Match Group Q3 Revenue Falls 3% as Payers Decline, EBITDA Rises

Match Group (NASDAQ: MTCH) reported lower third-quarter revenue as a smaller payer base and continued weakness in its Everyone Everywhere portfolio outweighed strong growth at Hinge. Profitability increased, although the year-earlier comparison was affected by legal settlement costs.

Total revenue for the quarter ended September 30, 2026, declined 3% year over year to $891.2 million, or 2% excluding foreign-exchange effects. Direct revenue fell 2% to $876.6 million. Average payers decreased 5% to 13.8 million, while revenue per payer rose 3% to $21.19, partially offsetting the decline in paying users.

Net income attributable to Match Group shareholders increased 8% to $174.4 million, with the net income margin rising to 20% from 18%. Operating income increased to $268.6 million from $221.3 million, lifting the operating margin to 30% from 24%.

Adjusted EBITDA rose 14% to $344.5 million, and the adjusted EBITDA margin expanded to 39% from 33%. The prior-year quarter included $61 million of legal settlement costs and $2 million of restructuring costs, affecting the year-over-year profit comparison.

Hinge growth contrasts with declines elsewhere

Hinge remained Match Group’s principal source of revenue growth. Direct revenue increased 19% year over year, both as reported and excluding foreign-exchange effects, to $220.6 million. Payers rose 23% to 2.3 million, more than offsetting a 3% decline in revenue per payer to $31.81.

The brand’s operating income climbed 52% to $70.2 million, producing a 32% margin compared with 25% a year earlier. Adjusted EBITDA increased 40% to $87.9 million, while the adjusted EBITDA margin reached 40%, up from 34%.

Tinder direct revenue fell 2% to $480 million, with the decline unchanged on a constant-currency basis. Payers decreased 4% to 8.9 million, while revenue per payer increased 2% to $18.02.

Tinder operating income rose 21% to $222.9 million, and adjusted EBITDA increased 20% to $244.4 million. Its operating and adjusted EBITDA margins were 45% and 50%, respectively. The year-earlier Tinder results included substantially all of the $61 million legal settlement charge, making the reported profit increases less indicative of the underlying year-over-year operating change.

The Everyone Everywhere portfolio remained the largest drag on consolidated revenue. Direct revenue declined 20% to $176 million, or 19% excluding foreign-exchange effects, as payers fell 23% to 2.6 million. Revenue per payer increased 4% to $22.58 but did not offset the loss of paying users.

Everyone Everywhere operating income decreased 32% to $21.8 million, with a 12% margin. Adjusted EBITDA fell 28% to $45.1 million, and its margin narrowed to 25% from 28%.

Cash flow and balance sheet

Match Group generated $322.1 million of operating cash flow and $305.2 million of free cash flow during the quarter. For the first nine months of 2026, operating cash flow totaled $886 million and free cash flow was $832 million. Free cash flow for the 12 months ended September 30 reached $1.14 billion.

The company returned $136 million to shareholders in the third quarter, consisting of $90 million in share repurchases and $46 million in dividends. Gross leverage stood at 2.6 times trailing adjusted EBITDA as of September 30, down from 3.2 times at the end of 2025, while net leverage was 2.0 times, compared with 2.4 times.

The disclosed results show that Hinge’s expansion and higher revenue per payer across Match Group were not sufficient to overcome payer contraction at Tinder and Everyone Everywhere. The sharp decline in the Everyone Everywhere portfolio, a smaller consolidated payer base and the legal-cost effect on prior-year profit comparisons remain important considerations when assessing the quarter’s performance.