While the S&P 500 is up 13.3% since June 2025, Match Group (currently trading at $32.83 per share) has lagged behind, posting a return of 6.4%. This was partly due to its softer quarterly results and may have investors wondering how to approach the situation.
Find out in our full research report, it’s free for active Edge members.
Why Does Match Group Spark Debate?
Originally started as a dial-up service before widespread internet adoption, Match (NASDAQ: MTCH) was an early innovator in online dating and today has a portfolio of apps including Tinder, Hinge, Archer, and OkCupid.
Two Things to Like:
1. Eye-Popping Growth in Customer Spending
Average revenue per user (ARPU) is a critical metric to track because it measures how much the average user spends. ARPU is also a key indicator of how valuable its users are (and can be over time).
Match Group’s ARPU growth has been impressive over the last two years, averaging 7.9%. Although its payers shrank during this time, the company’s ability to successfully increase monetization demonstrates its platform’s value for existing users. 
2. Excellent Free Cash Flow Margin Boosts Reinvestment Potential
If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills.
Match Group has shown terrific cash profitability, driven by its lucrative business model and cost-effective customer acquisition strategy that enable it to stay ahead of the competition through investments in new products rather than sales and marketing. The company’s free cash flow margin was among the best in the consumer internet sector, averaging 26.7% over the last two years.
One Reason to be Careful:
Declining Payers Reflect Product Weakness
As a subscription-based app, Match Group generates revenue growth by expanding both its subscriber base and the amount each subscriber spends over time.
Match Group struggled with new customer acquisition over the last two years as its payers have declined by 4.7% annually to 14.53 million in the latest quarter. This performance isn't ideal because internet usage is secular, meaning there are typically unaddressed market opportunities. If Match Group wants to accelerate growth, it likely needs to enhance the appeal of its current offerings or innovate with new products. 
Final Judgment
Match Group’s positive characteristics outweigh the negatives. With its shares lagging the market recently, the stock trades at 8.5× forward EV/EBITDA (or $32.83 per share). Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
Stocks We Like Even More Than Match Group
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The names generating the next wave of massive growth are right here in our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
