Core Insights - Can-Am is introducing numerous innovations in its 2026 Off-Road lineup, including the first full-size production electric ATV and advancements in existing models [1][12] - The 2026 Can-Am Outlander Electric is designed for utility and adventure, featuring a modular Rotax E-Power powerpack, delivering 47 hp and 53 lb-ft of torque, with a range of up to 50 miles [1][2] - The Outlander MAX 6x6 is engineered for extreme terrain, featuring a robust chassis and powerful Rotax engine, offering significant towing capacity and off-road performance [3][4] - Can-Am is introducing a semi-active suspension system, Smart-Shox, for the Outlander XT-P and MAX Limited packages, enhancing ride comfort and handling [5][6] - The Maverick R X rc is designed for rock-crawling performance, featuring specialized gear and components for challenging terrains [7][9] - The Maverick X3 receives key refinements, including modernized LED lighting and a 10.25'' Touchscreen Display with built-in GPS, enhancing the rider experience [10][11] Product Innovations - The 2026 Can-Am Outlander Electric features instant throttle response, selectable ride modes, and rapid charging capabilities [1][2] - The Outlander MAX 6x6 includes advanced suspension and drivetrain features for improved performance in rugged conditions [4] - Smart-Shox technology allows for real-time adjustments to suspension settings based on terrain and speed, providing versatility for various riding conditions [5][6] - The Maverick R X rc includes rock-crawling specific features and protective components, making it suitable for extreme off-road challenges [8][9] - The Maverick X3 offers a range of packages tailored to different rider preferences, with enhancements in technology and performance [10][11] Company Overview - BRP Inc. is a global leader in powersports products, with a diverse portfolio including Can-Am vehicles, and reported annual sales of CA$7.8 billion [13]

Summary of MediaAlpha (MAX) FY Conference Call - August 12, 2025 Industry Overview - The insurance sector is experiencing a slow digital transition, with varying levels of adaptation among carriers [3][4] - Some carriers are advanced in performance marketing, while others are just beginning to recognize the importance of digital channels [3][4] Company Performance and Financials - MediaAlpha reported strong results and announced a settlement with the FTC, which primarily impacts the under-65 business, with minimal effects on other segments [5][6] - The under-65 business generated $29 million in contribution last year, expected to decline to $8 million to $10 million this year [6] - The company has a minimal net working capital requirement and low capital expenditures, leading to strong cash flow conversion from adjusted EBITDA to free cash flow [8][9] Growth Drivers and Market Dynamics - The insurance industry is seeing a moderation in rate increases, which may lead to slower revenue growth for carriers [12][13] - MediaAlpha is well-positioned to help carriers grow their customer base through data-rich targeting capabilities [13][14] - The company is gaining market share and benefiting from increased marketing spend by carriers [17][18] Competitive Positioning - MediaAlpha operates as a two-sided online B2B marketplace, differentiating itself through monetization strategies and transparency for publishers [19][22] - The company has strong relationships with top carriers, which enhances traffic quality and marketing effectiveness [24][26] Vertical Focus and Future Opportunities - The Medicare Advantage segment is a strategic focus, with significant market potential despite current challenges due to rising medical costs [29][30] - MediaAlpha sees long-term opportunities in the Medicare market as more consumers become internet-savvy [31][32] - The company is focused on expanding its presence in the insurance sector, particularly in auto, homeowners, and life insurance [33][34] Impact of AI and Technology - MediaAlpha's publisher model is adaptable to changes in the search landscape, allowing it to capitalize on emerging marketing strategies [35][37] - The company is excited about leveraging AI to optimize its extensive data for better consumer shopping experiences [38][39] Guidance and Future Outlook - For Q3, MediaAlpha expects transaction value growth in the low to mid-20s percentage range, driven by strong performance in P&C insurance [41] - The company is optimistic about the P&C market backdrop and anticipates challenges in the health business due to lower profitability projections [44][45] - Key growth variables include expanding demand from carriers and leveraging data for competitive advantage [46][47] Conclusion - MediaAlpha is positioned for growth through enhanced carrier relationships, data utilization, and a focus on digital marketing strategies, despite facing challenges in certain segments of its business. The company is optimistic about its future prospects in the insurance industry.

Core Insights - MediaAlpha, Inc. will have its Chief Financial Officer Pat Thompson participate in a fireside chat at Canaccord Genuity's 45th Annual Growth Conference on August 12, 2025 [1] - A live webcast of the presentation will be available on MediaAlpha's Investor Relations website, with a replay accessible shortly after the event [2] Company Overview - MediaAlpha is recognized as a leading programmatic customer acquisition platform in the insurance industry, connecting over 1,200 active partners with online shoppers [3] - In 2024, MediaAlpha generated nearly 119 million Consumer Referrals and facilitated $1.9 billion in advertising spend across various insurance sectors [3]

Core Viewpoint - MediaAlpha, Inc. reported quarterly earnings of $0.17 per share, exceeding the Zacks Consensus Estimate of $0.16 per share, and showing significant growth from $0.07 per share a year ago, indicating a positive earnings surprise of +6.25% [1] Financial Performance - The company achieved revenues of $251.62 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.24%, and reflecting a year-over-year increase from $178.27 million [2] - Over the last four quarters, MediaAlpha has exceeded consensus EPS estimates two times and topped consensus revenue estimates four times [2] Stock Performance and Outlook - MediaAlpha shares have declined approximately 10.2% since the beginning of the year, contrasting with the S&P 500's gain of 7.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] Earnings Estimate Revisions - The trend for earnings estimate revisions for MediaAlpha was favorable prior to the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, suggesting expected outperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is $0.18 on revenues of $260.41 million, and for the current fiscal year, it is $0.54 on revenues of $1.05 billion [7] Industry Context - The Technology Services industry, to which MediaAlpha belongs, is currently ranked in the top 41% of over 250 Zacks industries, indicating a favorable outlook as the top 50% of Zacks-ranked industries tend to outperform the bottom 50% by more than 2 to 1 [8]

Financial Data and Key Metrics Changes - Transaction value for Q2 was $481 million, up 49% year over year, driven by a 71% increase in the P and C vertical, while the Health vertical saw a 32% decline [9][11] - Adjusted EBITDA for the quarter was $24.5 million, increasing 31% year over year, representing 62% of contribution, up from 56% in the prior year [10][12] - The company expects Q3 transaction value to be between $545 million and $570 million, representing a year-over-year increase of 23% at the midpoint [12][13] Business Line Data and Key Metrics Changes - The P and C vertical experienced significant growth, with transaction value increasing by 71% year over year, primarily from existing carriers [9][30] - The Health vertical's transaction value declined by 32% year over year, with expectations of continued declines in the near term [9][11] - The company anticipates a Q3 transaction value of approximately $18 million for the under-65 business, reflecting a 54% year-over-year decline [11] Market Data and Key Metrics Changes - The company noted that automotive tariffs are becoming more manageable, and the slowing rate increases are prompting carriers to focus on acquiring new customers [7][23] - The competitive landscape in the auto insurance market remains strong, with healthy advertising spend expected to continue [7][22] Company Strategy and Development Direction - The company aims to capture multi-year growth opportunities, particularly in the P and C insurance vertical, while also focusing on compliance measures following the FTC settlement [5][8] - There is a strategic shift towards optimizing for market share and transaction value, with plans to focus more on gross profit as market conditions evolve [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory for the rest of the year, particularly in the P and C vertical, despite challenges in the Health vertical [8][11] - The company anticipates increased consumer shopping behavior in the Medicare Advantage market, although carrier budgets may be lighter than in previous years [49][50] Other Important Information - The company reached a settlement with the FTC involving $45 million in payments, which will be funded from cash on hand [6][14] - The company ended the quarter with $85 million in cash and a net debt to adjusted EBITDA ratio of 0.6x, indicating strong financial flexibility [13][14] Q&A Session Summary Question: How will the FTC settlement enhance competitive positioning in the under-65 vertical? - Management indicated that the settlement will create a new baseline for the under-65 business, allowing for better navigation of consumer choices and potential growth opportunities [18][19] Question: What is the outlook for carrier budgets in the second half of the year? - Management expressed optimism about continued strong carrier budgets, citing robust underlying profitability in the personal auto space [21][22] Question: Can you provide more details on the mix of existing carrier spend versus new carrier additions? - The majority of the increase in spend was from existing carriers, with new carriers typically starting small [30] Question: What is the strategy to balance volume growth and profitability? - The current focus is on optimizing for market share and transaction value, with plans to shift towards gross profit optimization as market conditions change [32] Question: What are the expectations for the upcoming AEP and its impact on shopping behavior? - Increased shopping behavior is anticipated, but carrier budgets may be lighter than previous years due to market churn and uncertainty [50][51]

[PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents MediaAlpha, Inc.'s unaudited consolidated financial statements as of June 30, 2025, detailing balance sheets, operations, and cash flows, reflecting revenue growth but a net loss due to a legal settlement [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, the company had **$85.4 million** in cash and cash equivalents, an increase from **$43.3 million** at year-end 2024, while total assets decreased to **$249.4 million** from **$262.4 million** Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $85,381 | $43,266 | | Accounts receivable, net | $102,776 | $142,932 | | Total current assets | $192,474 | $189,909 | | Total assets | $249,418 | $262,447 | | **Liabilities & Stockholders' Deficit** | | | | Accounts payable | $75,838 | $105,563 | | Accrued expenses | $63,980 | $18,542 | | Total current liabilities | $148,687 | $132,954 | | Long-term debt, net | $149,154 | $153,596 | | Total liabilities | $306,375 | $308,679 | | Total stockholders' deficit | $(56,957) | $(46,232) | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 2025, revenue increased **41.1%** to **$251.6 million**, but the company reported a net loss of **$22.5 million** due to increased general and administrative expenses, including a legal reserve Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $251,622 | $178,274 | $515,931 | $304,923 | | (Loss) income from operations | $(20,042) | $6,493 | $(19,926) | $8,865 | | Net (loss) income | $(22,533) | $4,420 | $(24,867) | $2,929 | | Net (loss) income attributable to MediaAlpha, Inc. | $(18,742) | $3,620 | $(20,690) | $2,507 | | Basic Net (loss) income per share | $(0.33) | $0.07 | $(0.33) | $0.05 | | Diluted Net (loss) income per share | $(0.33) | $0.07 | $(0.37) | $0.04 | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operations significantly increased to **$49.4 million**, leading to a **$42.1 million** rise in cash and cash equivalents Consolidated Statements of Cash Flows Highlights (in thousands) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $49,423 | $23,287 | | Net cash (used in) investing activities | $(232) | $(164) | | Net cash (used in) financing activities | $(7,076) | $(11,735) | | **Net increase in cash and cash equivalents** | **$42,115** | **$11,388** | | **Cash and cash equivalents, end of period** | **$85,381** | **$28,659** | [Notes to the Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes detail accounting policies, revenue disaggregation, and legal contingencies, highlighting a **$13.4 million** intangible asset write-off and a **$45.0 million** FTC settlement - The company has significant customer concentration, with two customers accounting for **50% of revenue** in Q2 2025 and **48%** for the first six months of 2025[36](index=36&type=chunk) - During the first six months of 2025, the company wrote off **$13.4 million** in intangible assets related to the Customer Helper Team, LLC acquisition, as no future economic benefits are expected from them[48](index=48&type=chunk)[49](index=49&type=chunk) - The company reached an agreement with the FTC to settle an investigation, agreeing to pay **$45.0 million** in monetary relief, with a reserve of **$45.0 million** recorded as of June 30, 2025[61](index=61&type=chunk)[62](index=62&type=chunk) Revenue by Vertical (Six Months Ended June 30, in thousands) | Vertical | 2025 | 2024 | | :--- | :--- | :--- | | Property & casualty insurance | $450,407 | $203,664 | | Health insurance | $52,011 | $82,053 | | Life insurance | $10,798 | $14,081 | | Other | $2,715 | $5,125 | | **Total** | **$515,931** | **$304,923** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2025 financial results, highlighting **41.1%** revenue growth driven by P&C insurance, offset by health declines, and a **$22.5 million** net loss due to an FTC settlement charge [Executive Summary](index=23&type=section&id=Executive%20Summary) Q2 2025 saw revenue grow **41.1%** to **$251.6 million** and Transaction Value increase **49.4%**, but a **$22.5 million** net loss was recorded due to an FTC reserve, while Adjusted EBITDA rose **30.7%** Q2 2025 Financial Highlights (in millions) | Metric | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $251.6 | $178.3 | $73.3 | 41.1% | | Transaction Value | $480.8 | $321.8 | $159.0 | 49.4% | | Contribution | $39.8 | $33.7 | $6.1 | 18.1% | | Net (Loss) Income | $(22.5) | $4.4 | $(26.9) | n/m | | Adjusted EBITDA | $24.5 | $18.7 | $5.8 | 30.7% | - The primary driver for revenue growth was a significant increase in customer acquisition spending by P&C carrier partners in response to their improving underwriting profitability[90](index=90&type=chunk) - The company and the FTC entered into a Consent Order to resolve all claims, with the company agreeing to pay **$45.0 million**, and a charge of **$33.0 million** was taken in the quarter to increase the related reserve[92](index=92&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Operating results for Q2 2025 show P&C revenue surged **69.0%** while Health insurance revenue fell **48.0%**, with general and administrative expenses rising **241.1%** due to **$34.0 million** in legal costs Revenue by Vertical (Three Months Ended June 30, in thousands) | Vertical | 2025 | 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Property & Casualty insurance | $227,162 | $134,422 | $92,740 | 69.0% | | Health insurance | $18,074 | $34,774 | $(16,700) | (48.0)% | | Life insurance | $5,225 | $6,518 | $(1,293) | (19.8)% | | **Total Revenue** | **$251,622** | **$178,274** | **$73,348** | **41.1%** | - General and administrative expenses for Q2 2025 increased by **$33.3 million** (**241.1%**) year-over-year, primarily due to a **$34.0 million** increase in legal costs, including a **$33.0 million** charge for the FTC Matter reserve[128](index=128&type=chunk) - For the six months ended June 30, 2025, the company wrote off **$13.4 million** of intangible assets from the Customer Helper Team, LLC acquisition as they were not expected to generate future cash inflows[145](index=145&type=chunk) [Key business and operating metrics](index=38&type=section&id=Key%20business%20and%20operating%20metrics) The company's non-GAAP metrics show Adjusted EBITDA at **$53.9 million** for the six months ended June 30, 2025, with Contribution at **$83.8 million** and total Transaction Value reaching **$953.9 million** Reconciliation of Net (Loss) Income to Adjusted EBITDA (in thousands) | | Three Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | | | **2025** | **2024** | **2025** | **2024** | | Net (loss) income | $(22,533) | $4,420 | $(24,867) | $2,929 | | Adjustments | $47,035 | $14,320 | $78,745 | $30,230 | | **Adjusted EBITDA** | **$24,502** | **$18,740** | **$53,878** | **$33,159** | Transaction Value by Vertical (Six Months Ended June 30, in thousands) | Vertical | 2025 | 2024 | | :--- | :--- | :--- | | Property & Casualty insurance | $842,198 | $390,070 | | Health insurance | $95,092 | $124,365 | | Life insurance | $13,775 | $18,123 | | **Total Transaction Value** | **$953,880** | **$540,916** | [Liquidity and capital resources](index=41&type=section&id=Liquidity%20and%20capital%20resources) As of June 30, 2025, the company had **$85.4 million** in cash and equivalents, extended debt maturities to July 2027, and plans to use cash on hand for the **$45.0 million** FTC settlement - As of June 30, 2025, the company had **$85.4 million** in cash and cash equivalents and **$45.0 million** available under its revolving credit facility[166](index=166&type=chunk) - In August 2025, the company extended the maturity date for the majority of its term loans (**$138.1 million**) and revolving credit facility (**$45.6 million**) by one year to July 29, 2027[166](index=166&type=chunk)[179](index=179&type=chunk) - The company will pay a **$45.0 million** settlement to the FTC, with **$33.5 million** due within seven days of court entry and **$11.5 million** within 90 days, planning to use cash on hand for these payments[169](index=169&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks, including interest rate fluctuations on its variable-rate credit facilities and significant customer and supplier concentration, with two customers accounting for **50% of Q2 2025 revenue** - The company is exposed to interest rate risk from its variable-rate 2021 Credit Facilities, where a hypothetical **1.0%** increase in interest rates would have resulted in a **$0.8 million** impact on interest expense for the six months ended June 30, 2025[189](index=189&type=chunk) Customer and Supplier Concentration (Q2 2025) | Concentration Type | Number > 10% | Aggregate Value (in millions) | % of Total | | :--- | :--- | :--- | :--- | | Revenue | 2 | $125 | 50% | | Purchases | 2 | $53 | 25% | [Item 4. Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of June 30, 2025, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[194](index=194&type=chunk) - No changes occurred in the company's internal control over financial reporting during Q2 2025 that have materially affected, or are reasonably likely to materially affect, these controls[195](index=195&type=chunk) [PART II. OTHER INFORMATION](index=47&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates by reference details on legal matters, primarily the Federal Trade Commission (FTC) settlement, from Note 5 to the Consolidated Financial Statements - The report refers to Note 5 of the financial statements for details on legal proceedings, which covers the FTC matter settlement[198](index=198&type=chunk) [Item 1A. Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) This section updates risk factors, emphasizing the company's high dependency on cyclical insurance industries and the financial and operational risks associated with the FTC settlement - The company's business is highly subject to cyclicality in the insurance industry, where 'hard' market conditions can lead to significant reductions in customer acquisition spending by insurance carriers, adversely impacting revenue[200](index=200&type=chunk) - The settlement with the FTC, while resolving the commission's claims, includes a **$45.0 million** payment and injunctive terms that will affect operations, particularly in the under-65 health insurance subvertical, where a reduction in Transaction Value and Contribution is expected for 2025[204](index=204&type=chunk)[205](index=205&type=chunk) - Even with the FTC settlement, the company faces risks of litigation from other government authorities or private claimants regarding business practices subject to the FTC investigation[206](index=206&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=48&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities but repurchased **102,348 shares** of Class A Common Stock at **$10.39 per share** to satisfy tax obligations related to RSU vesting - There were no unregistered sales of equity securities in the quarter[208](index=208&type=chunk) Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | — | — | | May 2025 | 102,348 | $10.39 | | June 2025 | — | — | | **Total** | **102,348** | **$10.39** | [Item 3. Defaults Upon Senior Securities](index=49&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - None[210](index=210&type=chunk) [Item 4. Mine Safety Disclosures](index=49&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[211](index=211&type=chunk) [Item 5. Other Information](index=49&type=section&id=Item%205.%20Other%20Information) No director or officer adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q2 2025 - No director or officer adopted, modified, or terminated a Rule 10b5-1 trading plan during the three months ended June 30, 2025[212](index=212&type=chunk) [Item 6. Exhibits](index=50&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including an employment agreement amendment, CEO/CFO certifications, and Inline XBRL data files - Exhibits filed include CEO/CFO certifications (31.1, 31.2, 32.1) and XBRL data files[213](index=213&type=chunk)

Market Opportunity & Growth - Digital insurance ad spend is projected to reach $14 billion by 2026, representing a 23-26E CAGR of 15% [13, 20] - Digital insurance ad spend growth is outpacing overall digital ad spend growth, with a 27% increase expected in 2024 compared to 13% for overall digital ad spend [21, 22] - The Property & Casualty (P&C) insurance industry is recovering, with carriers refocusing on growth and customer acquisition as underwriting results improve [37] Financial Performance - The company's LTM Transaction Value reached $1.9 billion [17] - LTM Q2 2025 Adjusted EBITDA was $116.8 million, representing a 136% year-over-year growth [17] - Q2 2025 Transaction Value was $435 million, compared to $255 million in Q2 2024 [54] - Q2 2025 Adjusted EBITDA was $24.5 million, compared to $18.7 million in Q2 2024 [54] Business Model & Strategy - The company operates a two-sided marketplace connecting insurance demand partners with high-intent end consumers [24] - The company has high partner retention rates, with 100% one-year retention and 96% three-year retention for both top 25 supply and demand partners [35] - The company's model enables demand partners to monetize surplus traffic through its marketplaces as supply partners [33] - The company's economic model is based on a percentage of Transaction Value, regardless of whether an insurance product is sold [48]

Exhibit 10.1 THIRD AMENDMENT dated as of August 4, 2025 (this "Amendment"), among QUOTELAB, LLC, a Delaware limited liability company (the "Borrower"), QL HOLDINGS LLC, a Delaware limited liability company ("Holdings"), the LENDERS party hereto, the ISSUING BANK party hereto and JPMORGAN CHASE BANK, N.A., as administrative agent (in such capacity, the "Administrative Agent"). WHEREAS, reference is made to the Credit Agreement dated as of September 23, 2020 (as amended by the First Amendment, dated as of Jul ...

Core Insights - MediaAlpha, Inc. reported a record second quarter with revenue growth of 41% year-over-year, reaching $251.6 million, and transaction value growth of 49%, totaling $480.8 million [1][6] - The Property & Casualty (P&C) insurance vertical experienced a significant transaction value increase of 71% year-over-year, amounting to $435 million, driven by strong demand from leading carriers [2][6] - The company recorded a net loss of $(22.5) million for the second quarter, compared to a net income of $4.4 million in the same period last year, while Adjusted EBITDA improved to $24.5 million from $18.7 million [1][6] Financial Performance - Revenue for the second quarter was $251.6 million, a 41% increase from $178.3 million in Q2 2024 [6] - Transaction Value reached $480.8 million, up 49% from $321.8 million in the previous year [6] - The gross margin decreased to 15.0% from 17.8% in Q2 2024, and the Contribution Margin fell to 15.8% from 18.9% [6][26] - The company has set aside an additional $33 million reserve related to the FTC inquiry, bringing the total reserve to $45 million as of June 30, 2025 [6] Future Outlook - For Q3 2025, MediaAlpha expects transaction value in the P&C insurance vertical to grow approximately 35% year-over-year, while the Health insurance vertical is projected to decline by 40% to 45% [4][5] - The company anticipates revenue between $270 million and $290 million for Q3 2025, representing an 8% year-over-year increase at the midpoint [7] - Adjusted EBITDA is expected to grow at a slower rate than transaction value and revenue due to a decrease in contribution from the under-65 health segment [5][7] Business Metrics - The company operates with over 1,200 active partners and generated nearly 119 million consumer referrals in 2024 [16] - MediaAlpha's programmatic advertising technology facilitated $1.9 billion in spend across various insurance sectors over the last twelve months [16] - The transaction value from the Health insurance vertical decreased by 32% year-over-year to $37 million [6][24]

Core Viewpoint - MediaAlpha has reached a settlement with the Federal Trade Commission (FTC) regarding an investigation into its under-65 health insurance segment, agreeing to pay $45 million and implement additional compliance measures [1][2][3]. Settlement Details - The settlement requires MediaAlpha to pay $45 million, which is equivalent to $0.61 per fully diluted share, funded by existing cash of $85.4 million as of June 30, 2025 [2][5]. - The payment will be made in two installments: $33.5 million within seven days of court approval and $11.5 million within 90 days [5]. - The settlement is not expected to materially impact MediaAlpha's core Property & Casualty insurance vertical or Medicare sub-vertical [2][5]. Compliance Measures - MediaAlpha will enhance its compliance processes related to its under-65 health websites and partner screening as part of the settlement [2][3]. - The company has already begun implementing enhanced compliance measures and scaling back certain areas within under-65 health since early 2025 [7]. Financial Impact - The additional compliance procedures are expected to reduce under-65 Transaction Value by approximately $80 million to $85 million and under-65 Contribution by $18 million to $20 million in 2025, representing a 6% decline in Transaction Value and a 12% decline in Contribution compared to 2024 [8]. - Year-over-year changes in under-65 health for Q1 and Q2 2025 show significant declines, with Transaction Value decreasing by 20% and 41% respectively, and Contribution decreasing by 32% and 63% [8]. Growth Prospects - Despite the challenges in the under-65 health segment, MediaAlpha remains optimistic about the growth prospects for its core Property & Casualty and Medicare verticals, driven by strong secular tailwinds and a focus on innovation [4].