Match Group Q2 Earnings Miss Estimates, Revenues Remain Flat Y/Y

Match Group MTCH reported second-quarter 2025 earnings of 72 cents per share, which missed the Zacks Consensus Estimate by 11.11%. The bottom line jumped 50% from the year-ago quarter’s reported figure.

Revenues of $863.7 million were flat year over year but beat the Zacks Consensus Estimate by 1.24%. On an FX-neutral basis, revenues decreased 1% from the prior-year quarter to $852.5 million.

Direct revenues were $845.5 million, down 0.3% year over year, whereas indirect revenues were $18.3 million, which increased 15.1% from the year-ago quarter.

Top-line growth was driven by strength in Hinge. Hinge Direct revenues increased 25.4% year over year.

MTCH’s Quarterly Details

In the second quarter, the total number of payers decreased by 5% year over year to 14.09 million. The figure missed the Zacks Consensus Estimate by 0.50%.

Match Group Inc. Price, Consensus and EPS Surprise

Match Group Inc. price-consensus-eps-surprise-chart | Match Group Inc. Quote

Total revenues per payer (RPP) increased 5% year over year to $20. The figure beat the Zacks Consensus Estimate by 1.56%.

Direct revenues from Tinder were down 3.9% year over year (down 5% on an FX-neutral basis) to $461.2 million. The figure surpassed the Zacks Consensus Estimate by 0.84%.

Tinder RPP rose 3% year over year to $17.14, and Payers declined 7% year over year to 8.97 million.

Hinge revenues grew 25.4% year over year to $167.5 million (up 24% on an FX-neutral basis), with an 18% year-over-year increase in payers to 1.75 million and a 6% increase in RPP to $31.96, driven by strong user growth across all markets combined with continued monetization optimizations.

Match Group Asia (MG Asia) direct revenues declined 6.5% year over year (down 8% on an FX-neutral basis) to $68.9 million. MG Asia consists of the worldwide activity of the brands Pairs and Azar. Across MG Asia, Payers increased 6% year over year to 1.07 million, while RPP declined 12% to $21.53, partly reflecting the impact of Hakuna’s exit in mid-2024.

Evergreen and Emerging revenues declined 8.1% year over year (down 10% on an FX-neutral basis) to $147.9 million. This reflected a 15% drop in payers to 2.31 million, despite an 8% gain in RPP to $21.34.

Match Group’s Operating Details

Total operating costs and expenses (77.6% of revenues) increased 1.6% year over year to $669.8 million in the second quarter.

Adjusted operating income was $289.9 million, down 5.4% year over year, representing an adjusted operating margin of 33.6%, which contracted 190 basis points.

MTCH’s Balance Sheet

As of June 30, 2025, Match Group had cash, cash equivalents and short-term investments of $340.4 million compared with $414 million as of March 31, 2025.

The company reported long-term debt of $3.5 billion as of June 30, 2025. The figure was flat compared with March 31, 2025.

In the quarter ended June 30, 2025, Match Group repurchased 7.6 million shares of common stock for $225 million. 

Between July 1 and July 31, 2025, the company repurchased an additional 1.5 million shares of its common stock for $47 million. As of July 31, 2025, $1.28 billion in aggregate value of shares of Match Group stock was available under the current share repurchase program.

MTCH’s Q3 & 2025 Guidance

Match Group expects third-quarter 2025 revenues of $910-$920 million, suggesting 2-3% year-over-year growth. This range assumes a one-point year-over-year tailwind from FX.

Adjusted operating income (AOI) for the third quarter is anticipated to be in the range of $330-$335 million, suggesting a 3% year-over-year decline, with an AOI margin of approximately 36% at the midpoint.

For 2025, the company expects revenues to be toward the high end of the guided range ($3,375-$3,500 million), primarily driven by positive FX impacts.

The company expects to achieve its full-year AOI margin target of 36.5%. This outlook factors in approximately $50 million in reinvestments, as previously outlined by Spencer. Management will continue to monitor the return on these investments, along with business performance and FX trends, throughout the year.

Match Group’s Zacks Rank & Stocks to Consider

Currently, MTCH carries a Zacks Rank #3 (Hold).

Lumentum LITE, Microchip Technology MCHP and Ouster OUST are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Each stock carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Lumentum shares have appreciated 28.8% year to date. LITE is set to report its fourth-quarter fiscal 2025 results on Aug. 12.

Microchip Technology shares have gained 16.9% year to date. MCHP is slated to report its first-quarter fiscal 2026 results on Aug. 7.

Ouster shares have surged 96.8% year to date. OUST is scheduled to report its second-quarter 2025 results on Aug. 7.

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This article originally published on Zacks Investment Research (zacks.com).

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