Bumble shares drop as AI revamp fails to reverse paying user decline
Bumble’s stock tumbled 17% on Thursday after the dating app operator posted another quarterly drop in paying users, raising doubts about its AI-driven turnaround plan and long-term growth outlook.
The company revealed that total paying users fell 8.7% year-on-year to 3.8 million in Q2, despite efforts to enhance match quality and connect users with similar engagement levels and intentions.
In contrast, rival Hinge — owned by Match Group — has been outperforming thanks to its broader international presence and more competitive AI tools, which provide personalized matches and boost engagement. Analysts note that Hinge’s emphasis on authentic profiles and creative prompts has helped sustain stronger user retention rates.
Bumble is still in the early stages of its strategy to improve user experience, introducing AI-powered features to bolster trust and safety. However, analysts warn that the tighter verification measures could slow user and payer growth in the short term.
Citi analysts noted that visibility into future user and payer trends remains low, and that increased marketing and R&D spending could put pressure on margins into 2026.
Shares of the Austin-based company are down over 6% this year, currently trading at 7.96 times projected earnings for the next 12 months, compared with Match Group’s 14.64.