MTCH · 10-Q · 2026Q2 · Full report

Gross Margin Drivers

Match Group, Inc. · 2026-08-05 · Importance 62 · Surprise 58 · Matches filing data

Second-quarter cost of revenue decreased 16% to $204.3 million, reducing cost of revenue from 28% to 24% of revenue. Six-month cost of revenue declined 13% to $414.9 million and also represented 24% of revenue, despite total revenue increasing 1%. The principal driver was a shift by payers from app-store payments to alternate payment methods, which reduced in-app purchase fees by $38.0 million. Credit-card processing fees increased by $4.6 million as a result of the payment-method shift.

Key facts

• Cost of revenue (exclusive of depreciation) for the three months ended June 30, 2026 was $204,262 thousand, a decrease of $37,676 thousand (16%) versus prior year quarter ($241,938 thousand). source
• In-app purchase fees were $38.0 million lower in the three months ended June 30, 2026 due to Payers shifting from app store payments to alternate payment methods. source
• Credit card processing fees increased $4.6 million in the three months ended June 30, 2026 compared to prior year quarter. source

Impact estimates