Match Group Q1 Earnings Call Highlights

Key Points

• Q1 results: Match Group reported revenue of $864M (up 4% YoY) and adjusted EBITDA of $343M (up 25%) for a 40% margin, with Tinder and Hinge driving the outperformance—Tinder direct revenue was $455M and Hinge revenue rose 28%.
• Product momentum: Management said Tinder engagement “Sparks” and retention are meaningfully improving and MAU declines are slowing, while Hinge is scaling rapidly with AI-driven features, higher monetization and international rollouts.
• Operational moves & guidance: Match disclosed an Azar App Store disruption weighing on revenue, folded MG Asia into E&E for ~$15M annual savings, invested $100M in Sniffies (and will wind down Archer), and guided Q2 revenue of $850–860M with adjusted EBITDA of $325–330M.

Match Group NASDAQ: MTCH executives told investors the company started 2026 with momentum in its multi-year turnaround plan, citing improving product “leading indicators” at Tinder, continued rapid growth at Hinge, and further steps to simplify the organization under its “One MG” operating approach.

Management points to Tinder engagement improvements

CEO Spencer Rascoff said Match Group has moved from the “reset” phase of its “reset, revitalize, and resurgence” transformation into “revitalize,” with an emphasis on product experience, ecosystem health, and rebuilding growth. He said the company’s “most important leading indicators” at Tinder—metrics it calls “Sparks” and “Spark’s coverage”—have improved meaningfully.

Rascoff said that in March, “Sparks,” defined as users engaging in six-way conversations, were down 1% year-over-year versus down 11% in March 2025. He added that Spark’s coverage was up 6% year-over-year in March, compared with down 1% in March 2025. Tinder’s monthly active users (MAU) were down 7% year-over-year in March, which he called the slowest decline rate in 31 months, and registrations returned to growth in March, up 1% year-over-year.

During Q&A, Rascoff said “Tinder’s momentum has continued into April,” with MAU down 6.6% year-over-year in April. He also provided daily active user (DAU) trends, saying DAU was down 6% in March 2026 and down 4% in April 2026, compared with down 9% in March 2025.

Rascoff attributed improved retention to a combination of recommendation algorithm upgrades, new features, operational improvements, and marketing. He highlighted that user retention was up 1% year-over-year in March and that retention among U.S. Gen Z women was up 3% year-over-year. “It had been years since we had retention improvements up year-over-year,” he said.

On features, Rascoff said Tinder’s mid-March launches of Astrology Mode and Music Mode reached 19% and 8% adoption, respectively, among Gen Z users, and that Double Date usage remains significant among younger users. He also said Tinder continues to expand Face Check to improve trust and authenticity, including recent launches in the U.K. and Singapore, and noted net promoter scores have been trending higher in the U.S. as Face Check scales.

Hinge growth continues amid AI-driven product roadmap and international expansion

Rascoff said Hinge continues to “scale” with rapid product innovation, including “AI-driven features,” and expanding internationally. He described a redesigned onboarding flow intended to improve profile quality, with a plan to expand it globally by the end of the second quarter.

He also discussed several new and upcoming product initiatives at Hinge, including:

• Date Ideas (formerly “Direct to Date”), which allows users to propose a date idea and time upfront; Rascoff said it has seen nearly 9% adoption in testing.
• Friends Take, which lets users invite friends to contribute reflections to their profiles; testing is expected to begin by the end of Q2 with broader rollout anticipated in Q3.
• Signals, which awards a badge for “thoughtful participation,” aimed at making intentionality more visible; Rascoff said early results show improvements in outcomes and behaviors.

Rascoff said Face Check is fully rolled out in the U.S., U.K., Australia, Canada, Brazil, and Mexico at Hinge, with additional markets planned for Q2. In those markets, he said Face Check reduced interaction with “bad actors” by 20% to 30% with minimal revenue impact.

He also pointed to international momentum, citing recent launches in Brazil and Mexico, and said Hinge “quietly launched 10 more markets” earlier in the week of the call, including several in Latin America and Europe.

Q1 results: revenue up 4%, EBITDA margin reaches 40%

CFO Steven Bailey said the company “delivered a strong start to the year,” exceeding revenue and adjusted EBITDA expectations. He attributed the outperformance primarily to “better-than-expected direct revenue and payers trends at Tinder” and a benefit from Canada’s rescission of its Digital Services Tax.

For the first quarter, Bailey reported:

• Total revenue: $864 million, up 4% year-over-year and flat on a foreign exchange neutral (FXN) basis.
• Payers: 13.5 million, down 5%.
• Revenue per payer (RPP): $20.90, up 10%.
• Adjusted EBITDA: $343 million, up 25%, for a 40% adjusted EBITDA margin.

Bailey said Canada’s rescission of its Digital Services Tax benefited adjusted EBITDA by $11 million in the quarter.

By business unit, Bailey cited:

• Tinder direct revenue: $455 million, up 2% year-over-year (down 3% FXN), including about a $5 million negative impact from user experience testing. Tinder payers were 8.6 million, down 5%, and RPP was $17.56, up 7%. Adjusted EBITDA was $237 million (51% margin).
• Hinge direct revenue: $194 million, up 28% (up 24% FXN). Payers increased 15% to 2.0 million, and RPP rose 11% to $33.13. Adjusted EBITDA was $71 million (36% margin).
• E&E direct revenue: $139 million, down 7% (down 10% FXN). Payers declined 16% to 2.0 million while RPP increased 11% to $22.97. Adjusted EBITDA was $39 million (28% margin).
• Match Group Asia direct revenue: $60 million, down 6% (down 7% FXN). Bailey said Azar direct revenue was negatively impacted by an estimated $3 million from its temporary removal from Apple’s App Store. Depreciation and amortization rose due to $25 million of Azar intangible asset impairments tied to changes required to reinstate the app.

Organizational changes, Azar disruption, and AI enablement

Rascoff said Match Group folded its MG Asia business unit into E&E, a move he said should produce about $15 million in annualized cost savings, including stock-based compensation, while maintaining local go-to-market capabilities. Bailey said that beginning with Q2 2026 results, Match Group will report three segments: Tinder, Hinge, and a combined E&E segment that includes the former Asia unit.

Rascoff also detailed the Azar disruption, stating Apple temporarily removed Azar from the App Store on Feb. 22, 2026, and a new version was reinstated on April 6, 2026. He said registrations and MAU are beginning to recover, but monetization is currently lower than the prior version, and the company expects “continued pressure on Azar direct revenue over the balance of the year.”

On AI, Rascoff said the company launched a global AI enablement program to provide employees access to AI tools with the goal of becoming “AI-native.” He added Match Group is reassessing hiring plans and expects to “reduce headcount growth over the remainder of the year.” In Q&A, Bailey said AI enablement is expected to be “a bit of a neutral” for 2026 because higher software costs are being offset by slower hiring.

Capital allocation, Sniffies investment, and Q2 guidance

Bailey said Match Group ended Q1 with $1 billion in cash equivalents and short-term investments and plans to use $424 million to repay 2026 convertible notes on or before maturity in June. He reported year-to-date operating cash flow of $194 million and free cash flow of $174 million. The company repurchased 2 million shares in Q1 for $60 million and paid $44 million in dividends; Bailey also noted additional repurchases in April and said diluted shares outstanding were down 5% year-over-year as of April 30.

Rascoff discussed a $100 million investment for a significant minority stake in Sniffies, with an option to acquire the remaining equity in the future. He said Sniffies has “3 million monthly active users” and operates on the mobile web, and he described it as a “map-based experience” geared toward more immediate connections. As part of the investment, Rascoff said Match Group plans to wind down its gay male app Archer, which he said should generate about $10 million in annualized cost savings, including stock-based compensation.

For the second quarter, Bailey guided to total revenue of $850 million to $860 million, down 2% to flat year-over-year, and adjusted EBITDA of $325 million to $330 million. He said Q2 revenue guidance includes a $10 million negative impact from Tinder user experience tests and a $20 million negative impact from lower Azar direct revenue. In response to analyst questions, Bailey said Tinder strength is expected to “nearly fully offset” the Azar headwind in Q2.

Looking longer term, Rascoff reiterated the goal of reestablishing Tinder as a growth business by 2027. In Q&A, Bailey framed the stated objectives as achieving year-over-year MAU growth by the end of 2027 and returning to revenue growth by the end of 2027.

About Match Group NASDAQ: MTCH

Match Group, Inc NASDAQ: MTCH is a leading provider of online dating products and services. The company owns and operates a diverse portfolio of consumer brands that connect singles through digital platforms. Its flagship offerings include Match.com, Tinder, Hinge, OkCupid and PlentyOfFish, which together serve users looking for long-term relationships, casual encounters and social networking opportunities.

Originating with the launch of Match.com in 1995, Match Group has grown through a combination of organic development and strategic acquisitions.

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