MediaAlpha Inc-Class A (NYSE:MAX) Reports Mixed Q2 2025 Results Amid Strong P&C Growth and FTC Resolution

MediaAlpha Inc-Class A (NYSE:MAX) reported its second-quarter 2025 financial results, delivering mixed performance relative to analyst expectations. The company posted revenue of $251.6 million, slightly below the consensus estimate of $253.2 million, while earnings per share (EPS) of $0.17 aligned closely with the projected $0.1703. Despite the minor revenue miss, shares rose approximately 3.5% in after-hours trading, suggesting investor optimism around the company's growth trajectory and resolution of regulatory concerns.

Key Financial Highlights

• Revenue Growth: Revenue increased 41% year-over-year to $251.6 million, driven by strong performance in the Property & Casualty (P&C) insurance vertical.
• Transaction Value Growth: Total transaction value surged 49% year-over-year to $480.8 million, with P&C transactions up 71% to a record $435 million.
• Profitability Challenges: Gross margin declined to 15.0% from 17.8% in the prior-year quarter, reflecting a shift in business mix and higher costs. Adjusted EBITDA improved to $24.5 million, up from $18.7 million in Q2 2024.
• Net Loss: The company reported a net loss of $22.5 million, compared to net income of $4.4 million in the prior-year period, largely due to a $33 million reserve related to an FTC settlement.

Market Reaction

The stock’s after-hours gain of 3.5% indicates that investors are focusing on the company’s strong P&C growth and the resolution of the FTC inquiry rather than the slight revenue miss. The market appears to be pricing in improved execution and reduced regulatory uncertainty. Over the past month, shares had declined 2.1%, but the post-earnings rebound suggests renewed confidence in the company’s outlook.

Outlook vs. Analyst Estimates

MediaAlpha provided guidance for Q3 2025, expecting:

• Transaction Value: $545 million - $570 million (midpoint implies ~23% YoY growth).
• Revenue: $270 million - $290 million (midpoint implies ~8% YoY growth).
• Adjusted EBITDA: $25.5 million - $27.5 million (midpoint implies ~1% YoY growth).

Analysts had projected Q3 revenue of $273.2 million and full-year revenue of $1.093 billion. The company’s outlook suggests slightly softer revenue growth than anticipated, but management emphasized continued momentum in P&C, offset by declines in the Health insurance segment.

Press Release Summary

• P&C Strength: Record transaction value of $435 million, up 71% YoY.
• Health Segment Weakness: Health insurance transaction value fell 32% YoY to $37 million.
• FTC Settlement: The company resolved an FTC inquiry, recording a $33 million reserve, bringing the total to $45 million.
• Operational Focus: CEO Steve Yi highlighted strong carrier demand and a growing partner base as key growth drivers.

For a deeper dive into MediaAlpha’s earnings and future estimates, visit the earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research before making any financial decisions.