EX-99.1 3 maxq22025-earningsreleasex.htm EX-99.1 Document
Exhibit 99.1
MEDIAALPHA ANNOUNCES SECOND QUARTER 2025
FINANCIAL RESULTS
Second Quarter Revenue Growth of 41% and Transaction Value Growth of 49%;
Record Transaction Value of $435 million in Property & Casualty Vertical

Second Quarter Net Loss of $(22.5) million; Adjusted EBITDA(1)of $24.5 million

Los Angeles, CA (August 6, 2025) – MediaAlpha, Inc. (NYSE: MAX) ("MediaAlpha" or the "Company"), today announced its financial results for the second quarter ended June 30, 2025.

“We delivered record second quarter results, led by 71% year-over-year Transaction Value growth in our Property & Casualty (P&C) insurance vertical, driven by sustained demand from leading carriers and a growing partner base,” said Steve Yi, CEO of MediaAlpha. “As announced separately today, we have fully resolved the FTC inquiry. With the FTC matter fully behind us and P&C delivering strong growth, we are poised for continued momentum for the remainder of 2025 and beyond.”
Second Quarter 2025 Financial Results
•Revenue of $251.6 million, an increase of 41% year over year;
•Transaction Value of $480.8 million, an increase of 49% year over year;
◦Transaction Value from Property & Casualty up 71% year over year to $435 million
◦Transaction Value from Health down 32% year over year to $37 million
•Gross margin of 15.0%, compared with 17.8% in the second quarter of 2024;
•Contribution Margin(1) of 15.8%, compared with 18.9% in the second quarter of 2024;
•Net loss was $(22.5) million, compared with a net income of $4.4 million in the second quarter of 2024; and
•Adjusted EBITDA(1) was $24.5 million, compared with $18.7 million in the second quarter of 2024.
•Additionally, the Company reached an agreement regarding a settlement with the FTC and has recorded an additional $33.0 million reserve related to this matter in accordance with U.S. GAAP, bringing the total reserve to $45.0 million as of June 30, 2025.

(1)A reconciliation of GAAP to Non-GAAP financial measures has been provided at the end of this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”



Financial Outlook
Our guidance for the third quarter of 2025 reflects a strengthening of the trends in customer acquisition spending that we have seen in the first half of the year in our P&C insurance vertical. We expect Transaction Value in our P&C insurance vertical to grow approximately 35% year over year in the third quarter, driven by strong carrier growth investment and profitability, along with continued share gain. We expect third quarter Transaction Value in our Health insurance vertical, which includes both Medicare and under-65 health, to decline 40% to 45% year over year. On a year-over-year basis, we expect third quarter under-65 Transaction Value and Contribution to decline by approximately $21 million (54%) and $4 million (77%), respectively.
We expect Adjusted EBITDA to grow at a slower rate than Transaction Value and revenue during the third quarter due to a year-over-year decrease in Contribution as a percentage of Transaction Value driven primarily by a decline in under-65 health, which historically operated at higher margins.
For the third quarter of 2025, MediaAlpha currently expects the following:
•Transaction Value between $545 million - $570 million, representing a 23% year-over-year increase at the midpoint of the guidance range;
•Revenue between $270 million - $290 million, representing a 8% year-over-year increase at the midpoint of the guidance range;
•Adjusted EBITDA between $25.5 million - $27.5 million, representing a 1% year-over-year increase at the midpoint of the guidance range, including a $4 million year-over-year decline in Contribution from under-65. We are projecting Contribution less Adjusted EBITDA to be approximately $1 million higher than in Q2 2025.
With respect to the Company’s projections of Adjusted EBITDA and Contribution under “Financial Outlook,” MediaAlpha is not providing a reconciliation of Adjusted EBITDA to net income (loss), or of Contribution to gross profit, because the Company is unable to predict with reasonable certainty the reconciling items that may affect the corresponding GAAP measures without unreasonable effort. These reconciling items are uncertain, depend on various factors and could significantly impact, either individually or in the aggregate, the corresponding GAAP measures for the applicable period.
For a detailed explanation of the Company’s non-GAAP measures, please refer to the appendix section of this press release.




Conference Call Information
MediaAlpha will host a Q&A conference call today to discuss the Company's second quarter 2025 results and its financial outlook for the third quarter of 2025 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). A live audio webcast of the call will be available on the MediaAlpha Investor Relations website at https://investors.mediaalpha.com. To register for the webcast, click here. Participants may also dial-in, toll-free, at (800) 715-9871 or (646) 307-1963, with passcode 8453843. An audio replay of the conference call will be available following the call and available on the MediaAlpha Investor Relations website at https://investors.mediaalpha.com.
The Company has also posted a letter to shareholders on its investor relations website. MediaAlpha has used, and intends to continue to use, its investor relations website at https://investors.mediaalpha.com as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation statements regarding our expectation that with the FTC matter behind us and our P&C insurance vertical delivering strong growth, we are poised for continued momentum for the remainder of 2025 and beyond; and our financial outlook for the third quarter of 2025. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would,” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.
There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including those more fully described in MediaAlpha’s filings with the Securities and Exchange Commission (“SEC”), including the Form 10-K filed on February 24, 2025 and the Forms 10-Q filed on April 30, 2025 and to be filed on August 6, 2025. These factors should not be construed as exhaustive. MediaAlpha disclaims any obligation to update any forward-looking statements to reflect events or circumstances that occur after the date of this press release.


Non-GAAP Financial Measures and Operating Metrics
This press release includes Adjusted EBITDA, Contribution, and Contribution Margin, which are non-GAAP financial measures. The Company also presents Transaction Value, which is an operating metric not presented in accordance with GAAP. See the appendix for definitions of Adjusted EBITDA, Contribution, Contribution Margin and Transaction Value, as well as reconciliations to the corresponding GAAP financial metrics, as applicable.
We present Transaction Value, Adjusted EBITDA, Contribution, and Contribution Margin because they are used extensively by our management and board of directors to manage our operating performance, including evaluating our operational performance against budget and assessing our overall operating efficiency and operating leverage. Accordingly, we believe that Transaction Value, Adjusted EBITDA and Contribution Margin provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team and board of directors. Each of Transaction Value, Adjusted EBITDA and Contribution Margin has limitations as a financial measure and investors should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP.

About MediaAlpha
We believe we are the insurance industry’s leading programmatic customer acquisition platform. With more than 1,200 active partners, excluding our agent partners, we connect insurance carriers with online shoppers and generated nearly 119 million Consumer Referrals in 2024. Our programmatic advertising technology over the last twelve months powered $1.9 billion in spend on brand, comparison, and metasearch sites across property & casualty insurance, health insurance, life insurance, and other industries. For more information, please visit www.mediaalpha.com.
Contacts:
Investors
Denise Garcia
Hayflower Partners
Denise@HayflowerPartners.com



MediaAlpha, Inc. and subsidiaries
Consolidated Balance Sheets
(Unaudited; in thousands, except share data and per share amounts)

June 30,
2025		December 31,
2024
Assets
Current assets
Cash and cash equivalents$85,381 $43,266 
Accounts receivable, net of allowance for credit losses of $729 and $1,005, respectively
102,776 142,932 
Prepaid expenses and other current assets4,317 3,711 
Total current assets192,474 189,909 
Intangible assets, net4,613 19,985 
Goodwill47,739 47,739 
Other assets4,592 4,814 
Total assets$249,418 $262,447 
Liabilities and stockholders' deficit
Current liabilities
Accounts payable$75,838 $105,563 
Accrued expenses63,980 18,542 
Current portion of long-term debt8,869 8,849 
Total current liabilities148,687 132,954 
Long-term debt, net of current portion149,154 153,596 
Liabilities under tax receivables agreement, net of current portion— 7,006 
Other long-term liabilities8,534 15,123 
Total liabilities$306,375 $308,679 
Commitments and contingencies
Stockholders' deficit
Class A common stock, $0.01 par value - 1.0 billion shares authorized; 56.4 million and 55.5 million shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively564 555 
Class B common stock, $0.01 par value - 100 million shares authorized; 11.6 million and 11.6 million shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively116 116 
Preferred stock, $0.01 par value - 50 million shares authorized; 0 shares issued and outstanding as of June 30, 2025 and December 31, 2024— — 
Additional paid-in capital522,169 507,640 
Accumulated deficit(526,623)(505,933)
Total stockholders' (deficit) equity attributable to MediaAlpha, Inc.$(3,774)$2,378 
Non-controlling interests(53,183)(48,610)
Total stockholders' deficit$(56,957)$(46,232)
Total liabilities and stockholders' deficit$249,418 $262,447 



MediaAlpha, Inc. and subsidiaries
Consolidated Statements of Operations
(Unaudited; in thousands, except share data and per share amounts)
Three Months Ended
June 30,		Six Months Ended
June 30,
2025202420252024
Revenue$251,622 $178,274 $515,931 $304,923 
Costs and operating expenses
Cost of revenue213,935 146,589 436,605 249,558 
Sales and marketing5,228 6,316 10,854 12,112 
Product development5,353 5,052 10,239 9,415 
General and administrative47,148 13,824 64,743 24,973 
Write-off of intangible assets— — 13,416 — 
Total costs and operating expenses271,664 171,781 535,857 296,058 
(Loss) income from operations(20,042)6,493 (19,926)8,865 
Other (income), net(695)(1,808)(1,151)(1,817)
Interest expense2,870 3,751 5,825 7,596 
Total other expense, net2,175 1,943 4,674 5,779 
(Loss) income before income taxes(22,217)4,550 (24,600)3,086 
Income tax expense316 130 267 157 
Net (loss) income$(22,533)$4,420 $(24,867)$2,929 
Net (loss) income attributable to non-controlling interest(3,791)800 (4,177)422 
Net (loss) income attributable to MediaAlpha, Inc.$(18,742)$3,620 $(20,690)$2,507 
Net (loss) income per share of Class A common stock
-Basic$(0.33)$0.07 $(0.37)$0.05 
-Diluted$(0.33)$0.07 $(0.37)$0.04 
Weighted average shares of Class A common stock outstanding
-Basic56,141,117 53,367,896 55,888,125 50,971,172 
-Diluted56,141,117 53,367,896 55,888,125 65,868,384 


MediaAlpha, Inc. and subsidiaries
Consolidated Statements of Cash Flows
(Unaudited; in thousands)
Six Months Ended
June 30,
20252024
Cash flows from operating activities
Net (loss) income$(24,867)$2,929 
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Equity-based compensation expense15,136 17,855 
Non-cash lease expense456 395 
Depreciation expense on property and equipment130 126 
Amortization of intangible assets1,956 3,218 
Amortization of deferred debt issuance costs359 380 
Write-off of intangible assets13,416 — 
Credit losses(192)147 
Tax receivables agreement liability related adjustments79 — 
Changes in operating assets and liabilities:
Accounts receivable40,348 (37,070)
Prepaid expenses and other current assets(637)159 
Other assets250 249 
Accounts payable(29,725)34,325 
Accrued expenses32,714 574 
Net cash provided by operating activities$49,423 $23,287 
Cash flows from investing activities
Purchases of property and equipment(232)(164)
Net cash (used in) investing activities$(232)$(164)
Cash flows from financing activities
Payments made for / proceeds received from:
Repayments on long-term debt(4,750)(7,797)
Contributions from QLH’s members391 756 
Distributions to non-controlling interests(787)(1,017)
Shares withheld for taxes on vesting of restricted stock units(1,930)(3,677)
Net cash (used in) financing activities$(7,076)$(11,735)
Net increase in cash and cash equivalents42,115 11,388 
Cash and cash equivalents, beginning of period43,266 17,271 
Cash and cash equivalents, end of period$85,381 $28,659 


Key business and operating metrics and Non-GAAP financial measures
Transaction Value
We define “Transaction Value” as the total gross dollars transacted by our partners on our platform. Transaction Value is an operating metric not presented in accordance with GAAP, and is a driver of revenue based on the economic relationships we have with our partners. Our partners use our platform to transact via Open and Private Marketplace transactions. In our Open Marketplace model, revenue recognized represents the fees paid by our Demand Partners for Consumer Referrals sold and is equal to the Transaction Value and revenue share payments to our Supply Partners represent costs of revenue. In our Private Marketplace model, revenue recognized represents a platform fee billed to the Demand Partner or Supply Partner based on an agreed-upon percentage of the Transaction Value for the Consumer Referrals transacted, and accordingly there are no associated costs of revenue. We utilize Transaction Value to assess the overall level of transaction activity through our platform. We believe it is useful to investors to assess the overall level of activity on our platform and to better understand the sources of our revenue across our different transaction models and verticals.
The following table presents Transaction Value by platform model for the three and six months ended June 30, 2025 and 2024:
Three Months Ended
June 30,		Six Months Ended
June 30,
(dollars in thousands)2025202420252024
Open Marketplace transactions$245,280 $171,504 $503,699 $293,933 
Percentage of total Transaction Value51.0 %53.3 %52.8 %54.3 %
Private Marketplace transactions235,499 150,306 450,181 246,983 
Percentage of total Transaction Value49.0 %46.7 %47.2 %45.7 %
Total Transaction Value$480,779 $321,810 $953,880 $540,916 

The following table presents Transaction Value by vertical for the three and six months ended June 30, 2025 and 2024:

Three Months Ended
June 30,		Six Months Ended
June 30,
(dollars in thousands)2025202420252024
Property & Casualty insurance$435,351 $254,576 $842,198 $390,070 
Percentage of total Transaction Value90.6 %79.1 %88.3 %72.1 %
Health insurance37,413 55,278 95,092 124,365 
Percentage of total Transaction Value7.8 %17.2 %10.0 %23.0 %
Life insurance6,819 7,886 13,775 18,123 
Percentage of total Transaction Value1.4 %2.5 %1.4 %3.4 %
Other(1)
1,196 4,070 2,815 8,358 
Percentage of total Transaction Value0.2 %1.2 %0.3 %1.5 %
Total Transaction Value$480,779 $321,810 $953,880 $540,916 
(1)Our other verticals include Travel and Consumer Finance.


Contribution and Contribution Margin
We define “Contribution” as revenue less revenue share payments and online advertising costs, or, as reported in our consolidated statements of operations, revenue less cost of revenue (i.e., gross profit), as adjusted to exclude the following items from cost of revenue: equity-based compensation; salaries, wages, and related costs; internet and hosting costs; amortization; depreciation; other services; and merchant-related fees. We define “Contribution Margin” as Contribution expressed as a percentage of revenue for the same period. Contribution and Contribution Margin are non-GAAP financial measures that we present to supplement the financial information we present on a GAAP basis. We use Contribution and Contribution Margin to measure the return on our relationships with our Supply Partners (excluding certain fixed costs), the financial return on and efficacy of our online advertising costs to drive consumers to our proprietary websites, and our operating leverage. We do not use Contribution and Contribution Margin as measures of overall profitability. We present Contribution and Contribution Margin because they are used by our management and board of directors to manage our operating performance, including evaluating our operational performance against budget and assessing our overall operating efficiency and operating leverage. For example, if Contribution increases and our headcount costs and other operating expenses remain steady, our Adjusted EBITDA and operating leverage increase. If Contribution Margin decreases, we may choose to re-evaluate and re-negotiate our revenue share agreements with our Supply Partners, to make optimization and pricing changes with respect to our bids for keywords from primary traffic acquisition sources, or to change our overall cost structure with respect to headcount, fixed costs and other costs. Other companies may calculate Contribution and Contribution Margin differently than we do. Contribution and Contribution Margin have their limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results presented in accordance with GAAP.
The following table reconciles Contribution with gross profit, the most directly comparable financial measure calculated and presented in accordance with GAAP, for the three and six months ended June 30, 2025 and 2024:

Three Months Ended
June 30,		Six Months Ended
June 30,
(in thousands)2025202420252024
Revenue$251,622 $178,274 $515,931 $304,923 
Less cost of revenue(213,935)(146,589)(436,605)(249,558)
Gross profit$37,687 $31,685 $79,326 $55,365 
Adjusted to exclude the following (as related to cost of revenue):
Equity-based compensation277 392 571 2,249 
Salaries, wages, and related785 659 1,601 1,567 
Internet and hosting200 126 371 257 
Other expenses165 166 367 369 
Depreciation6 5 12 10 
Other services528 631 1,240 1,459 
Merchant-related fees188 78 330 142 
Contribution$39,836 $33,742 $83,818 $61,418 
Gross margin15.0 %17.8 %15.4 %18.2 %
Contribution Margin15.8 %18.9 %16.2 %20.1 %



Adjusted EBITDA
We define “Adjusted EBITDA” as net income (loss) excluding interest expense, income tax expense (benefit), depreciation expense on property and equipment, amortization of intangible assets, as well as equity-based compensation expense and certain other adjustments as listed in the table below. Adjusted EBITDA is a non-GAAP financial measure that we present to supplement the financial information we present on a GAAP basis. We monitor and present Adjusted EBITDA because it is a key measure used by our management to understand and evaluate our operating performance, to establish budgets and to develop operational goals for managing our business. We believe that Adjusted EBITDA helps identify underlying trends in our business that could otherwise be masked by the effect of the expenses that we exclude in the calculations of Adjusted EBITDA. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects. In addition, presenting Adjusted EBITDA provides investors with a metric to evaluate the capital efficiency of our business.
Adjusted EBITDA is not presented in accordance with GAAP and should not be considered in isolation of, or as an alternative to, measures presented in accordance with GAAP. There are a number of limitations related to the use of Adjusted EBITDA rather than net income, which is the most directly comparable financial measure calculated and presented in accordance with GAAP. These limitations include the fact that Adjusted EBITDA excludes interest expense on debt, income tax expense (benefit), equity-based compensation expense, depreciation and amortization, and certain other adjustments that we consider to be useful to investors and others in understanding and evaluating our operating results. In addition, other companies may use other measures to evaluate their performance, including different definitions of “Adjusted EBITDA,” which could reduce the usefulness of our Adjusted EBITDA as a tool for comparison.
The following table reconciles Adjusted EBITDA with net (loss) income, the most directly comparable financial measure calculated and presented in accordance with GAAP, for the three and six months ended June 30, 2025 and 2024:
Three Months Ended
June 30,		Six Months Ended
June 30,
(in thousands)2025202420252024
Net (loss) income$(22,533)$4,420 $(24,867)$2,929 
Equity-based compensation expense8,112 9,221 15,136 17,855 
Interest expense2,870 3,751 5,825 7,596 
Income tax expense316 130 267 157 
Depreciation expense on property and equipment68 65 130 126 
Amortization of intangible assets512 1,609 1,956 3,218 
Transaction expenses(1)
— 559 — 1,217 
Write-off of intangible assets(2)
— — 13,416 — 
Contract settlement(3)
— (1,725)— (1,725)
Changes in TRA related liability79 — 79 — 
Changes in Tax Indemnification Receivable(185)(1)(206)(2)
Legal expenses(4)
35,263 711 42,142 1,788 
Adjusted EBITDA$24,502 $18,740 $53,878 $33,159 
(1)Transaction expenses consist of $0.6 million and $1.2 million of legal and accounting fees incurred by us for the three and six months ended June 30, 2024, respectively, in connection with resale registration statements filed with the SEC.
(2)Write-off of intangible assets for the six months ended June 30, 2025 consist of a charge of $13.4 million related to the write-off of customer relationships and trademarks, trade names, and domain names intangible assets acquired as part of the acquisition of Customer Helper Team, LLC.


(3)Contract settlement consists of $1.7 million of income for the three and six months ended June 30, 2024 recorded in connection with a one-time contract termination fee receivable from one of our partners in the Health vertical that ceased operations during the three months ended June 30, 2024.
(4)Legal expenses of $35.3 million and $42.1 million for the three and six months ended June 30, 2025, respectively, consist of increases of $33.0 million and $38.0 million, respectively, to the loss reserve established in connection with the FTC Matter and legal fees and costs incurred in connection with such matter. Legal expenses of $0.7 million and $1.8 million for the three and six months ended June 30, 2024, consist of legal fees and costs incurred in connection with the FTC Matter.