Bumble(BMBL) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Financial & Operational Highlights Management Commentary Management emphasized a strategic shift towards attracting higher quality members, streamlining costs, and accelerating AI and product innovation to build a durable foundation - CEO Whitney Wolfe Herd stated the company is executing a clear framework to strengthen its member base with higher quality members and has significantly streamlined its cost structure[2] - Interim CFO Ron Fior highlighted that the company exceeded its Adjusted EBITDA guidance by reducing costs and realigning marketing strategy, which improved operational efficiency and allows for reinvestment in brand, trust, and product innovation[4] Key Financial Results Total revenue decreased by 7.6% to $248.2 million, resulting in a $367.0 million net loss due to impairment, while Adjusted EBITDA significantly increased to $94.6 million Q2 2025 Key Financial Metrics (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $248.2M | $268.6M | -7.6% | | Bumble App Revenue | $201.4M | $218.0M | -7.6% | | Badoo App & Other Revenue | $46.8M | $50.6M | -7.5% | | Net Earnings (Loss) | ($367.0M) | $37.7M | N/A | | Adjusted EBITDA | $94.6M | $75.0M | +26.1% | | Adjusted EBITDA Margin | 38.1% | 27.9% | +10.2 p.p. | - The company recorded a significant net loss of $367.0 million, which included $404.9 million of non-cash impairment charges[6] Key Operating Metrics Total Paying Users declined by 8.7% to 3.8 million, while Total Average Revenue per Paying User (ARPPU) slightly increased to $21.69 Q2 2025 Key Operating Metrics (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Total Paying Users | 3.8M | 4.1M | -8.7% | | Bumble App Paying Users | 2.5M | 2.8M | -11.3% | | Badoo App & Other Paying Users | 1.3M | 1.3M | -3.3% | | Total ARPPU | $21.69 | $21.37 | +1.5% | | Bumble App ARPPU | $26.85 | $25.79 | +4.1% | | Badoo App & Other ARPPU | $11.57 | $11.93 | -3.0% | Balance Sheet and Impairment As of June 30, 2025, the company held $261.7 million in cash and $615.2 million in debt, recognizing a $398.1 million non-cash impairment charge - As of June 30, 2025, the company had total cash and cash equivalents of $261.7 million and total debt of $615.2 million[7] - The company recognized non-cash impairment charges of $398.1 million in Q2 2025 following an interim impairment test prompted by a revised outlook and strategic shift[7] Financial Outlook Third Quarter 2025 Outlook For Q3 2025, total revenue is anticipated to be $240 million to $248 million, with Adjusted EBITDA projected between $79 million and $84 million Q3 2025 Financial Outlook | Metric | Guidance Range | | :--- | :--- | | Total Revenue | $240M - $248M | | Bumble App Revenue | $194M - $200M | | Adjusted EBITDA | $79M - $84M | - The company has not provided a reconciliation of its Adjusted EBITDA outlook to GAAP net earnings due to the inability to predict certain items like stock-based compensation expense without unreasonable efforts[8] Corporate Developments CFO Transition Bumble Inc. announced a Chief Financial Officer transition effective August 12, 2025 - The company announced a Chief Financial Officer transition effective August 12, 2025[10] Consolidated Financial Statements Condensed Consolidated Balance Sheets As of June 30, 2025, total assets decreased to $2.16 billion, total liabilities slightly decreased to $1.16 billion, and total shareholders' equity decreased to $1.00 billion Balance Sheet Summary (as of June 30, 2025 vs. Dec 31, 2024) | Metric (in thousands) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $261,739 | $204,319 | | Goodwill | $1,129,007 | $1,386,229 | | Intangible assets, net | $588,867 | $748,906 | | Total Assets | $2,161,495 | $2,524,887 | | Long-term debt, net | $609,418 | $611,346 | | Total Liabilities | $1,157,002 | $1,175,833 | | Total Shareholders' Equity | $1,004,493 | $1,349,054 | Condensed Consolidated Statements of Operations For Q2 2025, revenue was $248.2 million, with a $404.9 million impairment loss leading to a $367.0 million net loss, contrasting with Q2 2024 net earnings Statement of Operations Summary (Three Months Ended June 30) | Metric (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | $248,229 | $268,615 | | Total operating costs and expenses | $586,572 | $216,661 | | Impairment loss | $404,855 | $0 | | Operating earnings (loss) | ($338,343) | $51,954 | | Net earnings (loss) | ($366,983) | $37,686 | | Diluted earnings (loss) per share | ($2.45) | $0.22 | Condensed Consolidated Statements of Cash Flows For the six months ended June 30, 2025, net cash from operating activities significantly improved to $114.5 million, while investing and financing activities used $5.9 million and $51.4 million respectively Cash Flow Summary (Six Months Ended June 30) | Metric (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $114,481 | $35,345 | | Net cash used in investing activities | ($5,920) | ($4,531) | | Net cash used in financing activities | ($51,404) | ($101,003) | | Net increase (decrease) in cash | $58,631 | ($68,972) | Non-GAAP Financial Measures & Reconciliations Reconciliation of Net Earnings to Adjusted EBITDA In Q2 2025, a GAAP Net Loss of $367.0 million was reconciled to an Adjusted EBITDA of $94.6 million, primarily adjusted for a $404.9 million impairment loss Q2 2025 Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Line Item | Amount | | :--- | :--- | | Net loss | ($366,983) | | Impairment loss | $404,855 | | Restructuring costs | $12,178 | | Foreign exchange loss | $12,037 | | Interest and derivative losses, net | $10,259 | | Depreciation and amortization | $6,631 | | Stock-based compensation | $5,849 | | Other adjustments | $1,850 | | Adjusted EBITDA | $94,586 | Reconciliation of Operating Cash Flow to Free Cash Flow For Q2 2025, operating cash flow was $71.2 million, leading to a Free Cash Flow of $67.7 million after capital expenditures, a significant increase from Q2 2024 Q2 2025 Free Cash Flow Calculation (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $71,236 | $32,925 | | Less: Capital expenditures | ($3,509) | ($1,730) | | Free cash flow | $67,727 | $31,195 | | Free cash flow conversion | 71.6% | 41.6% | Supplementary Information This section details non-GAAP adjustments, including total stock-based compensation expense of $5.8 million and reconciliations of GAAP to non-GAAP operating costs - Total stock-based compensation expense was $5.8 million for the three months ended June 30, 2025, primarily allocated to General & Administrative ($3.5M) and Product Development ($1.6M) expenses[44] - After removing non-recurring and non-cash items, total non-GAAP operating costs and expenses for Q2 2025 were $153.8 million, a decrease from $193.6 million in Q2 2024[46]