Tinder continues to struggle with generating revenue from its users, reporting a 7% decline in paying users in Q2 2025. Match Group, Tinder’s parent company, saw a 5% drop across all its dating apps—including Tinder, Hinge, and Match.com.
Despite flat year-over-year revenue of $864 million, Match Group’s earnings fell from $133.3 million to $122.5 million in the same period. However, the company raised its Q3 revenue forecast to $910-$920 million, which helped boost its stock after the earnings report.
New Features and Initiatives to Drive Engagement
To reverse the trend, Match Group CEO Spencer Rascoff shared plans to introduce several new features. Tinder will debut “modes,” allowing users to switch between different dating goals in real time, expanding on previous options that let users display relationship intentions on their profiles.
The company is also exploring a broader redesign, focusing on features tailored for college students and Gen Z users. Another addition will let users like specific parts of a profile, encouraging conversations based on shared interests—similar to features on Hinge.
Match Group plans to invest $50 million in product development, focusing on younger users and using AI to enhance matchmaking.
Tinder continues testing AI-powered matching, which it launched in New Zealand earlier this year. The feature generates curated matches based on profile details, question responses, and optionally, insights from users’ camera roll photos. The company aims to expand this feature to additional regions.
Rascoff explained the AI experience is designed for users under 30 who want to be evaluated beyond physical appearance, investing time to answer questions for personalized results.
The company also plans college-specific features, such as enabling users to search within their own or selected colleges to improve relevance for younger users.
Updates on Double Date and Leadership Changes
Tinder’s Double Date feature, launched in June, lets users pair with a friend to match with other couples. The company reported positive engagement, with 92% of users trying the feature under 30.
This quarter was Rascoff’s first as CEO of Match Group, after he replaced Faye Iosotaluno, who stepped down in July. Earlier this year, the company laid off 13% of staff and closed several open positions.
Author’s Opinion
Tinder’s new features show a clear effort to engage younger users through personalized experiences and AI-driven matching. However, simply adding features may not be enough if users feel overwhelmed or confused by constant changes. Success will depend on balancing innovation with a seamless, intuitive interface that respects users’ time and preferences. The challenge for Tinder is to foster genuine connections without alienating its core audience.
Featured image credit: Heute
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