By Kelly Cloonan

Shares of Match Group jumped after the company's latest quarterly results boosted Wall Street's confidence in a budding turnaround for its flagship Tinder dating app.

The stock rose 12%, to $37.83, on Wednesday, on track for its largest percent increase in over a year. Shares are up about 16% this year.

Match said Tuesday that while Tinder continued to see a decline in paying users in the recent quarter, it is making progress on some metrics as it looks to attract Gen-Z users with new product rollouts like a double-dating feature.

In the latest quarter, the app saw a decline in new registrations slow to 7% from 15% in the prior quarter, and monthly active users down about 8% to 9% compared with 9% to 10% previously.

Analysts said those improving declines show Match's efforts to reset the brand under Chief Executive Spencer Rascoff, who joined Match in February and took on an added role leading Tinder, could lead to a turnaround that sticks.

"Tinder turnaround still early, but confidence is building in new CEO," Oppenheimer analysts said in a note.

UBS analysts said it is still unclear if Match can accelerate Tinder's revenue back to growth, but the company's focus on product innovation is a positive sign.

"We have more confidence that Tinder's monetization efforts are starting to gain traction," the UBS analysts said. "We like the willingness to experiment aggressively and prioritize platform health under new leadership."

Going forward, analysts are optimistic that Tinder's plans for further new product launches should lead to longer-term improvement, even if such efforts drag on results in the near term.

"While some of these moves are likely to create short-term volatility, they collectively represent a more coherent framework (and hone in on the pain points more closely) than anything we have heard from the company in recent memory," Raymond James analysts said.

In the quarter, Match posted a profit of $125.5 million, or 49 cents a share, compared with $133.3 million, or 48 cents a share, a year earlier. Analysts polled by FactSet had expected 49 cents a share.

The figure was dented by an unexpected charge of $14 million for a preliminary settlement with the Federal Trade Commission, the company said.

Revenue fell 0.3% to $863.7 million in the latest quarter, topping the $854.1 million modeled by analysts polled by FactSet.

Tinder's direct revenue fell 4% in the quarter, to $461.2 million. Hinge's revenue, meanwhile, rose 25%, to $167.5 million.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

August 06, 2025 11:46 ET (15:46 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.