Match Group says Tinder U.S. daily users return to growth as AI spending rises
After years of pressure on engagement across dating apps, Tinder's turnaround shows a fresh sign of momentum in its home market. The app's U.S. daily active users return to annual growth in October as Match Group expands its use of artificial intelligence and plans higher related spending in 2026.
Highlights
- Tinder's U.S. daily active users rebounded in October, driven by AI-powered algorithm improvements that enhanced user compatibility analysis.
- Tinder's global daily active users returned to year-over-year growth in September but still fell 1% in Q3, improving from a 10% decline a year prior.
- Match Group anticipates $10 million in AI spending for 2026, is slowing hiring to balance costs, and estimates Q4 revenue at $865 million to $875 million.
AI-driven product changes support user rebound
As reported by Reuters, Match Group's finance chief Steve Bailey says improvements in Tinder's U.S. daily active users are largely driven by stronger algorithms, helped by AI tools that analyze unstructured data and identify more compatible users. He does not disclose the monthly figures, but describes the October performance as an important step in the dating app's turnaround effort.Tinder's global daily active users had already returned to year-over-year growth in September, the first such increase in three and a half years. Match Group also reports that Tinder's global DAU falls 1% in the third quarter, an improvement from a 10% decline a year earlier.
Rising AI costs reshape Match outlook
Dating app companies are increasingly turning to AI as weaker engagement from younger Gen Z users, including frustration with endless swiping, pressures the sector's growth. The broader competitive backdrop remains difficult, with rival Bumble last month agreeing to a $1.3 billion deal with Ithaca Holdings to go private after years of struggling to revive growth.Match Group expects to spend about $10 million on AI tools in 2026. Bailey says the company is slowing hiring to offset higher AI costs while not laying off employees, and Match estimates fourth-quarter revenue of $865 million to $875 million, compared with analysts' expectation of $871.4 million, according to LSEG data.
Our earlier article on CEO expectations for AI agents highlighted that many large U.S. companies are already seeing efficiency and growth benefits, even if only a small share consider the technology truly transformational today. It also noted that firms expect continued hiring, retraining, and sustained investment in AI infrastructure as adoption expands across workflows.