SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2025

Accounting Policies [Abstract]

Nature of Operations

Match Group, Inc., through its portfolio companies, is a leading provider of digital technologies designed to

help people make meaningful connections. Our global portfolio of brands includes Tinder®, Hinge®, Match®,

Meetic®, OkCupid®, Pairs™, Plenty Of Fish®, Azar®, BLK®, and more, each built to increase our users’ likelihood of

connecting with others. Through our trusted brands, we provide tailored services to meet the varying

preferences of our users. Match Group has four operating segments, Tinder, Hinge, Evergreen and Emerging,

and Match Group Asia (“MG Asia”).

Basis of Presentation and Consolidation

The Company prepares its consolidated financial statements in accordance with U.S. generally accepted

accounting principles (“GAAP”). The consolidated financial statements include the accounts of the Company, all

entities that are wholly-owned by the Company, and all entities in which the Company has a controlling financial

interest. Intercompany transactions and accounts have been eliminated.

Accounting for Investments in Equity Securities

Investments in equity securities, other than those of our consolidated subsidiaries, are accounted for at fair

value or under the measurement alternative of the Financial Accounting Standards Board’s (“FASB”) equity

securities guidance, with any changes to fair value recognized within other income, net each reporting period.

Under the measurement alternative, equity investments without readily determinable fair values are carried at

cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly

transactions for identical or similar securities of the same issuer, the value of which is generally determined

based on a market approach as of the transaction date. A security will be considered identical or similar if it has

identical or similar rights to the equity securities held by the Company. The Company reviews its investments in

equity securities without readily determinable fair values for impairment each reporting period when there are

qualitative factors or events that indicate possible impairment. Factors we consider in making this determination

include negative changes in industry and market conditions, financial performance, business prospects, and

other relevant events and factors. When indicators of impairment exist, the Company prepares quantitative

assessments of the fair value of our investments in equity securities, which require judgment and the use of

estimates. When our assessment indicates that the fair value of the investment is below its carrying value, the

Company writes down the investment to its fair value and records the corresponding charge within other

income, net.

Accounting Estimates

Management of the Company is required to make certain estimates, judgments, and assumptions during

the preparation of its consolidated financial statements in accordance with GAAP. These estimates, judgments,

and assumptions impact the reported amounts of assets, liabilities, revenue, and expenses and the related

disclosure of contingent assets and liabilities. Actual results could differ from these estimates.

On an ongoing basis, the Company evaluates its estimates and judgments including those related to: the

fair values of cash equivalents; the carrying value of accounts receivable, including the determination of the

allowance for credit losses; the carrying value of right-of-use assets (“ROU assets”); the useful lives and

recoverability of definite-lived intangible assets and property and equipment; the recoverability of goodwill and

indefinite-lived intangible assets; the fair value of equity securities without readily determinable fair values;

contingencies; unrecognized tax benefits; the valuation allowance for deferred income tax assets; and the fair

value of and forfeiture rates for stock-based awards, among others. The Company bases its estimates and

judgments on historical experience, its forecasts and budgets, and other factors that the Company considers

relevant.

Revenue Recognition

The Company accounts for a contract with a customer when it has approval and commitment from all

parties, the rights of the parties and payment terms are identified, the contract has commercial substance, and

collectability of consideration is probable. Revenue is recognized when control of the promised services is

transferred to our customers and in an amount that reflects the consideration the Company expects to be

entitled to in exchange for those services.

The Company’s revenue is primarily derived directly from users in the form of recurring subscriptions.

Subscription revenue is presented net of credits and credit card chargebacks. Subscribers pay in advance,

primarily by credit card or through mobile app stores, and, subject to certain conditions identified in our terms

and conditions, generally all purchases are final and nonrefundable. Revenue is initially deferred and is

recognized using the straight-line method over the term of the applicable subscription period, which generally

ranges from one week to six months. Revenue is also earned from online advertising and the purchase of à la

carte features. Online advertising revenue is recognized when an advertisement is displayed. Revenue from the

purchase of à la carte features is recognized based on usage. Revenue associated with offline events is

recognized when each event occurs.

The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an

original expected length of one year or less, (ii) contracts with variable consideration that is allocated entirely to

unsatisfied performance obligations or to a wholly unsatisfied promise accounted for under the series guidance,

and (iii) contracts for which the Company recognizes revenue at the amount which we have the right to invoice

for services performed.

Transaction Price

The objective of determining the transaction price is to estimate the amount of consideration the Company

is due in exchange for its services, including amounts that are variable. The Company determines the total

transaction price, including an estimate of any variable consideration, at contract inception and reassesses this

estimate each reporting period.

The Company excludes from the measurement of transaction price all taxes assessed by governmental

authorities that are both (i) imposed on and concurrent with a specific revenue-producing transaction and (ii)

collected from customers. Accordingly, such tax amounts are not included as a component of revenue or cost of

revenue.

For contracts that have an original duration of one year or less, the Company does not consider the time

value of money.

Assets Recognized from the Costs to Obtain a Contract with a Customer

The Company has determined that certain costs, primarily mobile app store fees, meet the requirements to

be capitalized as a cost of obtaining a contract. The Company recognizes an asset for these costs if we expect to

recover those costs. Mobile app store fees are amortized over the period of contract performance. Specifically,

the Company capitalizes and amortizes mobile app store fees as revenue is recognized for both subscription and

à la carte features.

During the years ended December 31, 2025 and 2024, the Company recognized expense of $692.7 million

and $696.6 million, respectively, related to the amortization of these costs. The contract asset balances at

December 31, 2025, 2024, and 2023 related to costs to obtain a contract are $23.2 million, $28.6 million, and

$33.1 million, respectively, included in “Other current assets” in the accompanying consolidated balance sheet.

Accounts Receivables, Net of Allowance for Credit Losses

The majority of our users purchase our services through mobile app stores. At December 31, 2025, two

mobile app stores accounted for approximately 74% and 19%, respectively, of our gross accounts receivables.

The comparable amounts at December 31, 2024 were 78% and 16%, respectively. We evaluate the credit

worthiness of these two mobile app stores on an ongoing basis and do not require collateral from these entities.

We generally collect these balances between 30 and 45 days following the purchase. Payments made directly

through our applications are processed by third-party payment processors. We generally collect these balances

within 3 to 5 days following the purchase. The Company also maintains allowances to reserve for potential

credits issued to users or other revenue adjustments. The amounts of these reserves are based primarily upon

historical experience.

Accounts receivable related to indirect revenue include amounts billed and currently due from customers.

The Company maintains an allowance for credit losses to provide for the estimated amount of accounts

receivable that will not be collected. The allowance for credit losses is based upon historical collection trends

adjusted for economic conditions using reasonable and supportable forecasts. The time between the Company

issuance of an invoice and payment due date is not significant; customer payments that are not collected in

advance of the transfer of promised services are generally due no later than 30 days from invoice date.

Deferred Revenue

Deferred revenue consists of advance payments that are received or are contractually due in advance of

the Company’s performance. The Company’s deferred revenue is reported on a contract by contract basis at the

end of each reporting period. The Company classifies deferred revenue as current when the term of the

applicable subscription period or expected completion of our performance obligation is one year or less. The

deferred revenue balances are $151.3 million, $166.1 million, and $211.3 million at December 31, 2025, 2024,

and 2023, respectively. During the years ended December 31, 2025 and 2024, the Company recognized $166.1

million and $211.3 million of revenue that was included in the deferred revenue balance as of December 31,

2024 and 2023, respectively. At December 31, 2025 and 2024, there is no non-current portion of deferred

revenue.

Cash and Cash Equivalents

Cash and cash equivalents include cash and short-term investments, with maturities of less than 91 days

from the date of purchase. Domestically, cash equivalents primarily consist of (i) AAA rated government money

market funds and (ii) time deposits. Internationally, cash equivalents primarily consist of (i) time deposits and (ii)

money market funds.

Property and Equipment

Property and equipment, including significant improvements, are recorded at cost. Repairs and

maintenance costs are expensed as incurred. Depreciation is computed using the straight-line method over the

estimated useful lives of the assets or, in the case of leasehold improvements, the lease term, if shorter.


Asset Category	Estimated Useful Lives
Buildings and building improvements	10 to 39 years
Computer equipment and capitalized software	2 to 3 years
Furniture and other equipment	5 years
Leasehold improvements	6 to 10 years

The Company capitalizes certain internal use software costs including external direct costs utilized in

developing or obtaining the software and compensation for personnel directly associated with the development

of the software. Capitalization of such costs begins when the preliminary project stage is complete and ceases

when the project is substantially complete and ready for its intended purpose.

Business Combinations

The purchase price of each acquisition is attributed to the assets acquired and liabilities assumed based on

their fair values at the date of acquisition, including identifiable intangible assets that either arise from a

contractual or legal right or are separable from goodwill. The Company typically engages outside valuation

experts to assist in the allocation of purchase price to the identifiable intangible assets acquired, but

management has ultimate responsibility for the valuation methods, models, and inputs used and the resulting

purchase price allocation. The excess purchase price over the net tangible and identifiable intangible assets is

recorded as goodwill and assigned to the reporting unit that is expected to benefit from the combination as of

the acquisition date.

Goodwill and Indefinite-Lived Intangible Assets

The Company assesses goodwill on its four reporting units and indefinite-lived intangible assets for

impairment annually as of October 1, or more frequently if an event occurs or circumstances indicate that it is

more likely than not the fair value of a reporting unit or the fair value of an indefinite-lived intangible asset is

below its carrying value.

Goodwill

When the Company elects to perform a qualitative assessment and concludes it is not more likely than not

that the fair value of the reporting unit is less than its carrying value, no further assessment of that reporting

unit’s goodwill is necessary; otherwise, a quantitative assessment is performed to further assess if any goodwill

impairment exists.

If the Company concludes that it is more likely than not that there may be an impairment, the fair value of

each reporting unit will be determined and compared to its carrying value, including goodwill. If the fair value of

a reporting unit exceeds its carrying value, goodwill of the reporting unit is not impaired. If the carrying value of

a reporting unit exceeds its estimated fair value, an impairment loss equal to the excess is recorded.

If measuring the estimated fair value of each operating unit, the Company uses a combination of an income

approach and a market approach. Under the income approach, a discounted cash flow analysis is performed

with assumptions and estimates of forecast operating cash flows including, revenue growth rates, profitability

margins, and discount rates, which all vary among reporting units. The market approach utilizes the guideline

public companies method and is based on revenue and income multiple data derived from publicly traded peer

group companies. There are significant judgments inherent in each analysis, including estimating the amount

and timing of expected future cash flows, the selection of appropriate discount rates, and the peer group

companies used.

The Company performed a qualitative impairment assessment as of October 1, 2025 and 2024 and

concluded that it was more likely than not that the fair values of each reporting unit exceeded their carrying

values.

Indefinite-Lived Intangible Assets

The Company has the option to qualitatively assess whether it is more likely than not that the fair values of

its indefinite-lived intangible assets are less than their carrying values. The Company performed a qualitative

impairment assessment for certain indefinite-lived assets as of October 1, 2025 and concluded that it was more

likely than not that the fair values of those indefinite-lived intangible assets exceeded their carrying values.

For assets in which a quantitative assessment is performed, the Company determines the fair value of its

indefinite-lived intangible assets using an avoided royalty discounted cash flow (“DCF”) valuation analysis.

Significant judgments inherent in this analysis include the selection of appropriate royalty and discount rates and

estimating the amount and timing of expected future cash flows. The discount rates used in the DCF analyses are

intended to reflect the risks inherent in the expected future cash flows generated by the respective intangible

assets. The royalty rates used in the DCF analyses are based upon an estimate of the royalty rates that a market

participant would pay to license the specific trade names and trademarks. The future cash flows are based on

the Company’s most recent forecast and budget and, for years beyond the budget, the Company’s estimates are

based, in part, on forecasted growth rates. Assumptions used in the avoided royalty DCF analyses, including the

discount rate and royalty rate, are assessed when a quantitative assessment is performed based on the actual

and projected cash flows related to the asset, as well as macroeconomic and industry specific factors.

Long-Lived Assets and Intangible Assets with Definite Lives

Long-lived assets, which consist of ROU assets, property and equipment, and intangible assets with definite

lives, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value

of an asset group may not be recoverable. The carrying value of a long-lived asset or asset group is not

recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual

disposition of the asset group. If the carrying value is deemed not to be recoverable, an impairment loss is

recorded equal to the amount by which the carrying value of the long-lived asset group exceeds its fair value.

Amortization of definite-lived intangible assets is computed either on a straight-line basis or based on the

pattern in which the economic benefits of the asset will be realized. During the year ended December 31, 2024,

in connection with our decision to terminate certain of our live streaming services and our Hakuna app, we

recognized impairment charges of $1.9 million related to definite-lived intangible assets in the Match Group Asia

and Evergreen & Emerging segments.

Fair Value Measurements

The Company categorizes its financial instruments measured at fair value into a fair value hierarchy that

prioritizes the inputs used in pricing the asset or liability. The three levels of the fair value hierarchy are:

•Level 1: Observable inputs obtained from independent sources, such as quoted market prices for

identical assets and liabilities in active markets.

•Level 2: Other inputs, which are observable directly or indirectly, such as quoted market prices for

similar assets or liabilities in active markets, quoted market prices for identical or similar assets or

liabilities in markets that are not active, and inputs that are derived principally from or corroborated by

observable market data. The fair values of the Company’s Level 2 financial assets are primarily obtained

from observable market prices for identical underlying securities that may not be actively traded.

Certain of these securities may have different market prices from multiple market data sources, in

which case an average market price is used.

•Level 3: Unobservable inputs for which there is little or no market data and require the Company to

develop its own assumptions, based on the best information available in the circumstances, about the

assumptions market participants would use in pricing the assets or liabilities.

The Company’s non-financial assets, such as goodwill, intangible assets, ROU assets, and property and

equipment, are adjusted to fair value only when an impairment is recognized. The Company’s financial assets,

comprising of equity securities without readily determinable fair values, are adjusted to fair value when

observable price changes are identified or an impairment is recognized. Such fair value measurements are based

predominantly on Level 3 inputs.

Advertising Costs

Advertising costs are expensed in the period incurred (when the advertisement first runs for production

costs that are initially capitalized) and represent online marketing, including fees paid to search engines and

social media sites, and offline marketing.

Legal Costs

Legal costs are expensed as incurred.

Income Taxes

We are subject to income taxes in the United States and numerous foreign jurisdictions. Significant

judgment is required in determining our provision for income taxes and income tax assets and liabilities,

including evaluating uncertainties in the application of accounting principles and complex tax laws.

We record a provision for income taxes for the anticipated tax consequences of our reported results of

operations using the asset and liability method. Under this method, we recognize deferred income tax assets and

liabilities for the future tax consequences of temporary differences between the financial reporting and tax

bases of asset and liabilities, as well as for net operating loss and tax credit carryforwards. Deferred tax assets

and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences

are expected to be realized or settled. We recognize the deferred income tax effects of a change in tax rates in

the period of enactment.

A valuation allowance is provided on deferred tax assets if it is determined that it is more likely than not

that the deferred tax asset will not be realized. We consider all available evidence, both positive and negative,

including historical levels of income, expectations and risks associated with estimates of future taxable income,

and tax planning strategies in assessing the need for a valuation allowance.

We recognize tax benefits from uncertain tax positions only if we believe that it is more likely than not that

the tax position will be sustained based on the technical merits of the position. Such tax benefits are measured

based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. This

measurement step is inherently difficult and requires subjective estimations of such amounts to determine the

probability of various possible outcomes. We consider many factors when evaluating and estimating our tax

positions and tax benefits, which may require periodic adjustment. We make adjustments to our unrecognized

tax benefits when facts and circumstances change, such as the closing of a tax audit or the refinement of an

estimate. Although we believe that we have adequately reserved for our uncertain tax positions, the final

outcome of these matters may vary significantly from our estimates. To the extent that the final outcome of

these matters is different from the amounts recorded, such differences will affect the income tax provision in

the period in which such determination is made, and could have a material impact on our financial condition and

operating results.

Earnings Per Share

Basic earnings per share is computed by dividing net income attributable to Match Group shareholders by

the weighted average number of common shares outstanding during the period. Diluted earnings per share

reflects the potential dilution that could occur from restricted stock units (“RSUs”), stock options and other

commitments to issue common stock using the treasury stock or the as if converted methods, as applicable.

Foreign Currency Translation and Transaction Gains and Losses

The financial position and operating results of foreign entities whose primary economic environment is

based on their local currency are consolidated using the local currency as the functional currency. These local

currency assets and liabilities are translated at the rates of exchange as of the balance sheet date, and local

currency revenue and expenses of these operations are translated at average rates of exchange during the

period. Translation gains and losses are included in accumulated other comprehensive income as a component

of shareholders’ equity. Transaction gains and losses resulting from assets and liabilities denominated in a

currency other than the functional currency are included in the consolidated statement of operations as a

component of “other (expense) income, net.” See “Note 15—Consolidated Financial Statement Details” for

additional information regarding foreign currency exchange gains and losses.

Translation gains and losses relating to foreign entities that are liquidated or substantially liquidated are

reclassified out of accumulated other comprehensive loss into income.

Stock-Based Compensation

Stock-based compensation is measured at the grant date based on the fair value of the award and is

generally expensed over the requisite service period.

Certain Risks and Concentrations

The Company’s business is subject to certain risks and concentrations, including dependence on third-party

technology providers, exposure to risks associated with online commerce security, and credit card fraud.

Financial instruments, which potentially subject the Company to concentration of credit risk, consist

primarily of cash and cash equivalents. Cash and cash equivalents are principally maintained with financial

institutions and are not covered by deposit insurance.

Recent Accounting Pronouncements

Accounting pronouncements adopted by the Company

In December 2023, the FASB issued Accounting Standards Update (“ASU”) No. 2023-09, which requires

additional disclosures around the income tax rate reconciliation and income taxes paid. The new standard is

effective for our reporting on Form 10-K for the year ended December 31, 2025. An entity may apply the

amendments in this ASU prospectively by providing the revised disclosures for the period ending December 31,

2025 and continuing to provide the pre-ASU No. 2023-09 disclosures for the prior periods, or may apply the

amendments retrospectively by providing the revised disclosures for all periods presented. We adopted the new

standard on a retrospective basis with the additional required disclosures included in Note 3—Income Taxes.

Accounting pronouncements not yet adopted by the Company

In November 2024, the FASB issued ASU No. 2024-03, which requires more detailed disclosures about

specified categories of expenses, including employee compensation, within certain expense captions presented

on the face of the income statement and to disclose selling expenses. ASU No. 2024-03 is effective for our

annual reporting on Form 10-K for the year ended December 31, 2027 and within interim periods beginning on

our Form 10-Q for the quarter ended March 31, 2028. The new standard may be applied prospectively or

retrospectively, and early adoption is permitted. We expect ASU No. 2024-03 to only impact our disclosures with

no impacts to our results of operations, cash flows, and financial condition. We are currently evaluating when we

will adopt the ASU.

In November 2024, the FASB issued ASU No. 2024-04, which clarifies the requirements for determining

whether certain settlements of convertible debt instruments should be accounted for as induced conversions or

extinguishment of convertible debt. ASU No. 2024-04 is effective for our annual reporting on Form 10-K for the

year ended December 31, 2026. The new standard may be applied prospectively or retrospectively, and early

adoption is permitted. We intend to adopt ASU No. 2024-04 for the year ended December 31, 2026. The ASU

adoption will only impact our results of operations and financial condition to the extent we have an induced

conversion or extinguishment of our convertible debt.

In September 2025, the FASB issued ASU No. 2025-06, which updates the accounting for internal use

software. The ASU updates the criteria that must be met for entities to begin capitalizing software costs. ASU No.

2025-06 is effective for the Company starting January 1, 2028. The new standard may be adopted prospectively,

retrospectively, or via modified prospective transition method, and early adoption is permitted. We are currently

evaluating ASU No. 2025-06 and its impact on our results of operations, cash flows, and financial condition and

evaluating when we will adopt the ASU.

Reclassifications

Certain prior year amounts have been reclassified to conform to the current year presentation.

Match Group, Inc. 10-K