Match Group trades at $36.45 and has moved in lockstep with the market. Its shares have returned 15.1% over the last six months while the S&P 500 has gained 16.2%.

Is MTCH a buy right now? Find out in our full research report, it’s free.

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 Positive Attributes:

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 8.9%. 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 26.4% 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 4.8% annually to 14.09 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 merits more than compensate for its flaws, but at $36.45 per share (or 7.4× forward EV/EBITDA), is now the right time to buy the stock? See for yourself in our full research report, it’s free.

Stocks We Like Even More Than Match Group

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

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