Match Group raises 2026 margin outlook, but Q3 revenue misses estimates

Match Group said on Nov. 2 that it earned 73 cents per share on a diluted basis in the third quarter ended Sept. 30, in line with the consensus estimate. Revenue of $891.23 million, down 3% from a year earlier, fell short of the $910.32 million estimate.

Match Group owns dating apps including Tinder and Hinge. It reports three units: Tinder, Hinge and Everyone Everywhere, which covers its other brands.

CEO Spencer Rascoff said the company is "delivering on the milestones we set, and our confidence is building as we head into 2027."

Here's how the company did:

• Revenue: $891.23 million vs. $914.28 million a year earlier, below the $910.32 million consensus estimate
• Diluted EPS: 73 cents vs. 62 cents a year earlier
• Adjusted EBITDA: $344.46 million vs. $301.41 million a year earlier
• Net income attributable to Match Group: $174.36 million vs. $160.75 million a year earlier

Adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, excluding stock-based compensation and other items, rose 14%. The prior-year quarter included a $61 million legal settlement charge. Excluding that charge, Adjusted EBITDA fell 5%, the company said, mainly because of higher marketing spend at Tinder and Hinge.

Payers declined 5% to 13.8 million, while revenue per payer rose 3% to $21.19. Indirect revenue was $15 million, down 17%.

Segment results

Tinder Direct Revenue was $480 million, down 2% from a year earlier. Payers fell 4% to 8.9 million.

Hinge Direct Revenue was $221 million, up 19%. Payers rose 23% to 2.3 million, while revenue per payer fell 3% to $31.81 as discount optimizations and a lower-priced subscription tier took effect.

Everyone Everywhere Direct Revenue was $176 million, down 20%. The decline reflected lower revenue at Azar after its app redesign, along with weakness at other brands.

Fourth-quarter guidance

The company expects fourth-quarter Total Revenue of $865 million to $875 million, down 1% to flat from a year earlier. It expects Adjusted EBITDA of $327.5 million to $332.5 million.

For full-year 2026, the company expects Adjusted EBITDA margin of 38.8% at the mid-points of its fourth-quarter ranges. That is above the 37.5% it gave in February, due to additional alternative payment savings and lower compensation expense and operating costs.

Full-year revenue is expected to be flat from a year earlier, slightly above the mid-point of the range it gave in February. Free cash flow is expected to be slightly above the high end of its February range.

CFO Steve Bailey said, "We delivered against our financial expectations this quarter, while the underlying trends at Tinder continued to improve."

Costs and cash returns

Cost of revenue fell 16%. Selling and marketing costs rose 9%, while general and administrative costs fell 38%, largely because of the prior-year legal charge.

Year to date, the company repurchased 9.6 million shares for $336 million and paid $137 million in dividends. It ended the quarter with $729 million of cash, cash equivalents and short-term investments, a gross leverage ratio of 2.6 times and a net leverage ratio of 2.0 times.

The board declared a cash dividend of 20 cents per share, payable Jan. 21, 2027 to holders of record as of Jan. 6, 2027.

Revenue has fallen in each of the last three quarters, from $914.3 million in the third quarter of 2025 to $853.1 million in the second quarter of 2026, according to its SEC filings.