Company: MTCH
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0000891103-25-000180
Chunk: 62

Company: Match Group, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 1
Chunk 62
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$ Change% Change2024(Dollars in thousands)Income tax provision$32,882 $(8,277)(20)%$41,159 Effective income tax rate17%23%

In 2025, the effective rate of 17% is lower than the statutory rate primarily due to changes in tax reserves.

In 2024, the effective tax rate of 23% was higher than the statutory rate primarily due to the effects of nondeductible stock-based compensation, state income taxes, and foreign income taxed at higher rates. These effects were partially offset by a lower tax rate on U.S. income derived from foreign sources and research credits.

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For the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024

Nine Months Ended September 30,2025$ Change% Change2024(Dollars in thousands)Income tax provision$87,491 $(25,986)(23)%$113,477 Effective income tax rate18%22%

In 2025, the effective tax rate of 18% is lower than the statutory rate primarily due to a lower tax rate on U.S. income derived from foreign sources and excess tax benefits generated by the exercise or vesting of stock-based awards. These effects were partially offset by nondeductible stock-based compensation and state income taxes.

In 2024, the effective tax rate of 22% was higher than the statutory rate primarily due the effects of nondeductible stock-based compensation, state income taxes, and unfavorable tax adjustments upon the vesting of certain stock-based awards due to a higher stock price on the date such awards vested compared to the grant date fair value of such awards. These effects were partially offset by a lower tax rate on U.S. income derived from foreign sources, research credits, and a tax benefit realized upon the conclusion of certain state income tax audits.

On July 4, 2025, the U.S. government enacted the One Big Beautiful Bill Act (“the Act”). The Act provides changes to U.S. federal tax law, including current expensing of U.S. research expenditures, immediate expensing of eligible capital expenditures, modifications to the limitation of business interest expense, and changes to other tax provisions in 2025 and later years. We expect the provisions of the Act to result in a reduction to our 2025 and 2026 cash tax payments. Additionally, we expect that the 2025 effective tax rate will be negatively affected by passage of the Act