MediaAlpha(US:MAX)2025-10-29 20:12Financial Performance - Third quarter revenue reached $306.5 million, an 18% increase year over year[4] - Net income for the third quarter was $17.6 million, compared to $11.9 million in the same quarter of 2024[4] - Adjusted EBITDA for the third quarter was $29.1 million, an increase from $26.3 million year over year[4] - Revenue for the three months ended September 30, 2025, was $306,514,000, a 18.3% increase from $259,133,000 in the same period of 2024[22] - Net income for the three months ended September 30, 2025, was $17,643,000, compared to $11,888,000 in 2024, representing a 48.5% increase[22] - Adjusted EBITDA for the three months ended September 30, 2025, was $29.079 million, compared to $26.271 million for the same period in 2024, reflecting a year-over-year increase of 6.9%[31] - Adjusted EBITDA for the nine months ended September 30, 2025, was $82.957 million, compared to $59.430 million for the same period in 2024, marking an increase of 39.7%[31] Transaction Value - Transaction value for the third quarter was $589.3 million, up 30% year over year, with Property & Casualty insurance transaction value increasing 41% to $548 million[4] - Total Transaction Value for the three months ended September 30, 2025, was $589,303,000, a 30.5% increase from $451,775,000 in 2024[26] - Open Marketplace transactions accounted for 50.9% of total Transaction Value in Q3 2025, down from 56.0% in Q3 2024[26] - Property & Casualty insurance represented 93.0% of total Transaction Value in Q3 2025, up from 85.8% in Q3 2024[26] Future Guidance - The company expects fourth quarter transaction value in the Property & Casualty insurance vertical to grow approximately 45% year over year[5] - Fourth quarter transaction value in the Health insurance vertical is expected to decline approximately 45% year over year[5] - The guidance for fourth quarter revenue is projected between $280 million and $300 million, representing a 4% year-over-year decrease at the midpoint[10] - Adjusted EBITDA for the fourth quarter is expected to be between $27.5 million and $29.5 million, reflecting a 22% year-over-year decrease at the midpoint[10] Share Repurchase and Equity - A new $50 million share repurchase program has been authorized by the Board of Directors[2] - The company repurchased approximately 3.2 million shares for $32.9 million at an average price of $10.17 per share[4] - The weighted average shares of Class A common stock outstanding for the three months ended September 30, 2025, were 56,617,837, compared to 54,909,772 in 2024[22] Cash Flow and Expenses - Cash flows from operating activities for the nine months ended September 30, 2025, were $73,046,000, significantly higher than $31,343,000 in 2024[24] - The company reported a net cash increase of $29,075,000 for the nine months ended September 30, 2025, compared to $15,033,000 in 2024[24] - Equity-based compensation expense for the three months ended September 30, 2025, was $7.662 million, down from $8.597 million in 2024, a decrease of 10.9%[31] - Interest expense for the three months ended September 30, 2025, was $2.808 million, compared to $3.562 million in the same period of 2024, a reduction of 21.1%[31] Legal and Other Expenses - Legal expenses for the nine months ended September 30, 2025, totaled $42.333 million, a substantial increase from $2.155 million in the same period of 2024, reflecting a rise of 1,964.5%[34] - Changes in legal expenses were primarily driven by increases related to the FTC Matter, with a notable rise in the loss reserve established for this issue[34] - The write-off of intangible assets for the nine months ended September 30, 2025, included a charge of $13.4 million related to customer relationships and trademarks acquired from the acquisition of Customer Helper Team, LLC[33] Contribution Metrics - Contribution for the three months ended September 30, 2025, was $45,615,000, up from $41,482,000 in 2024, reflecting a 9.3% increase[28] - Contribution Margin for the three months ended September 30, 2025, was 14.9%, compared to 16.0% in the same period of 2024[28]