After a period of decline, online dating apps are starting to see fresh signs of life. Platforms that once struggled with falling engagement are now finding creative ways to draw people back, with technology and new ideas playing a big part in the revival.
Grindr, one of the biggest names in queer dating, recently reported strong results. In the second quarter of 2025, the company recorded revenue of over $104 million, a 27 percent jump compared to last year. According to its chief executive George Arison, the company is focused on expanding how users engage by launching new features inside the app. Even though Grindr still reported a net loss, the margin has narrowed compared to the year before, suggesting that the company is moving in a positive direction.
Other dating app companies are also seeing shifts. Between 2023 and 2024, user engagement across the top ten dating apps fell by 16 percent, showing how difficult the market had become. Bumble, for instance, laid off nearly a third of its staff and posted an 8 percent decline in revenue in 2025. Match Group, which owns Tinder, Hinge, and OkCupid, reported losses earlier in the year. But after bringing in new leadership under venture capitalist Spencer Rascoff, its shares bounced back by more than 10 percent in August.
Tinder’s situation has been more troubling. Once the most popular app in the industry, Tinder has lost about 400,000 paid users for two straight quarters in 2025. Rascoff, now also heading Tinder, admitted that the platform had grown “stale” from focusing too much on short-term profits instead of innovation. The company is now working to refresh its features and rebuild user trust.
Much of this industry turnaround is being led from Los Angeles, which has become a hub for dating technology. Companies like Grindr, Three Day Rule, and Lox Club are all based there, and together they represent more than five percent of the global dating app market.
To keep users interested, many platforms are turning to artificial intelligence. Grindr is developing its own system called gAI, which is designed to better understand queer culture and language. Match Group is testing AI tools that recommend more compatible matches and even help improve the quality of users’ profile responses. Early results show these tools are reducing generic interactions and creating more meaningful conversations.
Not everyone is convinced. Surveys show that Gen Z is more cautious about letting AI write their messages or shape their profiles. Still, companies continue to expand features that connect online dating to real-world experiences, such as Tinder’s Festival Mode and Grindr’s new location discovery tool.
These changes suggest that while the online dating world has faced setbacks, innovation is helping many apps win back attention and prepare for the next chapter of digital matchmaking. This glimmer of hope suggests that players in the online dating arena like Momo Inc. (NASDAQ: MOMO) could still have a chance to grow their market penetration with carefully implemented tweaks to their strategies.
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