MTCH Q1 Earnings Meet Estimates, Revenues Fall Y/Y, Stock Down

Match Group MTCH shares fell 9.58% to close at $27.47 on May 8 after the company reported first-quarter 2025 earnings of 67 cents per share, which was in line with the Zacks Consensus Estimate. The bottom line jumped 52.3% from the year-ago quarter’s reported figure.

Revenues of $831 million decreased 3% year over year but exceeded the Zacks Consensus Estimate by 0.39%. On an FX-neutral basis, revenues declined 1% from the prior-year quarter.

Direct revenues were $812.4 million, down 4% year over year, whereas indirect revenues were $18.7 million, which increased 30.8% from the year-ago quarter.

Top-line growth was driven by strength in Hinge. Hinge Direct revenues increased 23% year over year.

Match Group Inc. Price, Consensus and EPS Surprise

Match Group Inc. price-consensus-eps-surprise-chart | Match Group Inc. Quote

MTCH’s Quarterly Details

In the first quarter, the number of total payers decreased 5% year over year to 14.198 million. The figure beat the Zacks Consensus Estimate by 0.25%.

Total revenues per payer (RPP) increased 1% year over year to $19.07. The figure lagged the Zacks Consensus Estimate by 0.4%.

Direct revenues from Tinder were down 7% year over year (down 4% on a FX-neutral basis) to $447.4 million. The figure surpassed the Zacks Consensus Estimate by 0.16%.

Tinder RPP declined 1% year over year to $16.38. Payers declined 6% year over year to 9.107 million.

Hinge revenues grew 23% year over year to $152.2 million, with a 19% year-over-year rise in payers to 1.697 million and a 3% increase in RPP to $29.90. 

Match Group Asia (MG Asia) direct revenues declined 11% year over year (down 7% on a FX-neutral basis) to $63.7 million due to the impacts of forex exchange fluctuations. MG Asia consists of the worldwide activity of the brands Pairs and Azar.

Evergreen and Emerging revenues declined 12% year over year to $149.2 million, with a 16% year-over-year decline in payers to 2.395 million and a 5% increase in RPP to $20.76.

Match Group’s Operating Details

Total operating costs and expenses (79% of revenues) decreased 2% year over year to $658.6 million in the first quarter.

Adjusted operating income was $275 million, down 2% year over year, representing an adjusted operating margin of 33%.

MTCH’s Balance Sheet

As of March 31, 2025, Match Group had a cash and cash equivalent, and short-term investment of $414 million compared with $970.7 million as of Dec. 31, 2024.

As of March 31, 2025, MTCH had a long-term debt of $3.5 billion compared with $3.8 billion as of Dec. 31, 2024.

In the quarter ended March 31, 2025, the company repurchased 6.1 million shares of common stock for $195 million.

Between April 1 and April 30, 2025, Match Group repurchased an additional 3.5 million shares of common stock for $100 million. As of April 30, 2025, $1.45 billion in aggregate value of shares of Match Group was available under the current repurchase program.

MTCH Initiates Q2 Guidance

Match Group expects second-quarter 2025 revenues of $850-$860 million, suggesting a 3% to flat year-over-year decline.
Adjusted operating income (AOI) for the second quarter is anticipated to be in the range of $295-$300 million, suggesting a 2-4% year-over-year decline, with an AOI margin of 35% at the midpoint.

The Zacks Consensus Estimate for second-quarter 2025 revenues is pegged at $827.9 million, indicating a decline of 3.69% on a year-over-year basis.

The consensus mark for earnings is pegged at 67 cents per share, up by a penny over the past 30 days. The figure indicates an increase of 52.27% from the year-ago quarter’s reported figure. 

For 2025, the company expects revenues in the band of $3,375-$3,500 million, implying a 3% year-over-year decline to 1% growth.

AOI for 2025 is expected to be in the range of $1,232-$1,278 million. The AOI margin is likely to be at least 36.5%, suggesting a year-over-year rise of 50 bps. AOI is projected to be flat year over year at the mid-point of the above-mentioned range. 

The Zacks Consensus Estimate for full-year 2025 revenues is pegged at $3.45 billion, indicating a decline of 0.87% on a year-over-year basis.

The consensus mark for earnings is pegged at $3.35 per share, up by 1.5% over the past 30 days. The figure indicates an increase of 12.04% from the year-ago quarter’s reported figure. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Zacks Rank & Stocks to Consider

Currently, MTCH carries a Zacks Rank #3 (Hold).

Magnachip Semiconductor MX, UiPath PATH and WidePoint WYY are some better-ranked stocks that investors can consider in the broader sector, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Magnachip Semiconductor shares have plunged 20.2% year to date. MX is set to report its first-quarter 2025 results on May 12.

UiPath shares have lost 4.9% year to date. PATH is slated to report its first-quarter fiscal 2026 results on May 29.

WidePoint shares have gained 4.1% year to date. WYY is scheduled to report its first-quarter 2025 results on May 15.

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