Natalie Lung
O TinderMatch Group Inc.’s largest brand, wants to prioritize improving the user experience on the dating app over monetizing services. The bet aims to reverse the drop in subscribers of the app, even though it could change Tinder’s reputation as an “app for casual dating”.
A CEO do Tinder, Faye Iosotalunostated that the projection is for a decline or, at most, stability in direct revenue until 2026. For 2027, “low-digit” growth in revenue is expected. Faye presented the data at Match’s investor day, this Wednesday (11).
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In an effort to improve the user experience, Tinder is testing new features. These include requiring face photos on profiles and making AI-curated recommendations. According to Faye, there are changes designed to eliminate bad users from the platform, which should help gain the trust of those who turn to Tinder and strengthen the business in the long term.
The company’s CEO acknowledges that these efforts will reduce Tinder’s user base in the short term. These losses have been occurring over the last six quarters.
“We are adjusting our focus to product innovation beyond monetization, ensuring our pace of features meets and delivers on the changing needs, expectations and behaviors of people looking to date today,” she said.
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“None of this is easy or quick, but it’s what must be done for Tinder to grow again.”
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Match shares fell as much as 6.9% in New York as the investor event was underway.
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The company’s latest product strategy and financial estimates may come as a disappointment to investors looking for more immediate signs of a Tinder turnaround.
However, many on Wall Street remain optimistic about Tinder’s leading position in the dating app market. Both Match and the competitor Bumble Inc. recognized the need to address a generational shift in the way users, especially Gen Z, approach the topic of dating and relationships.
New dating app arrives in Brazil in 2025
If Tinder is changing to try to improve numbers, the Hingeanother brand from the Match group, is highlighted as a positive point in the company’s portfolio. Hinge CEO Justin McLeod projects direct revenue growth of 20% to 25% in 2025.
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Hinge plans to expand into new markets, including Brazil and Mexico in 2025, and other countries in Latin America and Asia in 2026.
McLeod expects direct revenue to reach $1 billion by 2027, surpassing Bloomberg analysts’ average estimates. This will come from AI improvements, including providing feedback on how to start conversations, suggestions for profile writing, and suggested places to meet.
Hinge currently operates in the United States, United Kingdom, Canada, Australia, Ireland, France, Germany and New Zealand.
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How does Hinge work? Is it different from Tinder?
Hinge and Tinder are dating apps that work in different ways. Hinge is for people who want serious and lasting relationships. In it, users create more detailed profiles, answering questions that show their personality.
Interactions on Hinge happen when someone likes a specific answer on someone else’s profile, which helps start more meaningful conversations. Tinder is known for casual dating, where people swipe through profile photos of potential dates.
Additionally, Hinge uses an algorithm that suggests matches based on what users like and the interactions they have had. Hinge is a good choice for those looking for a serious relationship, while Tinder is better for casual dating.
How are the finances of Match, owner of Tinder and Hinge
Tinder’s financial results in recent times worry Match shareholders. Frequent management changes since 2016 and a lack of significant product innovation at Tinder have culminated in a $41 billion loss in Match’s market capitalization since its peak in 2021.
Three shareholders, including Elliott Investment Management LP and Anson Funds Management LP, have taken stakes in the company since last year and are pushing Tinder for growth.
Tinder expects 2025 revenue to fall by “mid-single digits” and remain flat in 2026. Both forecasts fall short of Wall Street expectations, according to estimates compiled by Bloomberg. Tinder also said it sees 2027 revenue growing in “low single digits,” roughly in line with the 2.8% average analysts expect.
Match also owns dating apps Hinge e OKCupid.
On a compound annual basis through 2027, Match expects total revenue growth of 4% to 6%. The increases will be concentrated in 2026 and 2027.
Over the long term, Match leadership anticipates the company can improve cash flow and margins by cutting duplicative expenses across its portfolio of brands, including marketing spend.
Overall, the company plans to return at least 100% of free cash flow to its shareholders over the next three years through a combination of quarterly dividends and share buybacks.
New CFO Steven Bailey expects cumulative free cash flow from 2025 to 2027 to exceed $3 billion — in line with analyst estimates — and is setting an adjusted operating profit margin target of 39% for 2027.
