Q2 2026 Match Group Inc Earnings Call Transcript
Key Points
- Tinder's daily active users (DAU) are expected to turn positive year-over-year imminently, marking the first time in over three years, driven by improved product experience and engagement.
- Tinder's user engagement metrics are improving, with matches up 14% year-over-year in Q2, and Sparks coverage up 2% year-over-year, indicating better user outcomes.
- The new events feature is scaling rapidly, expanding from 1 to 10 cities and planned for 75 by year-end, with strong early adoption (71% of 18-24 users engaged) and potential to drive reconsideration among non-users.
- Hinge continues to deliver strong growth, with global MAU up 13% year-over-year and direct revenue up 22%, driven by successful international expansion and product innovation.
- Match Group's adjusted EBITDA grew 14% year-over-year in Q2, with full-year EBITDA expected to exceed guidance, supported by cost discipline and alternative payment savings.
- The company is returning significant capital to shareholders, with 81% of free cash flow deployed to buybacks and dividends, and diluted shares reduced by 5% year-over-year.
- Total revenue declined 1% year-over-year in Q2, with Tinder direct revenue down 1% and M&A direct revenue down 17%, reflecting ongoing challenges.
- Tinder's MAU declined 7% year-over-year in Q2, and while improving, it remains negative, with payers down 5% and expected to only return to growth by Q4 2027.
- M&A segment faces significant headwinds, particularly from Azar's app redesign, which is expected to cause a $15 million negative impact on revenue in Q3.
- The company lowered its full-year user experience test impact estimate to $30-40 million, but still expects a negative impact on Tinder direct revenue, with Q4 uncertainty.
- Indirect revenue declined 28% in Q2 due to lower advertiser spend, and full-year indirect revenue is expected to decline in the mid-teens percent.
- The Google Play fee structure change provides only a minimal benefit of approximately $5 million in 2027, which is disappointing and limits alternative payment savings.
Welcome to the Match Group Second Quarter 2026 Earnings Conference Call.
All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.
After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then 1 on your telephone keypad.
To withdraw your question, please press star then 2.
Please note, this conference is being recorded.
I would now like to turn the conference over to Tanny Shelburne, Senior Vice President of Investor Relations. Please go ahead.
Thank you, operator, and good afternoon, everyone. Today's call will be led by CEO Spencer Raskoff and CFO Stephen Bailey. They'll make a few brief remarks and then we'll open it up for questions. Before we start, I need to remind everyone that during this call, we may discuss our outlook and future performance. These forward-looking statements may be preceded
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