Match Group (NASDAQ:MTCH) shares dropped 10.2% in pre-market trading to $37.03 after the online dating company reported second-quarter 2026 results that exceeded earnings expectations but disappointed investors with weaker revenue, declining paying users and cautious forward guidance.
The company posted adjusted earnings of $0.70 per share, ahead of Wall Street’s consensus estimate of $0.65. Adjusted EBITDA rose 14% year over year to $331 million, producing an EBITDA margin of 39%.
However, quarterly revenue came in at $853 million, down around 1% from a year earlier and below analyst expectations of approximately $857 million.
Declining paying users remain the biggest concern
Investor attention focused on the continued decline in Match Group’s paying customer base.
Total paying users fell 6% year over year to 13.3 million, although average revenue per payer improved modestly during the quarter.
Management also issued guidance that fell short of market expectations, forecasting third-quarter revenue of between $885 million and $895 million. The midpoint of that range came in slightly below the analyst consensus of around $891.5 million.
The company also warned that revenue from its Everyone Everywhere segment is now expected to decline by a mid-teens percentage rate, a weaker outlook than the previously anticipated low double-digit decline.
Management attributed much of the deterioration to disruption affecting the Azar app after its removal from app stores and the subsequent redesign of the platform.
Tinder and Hinge deliver mixed performance
While the overall results disappointed investors, some areas of the business continued to show improvement.
Tinder recorded its strongest operating trend in ten quarters, with the decline in daily active users narrowing to 4% year over year.
Meanwhile, Hinge continued to expand rapidly, reporting 22% revenue growth while strengthening its presence in international markets.
Even so, those gains were insufficient to offset broader concerns over falling subscriber numbers and slower revenue growth across the group.
Company-specific weakness drives sell-off
The broader US equity market offered little explanation for the decline, with both the S&P 500 and Nasdaq posting only modest gains.
Instead, investors reacted to Match Group’s company-specific challenges, including weaker revenue, declining paying users and guidance that failed to meet market expectations.
After trading close to its 52-week high of $41.40 during the previous session, the stock gave back a significant portion of its recent gains as investors reassessed the company’s near-term growth outlook.