Tinder is still struggling to generate revenue from its users, as it reported a 7% dip in paying users while its parent company, Match Group, saw a 5% dip in Q2 2025 across all dating apps, including Tinder, Hinge, Match.com, and others.
To boost engagement and push more people to pay for its product, the company has undertaken multiple new initiatives. During Match’s second-quarter earnings call, Match Group CEO Spencer Rascoff said that Tinder will debut a new feature called “modes,” which will allow users to switch between different dating goals to explore new connections in real time. This is similar to a previous option where Tinder allowed users to put their relationship goals directly on their profiles.
Tinder will also explore a broader redesign and other new features, including those aimed at college students, to drive more usage among Gen Z.
Another new feature allows users to like specific parts of a profile, nudging people to start conversations based on those likes, similar to Match’s dating app Hinge.
The changes arrive amid a mixed quarter for the dating app giant, which reported flat year-over-year revenue of $864 million and earnings that declined from $133.3 million year-over-year to $122.5 million in Q2. However, the company provided a better-than-expected Q3 outlook with revenue reaching $910-920 million, which boosted its stock post-earnings.
Match also announced it would invest $50 million in product development, as the dating app maker aims to connect with younger Gen Z users and use AI to improve its products.
“We’ll take the first steps towards a new UI refresh in Q3 with a cleaner, faster, and more modern look across the entire app,” Rascoff said. “We’re on track to test version one of a redesigned ‘see who likes you’ tab this fall with the goal of helping users connect with people they’re more likely to be interested in, as well as to drive more revenue,” he added.
In the case of the latter, Tinder continues to experiment with AI-powered matching, which it debuted in New Zealand earlier this year. The feature delivers curated matches based on information from your Tinder profile, answers to questions, and, optionally, insights from the user’s camera roll photos.
Now, the company intends to roll out this feature to more geographies.
“The interactive matching experience we’ve been testing in New Zealand is specifically designed to appeal to this type of audience [users under 30]: Somebody who doesn’t just want to be judged based on their physical appearance. [The feature is for] somebody who instead is willing to put in a little bit of time, answer some questions, and then get a custom result back,” Rascoff said.
Plus, Rascoff noted that Tinder is thinking about launching more college-specific features, including allowing users to just search within their college or other selected colleges, to appeal to younger users.
The company also offered an update on Tinder’s Double Date option, launched in June, that lets users pair up with a friend to match with another couple. The dating company said it saw positive results with 92% of users utilizing the feature being under 30.
This was Rascoff’s first full quarter at the helm of Match Group, as the Zillow Group co-founder and Match board member was appointed CEO in February.
Earlier this year, the company announced that Faye Iosotaluno would step down from the app’s CEO position in July, with Rascoff taking on the role. The company also laid off 13% of its staff (around 325 people) in May, and closed open roles.
