MediaAlpha (NYSE:MAX) Issues Earnings Results, Beats Estimates By $0.44 EPS

MediaAlpha (NYSE:MAX) issued its earnings results on Wednesday. The company reported $0.65 earnings per share for the quarter, beating analysts’ consensus estimates of $0.21 by $0.44, FiscalAI reports. MediaAlpha had a negative return on equity of 235.09% and a net margin of 7.94%.The firm had revenue of $316.88 million for the quarter, compared to analysts’ expectations of $300.87 million.

Here are the key takeaways from MediaAlpha’s conference call:

• Record second-quarter results: Revenue rose 26% year over year to $317 million, while Adjusted EBITDA increased 19% to $29.3 million, exceeding or reaching the high end of guidance. Core business revenue and EBITDA, excluding Under 65 Health, each grew more than 30%.
• Carrier demand is broadening: The third-, fourth-, and fifth-largest carriers nearly quadrupled spending with MediaAlpha in the first half of 2026, supporting management’s expectation for continued growth through 2026 and into 2027 as insurers expand direct-to-consumer advertising.
• AI could expand the opportunity: Management said predictive AI is improving carrier returns and publisher yield, while AI-powered search is producing more detailed, higher-intent insurance shoppers. However, LLM-driven traffic remains relatively small, despite reportedly scaling toward the level of Google organic search for some partners.
• Shareholder returns remain a priority: The company repurchased approximately 2.2 million shares for $20 million in the second quarter and expects to complete the vast majority of the remaining $45 million authorization by year-end. It also repurchased $69 million of tax receivable agreement obligations for $31 million, generating a $38 million gain and an expected mid-teens unlevered IRR.
• Health remains a drag: Under 65 Health is expected to contribute only about 1% of total revenue in the third quarter and reduce year-over-year contribution by approximately $1 million, although management expects easier comparisons beginning in the fourth quarter of 2026 and first quarter of 2027.

MediaAlpha Trading Down 8.3%

NYSE:MAX traded down $1.13 during mid-day trading on Friday, hitting $12.41. The company had a trading volume of 962,943 shares, compared to its average volume of 785,557. The business has a fifty day simple moving average of $11.47 and a 200-day simple moving average of $10.18. MediaAlpha has a 1 year low of $7.09 and a 1 year high of $14.70. The firm has a market capitalization of $773.89 million, a price-to-earnings ratio of 7.68 and a beta of 1.08.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the company. Zacks Research downgraded MediaAlpha from a “hold” rating to a “strong sell” rating in a report on Tuesday, May 19th. Canaccord Genuity Group boosted their target price on MediaAlpha from $15.00 to $17.00 and gave the stock a “buy” rating in a report on Thursday. The Goldman Sachs Group increased their target price on shares of MediaAlpha from $10.00 to $14.00 and gave the stock a “neutral” rating in a research report on Thursday. Keefe, Bruyette & Woods raised their price target on shares of MediaAlpha from $15.00 to $17.00 and gave the company an “outperform” rating in a report on Wednesday, July 8th. Finally, Weiss Ratings raised shares of MediaAlpha from a “hold (c-)” rating to a “hold (c)” rating in a research report on Wednesday, July 1st. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $13.29.

Insiders Place Their Bets

In related news, insider Steven Yi sold 96,000 shares of the firm’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $12.90, for a total transaction of $1,238,400.00. Following the sale, the insider directly owned 2,759,690 shares in the company, valued at approximately $35,600,001. This trade represents a 3.36% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CRO Keith Cramer sold 13,000 shares of the firm’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $9.47, for a total value of $123,110.00. Following the sale, the executive owned 280,528 shares in the company, valued at approximately $2,656,600.16. The trade was a 4.43% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 440,820 shares of company stock worth $5,368,786 over the last quarter. 14.65% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On MediaAlpha

A number of institutional investors and hedge funds have recently bought and sold shares of MAX. Millennium Management LLC raised its stake in shares of MediaAlpha by 680.9% during the third quarter. Millennium Management LLC now owns 1,429,556 shares of the company’s stock valued at $16,268,000 after purchasing an additional 1,246,493 shares during the period. Victory Capital Management Inc. boosted its stake in shares of MediaAlpha by 1,261.9% in the third quarter. Victory Capital Management Inc. now owns 710,819 shares of the company’s stock valued at $8,089,000 after purchasing an additional 658,625 shares during the period. Lazard Asset Management LLC purchased a new position in shares of MediaAlpha in the second quarter valued at $4,268,000. Lighthouse Investment Partners LLC grew its holdings in MediaAlpha by 831.7% during the 3rd quarter. Lighthouse Investment Partners LLC now owns 353,930 shares of the company’s stock valued at $4,028,000 after purchasing an additional 315,943 shares in the last quarter. Finally, JPMorgan Chase & Co. grew its holdings in MediaAlpha by 29.2% during the 4th quarter. JPMorgan Chase & Co. now owns 1,367,896 shares of the company’s stock valued at $17,714,000 after purchasing an additional 309,455 shares in the last quarter. Hedge funds and other institutional investors own 64.39% of the company’s stock.

About MediaAlpha

MediaAlpha, Inc is a technology company that operates a real-time digital marketplace for the distribution of insurance and adjacent services. The company’s platform connects buyers—consumers seeking insurance policies—to sellers, including insurance carriers and distribution partners, through programmatic bidding and data-driven pricing. By leveraging transaction-level data and proprietary auction mechanics, MediaAlpha enables carriers to acquire customers more efficiently and at scale.

The firm offers a suite of products that help clients optimize marketing spend and improve conversion rates.