Tinder is struggling to generate revenue from users as parent company Match Group reported 7% DIP from users while its parent company Match Group saw 5% DIP in the second quarter of 2025 on all dating apps including Tinder, Hinge, Match.com and more.
To boost engagement and drive more people to pay for its products, the company has implemented several new initiatives. In the second quarter of the match's revenue call, Match Group CEO Spencer Raskoff said Tinder will debut a new feature called “Mode.” This is similar to the previous option that Tinder allowed users to place their relationship goals directly into the profile.
Tinder also explores a wider range of redesigns and other new features, including those aimed at university students, to encourage more use among Gen Z.
Another new feature allows users to prefer certain parts of their profiles, and like Match's dating app Hinge, you can start conversations based on what people like.
The change arrived during a mixed quarter of dating app giants. This reported flat revenue of $864 million year-on-year, with profits falling from $133.3 million year-on-year to $122.5 million in the second quarter. However, the company offered a better Q3 outlook than expected, with revenues reaching $910 million and stocks increased after earnings.
Match also announced that it will invest $50 million in product development as dating app makers aim to connect with younger Gen Z users and use AI to improve their products.
“We're taking the first step towards a new UI refresh in Q3, and it gives us a cleaner, faster and more modern look across the app,” says Raskoff. “We aim to test one of the redesigned versions this fall to help users connect with people who are likely to be interested and drive more revenue,” he added.
In the latter case, Tinder continues to experiment with AI-driven matching, which debuted in New Zealand earlier this year. This feature provides curated matches based on insights from your Tinder profile, answers to questions, and optionally insights from your user's camera roll photos.
The company is currently planning to deploy this feature in more regions.
“The interactive matching experiences we've been testing in New Zealand are specifically designed to appeal to this type of audience. [users under 30]: People who don't want to be judged based on their physical appearance. [The feature is for] Instead, someone willing to take a little time to answer some questions and then regain custom results,” Raskoff said.
Additionally, Raskoff noted that Tinder is considering launching more university-specific features, such as allowing users to search for universities and other selected universities to appeal to younger users.
The company also provided an update to Tinder's Double Date option, which was launched in June. This allows users to pair with friends and match another couple. The dating company said 92% of users who use the feature under the age of 30 saw positive results.
Image credits: Tinder
This was Raskoff's first quarter at the helm of Match Group, as Zillow Group co-founder and matchboard member was appointed CEO in February.
Earlier this year, the company announced that Faye iosotaluno would resign from the app's CEO position in July, with Raskoff taking on the role. The company also lifted 13% of its staff (approximately 325) in May and closed its open role.