MediaAlpha Announces Third Quarter 2025 Financial Results

Core Insights - MediaAlpha, Inc. reported a third quarter revenue growth of 18% and a transaction value growth of 30%, achieving a record transaction value of $548 million in the Property & Casualty insurance vertical [1][5][26] - The company announced a net income of $17.6 million and an adjusted EBITDA of $29.1 million for the third quarter [1][5] - A new share repurchase program of $50 million has been authorized by the Board of Directors, reflecting the company's commitment to delivering long-term value for shareholders [2][9] Financial Performance - For the third quarter of 2025, MediaAlpha's revenue was $306.5 million, an increase of 18% year over year, while the transaction value reached $589.3 million, up 30% year over year [5][21] - The transaction value from the Property & Casualty insurance vertical increased by 41% year over year to $548 million, while the Health insurance vertical saw a decline of 40% year over year to $33 million [5][26] - The gross margin for the third quarter was 14.2%, compared to 15.1% in the third quarter of 2024, and the contribution margin was 14.9%, down from 16.0% in the same period [5][30] Future Outlook - The company expects transaction value in the Property & Casualty insurance vertical to grow approximately 45% year over year in the fourth quarter, driven by strong carrier growth investment [4][5] - Conversely, the transaction value in the Health insurance vertical is anticipated to decline approximately 45% year over year, primarily due to stabilization at a lower baseline [4][5] - For the fourth quarter of 2025, MediaAlpha projects revenue of $306.5 million and transaction value of $589.3 million, reflecting continued positive momentum [5][6] Share Repurchase Program - The newly authorized share repurchase program allows for the repurchase of up to $50 million of Class A common stock, which may be executed through various methods including open market transactions and block trades [9][2] - The timing and amount of repurchases will be determined by the company's management based on market conditions and other factors [9]