The online dating industry is facing one of its biggest tests since the pandemic boom.
After years of rapid expansion caused by swipe-based matchmaking, many of the industry’s biggest players are grappling with slowing user growth, declining engagement and increasing skepticism from younger users.
While companies are investing in artificial intelligence, safety features and new products to revive growth, investors remain cautious about whether the sector can return to its high-growth days.
The diverging fortunes of Match Group’s Hinge and Tinder, alongside Bumble’s continued struggles, illustrate how the market is evolving—and why Wall Street is waiting for stronger evidence before turning more optimistic on the sector.
Why are users swiping left on dating apps
Users are increasingly disillusioned with dating apps as they find it increasingly hard to find their companions via apps.
The scrolling experience has also made users more anxious rather than going out or having fun.
According to a Forbes survey, 78% of users on dating apps have felt “emotionally, mentally or physically exhausted” by the apps.
Research shows that dating app users are more likely to have symptoms of anxiety, depression, and anxious attachment orientation than non-users.
The increasingly frustrating experience with dating apps has led people to look for romance in real-life meetups, social events or niche clubs.
According to Strava’s Year in Sport: Trend Report for 2025, Gen Z was 39% more likely than Gen X to use fitness to meet people who share similar interests.
Susannah Streeter, chief investment strategist at Wealth Club, told Invezz, “Younger users in particular are increasingly meeting people through shared interests, events and “third places” like gyms rather than relying solely on dedicated dating platforms.”
Expert view
After years of relying on swipe-based platforms, some users are experiencing dating fatigue as the whole process can feel repetitive and transactional, creating a perception that apps are better at encouraging engagement than helping people move towards meaningful relationships.
Companies show slowing growth
The latest results of dating app companies show companies have still not managed to arrest the user decline.
Match Group, owner of Tinder and Hinge, reported revenue of $853 million in the second quarter, coming below analyst expectations. Paying users across the company’s apps also fell by 6%.
Tinder’s monthly average user trends fell by 7% from the previous year. Hinge has been a bright spot for the company, with global monthly active users increasing by 13% year over year.
Bumble’s second-quarter revenue fell by 15% to $210.5 million, and total paying users fell by 16% to 3.16 million.
Match Group’s stock is up only 4% in the last 12 months, while Bumble’s shares have plunged 55% in the same period.
A Reuters report in June said Bumble was exploring a sale, amid a slowdown in dating app usage.
Wall Street is also indifferent to the performance of the companies.
According to TipRanks data, Match Group has 3 buy ratings and 6 hold ratings across its coverage. Bumble, on the other hand, has 9 hold ratings and 1 sell rating.
Why do most analysts have “Hold” ratings on these companies?
Chris Beauchamp, chief market analyst at IG Group, told Invezz that investors are reluctant to become more optimistic because the companies have yet to prove they can return to sustainable growth.
“Analysts see enough cash generation to rule out a sell, but not enough growth to justify a buy,” he said.
According to Beauchamp, pricing has already been pushed aggressively while user growth continues to slow.
“To earn upgrades, companies must show retention, engagement and product changes feeding through into the numbers”, he added.
Streeter said that “To shift analyst sentiment, companies need to demonstrate that they can improve the quality of interactions rather than simply drive more activity.”
She added that investors are looking for “stronger retention, better conversion of free users into paying subscribers, improved match quality and evidence that premium features are genuinely delivering better outcomes.”
Are economic conditions also affecting dating?
Broader economic conditions, which have caused people to cut down on discretionary spending, have also affected dating.
A BMO Financial Group survey conducted from the end of December for a month shows that the average date cost in the US is $189, an increase of 12.5% from the previous year.
The survey shows that 50% of Gen Z daters and 40% of millennial daters said the costs interfere with their financial goals.
This, coupled with screen fatigue, means the dating app companies’ struggles are not over.
Analysts also said that even if economic conditions improve, dating apps would struggle to bring back users without providing meaningful experiences.
Beauchamp said the falling user growth is due to a combination of genuine structural shift and macro pressures.
Expert view
Cost-of-living pressure and screen fatigue can ease if the macro backdrop improves. But some people are dating differently now, leaning on friend networks and in-person circles, which suggests the swipe-based audience may not fully rebound even when conditions do.
Streeter said that cost pressures have made consumers reassess discretionary subscriptions.
“However, even if the economic backdrop improves, dating apps will still need to prove they remain relevant in a world where people have more ways than ever to meet and connect”, she added.
Premium pricing has limits
One area where dating companies have managed to offset slowing user growth is monetization.
Beauchamp noted that companies have relied more heavily on premium subscription tiers, shorter-duration plans and pricing changes to lift average revenue per paying user.
However, he warned that the strategy leaves companies vulnerable if consumers become resistant to additional price increases.
Among the major platforms, he views Hinge as the most resilient, citing continued growth in both paying users and revenue.
Tinder remains critical because of its enormous scale; even modest growth can have a meaningful impact on Match Group’s financial performance.
Bumble, by comparison, continues to see greater pressure on its paying subscriber base.
Can dating apps win users back?
Investors in the companies would be banking on their efforts to win back customers.
The industry’s largest players are already rolling out product changes aimed at improving engagement and attracting users back to their platforms.
Match Group said Tinder updated its recommendation algorithm in mid-July, resulting in more longer conversations and more real-world connections. The company also introduced Tinder’s first global rebrand in more than five years, with Match stating that nearly all engagement metrics improved following the rollout.
Tinder is also targeting Gen Z users through features designed to encourage in-person interactions, including events and optional location-based tools with privacy controls that help users discover people nearby.
Bumble, meanwhile, is rebuilding its platform through its AI-powered “Bumble 2.0” initiative, which the company says is designed to deliver a more curated experience rather than relying solely on traditional swipe-based matching.
The company also removed its women-first texting requirement in the app, which was one of the app’s unique features from its inception in 2014.
Ultimately, dating apps will need to prove that their product changes can rebuild user engagement and deliver sustainable growth before investors are likely to turn more bullish on the sector.
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