Match Group Inc - New
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.73%.
Did MTCH Beat Earnings? Q1 2025 Results
Match Group delivered a mixed first quarter for 2025, with revenue edging past expectations while earnings fell well short, painting a picture of a company in transition under new CEO Spencer Rascoff. Revenue came in at $831.18 million, narrowly beating the $827.36 million consensus by 0.46% but still declining 3.3% year-over-year, while GAAP diluted EPS of $0.44 missed the $0.66 consensus estimate by 33.11%, weighed down in part by restructuring costs tied to a sweeping organizational overhaul. The headline strategic move was a 13% workforce reduction, approximately 325 jobs, aimed at generating more than $100 million in annualized savings as Rascoff dismantles the company's brand-silo structure in favor of a centralized, product-led model. Tinder, still the largest brand, saw direct revenue fall 7% year-over-year to $447 million, while Hinge provided the brightest spot with 23% revenue growth to $152 million. Management held full-year revenue guidance steady at $3.38 billion to $3.50 billion, projecting Q2 revenue of $850 million to $860 million.
- Hinge direct revenue grew 23% Y/Y driven by strong user growth with payers up 19% and RPP up 3%
- Indirect (advertising) revenue hit a record quarter, up 31% Y/Y driven by increased spend from top advertisers
- Consolidated RPP grew 1% Y/Y to $19.07 partially offsetting payer declines
- Favorable FX trends contributed approximately $19 million more than anticipated
- Ongoing rigorous cost management with total expenses down 2% Y/Y
- Cost of revenue decreased 8% Y/Y driven by lower IAP fees and reduced live streaming costs
“In my first full quarter as CEO, we've moved quickly to reinvigorate the business and this quarter's results show early traction. In just a few months, we've unlocked significant cross-company synergies, reorganized our largest business unit, accelerated product development, and brought greater focus and discipline to how we work. The organization is moving faster, aligned on sharper priorities, and beginning to deliver against the strategy we've put in place.”
Match Group CEO, on the earnings call
Forward Guidance & Outlook
For Q2 2025, Match Group expects total revenue of $850 to $860 million (down 2% to flat Y/Y) and adjusted operating income of $295 to $300 million (down 4% to 2% Y/Y), representing approximately 35% AOI margin. Excluding $17 million in restructuring costs, AOI would increase 3% Y/Y with margins of approximately 37%. Full year 2025 total revenue guidance of $3,375 to $3,500 million remains unchanged. Full year AOI is expected at $1,232 to $1,278 million on an as-reported basis, roughly in the middle of the range excluding approximately $25 million in restructuring costs. The company expects to achieve its full year AOI margin target of 36.5% excluding restructuring costs. SBC expense is now expected at $280 to $290 million, lower than previously guided. Management noted some early impact to à la carte revenue at Tinder from macroeconomic conditions but said the subscription-heavy business is historically resilient. The reorganization is expected to deliver $100M+ in annualized savings, with approximately $45 million realized in 2025.
MTCH YoY Financials
MTCH Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.