Bumble Inc (NASDAQ:BMBL) shares tumbled about 21% to about $3 after the dating app operator issued weaker-than-expected guidance, overshadowing a first quarter earnings beat.
Bumble forecast second-quarter revenue in the range of $205 million to $213 million, below analyst expectations of around $215 million. The company also guided for adjusted EBITDA of $65 million to $70 million for the period.
For Q1, Bumble reported adjusted earnings per share of $0.34, well above analyst expectations of about $0.25 to $0.26. Revenue came in at $212.4 million, slightly ahead of estimates of $211.5 million, though down 14% from $247.1 million a year earlier.
Adjusted EBITDA totaled $83 million, exceeding the $77.5 million consensus, while net earnings rose 165% year over year to $52.6 million.
Despite the better-than-expected profitability, underlying operating trends remained under pressure. Total paying users declined 21.1% to 3.2 million, compared with 4 million in the prior-year period. Average revenue per paying user increased 8.9% to $22.04, partially offsetting the user decline.
By segment, Bumble App revenue fell 14.4% to $172.7 million, while Badoo App and other revenue declined 12.4% to $39.7 million.
“Our deliberate steps to reset the Bumble member base have meaningfully improved the health of our ecosystem,” Bumble CEO Whitney Wolfe Herd said in a statement.
"We’re now focused on activating this higher-quality member base by launching a fully reimagined Bumble experience on our rebuilt, AI-enabled platform later this year.”
Following the report, analysts at Jefferies maintained a Hold rating on the stock and lowered their price target to $4 from $5, citing ongoing user declines and a weaker near-term revenue trajectory.
While they noted gross margin expansion of more than 300 basis points year over year, supported in part by growing adoption of alternative billing methods such as Apple Pay, and said revenue headwinds could begin to moderate through 2026, they flagged continued pressure on paying users.
Jefferies highlighted that Bumble lost about 100,000 paying users sequentially in the first quarter, worse than the roughly 80,000 decline expected by the Street, with year-over-year declines showing limited signs of sustained improvement.
They noted the launch of new member experiences in select markets in Q4, with a broader rollout in 2027.
“The platform will continue adding AI features, group dating, a new interaction model, and refreshed profiles, all supported by a dedicated marketing campaign,” they wrote.
“Management sees this as a key recovery driver and, importantly, now has a clear timeline. In parallel, the company has reduced its tech debt to increase product velocity.”