Match Group exceeded Wall Street’s expectations in their recent earnings report, but issued weak guidance due to investments in AI to boost user growth at Tinder. Shares surged 12% in after-hours trading. The company reported earnings of 83 cents per share, beating estimates of 70 cents, and revenue of $878 million, above the expected $871 million. Match’s 2026 revenue forecast of $3.41 billion to $3.54 billion fell short of the FactSet estimate of $3.59 billion. CFO Steve Bailey attributed the outlook to investments in Tinder and softness in Asia brands. Match has budgeted $60 million for AI and product rollouts at Tinder, causing a near-term monetization headwind. The company aims to drive user growth and improve the app experience. Bailey noted that product changes had a lower impact than expected in Q4, potentially yielding upside to guidance. Match is undergoing a major business transformation to reverse declining user trends on Tinder and attract younger users. The company unveiled a three-year plan to reach $1 billion in annual revenue by 2027 with Hinge, expanding internationally and introducing AI-powered tools for engagement. Hinge’s direct revenue grew 26% to $186 million. Match’s paying users declined 5% to 13.8 million in Q4, with Tinder seeing an 8% drop in payers due to business development deals. Net income rose to $209.6 million, or 83 cents per share, up from $158.3 million, or 59 cents per share, a year ago, with revenue increasing 2%.

Read more at CNBC: Match Group (MTCH) Q4 2025 earnings