10-Q · August 5, 2026
Match Group's Q2 revenue declined 1% year over year to $853.105 million, while diluted EPS of $0.70 rose from $0.49 in Q2 2025 but was below the $0.92 consensus estimate. Margin expansion was substantial—gross margin…
Earnings analysis · 10-Q
MTCH earnings analysis
Filed November 2, 2026 · Our reading of the company's report
The latest report
Match Group delivered a mixed Q3: revenue declined 3% year over year to $891.2 million and missed the $0.98 EPS consensus with $0.73, but gross and operating margins expanded materially and operating cash flow reached…
Read full summary
Match Group delivered a mixed Q3: revenue declined 3% year over year to $891.2 million and missed the $0.98 EPS consensus with $0.73, but gross and operating margins expanded materially and operating cash flow reached $886.3 million year to date. Hinge remained the key growth driver, while Tinder profitability improved; however, payer declines and the Azar disruption drove a 20% Everyone Everywhere revenue decline. Liquidity improved from repayment of the $423.9 million 2026 Exchangeable Notes, but cash fell to $726.2 million against $3.575 billion of debt, and regulatory exposure increased following the €11 million Tinder GDPR fine.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.73
What stood out
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Margins and EPS improved despite revenue decline
Revenue was $891.2 million, down 3% year over year but up from $853.1 million in Q2 2026. Diluted EPS was $0.73 versus $0.62 in the prior-year quarter and $0.70 in Q2 2026, although it was below the $0.98 consensus estimate.
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Significant operating leverage
Gross margin expanded to 76.8% from 73.0% year over year and 76.1% in Q2 2026. Operating margin increased to 30.1% from 24.2% year over year and 28.8% sequentially, helped by $43.0 million lower in-app purchase fees and a $55.8 million reduction in G&A expense.
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Hinge remained the growth engine
Hinge revenue increased 19% year over year to $220.6 million, driven by 23% payer growth to 2.312 million. Hinge operating income rose 52% to $70.2 million and Adjusted EBITDA rose 40% to $87.9 million.
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Tinder profitability strengthened
Tinder operating income increased 21% to $222.9 million and Adjusted EBITDA increased 20% to $244.4 million despite revenue declining 2% to $493.6 million. The improvement primarily reflected lower legal settlement expense and lower in-app purchase fees.
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Strong cash generation
Operating cash flow was $886.3 million for the first nine months, up from $757.6 million in the prior-year period. After $54.7 million of capital expenditures, calculated free cash flow was approximately $831.7 million, with capex equal to about 6.2% of quarterly revenue on a year-to-date basis.
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Debt maturity profile improved
Debt principal declined to $3.575 billion from $3.999 billion at December 31, 2025 after repayment of $423.9 million of 2026 Exchangeable Notes. The company also repurchased $335.5 million of stock and paid $136.9 million of dividends during the first nine months.
What to watch
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Azar disruption continues to weigh on E&E
Everyone Everywhere revenue fell 20% year over year to $179.3 million and Adjusted EBITDA declined 28% to $45.1 million. Management attributed the decline partly to a $20.0 million reduction in Azar revenue after Apple removed the app from the App Store from February 22 to April 6, 2026 and subsequent updates reduced monetization.
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Payer contraction remains material
Consolidated payers declined 5% year over year to 13.789 million, including a 4% decline at Tinder to 8.879 million and a 23% decline at E&E to 2.598 million. Tinder Direct Revenue fell 2% despite a 2% increase in revenue per payer.
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Regulatory and privacy litigation exposure
The Irish Data Protection Commission imposed an €11 million fine on October 13, 2026 related to Tinder GDPR practices, and Match recorded a $12.6 million provision. The company intends to appeal, while a separate Netherlands privacy class action has confirmed jurisdiction over non-GDPR claims.
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High leverage and lower cash balance
Cash and cash equivalents declined to $726.2 million from $1.028 billion at December 31, 2025, while total debt remained $3.575 billion. Interest expense increased 12% year over year in the quarter to $41.5 million, despite repayment of the 2026 Exchangeable Notes.
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AI investment raises cost and execution risk
Product development expense increased 14% year over year to $119.8 million, primarily due to higher Tinder and Hinge spending on AI token utilization and higher Hinge headcount. Management also identifies challenges in properly managing AI use as a risk factor.
Management's outlook
The 10-Q does not provide quantitative revenue or EPS guidance. Management expects 2026 cash capital expenditures of $65 million to $75 million and states it believes operating cash flow will be sufficient to satisfy future obligations.
Earlier filings 2
10-Q · May 5, 2026
Match Group (MTCH) reported Q1 2026 results with revenue of $863.93 million, up 4% year-over-year, while diluted EPS came in at $0.68, up from $0.44 in the previous year. Management highlighted segment-specific growth,…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.