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Investing.com - BofA Securities has lowered its price target on Bumble Inc. (NASDAQ:BMBL) to $5.00 from $5.50 while maintaining an Underperform rating ahead of the company’s upcoming earnings report. The stock, currently trading at $5.69, has experienced a challenging year with a -35% YTD return, according to InvestingPro data.
Bumble is scheduled to report its third-quarter 2025 results on November 5, with an earnings call at 4:30 PM ET. BofA forecasts total revenue of $247 million, which is 0.8% above the Street consensus of $245 million, driven by higher revenue from both the Bumble and Badoo platforms. The company generated $1.03 billion in revenue over the last twelve months, with a robust gross profit margin of 70.5%.
The firm projects third-quarter EBITDA of $84 million, exceeding Street estimates of $82 million by 2.4% due to lower operating expenses. BofA also anticipates 2.5 million Bumble payers for the quarter, 1.5% above consensus, and 1.3 million Badoo and other payers, 3.4% above Street estimates.
Key topics for the earnings call will likely include early feedback on Bumble’s shift from performance marketing to organic growth strategies, user engagement with AI-powered tools like the coaching hub, and the impact of removing the bottom 10% of low-quality users.
While BofA views Bumble’s cost-saving initiatives and focus on profitability as positive developments, the firm believes the transition to organic marketing could lead to weaker payer trends in the near term as the company undergoes a turnaround in what it describes as a challenged dating industry. InvestingPro analysis indicates the company maintains a FAIR financial health score, with liquid assets exceeding short-term obligations. Discover 10+ additional exclusive insights and detailed financial metrics with an InvestingPro subscription.
In other recent news, Match Group has announced the rollout of a new facial verification feature called Face Check for its Tinder app in the U.S. This feature is designed to confirm user authenticity and reduce fake profiles by requiring new users to take a video selfie for verification. Meanwhile, Bumble Inc. has seen mixed reactions from analysts. Goldman Sachs downgraded Bumble from Buy to Neutral due to limited visibility into the company’s turnaround, noting a significant decline in app downloads. On the other hand, Susquehanna raised its price target for Bumble to $7.00, citing progress in cost-cutting initiatives, including a $40 million reduction from a recent workforce cut. Wolfe Research maintained a Peerperform rating on Bumble, identifying potential upside from in-app purchase fee savings. Additionally, Raymond James reiterated a Market Perform rating on Bumble following its second-quarter results, which were slightly ahead of expectations, with third-quarter guidance aligning with forecasts. These developments reflect the ongoing dynamics and strategic shifts within the dating app industry.
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