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].