Company: MTCH
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000891103-25-000076
Chunk: 39

Company: Match Group, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 39
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 17,983 Variable expense29,232 4,292 14,635 7,779 Employee compensation expense, excluding stock-based compensation expense53,603 26,735 36,442 10,903 Other operating expenses(a)11,553 4,167 11,166 5,099 Stock-based compensation(b)20,541 9,915 14,048 8,081 Depreciation(b)9,253 535 4,838 4,590 Amortization of intangible assets(b)— — 2,069 8,298 ______________________(a)Other operating expenses primarily consists of office rent, business software, travel, indirect taxes, and professional fees.(b)Expense is a non-cash item and excluded from the profitability measure of Adjusted Operating Income (Loss).

NOTE 8—CONTINGENCIESIn the ordinary course of business, the Company is a party to various lawsuits. The Company establishes reserves for specific legal matters when it determines that the likelihood of an unfavorable outcome is probable and the loss is reasonably estimable. Management has also identified certain other legal matters where we believe an unfavorable outcome is not probable and, therefore, no reserve is established. Although management currently believes that resolving claims against us, including claims where an unfavorable outcome is reasonably possible, will not have a material impact on the liquidity, results of operations, or financial condition of the Company, these matters are subject to inherent uncertainties and management’s view of these matters may change in the future. The Company also evaluates other contingent matters, including income and non-income tax contingencies, to assess the likelihood of an unfavorable outcome and estimated extent of potential loss. It is possible that an unfavorable outcome of one or more of these lawsuits or other contingencies could have a 

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Table of ContentsMATCH GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

material impact on the liquidity, results of operations, or financial condition of the Company. See “Note 2—Income Taxes” for additional information related to income tax contingencies.FTC Lawsuit Against Former Match GroupOn September 25, 2019, the United States Federal Trade Commission (the “FTC”) filed a lawsuit in federal district court in Texas against the company formerly known as Match Group, Inc. See FTC v. Match Group, Inc., No. 3:19:cv-02281-K (