Match Group shares rally 11% as revenue guidance tops expectations

Published 05/08/2025, 21:44
© Reuters.

LOS ANGELES - Match Group (NASDAQ:MTCH) shares surged 11.4% after the dating app company beat revenue expectations and provided third-quarter guidance that exceeded analyst estimates, despite flat year-over-year performance.

The company reported second quarter revenue of $863.7 million, surpassing the consensus estimate of $853.39 million, while adjusted earnings per share of $0.49 met expectations. Revenue remained flat YoY but declined 1% on a foreign exchange neutral basis. For the third quarter, Match Group forecasts revenue between $910 million and $920 million, well above analyst expectations of $889.8 million.

The stock’s strong rally reflects investor optimism about the company’s outlook despite challenges. CEO Spencer Rascoff highlighted the company’s ongoing transformation: "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."

While Tinder’s user base declined, contributing to a 5% YoY drop in total payers to 14.1 million, the company saw bright spots in its portfolio. Hinge continued its strong performance with revenue growing 25% YoY and monthly active users increasing nearly 20% in the first half of 2025. In European expansion markets, Hinge’s user base grew over 60% YoY.

Match Group’s adjusted operating income was $290 million, down 5% from the previous year, representing a 34% margin compared to 35% in the year-ago period. The company plans to reinvest approximately $50 million in savings during the second half of 2025 into strategic initiatives across its portfolio.

"With meaningful product progress at Tinder, strong momentum at Hinge, and a portfolio of distinct brands aligned around user needs, we’re building a product-first company positioned for long-term success," Rascoff added.

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