MediaAlpha Reports Record Growth in Q2 2025 Results

MediaAlpha Unveils Stellar Second Quarter 2025 Financial Performance

MediaAlpha, Inc. (NYSE: MAX) has announced its remarkable financial results for the second quarter. The company's revenue grew by an impressive 41%, reaching $251.6 million, while transaction value climbed 49% year-over-year, totaling $480.8 million. This impressive growth highlights MediaAlpha's ability to capitalize on the rising demand for effective insurance solutions.

Record Transaction Value in Property & Casualty Insurance

One of the standout achievements this quarter is the record transaction value of $435 million in the Property & Casualty insurance vertical, demonstrating a robust year-over-year increase of 71%. Steve Yi, CEO of MediaAlpha, emphasized the importance of their expanding partner base and the consistent demand from leading carriers as a catalyst for this growth.

Adjusted EBITDA and Financial Insights

Despite the significant growth, MediaAlpha reported a net loss of $22.5 million for the quarter. However, the company's adjusted EBITDA stood at $24.5 million, up from $18.7 million in the same quarter of the previous year. This figure reflects MediaAlpha's operating efficiency and strength in navigating challenging market conditions.

Financial Metrics Overview

The financial overview for the second quarter of 2025 includes:

• Revenue of $251.6 million, a 41% increase from the prior year.
• Transaction value of $480.8 million, marking a 49% annual growth.
• A gross margin of 15.0%, down from 17.8% a year earlier.
• Contribution margin of 15.8%, compared to 18.9% in Q2 2024.
• Net loss of $(22.5) million, compared to a net income of $4.4 million in Q2 2024.
• Adjusted EBITDA of $24.5 million, up from $18.7 million in Q2 2024.

Future Projections and Market Outlook

Looking ahead, MediaAlpha anticipates a continued upswing in its transaction value, particularly in the Property & Casualty vertical, expecting around 35% growth in the third quarter. However, the Health insurance sector, which includes both Medicare and under-65 plans, is projected to decline by approximately 40-45% year-over-year.

Despite this expected dip, MediaAlpha remains optimistic about its Adjusted EBITDA, projecting moderate growth driven by improving margins in the Property & Casualty segment.

Conference Call and Investor Engagement

To discuss these promising financial results and future projections, MediaAlpha will host a conference call. Investors and stakeholders are encouraged to participate and gain further insights into the company’s strategies and performance metrics.

About MediaAlpha

As a leading programmatic customer acquisition platform, MediaAlpha connects insurance carriers with potential customers efficiently leveraging advanced advertising technology. With over 1,200 active partners, the platform generated nearly 119 million consumer referrals last year, emphasizing its critical role in the insurance sector.

Frequently Asked Questions

What were the main financial highlights for MediaAlpha in Q2 2025?

MediaAlpha reported a 41% revenue increase to $251.6 million and a 49% transaction value increase, reaching $480.8 million.

How did the Property & Casualty vertical perform?

The Property & Casualty vertical saw record transaction value of $435 million, a 71% increase year-over-year.

What was MediaAlpha's net loss in the second quarter?

The company reported a net loss of $(22.5) million compared to a net income of $4.4 million in the prior year.

What is the outlook for the third quarter of 2025?

MediaAlpha expects a transaction value growth of around 35% in its Property & Casualty vertical, but a decline of 40-45% in the Health insurance segment.

How can investors access MediaAlpha's conference call?

The conference call will be accessible via their Investor Relations website, where investors can gain valuable insights into the company's future strategy.

About The Author

Greetings, I'm 32-year-old author and financial specialist Evelyn Baker. My introduction into the financial industry started with an economics degree and continued with a wealth of experience in wealth management and financial consulting. My great passion over the years has been assisting people and companies in making wise, well-informed decisions to reach their financial objectives.

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