Record Full-Year 2025 Revenue of $1.1 billion and Transaction Value of $2.2 billionRecord Full-Year 2025 Net Income of $26.8 million and Adjusted EBITDA(1)of $113.7 million
Board of Directors Doubles Share Repurchase Authorization to $100 million
LOS ANGELES, Feb. 23, 2026 (GLOBE NEWSWIRE) -- MediaAlpha, Inc. (NYSE:MAX) ("MediaAlpha" or the "Company") today announced its financial results for the fourth quarter and full year ended December 31, 2025.
"2025 was a record year for MediaAlpha, driven by strong momentum in P&C and continued market share gains, reinforcing our role as the leading customer acquisition infrastructure for insurance carriers." said MediaAlpha co-founder and CEO Steve Yi. "Looking ahead, we are excited about the potential of AI to expand our opportunity to help carriers acquire new customers more efficiently, and at unprecedented scale, through our marketplace."
MediaAlpha CFO Pat Thompson added, "Based on our strong and growing free cash flow outlook, our Board has authorized a $50 million increase in our share repurchase program to $100 million. The $86 million currently outstanding under the program would represent approximately 15% of our outstanding shares at current prices, and we expect to complete the vast majority of this program by the end of 2026."
Fourth Quarter 2025 Financial Results and Highlights
Revenue of $291 million, a decrease of 3% year over year;
Transaction Value of $613 million, an increase of 23% year over year;
Transaction Value from Property & Casualty (P&C) of $552 million, an increase of 38% year over year;
Transaction Value from Health of $54 million, a decrease of 40% year over year;
Gross margin of 15.4%, compared with 16.3% in the fourth quarter of 2024;
Contribution Margin(1) of 16.1%, compared with 17.1% in the fourth quarter of 2024;
Net income of $34.0 million, compared with $7.3 million in the fourth quarter of 2024;
Adjusted EBITDA(1) of $30.8 million, compared with $36.7 million in the fourth quarter of 2024;
Excluding Contribution from under-65 health, Adjusted EBITDA grew approximately 10%; and
Repurchased 1.1 million shares for $14 million.
Full Year 2025 Financial Results and Highlights
Revenue of $1.1 billion, an increase of 29% year over year;
Transaction Value of $2.2 billion, an increase of 45% year over year;
Transaction Value from P&C of $1.9 billion, an increase of 65% year over year;
Transaction Value from Health of $183 million, a decrease of 32% year over year;
Gross margin of 15.0%, compared with 16.6% in 2024;
Contribution Margin(1) of 15.8%, compared with 17.9% in 2024;
Net income of $26.8 million, compared with $22.1 million in 2024;
Adjusted EBITDA(1) of $113.7 million, compared with $96.1 million in 2024;
Excluding Contribution from under-65 health, Adjusted EBITDA grew approximately 55%; and
Repurchased 4.4 million shares for $47 million.
(1) A reconciliation of GAAP to Non-GAAP financial measures has been provided at the end of this press release and in the investor supplemental materials. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."
Financial Outlook
MediaAlpha's guidance for the first quarter of 2026 reflects continued positive momentum in our P&C insurance vertical, where we expect Transaction Value growth of approximately 35% year over year in the first quarter, driven by strong carrier demand and continued share gains. In our Health insurance vertical, we expect Transaction Value to decline approximately 50% year over year in the first quarter, driven primarily by under-65 health.
For the first quarter of 2026, MediaAlpha currently expects the following:
Transaction Value between $570 million - $595 million, representing a 23% year-over-year increase at the midpoint of the guidance range;
Revenue between $285 million - $305 million, representing a 12% year-over-year increase at the midpoint of the guidance range;
Adjusted EBITDA between $29.5 million - $31.5 million, representing a 4% year-over-year increase at the midpoint of the guidance range. Excluding Contribution from under-65 health, Adjusted EBITDA is expected to increase approximately 25% year over year at the midpoint of the guidance range;
Contribution less Adjusted EBITDA to be approximately $0.5 - $1.0 million higher than in the fourth quarter of 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.
Additional Information Regarding Share Repurchase Program
On February 18, 2026, the Company's Board of Directors authorized an increase in its existing Share Repurchase Program by $50 million, to a total of up to $100 million, of which $14.4 million has been used to date. The Company may repurchase shares of Class A common stock under such program through open market transactions, privately negotiated transactions, preset trading plans, block trades or any combination of such methods. The timing and amount of any share repurchases will be determined by the Company's management in its discretion based on their ongoing evaluation of market and economic conditions, the trading price and volume of the Company's Class A common stock, the Company's capital needs and investment opportunities, and other factors. The Company expects to complete the vast majority of the Repurchase Program by the end of 2026, but it may be suspended or discontinued at any time, and does not obligate the Company to acquire any amount of Class A common stock.
Conference Call Information
MediaAlpha will host a Q&A conference call today to discuss the Company's fourth quarter and full year 2025 results and its financial outlook for the first quarter of 2026 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 9621964. 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 investor supplemental materials on its investor relations website. These materials will replace the Company's quarterly letter to shareholders going forward. 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 AI adoption will provide expanded opportunities for our business, the expected amounts and timing of share repurchases under our Share Repurchase Program, and our financial outlook for the first quarter of 2026. 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 as of and for the year ended December 31, 2025 to be filed on February 23, 2026. 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 1,150 active partners, in addition to our agent partners, we connect insurance carriers with online shoppers and generated over 141 million Consumer Referrals in 2025. Our programmatic advertising technology powered $2.2 billion in spend in 2025 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: InvestorsDenise GarciaHayflower Partners[email protected]
MediaAlpha, Inc. and subsidiariesConsolidated Balance Sheets(In thousands, except share data and per share amounts)
As of December 31,
2025(unaudited)
2024
Assets
Current assets
Cash and cash equivalents
$
46,876
$
43,266
Accounts receivable, net of allowance for credit losses of $717 and $1,005, respectively
123,019
142,932
Prepaid expenses and other current assets
4,477
3,711
Total current assets
$
174,372
$
189,909
Intangible assets, net
3,590
19,985
Goodwill
47,739
47,739
Deferred tax assets
149,734
—
Other assets
8,396
4,814
Total assets
$
383,831
$
262,447
Liabilities and stockholders' deficit
Current liabilities
Accounts payable
91,094
105,563
Accrued expenses
34,746
18,542
Current portion of long-term debt
21,807
8,849
Total current liabilities
$
147,647
$
132,954
Long-term debt, net of current portion
131,602
153,596
Liabilities under tax receivables agreement, net of current portion
124,212
7,006
Other long-term liabilities
9,564
15,123
Total liabilities
$
413,025
$
308,679
Commitments and contingencies
Stockholders' deficit
Class A common stock, $0.01 par value - 1.0 billion shares authorized; 56.2 million and 55.5 million shares issued and outstanding as of December 31, 2025 and December 31, 2024, respectively
562
555
Class B common stock, $0.01 par value - 100 million shares authorized; 8.3 million and 11.6 million shares issued and outstanding as of December 31, 2025 and December 31, 2024, respectively
83
116
Preferred stock, $0.01 par value - 50 million shares authorized; 0 shares issued and outstanding as of December 31, 2025 and December 31, 2024
—
—
Additional paid-in capital
483,825
507,640
Accumulated deficit
(480,310
)
(505,933
)
Total stockholders' equity attributable to MediaAlpha, Inc.
$
4,160
$
2,378
Non-controlling interests
(33,354
)
(48,610
)
Total stockholders' deficit
$
(29,194
)
$
(46,232
)
Total liabilities and stockholders' deficit
$
383,831
$
262,447
MediaAlpha, Inc. and subsidiariesConsolidated Statements of Operations(In thousands, except share data and per share amounts)
Year ended December 31,
2025(unaudited)
2024
Revenue
$
1,113,600
$
864,704
Costs and operating expenses
Cost of revenue
946,057
721,131
Sales and marketing
21,055
24,725
Product development
21,396
19,764
General and administrative
89,556
56,359
Write-off of intangible assets
13,416
—
Total costs and operating expenses
1,091,480
821,979
Income from operations
22,120
42,725
Other expense, net
121,938
4,872
Interest expense
11,243
14,351
Total other expense, net
133,181
19,223
(Loss) income before income taxes
(111,061
)
23,502
Income tax (benefit) expense
(137,822
)
1,384
Net income
$
26,761
$
22,118
Net income attributable to non-controlling interests
1,138
5,489
Net income attributable to MediaAlpha, Inc.
$
25,623
$
16,629
Net income attributable to MediaAlpha, Inc. per share of Class A common stock
-Basic
