Match Group Announces Third Quarter Results

Core Insights - Match Group reported financial results for Q3 2025, achieving revenue expectations and exceeding Adjusted EBITDA expectations, despite a $61 million legal settlement charge [1][3][5] - The company is focusing on innovation and user outcomes, with a strategy aimed at long-term growth and operational efficiency [1][11] Financial Performance - Total revenue for Q3 2025 was $914 million, a 2% increase year-over-year, with Direct Revenue also up by 2% to $897 million [5][6] - Net income rose 18% year-over-year to $161 million, resulting in a Net Income Margin of 18% [5][6] - Adjusted EBITDA was $301 million, down 12% year-over-year, but would have been $364 million (up 6% year-over-year) excluding the legal settlement charge [5][6] - Operating Cash Flow and Free Cash Flow for the year-to-date through September 30, 2025, were $758 million and $716 million, respectively [14] Shareholder Returns - The company repurchased 17.4 million shares at an average price of $32 per share, totaling $550 million, and paid $141 million in dividends, utilizing 97% of free cash flow for capital returns [5][15] - A cash dividend of $0.19 per share was declared, payable on January 21, 2026 [9] Strategic Initiatives - Match Group is executing a $50 million reinvestment plan to enhance user-first features, marketing, and international expansion [1][11] - The company is rolling out AI-driven features like Chemistry for Tinder, which personalizes user matches, and Face Check for enhanced user verification [11] - Hinge is expanding internationally, with launches in Mexico and Brazil, and continues to develop AI-powered features to improve user engagement [11] Legal and Regulatory Developments - The company resolved a decade-long legal case regarding Tinder's age-based pricing practices, allowing it to focus on future growth [2]