MediaAlpha Announces Second Quarter 2025 Financial Results

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]