Match Group Q2 Earnings Miss Estimates, Revenues Remain Flat Y/Y

Core Insights - Match Group (MTCH) reported Q2 2025 earnings of $0.72 per share, missing estimates by 11.11%, but showing a 50% increase year-over-year [1][9] - Revenues were flat at $863.7 million, slightly beating estimates by 1.24%, with a 1% decrease on an FX-neutral basis [1][9] - The company expects Q3 2025 revenues of $910-$920 million, indicating 2-3% year-over-year growth [11] Revenue Breakdown - Direct revenues were $845.5 million, down 0.3% year-over-year, while indirect revenues increased 15.1% to $18.3 million [2] - Hinge drove top-line growth with direct revenues increasing 25.4% year-over-year [2][4] - Tinder's direct revenues decreased 3.9% year-over-year to $461.2 million, but surpassed estimates by 0.84% [3][9] User Metrics - Total payers decreased by 5% year-over-year to 14.09 million, missing estimates by 0.50% [3][9] - Revenue per payer (RPP) increased 5% year-over-year to $20, beating estimates by 1.56% [3][9] - Hinge's payers increased by 18% year-over-year to 1.75 million, with RPP rising 6% to $31.96 [4] Operating Performance - Total operating costs increased 1.6% year-over-year to $669.8 million, representing 77.6% of revenues [7] - Adjusted operating income was $289.9 million, down 5.4% year-over-year, with an adjusted operating margin of 33.6% [7] Financial Position - As of June 30, 2025, Match Group had cash and short-term investments of $340.4 million, down from $414 million as of March 31, 2025 [8] - Long-term debt remained flat at $3.5 billion [10] Future Guidance - For 2025, the company anticipates revenues towards the high end of the guided range of $3,375-$3,500 million, driven by positive FX impacts [12] - The expected adjusted operating income margin for the full year is 36.5%, factoring in $50 million in reinvestments [12]