BLOOMBERG - Tinder is shifting its focus from monetization to improving user experience, aiming to rebuild trust and move away from its "hookup app" reputation. CEO Faye Iosotaluno warned of declining revenue through 2026, with growth expected to resume in 2027 as the platform introduces features like AI-powered recommendations, face-photo requirements, and double-date matches to meet evolving user expectations. While these changes may temporarily reduce its user base, Match also lowered its Q4 revenue forecasts due to currency headwinds, disappointing investors seeking faster progress. Activist investors, including Starboard Value, have pressured Match for growth, even suggesting a sale if turnaround efforts fail, as the company faces management changes and a $41B market cap loss since 2021. Despite these challenges, Match plans to return 100% of free cash flow to shareholders through dividends and buybacks, signaling its commitment to long-term shareholder value.
by Natalie Lung
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