Match Group, Inc. Q3 FY2025 earnings call

Product Progress - Tinder: Clear mission, consumer personas, and Sparks metric in place. Recommendation tests improving user outcomes, Double Date adoption up, features like contextual likes and app performance improvements. - Hinge: Focus on user outcomes, category-first AI features, updates to recommendation system, upcoming features like First Impressions and reimagined preferences. ### Trust and Authenticity - Face Check introduced on Tinder, reducing bad actor activity and improving user trust. Safety tools and enhanced features like Are You Sure? rolled out. Hinge refines onboarding and community guidelines. ### Financial and Operational Rigor - Sharper focus and accountability across the company, Project Aurora in Australia testing advancements, alternative payments rolled out with savings expected, and disciplined capital allocation.

Match Group total revenue was $914 million in Q3, up 2% year-over-year. Tinder direct revenue was $491 million, down 3% year-over-year. Hinge direct revenue was $185 million, up 27% year-over-year. E&E direct revenue was $152 million, down 4% year-over-year. Match Group Asia had varied performances with Azar negatively impacted by Turkish regulator block and Pairs direct revenue down. Payers for Match Group were 14.5 million, down 5% Y/Y, while RPP increased 7% to $20.58. Indirect revenue was $18 million, up 8% Y/Y.

Q4 total revenue expected to be $865 million to $875 million, up 1% to 2% Y/Y (FX neutral down 1% to 2%). Adjusted EBITDA expected to be $350 million to $355 million, up 9% Y/Y. Includes $14 million negative impact to Tinder direct revenue from user experience testing, weaker E&E performance, and Azar's block in Turkey. 2025 full year free cash flow guidance increased to $1.11 billion to $1.14 billion.

Legal settlement with Candelore v. Tinder, Inc. case (class-wide $61 million charge). Impact of Turkish regulators blocking Azar, unclear timeline for unblocking. Macro factors affecting the dating market and competitive intensity.

Q: Cory Carpenter asked about green shoots across the company and at Tinder specifically.

A: Spencer Rascoff discussed Sparks metric improvement, recommendation tests bearing fruit, Double Date adoption, and features improving user outcomes without revenue impact.

Q: Nathaniel Feather inquired about product velocity accelerating user outcomes and revenue headwind into next year.

A: Spencer Rascoff mentioned evaluating tests in key markets, $14 million revenue impact in Q4 from features testing, and product event in spring 2026.

Q: Jason Helfstein followed up on payment savings and Project Aurora's impact on revenue.

A: Steven Bailey said $90 million gives flexibility, tests ongoing, and plan to detail 2026 guidance after annual planning.

Q: Kunal Madhukar asked about Hinge's engagement profile and market expansion.

A: Spencer Rascoff talked about Hinge's positioning, Mexico and Brazil launches, and shared services aiding expansion.

Q: Eric Sheridan asked about going to market with offerings and changes.

A: Spencer Rascoff mentioned rolling out changes in multiple markets, benefiting from Project Aurora insights for 2026 planning.

Q: Ygal Arounian asked about MAU timeline and in-app payment savings.

A: Spencer Rascoff discussed MAU stabilization despite product initiatives, and Steven Bailey explained increased payment savings from faster rollout and Google policy changes.

Q: Logan Whalley asked about marketing traction and cost side.

A: Spencer Rascoff talked about Project Prism creating shared marketing frameworks and informed 2026 decisions.

Q: Shweta Khajuria asked about growth and investment opportunities in 2026.

A: Spencer Rascoff mentioned maximizing stock price through user outcomes, revenue, and audience factors, with key questions on Tinder's profitability.

Q: Youssef Squali asked about U.S. dating market and Q4 revenue guide.

A: Spencer Rascoff talked about category acceptance and Steve Bailey discussed macro trends and stable payers/RPP.

Q: Christopher Kuntarich asked about Face Check rollout and marketing inefficiency.

A: Spencer Rascoff explained Face Check applies to new accounts, improved perceived authenticity, and Hinge's marketing efficiency vs. Tinder's.

Q: Georgia Anderson asked about top of the funnel movement.

A: Spencer Rascoff noted MAU stabilization, revenue stabilization, and progress in flattening slipping lines.