) - The company manages interest rate risk by fixing the floating interest rate on **$350 million of long-term debt at 3.18%** through interest rate swaps; a **1% increase in interest rates** would have increased H1 2025 interest expense by **$1.4 million**[237](index=237&type=chunk)[238](index=238&type=chunk) [Item 4. Controls and Procedures](index=62&type=section&id=Item%204.%20Controls%20and%20Procedures) As of June 30, 2025, management deemed disclosure controls and procedures ineffective due to a material weakness in foreign currency translation controls related to certain intercompany loan transactions; despite this, management believes the financial statements are fairly presented in all material respects, and a remediation plan is underway, including defining standard operating procedures, redesigning controls, and enhancing quarterly fluctuation analysis - As of June 30, 2025, company management determined its disclosure controls and procedures were **ineffective** due to a **material weakness in the design of foreign currency translation controls** related to certain intercompany loan transactions[239](index=239&type=chunk)[241](index=241&type=chunk) - Despite this material weakness, management believes the unaudited condensed consolidated financial statements fairly present the company's financial position, results of operations, and cash flows in all material respects[240](index=240&type=chunk)[242](index=242&type=chunk) - The company is implementing a remediation plan, including defining standard operating procedures and accounting policies, redesigning intercompany loan transaction controls, and enhancing quarterly fluctuation analysis[243](index=243&type=chunk)[246](index=246&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=64&type=section&id=Item%201.%20Legal%20Proceedings) For detailed information on legal proceedings, refer to Note 15 to the unaudited condensed consolidated financial statements included in "Item 1. Financial Statements (Unaudited)" of this quarterly report - For detailed information on legal proceedings, refer to Note 15 to the unaudited condensed consolidated financial statements included in "Item 1. Financial Statements (Unaudited)" of this quarterly report[248](index=248&type=chunk) [Item 1A. Risk Factors](index=64&type=section&id=Item%201A.%20Risk%20Factors) For a discussion of the company's risk factors, refer to "Item 1A. Risk Factors" in the 2024 10-K annual report and other information in this quarterly report, including "Special Note Regarding Forward-Looking Statements" and "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations" - For a discussion of the company's risk factors, refer to "Item 1A. Risk Factors" in the 2024 10-K annual report and other information in this quarterly report, including "Special Note Regarding Forward-Looking Statements" and "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations"[249](index=249&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=64&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company has a $450 million share repurchase program, with $50.1 million remaining for repurchases as of June 30, 2025; no shares were repurchased under this program in Q2 2025 - The company has a **$450 million share repurchase program**, with **$50.1 million remaining** for repurchases as of June 30, 2025[249](index=249&type=chunk) - In Q2 2025, the company did not repurchase any shares under this program[249](index=249&type=chunk) [Item 6. Exhibits](index=65&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed or furnished as part of this report, including merger agreements, articles of incorporation, director compensation policies, executive employment agreements, and various certification and XBRL documents - This section lists all exhibits filed or furnished as part of this report, including merger agreements, articles of incorporation, director compensation policies, executive employment agreements, and various certification and XBRL documents[250](index=250&type=chunk) [Signatures](index=66&type=section&id=Signatures) This report was duly signed by Whitney Wolfe Herd, Chief Executive Officer, and Ronald J. Fior, Interim Chief Financial Officer of Bumble Inc., on August 7, 2025 - This report was duly signed by Whitney Wolfe Herd, Chief Executive Officer, and Ronald J. Fior, Interim Chief Financial Officer of Bumble Inc., on August 7, 2025[257](index=257&type=chunk)

Financial Data and Key Metrics Changes - Bumble's Q2 revenue was $248 million, with a year-to-date total of $495 million, reflecting a favorable foreign exchange impact of approximately $2 million [24] - The company reported a GAAP net loss of $367 million, primarily due to an impairment loss of $405 million, while non-GAAP operating expenses were $154 million, a year-over-year decline of approximately 21% [25][26] - Adjusted EBITDA for Q2 was $95 million, representing 38% of revenue, with strong cash flow of $71 million in Q2 and $262 million in cash and cash equivalents at the end of the quarter [26][27] Business Line Data and Key Metrics Changes - Total paying users in Q2 were 3.8 million, with Bumble app paying users at 2.5 million, while the Vadu app and other revenue totaled $47 million [24] - The full-price payer base increased quarter over quarter, now representing approximately 80% of total payers, up from 70% in Q1, indicating a shift towards sustainable subscriptions [6][24] Market Data and Key Metrics Changes - The company has seen improvements in retention and organic registrations, particularly among women and Gen Z demographics, holding the highest favorability among scaled dating apps in the U.S. [19] - Bumble BFF is recognized as a top friend-finding app in the U.S., especially among Gen Z and younger millennial women, highlighting a growing demand for friendship and community [15][56] Company Strategy and Development Direction - The company has reset its strategy to prioritize quality over quantity, streamlining operations and removing over $100 million from its cost base [4][5] - The Beehive Fit framework is being implemented to enhance member quality, focusing on improving profiles and engagement to drive better monetization [8][12] - Future product updates will include trust and safety features, such as phone and ID verification, aimed at creating a safer environment for high-intent users [14][31] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that the focus on quality has weighed on revenue and payer count but is expected to drive sustainable growth in the long term [23][32] - The company anticipates a decrease in revenue for Q3, with guidance of $240 million to $248 million, reflecting the impact of trust and safety initiatives [29][30] - Management remains optimistic about the long-term trajectory, emphasizing the importance of member experience and quality interactions [32] Other Important Information - The company has appointed Kevin Cook as the new CFO, who is expected to bring a technology-first approach to finance and product development [20][84] - The company is being selective with talent investments, focusing on high-performing teams and prioritizing roles that align with its quality strategy [21][28] Q&A Session Summary Question: Update on alternative payment options - Management reported a 30% adoption rate for direct billing tests on iOS, with ongoing evaluations of discount rates [34][35] Question: Growth drivers for Bumble app - The growth was influenced by the exit from a promotional strategy, with deliberate changes in monetization contributing to ARPPU growth [38][39] Question: Size of user categories (approve, improve, remove) - The "improve" category constitutes the majority of the member base, while "remove" accounts for under 10%, indicating a focus on enhancing member profiles [41][42] Question: Metrics for tracking quality improvements - Management is focused on tracking deeper member inputs and signals that lead to successful interactions, although specific metrics are not currently disclosed [45][46] Question: Timing of reinvestments - Reinvestments will be made selectively, with some occurring in the near term and others deferred for strategic marketing around product launches [47][48] Question: Key priorities for the next 12-18 months - The main priorities include product and technology enhancements, particularly in trust and safety, and expanding Bumble for Friends to meet Gen Z demands [52][56] Question: Addressing Gen Z's needs in online dating - The strategy focuses on solving key pain points for Gen Z, emphasizing trust, safety, and meaningful connections [78][80]