Match Group Says Tinder Turnaround Is Gaining Traction as Hinge Growth Stays Strong

Key Points

• Tinder’s turnaround appears to be gaining traction, with Match Group saying recent product and marketing changes are improving engagement, retention, registrations, and revenue trends. Tinder’s MAUs improved from down 10% to down 7%, and the company said revenue is coming in better than expected.
• Hinge remains a major growth engine, posting 28% revenue growth in the first quarter and staying on track for Match Group’s goal of $1 billion in revenue by 2027. Match also sees strong international momentum, especially in Europe and early progress in Latin America.
• Match Group is investing in product innovation and capital returns, including algorithm and AI-driven improvements, IRL events, and a $100 million stake in Sniffies. The company also expects to keep buying back stock, aiming to reduce share count by 5% to 7% annually.

Match Group NASDAQ: MTCH Chief Financial Officer Steven Bailey said Tinder is showing signs that recent product and marketing changes are beginning to translate into stronger user trends and better financial metrics.

Speaking at an investor conference, Bailey said the company’s thesis for improving Tinder is “starting to be proven out,” with early product engagement indicators moving first, followed by broader user and financial metrics.

Bailey pointed to improvements in “Sparks” and “Sparks Coverage,” which he described as measures of meaningful connections, as well as better monthly active user trends and retention. He said Tinder’s MAUs improved from down 10% to down 7%, while retention has also improved.

“That’ll lead to better financial results,” Bailey said. “We’re already starting to see that in payers and revenue, too, where at Tinder, revenue’s coming better than expected lately.”

Tinder Sees Broad-Based Registration Improvement

Bailey said Tinder recently recorded 1% year-over-year growth in registrations, which he described as the first such increase in “many, many years.” He said the gains were broad-based across many user groups, including men and women, older and younger users, and both U.S. and international markets.

Bailey attributed the improvement to three main factors: a shift in marketing toward more lower-funnel spending, an overall increase in marketing investment, and the traction of new features such as Double Date.

“Features like Double Date, that’s really resonated with Gen Z, is helping that word of mouth flywheel that’s so important to the overall equation, too,” Bailey said.

He said one in four Gen Z women in the U.S. are using Double Date, a feature that lets users pair with a friend and match with other pairs. Bailey said the feature is appealing because it is “fun,” “lightweight,” “lower pressure” and perceived as safer.

In-Person Events Seen as Brand and Engagement Tool

Bailey said Match Group is also placing more emphasis on in-real-life, or IRL, connections at Tinder, particularly for Gen Z users. He said the company has piloted about 20 events in Los Angeles and expects to complete 30 soon.

Bailey said the company does not currently view events as a major revenue driver. Instead, he said they are intended to change perceptions of Tinder from a “hookup app” or a source of “swipe fatigue” into an app for meeting new people and forming meaningful real-life connections.

According to Bailey, attendance at the Los Angeles events has been about 85%, and feedback from attendees has been “incredibly strong.” He said about 50% of Gen Z users in Los Angeles surveyed by Tinder expressed interest in attending an event.

Bailey said Tinder is not aiming to become an events company. Instead, it plans to partner with existing events businesses and serve as the technology platform that helps make connections happen.

Algorithm and AI Work Drive Engagement

Bailey said changes to Tinder’s recommendation algorithms have been the “biggest win of the year” and are responsible for about two-thirds of the improvement in engagement and retention metrics.

He said the company has shifted algorithmic weighting away from generating as many likes as possible and toward user outcomes and meaningful connections. Bailey said the changes have improved retention while producing less of a revenue hit than the company had anticipated.

Bailey said Tinder currently has six algorithm tests live and continues to look for ways to feed more data into its systems while keeping the user experience light. He cited tests involving AI-enabled camera roll features, which could help users select better photos, improve profiles and provide additional insights to recommendation algorithms with user permission.

“AI is better at inferring what you like, what you dislike,” Bailey said, adding that AI can help gather user data in a less burdensome way than lengthy profile questionnaires.

Hinge Growth Remains Strong

Bailey also discussed Hinge, which he said delivered 28% revenue growth in the first quarter and remains on track toward Match Group’s expectation of $1 billion in revenue in 2027, with expanding margins.

He said Hinge still has a long runway for monetization in core markets and is seeing strong growth in Europe. Bailey said revenue in European expansion markets has grown 100% year-over-year for the past three quarters.

Bailey said Hinge has also shown promising early performance in Latin America, including becoming the No. 2 or No. 3 dating app in Mexico and entering Brazil. He said those results give Match Group confidence that Hinge can become a global brand, with Asia representing a largely untapped opportunity.

“We’re, to be honest, talking more and more now about, okay, we’re going to get to the billion through basically momentum,” Bailey said. “How do we get to the $2 billion?”

Bailey said Match Group is keeping Tinder and Hinge distinct, with Tinder positioned around “fun” and Hinge around “focus.” He said users commonly use multiple dating apps, creating opportunities for cross-sell and bundling across Match Group’s portfolio.

Margins, Sniffies Investment and Buybacks

Bailey said Match Group’s 2025 margin outlook includes several one-time costs. Excluding those costs, he said margins are roughly flat year-over-year at about 37.5%, by design.

He said the company has generated about $100 million in headcount-related savings and roughly $125 million in in-app payment fee-related savings, and has reinvested much of that into Tinder and Hinge product and marketing.

Bailey also discussed Match Group’s $100 million investment in Sniffies, describing it as a large minority stake that is off-balance sheet and not consolidated. He said Sniffies has about 3 million monthly active users and is the No. 2 player in the non-heterosexual male category. Bailey said Match Group plans to support Sniffies in areas such as trust and safety and in working toward returning to the App Store with a safe-for-work product. He also said Match Group is shutting down Archer, which did not find the product-market fit the company wanted.

On capital allocation, Bailey said Match Group remains a strong free cash flow generator, producing about $1.1 billion in free cash flow in recent years. He said the company expects to reduce its share count by 5% to 7% annually over the next few years through buybacks.

Bailey said free cash flow per share grew more than 20% year-over-year last year and is expected to grow in the high teens this year, calling capital allocation an “underappreciated part” of the company’s turnaround story.

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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