MTCH · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

Match Group, Inc. · 2026-11-03 · Importance 57 · Surprise 64

The third-quarter income tax provision increased 53% to $50.4 million, and the effective tax rate rose to 22% from 17%. The 2026 quarterly rate exceeded the statutory rate primarily because of foreign income taxed at higher rates and state income taxes, partly offset by a lower rate on U.S. income derived from foreign sources. For the first nine months, the tax provision increased 47% to $128.2 million and the effective rate rose to 20% from 18%. The year-to-date rates benefited from foreign-source U.S. income, stock-award tax benefits, and 2026 research credits, partly offset by nondeductible stock compensation, state taxes, and foreign income taxed at higher rates.

Key facts

• Match Group determined enacted legislation implementing the OECD Pillar II minimum-tax regime did not materially affect its income tax provision and is monitoring developments, including a side-by-side safe harbor that would exclude U.S.-parented multinationals from certain Pillar II taxes. source
• The effective income tax rate for the three months ended September 30, 2026 was 22%, versus 17% in 2025; the 2026 rate was above the statutory rate primarily because of foreign income taxed at higher rates and state income taxes. source
• The effective income tax rates for the nine months ended September 30, 2026 and 2025 were 20% and 18%, respectively, and both were below the statutory rate, primarily due to the lower rate on U.S. income derived from foreign sources and excess tax benefits from stock awards; 2026 also benefited from research credits. source