By Kelly Cloonan

Bumble's turnaround strategy is sparking improvement in some of its key metrics, which should help revenue declines slow this year.

Executives with the dating app company said Wednesday they are seeing higher engagement quality as well as stronger retention trends due to its focus on improving its member base.

Last year, the company focused on cutting down bad actors and low-intent profiles on its platform, prioritizing the quality of its member base ahead of quantity. The moves hurt Bumble's topline, with revenue sliding 9.9% last year as total paying users fell 12%.

"We knew that doing this the right way would create near-term pressure, and it did," Chief Executive Whitney Wolfe Herd said during a call with analysts. "The choices we made were intentional."

Wolfe Herd said Bumble's member base is now reset, and the company is now shifting to the next phase of its strategy, working to accelerate product innovation and improve the member experience.

In the meantime, the company expects some of the pressure on its topline to subside as some of its improved metrics, like further retention and higher revenue per paying user, take hold in its financial results.

"As we move through 2026, we expect our revenue headwinds to moderate as the impacts of recent trends in our operating metrics flow through the financials," Chief Financial Officer Kevin Cook said.

Shares climbed 20% to $3.42 in after-hours trading. Through the market close the stock has slid 41% in the past 12 months.

For the current quarter, Bumble forecast revenue of $209 million to $213 million, down from $247.1 million in the year-ago quarter. It expects adjusted earnings before interest, taxes, depreciation and amortization of $76 million to $80 million.

Analysts polled by FactSet project revenue of $211 million and adjusted EBITDA of $57.7 million.

The guidance comes as Bumble logged lower revenue in its latest quarter as its dating apps continued to attract fewer paid users.

The Austin, Texas company posted a loss of $499.4 million, or $4.06 a share, for the fourth quarter, compared with a profit of $4.2 million, or 4 cents a share, a year earlier. The recent quarter's figure includes $630.5 million in non-cash impairment charges, the company said.

Analysts polled by FactSet expected earnings of 23 cents a share.

Revenue slid 14% to $224.2 million, compared with analyst estimates of $221.4 million.

Total paying users fell 21% to 3.3 million, while average revenue per paying user increased 7.9% to $22.20.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

March 11, 2026 19:21 ET (23:21 GMT)

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