Revenue Performance - Total revenue for the three months ended June 30, 2025, was $863.7 million, a decrease of $328,000 or less than 1% compared to $864.1 million in 2024[114]. - Direct revenue from Tinder decreased by $18.8 million, or 4%, in 2025, driven by a 7% decrease in Payers, partially offset by a 3% increase in Revenue Per Payer (RPP)[114][115]. - Hinge's direct revenue grew by $33.9 million, or 25%, in 2025, with Payers increasing by 18% and RPP increasing by 6% compared to 2024[115]. - Evergreen & Emerging (E&E) direct revenue declined by 8% in 2025, primarily due to a 15% decrease in Payers, despite an 8% increase in RPP[116]. - Match Group Asia's direct revenue decreased by $4.8 million, or 6%, in 2025, but excluding revenue from the shut-down Hakuna app, revenue increased by $2.1 million, or 3%[117]. - Total Payers for the company decreased by 5% to 14,093 in the three months ended June 30, 2025, compared to 14,841 in 2024[114]. - RPP for Tinder increased by 3% to $17.14 in the three months ended June 30, 2025, while Hinge's RPP increased by 6% to $31.96[114]. - The company reported a total direct revenue of $1.66 billion for the six months ended June 30, 2025, a decrease of $35.5 million or 2% compared to $1.69 billion in 2024[114]. - The overall decline in Tinder's revenue was $25.0 million, or 5%, when adjusted for consistent foreign exchange rates[114]. - Hinge Direct Revenue for the three months ended June 30, 2025, increased by 25% to $167,505,000 from $133,569,000 in the same period of 2024[161]. - Total revenue excluding foreign exchange effects for the three months ended June 30, 2025, was $852,528,000, down 1% from $864,066,000 in the same period of 2024[161]. - For the six months ended June 30, 2025, total revenue was $1,694,916,000, a decrease of $28,797,000 or 2% compared to $1,723,713,000 in the same period of 2024[161]. Operating Income and Expenses - Tinder's operating income for Q2 2025 was $216.97 million, down 1% from Q2 2024, while Adjusted Operating Income decreased by 2% to $246.21 million, primarily due to revenue decline and restructuring costs[138]. - Hinge's operating income increased by 29% to $38.93 million, with Adjusted Operating Income rising 27% to $53.84 million, driven by continued growth in Payer numbers across all markets[138]. - The operating loss for Evergreen & Emerging was $4.40 million, with Adjusted Operating Income down 62% to $16.07 million, mainly due to a $14.0 million FTC settlement and revenue decline[138]. - Match Group's total operating income for the first half of 2025 was $366.51 million, a decrease of 6%, while Adjusted Operating Income fell 4% to $565.14 million compared to the same period in 2024[139]. - Cost of revenue decreased by $22.9 million, or 5%, for the six months ended June 30, 2025, primarily due to a decrease in Variable Expenses[123]. - Selling and marketing expense decreased by $14.6 million, or 5%, for the six months ended June 30, 2025, primarily due to lower acquisition costs[125]. - General and administrative expense increased by $27.5 million, or 12%, for the six months ended June 30, 2025, primarily due to a preliminary settlement with the FTC[127]. - Product development expense increased by $6.1 million, or 3%, for the six months ended June 30, 2025, primarily due to severance expenses[129]. - Depreciation decreased by $1.8 million, or 4%, for the six months ended June 30, 2025, primarily due to fully depreciated assets at Tinder[131]. - Amortization of intangibles remained relatively flat, with a decrease of $343, or 2%, for the six months ended June 30, 2025[133]. Cash Flow and Debt Management - As of June 30, 2025, total cash and cash equivalents decreased to $335.2 million from $966.0 million as of December 31, 2024, representing a decline of approximately 65.3%[163]. - Net cash provided by operating activities for the six months ended June 30, 2025, was $437.0 million, an increase of 5.0% compared to $413.1 million for the same period in 2024[165]. - Net cash used in investing activities in 2025 was $54.3 million, compared to $38.7 million in 2024, indicating a 40.5% increase in cash outflows[167]. - The company repaid a Term Loan of $425.0 million in January 2025, contributing to a total long-term debt of $3.45 billion as of June 30, 2025, down from $3.88 billion at the end of 2024[171]. - The company anticipates capital expenditures for 2025 to be between $55 million and $65 million, an increase compared to $29.9 million in 2024, primarily for software development[173]. - During the first half of 2025, the company repurchased 13.7 million shares for $419.7 million under its share repurchase programs[175]. - As of June 30, 2025, the company had $499.4 million available under its Credit Facility, indicating strong liquidity[171]. - The company expects to remit $291.5 million in cash for withholding taxes related to equity awards, which could lead to the issuance of an additional 8.5 million shares if not net settled[176]. - The company has various purchase commitments totaling $22.8 million for 2025, indicating ongoing operational commitments[174]. - The company believes it has sufficient cash flows from operations to meet future obligations related to long-term debt and operating leases[172]. Tax and Interest - Interest expense for Q2 2025 decreased by 20% to $32.16 million, attributed to the full repayment of the Term Loan in January 2025[141]. - The income tax provision for Q2 2025 was $32.23 million, down 23% from $41.69 million in Q2 2024, with an effective tax rate of 20%[145]. - Match Group reported a significant decrease in interest income for Q2 2025, down 80% to $2.06 million, compared to $10.43 million in Q2 2024[144]. - The company anticipates a reduction in U.S. federal cash taxes due to the enactment of the One Big Beautiful Bill Act, which includes changes to tax law affecting research and capital expenditures[149]. Stock-Based Compensation - At June 30, 2025, Match Group had $441.8 million of unrecognized compensation costs related to stock-based awards, expected to be recognized over approximately 2.1 years[140]. - Stock-based compensation expense for the three months ended June 30, 2025, was $67,467,000, compared to $69,867,000 in the same period of 2024[158].

Financial Data and Key Metrics Changes - Match Group's total revenue for Q2 was $864 million, flat year over year, and down 1% on an FX neutral basis [27][28] - Adjusted operating income (AOI) was $290 million, down 5% year over year, representing an AOI margin of 34% [28] - Tinder's direct revenue in Q2 was $461 million, down 4% year over year, with payers declining 7% to 9 million [29] - Hinge's direct revenue was $168 million, up 25% year over year, with payers growing 18% to 1.7 million [30] - Match Group Asia's direct revenue was $69 million, down 6% year over year, with an operating loss of $300,000 [31] Business Line Data and Key Metrics Changes - Tinder's revenue declined due to a lack of innovation and focus on short-term monetization, while Hinge showed strong growth driven by product innovation [28][30] - The E and E segment's direct revenue was $148 million, down 8% year over year, with payers declining 15% [30] - Indirect revenue increased by 15% year over year, driven by strength in the advertising business [28] Market Data and Key Metrics Changes - Hinge's MAU grew nearly 20% year over year in the first half of the year, with European markets seeing over 60% growth [22][30] - Match Group's overall user engagement metrics are showing signs of improvement, with a decrease in the rate of decline for new account registrations and MAU [54] Company Strategy and Development Direction - The company is undergoing a three-phase turnaround: reset, revitalize, and resurgence, with a focus on product innovation and user outcomes [6][12] - Tinder is being restructured to prioritize low-pressure connections, while Hinge aims to lead in intentional dating [25][26] - A $50 million investment plan is in place for product testing, geographic expansion, and new growth initiatives [25][73] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the online dating category's growth potential, citing Hinge's success as evidence of ongoing user interest [78] - The company is focused on regaining product market fit, particularly among younger users, and is optimistic about future growth driven by new product offerings [70][79] Other Important Information - The company plans to change its non-GAAP profitability measure from adjusted operating income to adjusted EBITDA starting next quarter [39] - A new marketing strategy is being implemented to support product launches and drive user growth [73] Q&A Session Summary Question: Update on Tinder's engagement with U.S. users under 30 - Management highlighted that recent product launches like DoubleDate are resonating well with younger users, with 90% of usage under 30 [43][44] Question: How to track the status of the turnaround - Management discussed monitoring metrics such as new account registrations, MAU, four-way chats, and contact exchanges to gauge progress [50][54] Question: Expansion of face check and alternative payments - Management is studying the impact of face check on user perception and safety, while alternative payments are showing promising results with a potential $65 million AOI savings opportunity [60][62] Question: Hinge's revenue acceleration drivers - Hinge's growth is attributed to product innovation, a focus on the female experience, and international expansion opportunities [88][91]

Financial Data and Key Metrics Changes - Match Group's total revenue for Q2 was $864 million, flat year over year, and down 1% on an FX neutral basis [28] - Operating income was $194 million, down 5% year over year, representing an operating income margin of 22% [29] - Adjusted operating income (AOI) was $290 million, down 5% year over year, with an AOI margin of 34% [29] - Tinder's direct revenue was $461 million, down 4% year over year, with payers declining 7% to 9 million [30] - Hinge's direct revenue was $168 million, up 25% year over year, with payers growing 18% to 1.7 million [31] Business Line Data and Key Metrics Changes - Tinder's revenue per payer (RPP) grew 3% year over year to $17.14 [30] - Hinge's RPP grew 6% year over year to $31.96, driven by strong user growth and monetization optimization [31] - E and E direct revenue was $148 million, down 8% year over year, with payers declining 15% to 2.3 million [32] - Match Group Asia's direct revenue was $69 million, down 6% year over year, with pairs increasing 6% year over year to 1.1 million [33] Market Data and Key Metrics Changes - Hinge grew its monthly active users (MAU) by nearly 20% year over year in the first half of the year, with European markets seeing over 60% growth [23] - Match Group's indirect revenue was up 15% year over year, driven by strength in the advertising business [29] Company Strategy and Development Direction - The company is undergoing a three-phase turnaround: reset, revitalize, and resurgence, with a focus on user outcomes and product innovation [5][12] - Tinder is being restructured to prioritize low-pressure ways to connect, while Hinge focuses on intentional dating [12][20] - The company plans to allocate approximately $50 million in 2025 towards product testing, geographic expansion, and early-stage bets [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the online dating category's growth potential, citing Hinge's success as evidence of ongoing user interest [26][82] - The company anticipates a year-over-year revenue growth of 2% to 3% for Q3, with a focus on reinvesting savings into product innovation [36][38] Other Important Information - The company plans to change its non-GAAP profitability measure from adjusted operating income to adjusted EBITDA starting next quarter [41] - A new marketing strategy is being implemented to improve engagement with younger users, particularly under 30 [47][48] Q&A Session Summary Question: Update on Tinder's engagement with U.S. users under 30 - Management highlighted that features like DoubleDate are resonating well with this demographic, with 90% of users being under 30 [47][48] Question: How to track the status of the turnaround - Management indicated that they are monitoring metrics such as new account registrations, MAU, four-way chats, and contact exchanges to gauge progress [56][58] Question: Expansion of face check feature - Management is studying the impact of the face check feature on trust and safety, revenue, and user perception [63] Question: Insights on alternative payments - Testing of alternative payments has shown a 30% shift in transactions from in-app purchases to the web, resulting in a 10% increase in net revenue [66] Question: Addressing weaknesses among younger users - Management noted that while there is still some pressure on younger users, they are not seeing further macroeconomic impacts and are testing various monetization strategies [89] Question: Key drivers for Hinge's revenue acceleration - Hinge's growth is attributed to product innovation, a focus on the female experience, onboarding improvements, and international expansion [92][94]

[CEO's Strategic Vision & Three-Phase Turnaround](index=1&type=section&id=CEO%27s%20Strategic%20Vision) [CEO's Strategic Vision & Three-Phase Turnaround](index=1&type=section&id=CEO%27s%20Strategic%20Vision%20%26%20Three-Phase%20Turnaround) Match Group's CEO outlined a three-phase turnaround strategy—Reset, Revitalize, and Resurgence—aimed at transforming the company and Tinder into an innovative, product-and-engineering-first organization focused on user outcomes and long-term growth - The CEO's goal is to reshape Match Group and Tinder into an innovative, product-and-engineering-first company, optimized for user outcomes and built for the long term[1](index=1&type=chunk) - The turnaround strategy is structured into three phases: Reset, Revitalize, and Resurgence[2](index=2&type=chunk) [Q2 2025 Financial Highlights](index=1&type=section&id=Q2%202025%20Financial%20Highlights) Match Group's Q2 2025 performance saw total revenue remain flat year-over-year, with a decline in payers but an increase in revenue per payer (RPP); operating income and adjusted operating income experienced slight declines Q2 2025 Key Financial Metrics | Metric | Q2 2025 Value (in millions) | Change vs. Q2 2024 | | :--- | :--- | :--- | | Total Revenue | $864 million | 0% | | Direct Revenue | $845.5 million | 0% | | Operating Income | $194 million | (5)% | | Adjusted Operating Income | $290 million | (5)% | | Payers | 14.1 million | (5)% | | RPP | $20.00 | +5% | - **Match Group's Total Revenue** and **Adjusted Operating Income** exceeded the high-end of guidance, excluding a **$14 million** charge for a preliminary settlement with the Federal Trade Commission[40](index=40&type=chunk) [Phase One: Reset](index=1&type=section&id=Phase%20One%20-%20Reset) [Company-wide Reset Initiatives](index=1&type=section&id=Company-wide%20Reset%20Initiatives) The 'Reset' phase involved rebooting company culture to emphasize urgency and accountability, addressing Tinder's product stagnation through new management and a revised roadmap, and implementing organizational changes like flattening the structure and creating autonomous product/engineering pods - The initial months of the 'Reset' phase focused on learning the businesses, understanding teams, and rebooting the culture to emphasize urgency and accountability[5](index=5&type=chunk) - Tinder, the world's largest dating app, was a primary focus due to product stagnation caused by a lack of innovation and a focus on short-term monetization[7](index=7&type=chunk) - Actions at Tinder included installing new management, improving the product roadmap, and placing it under direct CEO leadership[7](index=7&type=chunk) - Organizational changes at Tinder involved flattening the structure by removing over **20%** of managers, reducing team sizes, and creating autonomous product and engineering pods with greater accountability[8](index=8&type=chunk) - The company doubled its release cadence, broke down silos between brands, and established a centralized AI group to build shared AI tooling across all brands[8](index=8&type=chunk)[10](index=10&type=chunk) [Brand Strategy Realignment](index=2&type=section&id=Brand%20Strategy%20Realignment) Match Group realigned its brand strategy to deliver real user outcomes across a broad spectrum of preferences; Hinge is focused on intentioned dating, Tinder on casual connections, Evergreen & Emerging (E&E) brands on unified platforms, and Match Group Asia (MG Asia) on regional growth and global expansion of Azar's video service - All brands are now guided by a commitment to speed, accountability, relentless product execution, and delivering real user outcomes across a broad spectrum (casual to serious, romantic to platonic)[13](index=13&type=chunk)[14](index=14&type=chunk) - Hinge is singularly focused on intentioned dating, Tinder on casual connections, E&E brands on unleashing a unified platform and supporting communities, and MG Asia on launching/growing brands in Asia and expanding Azar's 1-1 video service globally[14](index=14&type=chunk) [Phase Two: Revitalize](index=2&type=section&id=Phase%20Two%20-%20Revitalize) [Tinder Product Acceleration](index=2&type=section&id=Tinder%20Product%20Acceleration) Tinder's product roadmap is rapidly accelerating to address user pain points in authenticity, dating fatigue, and outcomes; recent launches include Double Date, expanded Face Check, and enhanced Bot Detection; upcoming initiatives for H2'25 include UI refresh, improved recommendations, and new interactive matching features, with early metrics showing positive trends in user outcomes - Tinder's product roadmap aims to solve three core user pain points: authenticity, dating fatigue, and outcomes[16](index=16&type=chunk) - Double Date launched globally in June, showing strong early traction with **92%** of users under **30**; women using it are **3x** more likely to send a Like and **4x** more likely to match[19](index=19&type=chunk) - Expanded Face Check service to new markets, including California, and enhanced Bot Detection systems to improve platform safety and trustworthiness[18](index=18&type=chunk)[19](index=19&type=chunk) - Piloted an Interactive Matching product in New Zealand, with plans for expansion, and testing a more flexible Preferences system[19](index=19&type=chunk) - Planned H2'25 initiatives include a UI Refresh, See Who Likes You Redesign, Improved Recommendations, Contextual Liking, and Modes[17](index=17&type=chunk)[25](index=25&type=chunk) - Tinder's pace of product innovation is strong, with deeper signals like match rate, contact exchange, and inferred IRL meetups trending up[23](index=23&type=chunk) [Hinge Momentum and Growth](index=4&type=section&id=Hinge%20Momentum%20and%20Growth) Hinge is a key growth engine, poised for accelerating year-over-year revenue growth and margin expansion in 2025; its success is driven by product innovations like an AI-powered Recommendation Algorithm (**15%** increase in matches) and Prompt Feedback, alongside robust user growth, with **MAU** up nearly **20%** Y/Y globally and over **60%** Y/Y in European expansion markets - Hinge is well-positioned to deliver accelerating year-over-year revenue growth in each subsequent quarter of 2025, while also continuing to expand margins[26](index=26&type=chunk) - A new AI-powered Recommendation Algorithm launched in March is driving a **15%** increase in matches and contact exchanges, leading to meaningful upticks in payer conversion[28](index=28&type=chunk) - Prompt Feedback, a first-of-its-kind AI feature, reduced generic answers by a third and more than doubled thoughtful, high-quality responses during onboarding[28](index=28&type=chunk) - Hinge grew its **Monthly Active Users** (**MAU**) by nearly **20%** year-over-year in the first half of 2025[30](index=30&type=chunk) - **MAU** in European Expansion markets increased by over **60%** year-over-year in the first half of 2025, with planned launches in Mexico and Brazil later this year[32](index=32&type=chunk) - Planned H2 2025 product strategies include noticeably improving Recommendations throughout the app experience with more AI-powered algorithms and testing new AI-powered coaching capabilities like Warm Intros and Conversation Starters[29](index=29&type=chunk) [Strategic Growth Drivers Across Portfolio](index=6&type=section&id=Strategic%20Growth%20Drivers%20Across%20Portfolio) Match Group is reinvesting approximately **$50 million** in the second half of 2025, leveraging a stronger financial foundation, favorable foreign exchange trends, and reduced in-app purchase fees; these investments target product testing at Tinder, geographic expansion for Hinge, Azar, and The League, and early-stage bets on new dating app concepts - The company plans to allocate approximately **$50 million** in the second half of 2025 towards product testing at Tinder, geographic expansion for Hinge, Azar, and The League, and early-stage bets like Archer, HER, and a new dating app concept[35](index=35&type=chunk) - These investments are supported by a stronger financial foundation from recent restructuring, favorable foreign exchange trends, and reduced in-app purchase fees through alternative payments testing[35](index=35&type=chunk) - The strategy across the portfolio focuses on building for distinct audiences, prioritizing user outcomes, and driving urgency[34](index=34&type=chunk) [Phase Three: Resurgence](index=6&type=section&id=Phase%20Three%20-%20Resurgence) [Future Outlook and Long-Term Vision](index=6&type=section&id=Future%20Outlook%20and%20Long-Term%20Vision) Expected in 2026-2027, the 'Resurgence' phase aims to transform Tinder into a low-pressure, serendipitous experience for Gen Z and extend Hinge's leadership in intentioned dating through continued AI innovation and international growth; the company anticipates a new era for the dating category with renewed trust and long-term growth potential - The third phase, 'Resurgence,' is expected in 2026 and 2027[37](index=37&type=chunk) - Tinder is intended to transform into a low-pressure, serendipitous experience designed for Gen Z[37](index=37&type=chunk) - Hinge is expected to extend its leadership in intentioned dating, powered by continued AI innovation and international growth[37](index=37&type=chunk)[38](index=38&type=chunk) - The dating category is projected to enter a new era with renewed trust, strong demand, and long-term growth potential[38](index=38&type=chunk) [Q2 2025 Financial Performance](index=7&type=section&id=Q2%202025%20Financial%20Performance) [Consolidated Financial Results](index=7&type=section&id=Consolidated%20Financial%20Results) Match Group's Q2 2025 **Total Revenue** was **$864 million**, flat year-over-year, and **Adjusted Operating Income** was **$290 million**, down **5%** year-over-year; **Payers** declined **5%** to **14.1 million**, while **RPP** grew **5%** to **$20.00**; excluding restructuring and legal settlement charges, **Operating Income** increased **10%** and **Adjusted Operating Income** increased **5%** year-over-year - **Match Group's Total Revenue** was **$864 million**, flat Y/Y, and down **1%** Y/Y on an FX neutral basis; Excluding the exit of live streaming businesses, **Total Revenue** was up **1%** Y/Y[42](index=42&type=chunk) - **Payers** declined **5%** Y/Y to **14.1 million**, while **Revenue Per Payer** (**RPP**) grew **5%** to **$20.00**[42](index=42&type=chunk) - **Operating Income** was **$194 million** (down **5%** Y/Y, **22%** margin), and **Adjusted Operating Income** (**AOI**) was **$290 million** (down **5%** Y/Y, **34%** margin)[43](index=43&type=chunk) - Excluding **$18 million** in restructuring costs and a **$14 million** legal settlement charge, **Operating Income** increased **10%** Y/Y (**26%** margin) and **AOI** increased **5%** Y/Y (**37%** margin)[43](index=43&type=chunk) [Operating Costs and Expenses](index=8&type=section&id=Operating%20Costs%20and%20Expenses) Total operating expenses increased **2%** year-over-year in Q2; cost of revenue decreased **1%** due to live streaming shutdown and lower web services, offset by increased in-app purchase fees; selling and marketing costs decreased **4%**, while general and administrative costs rose **19%** primarily due to restructuring and legal settlement charges - Total expenses, including stock-based compensation, were up **2%** Y/Y in Q2[45](index=45&type=chunk) - Cost of revenue decreased **1%** Y/Y (**28%** of **Total Revenue**), driven by reduced variable expenses from live streaming shutdown and lower web services costs at Tinder, partially offset by increased IAP fees at Hinge[45](index=45&type=chunk) - Selling and marketing costs decreased **$6 million** (**4%** Y/Y), primarily due to lower marketing spend at Tinder and E&E[45](index=45&type=chunk) - General and administrative costs increased **19%** Y/Y (**16%** of **Total Revenue**), mainly due to restructuring costs and the legal settlement charge[45](index=45&type=chunk) - Product development costs grew **1%** Y/Y and remained flat as a percentage of **Total Revenue** at **13%**[45](index=45&type=chunk) [Brand-Specific Financial Performance](index=7&type=section&id=Brand-Specific%20Financial%20Performance) Q2 2025 saw varied performance across Match Group's brands: Tinder's **Direct Revenue** and **Payers** declined, Hinge continued strong growth in revenue and payers, E&E experienced revenue and payer declines with an operating loss, and MG Asia's **Direct Revenue** declined but showed improved operating loss and increased **Adjusted Operating Income** [Tinder Financial Performance](index=8&type=section&id=Tinder%20Financial%20Performance) Tinder's **Direct Revenue** in Q2 was **$461 million**, down **4%** year-over-year, with **Payers** declining **7%** to **9.0 million**; **RPP**, however, grew **3%** to **$17.14**; **Operating Income** and **Adjusted Operating Income** also saw slight declines, impacted by restructuring costs Tinder Q2 2025 Financial Performance | Metric | Q2 2025 Value (in millions) | Change vs. Q2 2024 | | :--- | :--- | :--- | | Direct Revenue | $461.2 million | (4)% Y/Y, (5)% Y/Y FXN | | Payers | 9.0 million | (7)% Y/Y | | RPP | $17.14 | +3% Y/Y | | Operating Income | $217.0 million | (1)% Y/Y | | Operating Income Margin | 46% | | | Adjusted Operating Income | $246.2 million | (2)% Y/Y | | Adjusted Operating Income Margin | 52% | | - **Tinder's Operating Income** and **Adjusted Operating Income** were negatively impacted by costs associated with restructuring operations[44](index=44&type=chunk) [Hinge Financial Performance](index=8&type=section&id=Hinge%20Financial%20Performance) Hinge continued its strong momentum in Q2, with **Direct Revenue** increasing **25%** year-over-year to **$168 million**; this growth was driven by an **18%** increase in **Payers** to **1.7 million** and a **6%** rise in **RPP** to **$31.96**; both **Operating Income** and **Adjusted Operating Income** saw significant year-over-year increases Hinge Q2 2025 Financial Performance | Metric | Q2 2025 Value (in millions) | Change vs. Q2 2024 | | :--- | :--- | :--- | | Direct Revenue | $167.5 million | +25% Y/Y, +24% Y/Y FXN | | Payers | 1.7 million | +18% Y/Y | | RPP | $31.96 | +6% Y/Y | | Operating Income | $38.9 million | +29% Y/Y | | Operating Income Margin | 23% | | | Adjusted Operating Income | $53.8 million | +27% Y/Y | | Adjusted Operating Income Margin | 32% | | - **Hinge's** growth was driven by strong user growth across all markets combined with continued monetization optimizations[46](index=46&type=chunk) [Evergreen & Emerging (E&E) Financial Performance](index=8&type=section&id=Evergreen%20%26%20Emerging%20%28E%26E%29%20Financial%20Performance) Evergreen & Emerging (E&E) **Direct Revenue** in Q2 was **$148 million**, down **8%** year-over-year, with **Payers** declining **15%** to **2.3 million**; **RPP**, however, rose **8%** to **$21.34**; the segment reported an **Operating Loss** of **$(4.4) million** and a **62%** decline in **Adjusted Operating Income**, impacted by legal settlement and restructuring charges Evergreen & Emerging (E&E) Q2 2025 Financial Performance | Metric | Q2 2025 Value (in millions) | Change vs. Q2 2024 | | :--- | :--- | :--- | | Direct Revenue | $147.9 million | (8)% Y/Y, (10)% Y/Y FXN | | Payers | 2.3 million | (15)% Y/Y | | RPP | $21.34 | +8% Y/Y | | Operating Income (Loss) | $(4.4) million | NM (decrease of $24 million Y/Y) | | Operating Income Margin | (3)% | | | Adjusted Operating Income | $16.1 million | (62)% Y/Y | | Adjusted Operating Income Margin | 11% | | - **E&E's Operating Income** and **Adjusted Operating Income** were negatively impacted by the legal settlement charge and costs associated with restructuring operations[46](index=46&type=chunk) [Match Group Asia (MG Asia) Financial Performance](index=9&type=section&id=Match%20Group%20Asia%20%28MG%20Asia%29%20Financial%20Performance) Match Group Asia (MG Asia) delivered **Direct Revenue** of **$69 million** in Q2, down **6%** year-over-year, though up **3%** Y/Y excluding live streaming; **Payers** increased **6%** to **1.1 million**, while **RPP** declined **12%** to **$21.53**; the segment showed an improved **Operating Loss** of **$(0.3) million** and a **16%** increase in **Adjusted Operating Income** Match Group Asia (MG Asia) Q2 2025 Financial Performance | Metric | Q2 2025 Value (in millions) | Change vs. Q2 2024 | | :--- | :--- | :--- | | Direct Revenue | $68.9 million | (6)% Y/Y, (8)% Y/Y FXN | | Direct Revenue (Ex-Live) | $68.9 million | +3% Y/Y, +2% Y/Y FXN | | Azar Direct Revenue | $40.3 million | +3% Y/Y, +6% Y/Y FXN | | Pairs Direct Revenue | $28.7 million | +3% Y/Y, (5)% Y/Y FXN | | Payers | 1.1 million | +6% Y/Y | | RPP | $21.53 | (12)% Y/Y | | Operating Income (Loss) | $(0.3) million | Improvement of $5 million Y/Y | | Operating Income Margin | (0)% | | | Adjusted Operating Income | $16.0 million | +16% Y/Y | | Adjusted Operating Income Margin | 23% | | - The decline in **RPP** was partially due to the exit of Hakuna mid-last year[46](index=46&type=chunk) [Capital Allocation & Liquidity](index=9&type=section&id=Capital%20Allocation%20%26%20Liquidity) Match Group maintained **gross leverage** of **2.8x** and **net leverage** of **2.5x** at the end of Q2, with **$340 million** in cash; the company repurchased **$225 million** of shares and paid **$47 million** in dividends, deploying nearly **120%** of **Free Cash Flow** to shareholders, and remains committed to returning **100%** of **Free Cash Flow** annually - **Gross leverage** was **2.8x** and **net leverage** was **2.5x** at the end of Q2[47](index=47&type=chunk) - The company ended the quarter with **$340 million** of cash, cash equivalents, and short-term investments[47](index=47&type=chunk) - In Q2, **Match Group** repurchased **7.6 million** shares for **$225 million** and paid **$47 million** in dividends, deploying nearly **120%** of **Free Cash Flow** for capital return to shareholders[47](index=47&type=chunk) - The company maintains its commitment to target returning **100%** of **Free Cash Flow** to shareholders on a full-year basis through share buybacks and dividends[47](index=47&type=chunk) [Financial Guidance](index=9&type=section&id=Financial%20Guidance) [Q3 2025 Outlook](index=9&type=section&id=Q3%202025%20Outlook) For Q3 2025, Match Group anticipates **Total Revenue** between **$910 million** and **$920 million**, representing **2-3%** year-over-year growth (**1-2%** FXN); **Adjusted Operating Income** is projected at **$330 million** to **$335 million**, a **3%** year-over-year decline, with a **36% AOI margin** at midpoints, primarily due to increased marketing spend Q3 2025 Financial Guidance | Metric | Q3 2025 Guidance (in millions) | Y/Y Change | | :--- | :--- | :--- | | Total Revenue | $910 million to $920 million | +2% to +3% (+1% to +2% FXN) | | Adjusted Operating Income | $330 million to $335 million | (3)% | | Adjusted Operating Income Margin | 36% (at midpoints) | | - The expected Y/Y decline in **Adjusted Operating Income** is driven by an anticipated **17%** Y/Y increase in marketing spend due to the timing of brand campaigns at Tinder and Hinge, and savings reinvestments[48](index=48&type=chunk) [Full Year 2025 Outlook](index=10&type=section&id=Full%20Year%202025%20Outlook) Match Group expects full year 2025 **Total Revenue** towards the high-end of guidance, benefiting from positive FX impacts, and mid-teens year-over-year **Indirect Revenue** growth; the company aims for a **36.5% Adjusted Operating Income margin** (**35.4%** as reported) after excluding restructuring and legal settlement costs, and projects **Free Cash Flow** of **$1.06 billion to $1.09 billion**, a significant improvement - Full year 2025 **Total Revenue** is expected towards the high-end of guidance, primarily due to positive FX impacts, with a nearly half-point FX tailwind[50](index=50&type=chunk) - **Indirect Revenue** growth is expected in the mid-teens year-over-year[50](index=50&type=chunk) - The company expects to achieve a **36.5% Adjusted Operating Income** (**AOI**) margin (approximately **35.4%** as reported) after excluding **$25 million** in restructuring costs and a **$14 million** legal settlement charge[51](index=51&type=chunk) - **Free Cash Flow** is projected at **$1.06 billion to $1.09 billion**, a meaningful improvement from initial guidance, driven by increased **Free Cash Flow conversion** and expected lower cash taxes[52](index=52&type=chunk)[64](index=64&type=chunk) - **Capital expenditures** are expected to be **$55 million to $65 million**, and **stock-based compensation expense** is projected at **$260 million to $270 million**[52](index=52&type=chunk)[53](index=53&type=chunk)[64](index=64&type=chunk) - Continued testing of alternative payments, with Hinge expected to have an option by late Q3, could provide margin upside or fund growth initiatives not included in current guidance[54](index=54&type=chunk) - A potential one-time benefit to **AOI** related to expenses accrued in prior periods could arise if Canada rescinds its Digital Services Tax, though this is not included in current guidance[55](index=55&type=chunk) [Other Updates](index=10&type=section&id=Other%20Updates) [Reporting Changes](index=10&type=section&id=Reporting%20Changes) Match Group plans to rename its non-GAAP profitability measure from **Adjusted Operating Income** to **Adjusted EBITDA**, with no numerical difference; additionally, the definition of **Monthly Active Users** (**MAU**) will change from a last 28-day to a calendar month basis, with a reconciliation provided - Starting next quarter, the non-GAAP profitability measure '**Adjusted Operating Income**' will be renamed to '**Adjusted EBITDA**,' with no numerical difference[56](index=56&type=chunk) - The definition of **Monthly Active User** (**MAU**) will change from a last 28-day to a calendar month basis, with a reconciliation of both definitions to be provided[57](index=57&type=chunk) [Appendix](index=10&type=section&id=Appendix) [Reconciliations of GAAP to Non-GAAP Measures](index=10&type=section&id=Reconciliations%20of%20GAAP%20to%20Non-GAAP%20Measures) This section provides detailed reconciliations of GAAP to non-GAAP financial measures, including **Operating Income** to **Adjusted Operating Income** for Q2 2025 and Q2 2024, forecasted Q3 2025, and for leverage ratios; it also includes reconciliations of **Operating Cash Flow** to **Free Cash Flow** for H1 2025 and full year 2025 forecasts, and GAAP Revenue to Non-GAAP Revenue excluding foreign exchange effects Q2 2025 GAAP to Non-GAAP Reconciliation by Brand | Metric (Q2 2025) | Tinder (in millions) | Hinge (in millions) | E&E (in millions) | MG Asia (in millions) | Corporate & unallocated costs (in millions) | Total Match Group (in millions) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Operating Income (Loss) | $216.968 million | $38.926 million | $(4.397) million | $(0.262) million | $(57.314) million | $193.921 million | | Stock-based compensation expense | 23.722 million | 14.044 million | 10.409 million | 5.652 million | 13.640 million | 67.467 million | | Depreciation | 5.524 million | 0.865 million | 6.500 million | 3.623 million | 1.549 million | 18.061 million | | Amortization of intangibles | — | — | 3.559 million | 6.939 million | — | 10.498 million | | Adjusted Operating Income (Loss) | $246.214 million | $53.835 million | $16.071 million | $15.952 million | $(42.125) million | $289.947 million | | Revenue | $476.701 million | $167.505 million | $151.349 million | $69.155 million | — | $863.738 million | | OI Margin | 46% | 23% | (3)% | 0% | NA | 22% | | AOI Margin | 52% | 32% | 11% | 23% | NA | 34% | Q3 2025 Forecasted GAAP to Non-GAAP Reconciliation | Metric (Q3 2025 Forecast) | Amount (in millions) | | :--- | :--- | | Operating Income | $241 million to $246 million | | Stock-based compensation expense | 63 million | | Depreciation and amortization of intangibles | 26 million | | Adjusted Operating Income | $330 million to $335 million | | Revenue | $910 million to $920 million | | Operating Income Margin (mid-point) | 27 % | | Adjusted Operating Income Margin (mid-point) | 36 % | H1 2025 Free Cash Flow Reconciliation | Metric (H1 2025) | Amount (in millions) | | :--- | :--- | | Net cash provided by operating activities | $436.959 million | | Capital expenditures | $(28.297) million | | Free Cash Flow | $408.662 million | Full Year 2025 Forecasted Free Cash Flow Reconciliation | Metric (FY 2025 Forecast) | Amount (in millions) | | :--- | :--- | | Net cash provided by operating activities | $1,125 million to $1,145 million | | Capital expenditures | $(55 million to $65 million) | | Free Cash Flow | $1,060 million to $1,090 million | Q2 2025 Revenue Excluding Foreign Exchange Effects | Metric (Q2 2025) | As Reported ($M) | FX Effects ($M) | Excl. FX ($M) | % Change Excl. FX | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $863.7 million | $(11.2) million | $852.5 million | (1)% | | Total Revenue (Ex-Live) | $863.7 million | $(11.2) million | $852.5 million | 0% | | Direct Revenue | $845.5 million | $(11.1) million | $834.3 million | (2)% | | Tinder Direct Revenue | $461.2 million | $(6.2) million | $454.9 million | (5)% | | Hinge Direct Revenue | $167.5 million | $(1.6) million | $165.9 million | 24% | | E&E Direct Revenue | $147.9 million | $(2.2) million | $145.6 million | (10)% | | E&E Direct Revenue (Ex-Live) | $147.9 million | $(2.2) million | $145.6 million | (8)% | | MG Asia Direct Revenue | $68.9 million | $(1.1) million | $67.8 million | (8)% | | MG Asia Direct Revenue (Ex-Hakuna) | $68.9 million | $(1.1) million | $67.8 million | 2% | | Azar Direct Revenue | $40.3 million | $1.0 million | $41.3 million | 6% | | Pairs Direct Revenue | $28.7 million | $(2.1) million | $26.6 million | (5)% | [Definitions of Non-GAAP Measures](index=13&type=section&id=Definitions%20of%20Non-GAAP%20Measures) This section defines key non-GAAP financial measures, including **Adjusted Operating Income** (**AOI**), **AOI Margin**, **Free Cash Flow** (**FCF**), and Revenue Excluding Foreign Exchange Effects; it explains their calculation, rationale for use by management and investors, and acknowledges their limitations compared to GAAP results - **Adjusted Operating Income** (**AOI**) is defined as **operating income** excluding stock-based compensation expense, depreciation, and acquisition-related items (amortization of intangible assets and impairments)[69](index=69&type=chunk) - **AOI** is considered useful for comparing performance, internal budgeting, and management compensation, as excluded items are non-cash in nature[68](index=68&type=chunk)[69](index=69&type=chunk) - **Free Cash Flow** (**FCF**) is defined as **net cash provided by operating activities** less **capital expenditures**, representing cash generated by operating businesses before non-operational movements[71](index=71&type=chunk) - Revenue Excluding Foreign Exchange Effects is calculated by translating current period revenues using prior period exchange rates to provide a comparable framework for assessing performance without currency volatility[73](index=73&type=chunk)[74](index=74&type=chunk) - Non-cash expenses excluded from non-GAAP measures include stock-based compensation expense, depreciation, and amortization/impairments of intangible assets[75](index=75&type=chunk)[76](index=76&type=chunk)[77](index=77&type=chunk) [Additional Definitions](index=14&type=section&id=Additional%20Definitions) This section provides definitions for specific operational and financial terms used in Match Group's reporting, including the composition of its brands (Tinder, Hinge, Evergreen & Emerging, Match Group Asia), types of revenue (Direct, Indirect), user metrics (**Payers**, **Revenue Per Payer**, **Monthly Active User**), and leverage ratios - Tinder consists of the worldwide activity of the Tinder® brand, and Hinge consists of the worldwide activity of the Hinge® brand[78](index=78&type=chunk)[79](index=79&type=chunk) - Evergreen & Emerging (E&E) includes brands like Match®, Meetic®, OkCupid®, Plenty Of Fish®, BLK®, Chispa™, The League®, Archer®, HER, and other smaller brands[80](index=80&type=chunk) - Match Group Asia (MG Asia) consists of the worldwide activity of the Pairs® and Azar® brands[80](index=80&type=chunk) - **Direct Revenue** is received directly from end users (subscription and à la carte), while **Indirect Revenue** is not directly from end users (majority advertising revenue)[80](index=80&type=chunk)[81](index=81&type=chunk) - **Payers** are unique users at a brand level from whom **Direct Revenue** is earned; **Revenue Per Payer** (**RPP**) is the average monthly revenue earned from a **Payer**[82](index=82&type=chunk)[83](index=83&type=chunk) - **Monthly Active User** (**MAU**) is a unique registered user who visited the brand's app or website in the last **28** days (definition changing to calendar month)[84](index=84&type=chunk)[57](index=57&type=chunk) - Leverage (**gross** and **net**) is calculated as principal debt balance divided by **Adjusted Operating Income**[85](index=85&type=chunk) [Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995](index=15&type=section&id=Safe%20Harbor%20Statement) [Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995](index=15&type=section&id=Safe%20Harbor%20Statement%20Under%20the%20Private%20Securities%20Litigation%20Reform%20Act%20of%201995) This statement clarifies that the prepared remarks and conference call may contain forward-looking statements, which are based on management's current expectations and assumptions; these statements are inherently subject to uncertainties and risks, such as user growth, product strategies, competition, and macroeconomic conditions, that could cause actual results to differ materially; readers are cautioned not to place undue reliance on these statements, and Match Group does not undertake to update them - The document contains 'forward-looking statements' regarding Match Group's future financial performance, business prospects, strategy, and anticipated trends[86](index=86&type=chunk) - These statements are based on management's current expectations and assumptions, which are inherently subject to uncertainties, risks, and changes in circumstances that are difficult to predict[86](index=86&type=chunk) - Actual results could differ materially due to various factors, including the ability to maintain user base, success of product strategies, competition, risks related to AI, foreign currency fluctuations, and macroeconomic conditions[86](index=86&type=chunk) - Readers should not place undue reliance on these forward-looking statements, and Match Group does not undertake to update them[88](index=88&type=chunk)

Core Insights - Match Group reported strong financial results for Q2 2025, with total revenue of $864 million, exceeding guidance and Wall Street expectations, despite a $14 million legal settlement charge [1][4][9] - The company is undergoing a three-phase transformation strategy: Reset, Revitalize, and Resurgence, aimed at improving structure, product development, and long-term growth [2][3] - Hinge experienced a 25% year-over-year revenue growth, while Tinder launched new features to enhance user experience and engagement [10] Financial Performance - Total revenue for Q2 2025 was $864 million, with a direct revenue of $848 million, showing a slight increase from $845 million in Q2 2024 [5] - Operating income decreased by 5% year-over-year to $194 million, with an operating income margin of 22% [5][9] - Adjusted operating income also declined by 5% year-over-year to $290 million, maintaining an adjusted operating income margin of 34% [5][9] User Metrics - The number of payers decreased by 5% year-over-year to 14.1 million, while revenue per payer (RPP) increased by 5% to $20.00 [5][9] - Hinge's monthly active users (MAU) grew nearly 20% year-over-year in the first half of 2025, with significant growth in European markets [10] Strategic Initiatives - Match Group plans to reinvest approximately $50 million in the second half of 2025 into strategic initiatives, including product testing and geographic expansion [3] - Tinder's new features, such as Double Date and AI-enabled Discovery, aim to address user pain points and improve platform trust [10] Dividend and Share Repurchase - The Board of Directors declared a cash dividend of $0.19 per share, payable on October 17, 2025 [8] - The company repurchased 13.7 million shares at an average price of $31 per share, deploying over 125% of free cash flow for capital return to shareholders year-to-date [9][15]

Group 1 - The article introduces Ragmar Rikberg as a new contributing analyst for Seeking Alpha, encouraging others to share investment ideas for publication and potential earnings [1] - The analyst has been managing investments since 1999, with a focus on identifying deeply undervalued equities that have long-term potential [2] - The analyst is currently pursuing CFA certification and has an academic background in Economics from the University of Tartu [2] Group 2 - There is a disclosure stating that the analyst does not hold any stock or similar derivative positions in the companies mentioned but may initiate a long position in MTCH within the next 72 hours [3] - Seeking Alpha emphasizes that past performance does not guarantee future results and that no specific investment recommendations are being made [4]

Core Viewpoint - Zacks Premium provides various tools and resources to help investors make informed decisions and enhance their confidence in stock market investments Group 1: Zacks Premium Features - Zacks Premium includes daily updates of the Zacks Rank and Zacks Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens [1] - The service also offers access to the Zacks Style Scores, which are complementary indicators for stock evaluation [2] Group 2: Zacks Style Scores - Zacks Style Scores rate stocks based on three investing methodologies: Value, Growth, and Momentum, helping investors identify stocks likely to outperform the market in the next 30 days [3] - Each stock receives a rating from A to F based on its value, growth, and momentum characteristics, with A being the highest score [4] - The Value Score focuses on identifying undervalued stocks using ratios like P/E, PEG, and Price/Sales [4] - The Growth Score emphasizes a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow [5] - The Momentum Score helps investors capitalize on price trends by evaluating recent price changes and earnings estimate revisions [6] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for stock evaluation [7] Group 3: Zacks Rank and Style Scores Integration - The Zacks Rank is a proprietary stock-rating model that utilizes earnings estimate revisions to assist in portfolio building [8] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +23.62% since 1988, significantly outperforming the S&P 500 [9] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 that also have Style Scores of A or B for optimal investment potential [10] - The direction of earnings estimate revisions is crucial when selecting stocks, as a downward trend can indicate potential price declines [11] Group 4: Company Spotlight - Match Group - Match Group, Inc. is a leading provider of dating products, operating over 45 brands including Tinder and Match.com, and serves customers in 190 countries [12] - Currently, Match Group holds a 3 (Hold) rating on the Zacks Rank, with a VGM Score of A [12] - The company has a Momentum Style Score of A, with shares increasing by 5.6% over the past four weeks, and an upward revision in earnings estimates for fiscal 2025 [13] - The Zacks Consensus Estimate for Match Group's earnings has risen by $0.01 to $3.39 per share, with an average earnings surprise of +2.1% [13]

Group 1 - Match Group has undergone significant changes in leadership, including new CEO and CFO appointments, as well as organizational restructuring [1] - The company is positioned within the dating app industry, which has seen various shifts and adaptations in response to market demands [1] Group 2 - The article does not provide specific financial metrics or performance data related to Match Group [1]

Core Insights - The Motley Fool aims to enhance the financial literacy and well-being of individuals by providing investment solutions and market analysis [1] Company Overview - Founded in 1993, The Motley Fool is a financial services company focused on making the world smarter, happier, and richer [1] - The company reaches millions of people monthly through various platforms, including premium investing solutions, free guidance, and market analysis on Fool.com [1] - The Motley Fool also produces top-rated podcasts and operates a non-profit organization, The Motley Fool Foundation [1]

Core Viewpoint - Match Group is set to release its financial results for Q2 2025 on August 5, 2025, after market close, followed by a conference call to discuss these results [1]. Company Overview - Match Group is a leading provider of digital technologies aimed at facilitating meaningful connections among users, with a diverse portfolio of brands including Tinder®, Hinge®, Match®, and others [2]. - The company's services are available in over 40 languages, catering to a global user base [2].