Bumble (BMBL) Unveils AI-Powered Matchmaking App Amid Financial Challenges

Bumble (BMBL) is developing an AI-powered matchmaking app, aiming to offer a more personalized experience. The app's beta version is expected to launch this fall. Bumble's shares have declined slightly, trading at $6.29. The company has reported a 22.9% one-year revenue growth rate, but faces profitability challenges with a net margin of -82.41% and EBITDA margin of -103.51%. Bumble's current ratio is 3.3, but its debt-to-equity ratio is 1.09, indicating potential risks.

Bumble (BMBL) is set to launch an AI-powered matchmaking app, aiming to offer a more personalized dating experience. The beta version of the app is expected to be released this fall, according to a report from The Wall Street Journal [1]. The company has consulted psychologists and relationship counselors to program the AI, which is intended to be separate from the existing Bumble app.

Despite the development of the new app, Bumble's shares have declined slightly, trading at $6.29 as of July 2, 2025. The company reported a 22.9% one-year revenue growth rate but faces significant profitability challenges, with a net margin of -82.41% and an EBITDA margin of -103.51%. Bumble's current ratio is 3.3, indicating strong liquidity, but its debt-to-equity ratio of 1.09 suggests potential financial risks [2].

Bumble's second-quarter 2025 earnings revealed deepening customer retention challenges, with paying users declining 8.7% to 3.8 million. The company reported revenues of $248 million, down 7.6% year over year, despite significant investments in AI and product overhauls. The retention crisis extends beyond headline numbers, with total users dropping from approximately 58 million in 2023 to 50 million by mid-2025 [2].

Rivals Match Group (MTCH) and Grindr (GRND) face comparable user retention challenges but have shown varying degrees of success. Match Group maintains market dominance with more than 16 million paying users across its portfolio, while Grindr's niche positioning potentially insulates it from broader market trends affecting mainstream apps [2].

From a valuation standpoint, Bumble trades at a significant discount with a forward P/E of approximately 18.8x, notably below the Zacks Internet - Software industry average of 38.87x. The Zacks Consensus Estimate for third-quarter revenues is pegged at $244.56 million, indicating a 10.62% year-over-year decline, with earnings expected to increase 11.43% to 39 cents per share [3].

References:

[1] https://stocktwits.com/news-articles/markets/equity/bumble-developing-ai-powered-matchmaking-app-report/chtTlsuRdNm
[2] https://www.nasdaq.com/articles/bumbles-customer-retention-rate-slips-growth-getting-harder
[3] https://finance.yahoo.com/news/unpacking-q2-earnings-bumble-nasdaq-033345441.html