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Match Group reported Q2 revenue of $853.1 million, below the $856.1 million consensus and down from $863.7 million a year earlier. Adjusted earnings per share, as the consensus counts them, were $0.92, below the $0.97 estimate. Diluted earnings per share rose to $0.70 from $0.49.
The company’s filing said Tinder direct revenue declined 1% as fewer paying users offset higher revenue per payer. Hinge direct revenue grew 22%, driven by payer growth, while E&E direct revenue declined 17%, including a $19 million decrease at Azar following its temporary app removal.
Match Group’s gross margin rose to 76.1% from 72.0%, and operating margin increased to 28.8% from 22.5%. CFO Steven Bailey attributed lower cost of revenue in part to savings from alternative payments. Free cash flow rose to $352.5 million from $231.0 million.
| Q2 FY2026 | Q2 FY2025 | Change | |
|---|---|---|---|
| Revenue | $853.1 million | $863.7 million | −1.23% |
| Diluted EPS | $0.70 | $0.49 | 42.9% |
| Gross margin | 76.1% | 72.0% | 4.1 percentage points |
| Operating margin | 28.8% | 22.5% | 6.3 percentage points |
| Free cash flow | $352.5 million | $231.0 million | 52.6% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $0.92 | $0.97 | Missed by 5.15% |
| Revenue | $853.1 million | $856.1 million | In line |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
CEO Spencer Rascoff said Tinder’s product work included changes to recommendations, lower-pressure ways to connect and trust and safety. He said daily active users declined 4% year over year in Q2, before improving to down nearly 2.5% in July. Monthly active users fell 7% in Q2, compared with an 8% decline in Q1.
Rascoff said Tinder was testing text-based search in Canada and expanding its events offering. He said the company was also testing changes to profiles and discovery, including AI-powered profile building, alongside Tinder’s global rebrand. In marketing, he said the company had shifted more spending toward lower-funnel channels and planned campaigns around events, modes and search in the second half.
On Hinge, Rascoff said global monthly active users grew 13% year over year in Q2, driven by expansion markets. He said the company planned to test an additional subscription tier in Q3. Asked about Tinder pricing, he said new features could eventually be monetized but added, “We haven’t yet developed a point of view” on how to do so.
In response to a question about payer penetration, CFO Steven Bailey said Tinder’s payer declines had been smaller than its monthly active user declines, although the measures would not necessarily move together every quarter. He expects payer declines to lessen in the second half.
Bailey said the reduced estimate for the revenue impact of Tinder’s tests partly reflected results in the first two quarters and the rebrand: “We saw no revenue impacts.” On payment costs, he said alternative payments were expected to contribute about $130 million of savings in 2026, while a new Google fee structure offered little economic benefit for alternative payments after processing fees.
Guidance
Bailey said Match Group now expects Tinder direct revenue to decline by a low-single-digit percentage in FY2026, an improvement from its February guidance. He reduced the expected full-year revenue impact of Tinder user experience tests and product changes to $30 to $40 million from $60 million.
For E&E, Bailey now expects a mid-teens percentage decline in direct revenue, primarily because of the Azar redesign, versus a low-double-digit decline under the February guidance as recast for the segment. He expects an adjusted EBITDA margin in the high 20%, compared with the earlier mid-to-high 20% outlook.
Rascoff said full-year adjusted EBITDA would be at or above the high end of guidance.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Revenue | Q3 FY2026 | $885.0 million–$895.0 million | — | New |
| EBITDA, non-GAAP | FY2026 | Match Group expects adjusted EBITDA to be at or above the high end of its FY2026 guidance. | — | — |
| Customers, Tinder Payers | Q4 FY2027 | Match Group expects Tinder payers to return to growth by Q4 FY2027. | — | — |
| Customers, Tinder Monthly Active Users | Q4 FY2027 | Match Group expects Tinder monthly active users to be flat by the end of Q4 FY2027. | — | — |
| Customers, Tinder Payers | Q3 FY2026 | Match Group expects Tinder payer declines to lessen in Q3 FY2026. | — | — |
| Operating expenses, Stock Based Compensation | FY2026 | $230.0 million–$240.0 million | — | New |
| Free cash flow | FY2026 | Match Group expects FY2026 free cash flow at the high end of its February guidance range. | — | — |
| Revenue, E and E Direct | FY2026 | Match Group expects E&E direct revenue to decline by a mid-teens percentage in FY2026. | — | — |
| Revenue, Hinge Direct | FY2026 | Match Group expects Hinge direct revenue to be in line with its February FY2026 guidance. | — | — |
| Revenue, Tinder Direct | FY2026 | Match Group expects Tinder direct revenue to decline by a low-single-digit percentage in FY2026. | — | — |
| Revenue, Indirect | FY2026 | Match Group expects FY2026 indirect revenue to decline by a mid-teens percentage. | — | — |
| Revenue | FY2026 | Match Group expects FY2026 revenue near the midpoint of its February guidance range. | — | — |
| Operating margin, Non Gaap Ebitda Margin | Q3 FY2026 | 37.0% | — | New |
| EBITDA, non-GAAP | Q3 FY2026 | $330.0 million–$335.0 million | — | New |
| Revenue, Indirect | Q3 FY2026 | $15.0 million | — | New |
| Customers, Tinder Daily Active Users | Q3 FY2026 | Match Group expects Tinder daily active users to turn positive year over year in Q3 FY2026. | — | — |