Match Group (MTCH) AI Stock Analysis

• Market Cap: $7.55B
• Dividend Yield: 2.52%
• Average Volume (3M): 4.69M
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.42
• Revenue Growth: 0.40%
• EPS Growth: -11.05%
• Country: US
• Employees: 2,500
• Sector: Communication Services
• Sector Strength: 82
• Industry: Internet Content & Information
• EPS (TTM): 0.44
• Shares Outstanding: 245,225,330
• 10 Day Avg. Volume: 3,534,149
• 30 Day Avg. Volume: 4,685,348
• PEG Ratio: 1.21
• Price to Book (P/B): -32.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.60
• Enterprise Value/Market Cap: 1.98
• Enterprise Value/Revenue: 1.08
• Enterprise Value/Gross Profit: 6.04
• Enterprise Value/Ebitda: 3.77
• 1Y Price Target: $33.36
• Price Target Upside: 8.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 62 Neutral
• Price Target: $32.00 ▲(3.93%Upside)

Match Group's stock score reflects a balance of strengths and risks. The company's robust cash flow and operational efficiency are countered by financial leverage and declining revenue in key segments. Strategic initiatives from the earnings call suggest potential for future growth, but immediate challenges persist.

Positive Factors

CEO Leadership

Efforts to streamline the company organization and a new sense of urgency under Match’s new CEO are viewed as positives.

Organizational Restructuring

Benefits could come from a streamlined organizational structure with shared tech and data teams.

Negative Factors

Macroeconomic Impact

The worsening consumer discretionary macro is starting to impact Tinder among younger users.

Tinder Trends

Continued Tinder declines, characterized as largely unintentional, have pressured the share price.

Match Group Business Overview & Revenue Model

Company Description

Match Group, Inc. is a leading provider of dating products designed to help people connect and find meaningful relationships. Operating within the technology and internet sectors, Match Group owns and operates a portfolio of popular dating platforms, including Tinder, Match.com, OkCupid, and PlentyOfFish. These platforms cater to a diverse array of users across the globe, offering both free and subscription-based services to enhance the online dating experience.

How the Company Makes Money

Match Group generates revenue primarily through its subscription-based business model. Users can access basic features for free, but the company offers premium subscription options that provide additional features such as ad-free experiences, advanced search capabilities, and 'super likes' to increase visibility on platforms like Tinder. These subscriptions are the main revenue stream for Match Group. Additionally, the company earns money through in-app purchases, where users can buy virtual goods and enhanced functionalities to improve their chances of making connections. Advertising also contributes to revenue, though to a lesser extent, as Match Group allows limited advertising on its platforms. Strategic partnerships and acquisitions have further expanded its market presence and user base, contributing to its earnings.

Match Group Financial Statement Overview

Summary

Match Group's financial performance is mixed. Strong operational efficiency and cash flow management are evident, but high leverage and negative equity pose risks. Slowing revenue growth and a moderate net profit margin highlight areas for improvement.

Income Statement

Match Group's revenue growth has slowed, with a slight decrease in the latest TTM compared to the previous annual period. Gross profit margin remains strong at around 71.9% TTM, indicating efficient cost management. However, the net profit margin of 15.8% TTM suggests room for improvement in controlling non-operational costs. EBIT and EBITDA margins are solid, reflecting robust operational efficiency.

Balance Sheet

The company's balance sheet shows a negative stockholders' equity, indicating liabilities exceed assets, which is a potential risk factor. The debt-to-equity ratio cannot be calculated due to negative equity, but high total debt compared to assets suggests significant leverage. Despite these concerns, Match Group continues to generate income, as shown by positive net income figures.

Cash Flow

Match Group demonstrates strong cash flow generation, with robust operating cash flow compared to net income (1.54 TTM). The free cash flow to net income ratio is also healthy (1.45 TTM), indicating efficient cash utilization. However, the negative free cash flow growth rate suggests potential challenges in maintaining cash flow momentum.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.45B	3.48B	3.36B	3.19B	2.98B	2.39B
	Gross Profit
2.48B	2.49B	2.41B	2.23B	2.14B	1.76B
	EBIT
811.17M	823.31M	916.90M	889.29M	386.64M	745.72M
	EBITDA
955.26M	951.63M	1.05B	662.79M	921.64M	794.51M
	Net Income Common Stockholders
545.65M	551.28M	651.54M	361.95M	277.72M	587.68M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
414.17M	970.73M	868.64M	581.12M	827.20M	739.16M
	Total Assets
3.89B	4.47B	4.51B	4.18B	5.06B	3.05B
	Total Debt
3.43B	3.85B	3.96B	3.84B	3.93B	3.84B
	Net Debt
3.02B	2.88B	3.09B	3.26B	3.11B	3.10B
	Total Liabilities
4.07B	4.53B	4.53B	4.54B	5.26B	4.46B
	Stockholders Equity
-182.71M	-63.66M	-19.55M	-359.88M	-203.77M	-1.41B
Cash Flow		Free Cash Flow
792.96M	882.14M	829.38M	476.56M	832.53M	759.81M
	Operating Cash Flow
841.73M	932.72M	896.79M	525.69M	912.50M	802.18M
	Investing Cash Flow
-48.98M	-58.54M	-76.58M	-71.70M	-939.83M	-4.89B
	Financing Cash Flow
-1.30B	-758.30M	-534.07M	-689.17M	111.11M	1.68B

Match Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 30.79
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTCH, the sentiment is Neutral. The current price of 30.79 is above the 20-day moving average (MA) of 30.51, above the 50-day MA of 29.69, and below the 200-day MA of 32.61, indicating a neutral trend. The MACD of 0.37 indicates Positive momentum. The RSI at 52.99 is Neutral, neither overbought nor oversold. The STOCH value of 32.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MTCH.

Match Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPRA	80 Outperform	$1.65B	24.96	9.18%	4.23%	26.71%	-23.67%
WB	73 Outperform	$2.36B	7.23	10.79%	8.59%	0.83%	22.06%
IAC	63 Neutral	$2.85B	―	-15.07%	―	-18.11%	-516.37%
MTCH	62 Neutral	$7.55B	15.19	-865.98%	2.52%	0.40%	-11.05%
Sector *	61 Neutral	$14.74B	5.90	-4.02%	6.40%	2.72%	-31.67%
IQ	59 Neutral	$1.67B	41.29	2.21%	―	-10.05%	-85.30%
JOYY	55 Neutral	$2.54B	―	-2.48%	7.55%	-1.33%	-148.56%

Match Group Corporate Events

Match Group Announces Cash Dividend Amid Strategic Reorganization

On May 8, 2025, Match Group announced a cash dividend of $0.19 per share, payable on July 18, 2025. The company reported its first-quarter results, highlighting a strategic reorganization under new CEO Spencer Rascoff, aimed at enhancing product development and operational efficiency. Despite a 3% year-over-year revenue decline to $831 million, the company is focused on long-term growth through workforce reductions and centralizing key functions. These changes are expected to lead to over $100 million in annualized savings and improve user outcomes, ultimately benefiting shareholders and users alike.

Match Group Announces Board Changes and New Appointments

On April 28, 2025, Alan Spoon announced he would not seek re-election to Match Group‘s Board of Directors, with Kelly Campbell nominated to fill his position. The Board also expanded to include Darrell Cavens, reflecting strategic changes aimed at enhancing governance and leadership. Match Group entered an information sharing agreement with Anson Funds, which withdrew its director nominations and proposal to declassify the Board. This collaboration is part of Match Group’s focus on sustainable growth and long-term value creation, supported by Campbell’s expertise in consumer-facing technology and brand development.

Match Group Appoints Darrell Cavens to Board

On April 6, 2025, Match Group announced the appointment of Darrell Cavens, an experienced e-commerce executive, to its Board of Directors as part of its ongoing board refreshment strategy. This move is intended to enhance the board’s expertise in digital commerce and technology-driven innovation, aligning with the company’s focus on driving shareholder value and innovation across its dating brands. Additionally, Match Group plans to seek stockholder approval to declassify its Board at the 2025 Annual Meeting, a move aimed at strengthening corporate governance. The company also advised stockholders to vote for its nominees and not support those proposed by Anson Funds, which holds less than 0.5% of Match Group’s common stock.