Match Group Inc - New
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.07%.
Did MTCH Beat Earnings? Q2 2025 Results
Match Group delivered a mixed second quarter for fiscal 2025, posting revenue of $863.74 million, edging past the $854.11 million consensus estimate by 1.13% but landing flat year-over-year, while earnings per share of $0.49 fell sharply short of the $0.77 analyst expectation, a miss of 36.69%. The primary drag on the bottom line was a $14 million legal settlement with the FTC tied to a 2019 case alleging deceptive advertising practices on its Match.com platform, alongside $18 million in restructuring charges; stripped of both items, operating income would have grown 10% year-over-year rather than declining 5% to $194 million. Hinge was the quarter's standout, growing direct revenue 25% to $168 million, while Tinder continued to weigh on results with a 4% revenue decline and a 7% drop in payers. Looking ahead, management guided Q3 revenue of $910 to $920 million and raised full-year free cash flow guidance to $1.06 to $1.09 billion, buoyed by favorable tax law changes and improving cash conversion.
- Hinge revenue growth of 25% Y/Y with MAU up nearly 20% Y/Y
- RPP growth of 5% Y/Y to $20.00 partially offsetting 5% payer decline
- Indirect (advertising) revenue up 15% Y/Y
- Organizational restructuring at Tinder removing over 20% of managers
- Favorable FX impact of approximately 1 point on revenue
- Cost savings from shutdown of live streaming services and lower web services costs at Tinder
“Six months ago, we took a hard look at how we work, what we build, and what users want from our apps. We moved fast to reset the company culturally, organizationally, and strategically. We then began revitalizing our apps around clearer brand purpose and real user outcomes. Match Group is now oriented around urgency, accountability, and product obsession.”
Match Group CEO, on the earnings call
Forward Guidance & Outlook
For Q3 2025, Match Group expects Total Revenue of $910 to $920 million (up 2%-3% Y/Y), Adjusted Operating Income of $330 to $335 million (down 3% Y/Y), and AOI margin of approximately 36%. The AOI decline is driven by an expected 17% Y/Y increase in marketing spend. For full year 2025, the company expects Total Revenue toward the high-end of its prior guidance range, primarily due to positive FX impacts (nearly half-point tailwind). FXN ex-live streaming exits, Total Revenue growth is expected within the initial February guidance range. The company expects to achieve a 36.5% AOI margin target after excluding ~$25 million in restructuring costs and $14 million legal settlement, equating to ~35.4% on an as-reported basis. Full-year Free Cash Flow guidance was raised to $1.06 to $1.09 billion, an improvement from prior guidance driven by higher FCF conversion and lower expected cash taxes. Capital expenditures are expected at $55 to $65 million. SBC expense is expected at $260 to $270 million, improved from prior guidance. The company plans to reinvest approximately $50 million in H2 2025 in strategic initiatives. Potential upside from alternative payments rollout and Canadian Digital Services Tax rescission are not included in guidance.
MTCH YoY Financials
MTCH Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.