Match Group, Inc.

NOTE 12—LEASES

The Company leases office space, data center facilities, and equipment used in connection with its

operations under various operating leases, many of which contain escalation clauses.

ROU assets represent the Company’s right to use the underlying assets for the lease term and lease

liabilities represent the present value of the Company’s obligation to make payments arising from leases. ROU

assets and related lease liabilities are based on the present value of fixed lease payments over the lease term

using the Company’s incremental borrowing rates on the lease commencement date. The Company combines

the lease and non-lease components of lease payments in determining ROU assets and related lease liabilities. If

the lease includes one or more options to extend the term of the lease, the renewal option is considered in the

lease term if it is reasonably certain the Company will exercise the options. Lease expense is recognized on a

straight-line basis over the term of the lease. Leases with an initial term of twelve months or less (“short-term

leases”) are not recorded on the accompanying consolidated balance sheet.

Variable lease payments consist primarily of common area maintenance, utilities, and taxes, which are not

included in the recognition of ROU assets and related lease liabilities. The Company’s lease agreements do not

contain any material residual value guarantees or material restrictive covenants.

(a)Includes approximately$0.5 million and$0.6 million of short-term lease cost for the years ended

December 31, 2025 and December 31, 2024, respectively.

Maturities of lease liabilities as of December 31, 2025(a):

(a)Operating lease payments exclude$29.3 million of legally binding minimum lease payments for leases

signed but not yet commenced.

The following are the weighted average assumptions used for lease term and discount rate:

NOTE 13—COMMITMENTS AND CONTINGENCIES

Commitments

The Company has funding commitments in the form of purchase obligations and surety bonds. The

purchase obligations are$56.3 million for 2026,$73.6 million for 2027, and$70.3 million for 2028, for a total of

$200.2 million in purchase obligations. The purchase obligations primarily relate to web hosting service

commitments.

Contingencies

In 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 ofone or more of these lawsuits or other contingencies could have a

material impact on the liquidity, results of operations, or financial condition of the Company. See “Note 3—

Income Taxes” for additional information related to income tax contingencies.

FTC Lawsuit Against Former Match Group

On 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 (Northern District of Texas). The complaint alleges that, prior to mid-2018, for marketing

purposes Match.com notified non-paying users that other users were attempting to communicate with them,

even though Match.com had identified those subscriber accounts as potentially fraudulent, thereby inducing

non-paying users to subscribe and exposing them to the risk of fraud should they subscribe. The complaint also

challenges the adequacy of Match.com’s disclosure of the terms of itssix-month guarantee, the efficacy of its

cancellation process, and its handling of chargeback disputes. The complaint seeks among other things

permanent injunctive relief, civil penalties, restitution, disgorgement, and costs of suit. On March 24, 2022, the

court granted our motion to dismiss with prejudice on Claims I and II of the complaint relating to communication

notifications and granted our motion to dismiss with respect to all requests for monetary damages on Claims III

and IV relating to the guarantee offer and chargeback policy. On July 19, 2022, the FTC filed an amended

complaint adding Match Group, LLC as a defendant. The FTC is seeking up to approximately$257 million in

damages and penalties. On September 11, 2023, both parties filed motions for summary judgment. On June 9,

2025, the parties reached an agreement in principle to settle the matter. The settlement was approved by the

Court, and payment of$14 million was made in the quarter ended September 30, 2025.

Irish Data Protection Commission Inquiry Regarding Tinder’s Practices

On February 3, 2020, we received a letter from the Irish Data Protection Commission (the “DPC”) notifying

us that the DPC had commenced an inquiry examining Tinder’s compliance with GDPR, focusing on Tinder’s

processes for handling access and deletion requests and Tinder’s user data retention policies. On January 8,

2024, the DPC provided us with a preliminary draft decision alleging that certain of Tinder’s access and retention

policies, largely relating to protecting the safety and privacy of Tinder’s users, violate GDPR requirements. We

filed our response to the preliminary draft decision on March 15, 2024. Our consolidated financial statements do

not reflect any provision for a loss with respect to this matter, as we do not believe there is a probable likelihood

of an unfavorable outcome. However, based on the preliminary draft decision and giving due consideration to

the uncertainties inherent in this process, there is at least a reasonable possibility of an exposure to loss, which

could be anywhere between anominal amount and$60 million, which we do not believe would be material to

our business. We believe we have strong defenses to these claims and will defend vigorously against them.

Consumer Class Action Litigation Challenging Tinder’s Age-Tiered Pricing

On May 28, 2015, a putative state-wide class action was filed against Tinder in state court in California. See

Allan Candelore v. Tinder, Inc., No. BC583162 (Superior Court of California, County of Los Angeles). The complaint

principally alleges that Tinder violated California’s Unruh Civil Rights Act by offering and charging users over a

certain age a higher price than younger users for subscriptions to its premium Tinder Plus service. Plaintiff seeks

damages in an unspecified amount. On July 15, 2024, the court granted Plaintiff’s motion to certify a class of

approximately 270,000 individuals based upon California Tinder Plus and Tinder Gold subscribers age 29 and

over. On January 17, 2025, the court denied our motion to compel the class and the Plaintiff to arbitration. We

filed a Notice of Appeal on January 24, 2025, and on April 18, 2025, the court stayed the case pending our

appeal. On September 10, 2025, the parties agreed to settle the case on a class-wide basis for$60.5 million,

which is included in our consolidated financial statements as “general and administrative expense” and a related

accrual is included in “accrued expenses and other current liabilities.” On January 13, 2026, the court

preliminarily approved the settlement agreement. The settlement amount was placed into escrow in January

2026, pending the final court approval.

NOTE 14—BENEFIT PLANS

Pursuant to the Match Group Retirement Savings Plan (the “Match Group Plan”), employees are eligible to

participate in a retirement savings plan sponsored by the Company in the United States, which is qualified under

Section 401(k) of the Internal Revenue Code. Participating employees may contribute up to 75% of their pre-tax

earnings, but not more than statutory limits. The employer match under the Match Group Plan is 100% of the

first 10% of a participant’s eligible earnings up to$10,000, subject to IRS limits on the Company’s matching

contribution that a participant contributes to the Match Group Plan.

Matching contributions under the plans for the years ended December 31, 2025,2024, and 2023 were

$14.1 million,$14.5 million and$14.0 million, respectively.

Matching contributions are invested in the same manner that each participant’s voluntary contributions

are invested under the respective plans.

Internationally, Match Group also has or participates in various benefit plans, primarily defined

contribution plans. The Company’s contributions for these plans for the years ended December 31, 2025,2024

and 2023 were$4.7 million,$5.2 million, and$6.4 million, respectively.

NOTE 15—CONSOLIDATED FINANCIAL STATEMENT DETAILS

Cash and Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported

within the consolidated balance sheet to the total amounts shown in the consolidated statement of cash flows:

Supplemental Disclosures of Cash Flow Information

NOTE 16—SUBSEQUENT EVENT

On February 6, 2026, the Company received notice from Apple that our Azar app would be removed from

the Apple App Store (the “App Store”) within 15 days of the notice. This notice was generated as a result of a

new evaluation by Apple of Azar’s compliance with Apple’s updated App Review Guidelines which were

published on February 6, 2026. Specifically, Apple suggested that Azar’s core concept was random or anonymous

chat, which Apple indicated was not allowed under the revised guidelines. On February 16, 2026, Apple notified

the Company that after further discussion and deliberation, they reaffirmed their initial decision and the Azar

app would be removed from the App Store as initially stated. Subsequently, Apple removed the Azar app from

the App Store on February 22, 2026.

Revenue from the Azar app represented approximately 4% of the Company’s consolidated revenue for the

years ended December 31, 2025 and 2024, a significant portion of which is processed through Apple’s App Store.

The Company continues to work with Apple to understand if modifications could result in the reinstatement of

the Azar app to the App Store. There is no guarantee these efforts will be successful.

As a result of this decision, and depending on estimates of the impact and whether any of our mitigation

efforts are successful, the Company will be evaluating the need for asset impairment charges during the quarter

ending March 31, 2026. This evaluation includes, but is not limited to, the following assets that existed as of

•$61 million of indefinite-lived intangible asset associated with the Azar brand;

•$9 million of definite-lived intangible asset associated with the Azar customer list;

•$14 million of capitalized software development costs associated with the Azar app; and

•$83 million of goodwill associated with our MG Asia reporting unit, which includes the operations of the

Azar and Pairs brands.