MTCH · Earnings call · 2026Q2T · Full report

Operating Expense Trends

Match Group, Inc. · 2026-08-04 · Importance 43 · Surprise 32 · In source text

Total operating expenses, including stock-based compensation, decreased 9% year over year in Q2. Cost of revenue declined 16% and represented 24% of revenue, four percentage points lower, primarily because of alternative-payment savings. Selling and marketing expense increased $10 million, or 7%, to 19% of revenue as Tinder and Hinge spending rose, partly offset by lower E&E marketing. General and administrative expense decreased 22% to 12% of revenue because of lower headcount-related costs, including SBC, and lower legal expenses, while product development remained at 13% of revenue.

Key facts

• Expect SBC expense to be $230 million to $240 million for the full year, a $20 million improvement at the midpoint versus initial guidance
• Shifted marketing strategy toward lower-funnel channels which now represent roughly half of total spend, up from 30% last year
• Deployed $92 million of cash towards net settlement of employee equity awards, equating to 81% of free cash flow
• Selling and marketing costs increased $10 million or 7%, up one point as a percentage of total revenue to 19%
• General and administrative costs decreased 22%, down three points as a percentage of total revenue to 12%
• Depreciation and amortization decreased by $5 million to $24 million
• Including stock-based compensation, total operating expenses in Q2 were down 9%
• Product development costs were flat year over year as a percent of total revenue at 13%

Impact estimates