Match Group(US:MTCH)2025-08-05 22:05Revenue 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].