Match Group (MTCH) Q4 2025 Earnings Transcript

Core Insights - The company is focusing on reinvesting savings from workforce reductions and alternative payments into Tinder and Hinge to drive long-term growth and shareholder value, expecting relatively flat total revenue in 2026 compared to the previous year [1] - The turnaround strategy for Tinder is ongoing, with expectations of continued revenue declines in 2026 similar to 2025, while Hinge is projected to experience strong direct revenue growth [2][10] - The company aims to enhance user experiences, particularly for women, through improved safety and relevance, which is expected to drive user engagement and retention [7][9] Financial Performance - In 2025, Match Group achieved total revenue of $3.5 billion, flat year over year, with adjusted EBITDA of $1.2 billion, down 1%, resulting in an adjusted EBITDA margin of 35% [22] - For Q4 2025, total revenue was $878 million, up 2%, with adjusted EBITDA of $370 million, up 14%, representing a margin of 42% [21] - The company returned nearly $800 million to shareholders through share buybacks and dividends, reducing diluted shares outstanding by 7% year over year [2][29] User Engagement and Product Development - Key metrics for Tinder's product efficacy, such as sparks and spark coverage, are showing improvement, indicating a positive trend in user engagement [5][6] - New registration trends have improved significantly, with a decline of only 5% year over year in Q4 compared to a 12% decline in Q2, suggesting a recovery in user acquisition [6] - The company is implementing AI-driven recommendation algorithms and testing new features to enhance user experience and drive engagement, particularly among Gen Z users [7][9] Strategic Initiatives - The company is in the "revitalize" phase of its transformation, focusing on delivering clear value to users and building experiences that foster real human connections [3][4] - Hinge is positioned as a leading app in the intentional dating space, with strong user growth and revenue momentum, expected to deliver over $100 million in direct revenue in 2026 from European expansion markets [14][34] - The rollout of safety features like FaceCheck has led to a significant reduction in interactions with bad actors, with minimal impact on revenue, enhancing user trust [12][18] Future Outlook - For 2026, Match Group expects total revenue to be approximately flat year over year, with adjusted EBITDA projected between $1.28 billion and $1.325 billion, reflecting a margin of 37.5% [30][31] - The company plans to increase marketing spend for Tinder to support product turnaround efforts, with a total budget of approximately $230 million [33] - Hinge is expected to continue strong revenue growth in the low to mid-20 percent range, with significant runway ahead as it expands into new markets [34][35]