MediaAlpha (NYSE:MAX) Announces Quarterly Earnings Results

MediaAlpha (NYSE:MAX) issued its quarterly earnings results on Wednesday. The company reported $0.46 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.28 by $0.18, FiscalAI reports. The business had revenue of $375.95 million for the quarter, compared to the consensus estimate of $347.93 million. MediaAlpha had a net margin of 8.35% and a negative return on equity of 512.69%.

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

• Record third-quarter performance: Revenue rose 23% year over year to $376 million, contribution increased 26% to $57 million, and adjusted EBITDA grew 36% to $39 million, exceeding the high end of guidance. Management cited broader carrier participation, stronger open-marketplace mix, and operating leverage.
• Strong growth across insurance categories: Auto insurance revenue increased 17%, while home and renters revenue reached a record $66 million, up 116% year over year. Agent revenue also grew approximately 46% to $21 million, with active agents increasing to more than 3,000.
• Favorable outlook and guidance: MediaAlpha expects fourth-quarter revenue of $355 million to $375 million and adjusted EBITDA of $36 million to $39 million; it reiterated full-year 2026 free cash flow guidance of $90 million to $100 million. Management believes carrier competition, digital-advertising underpenetration, and the shift toward direct distribution can support durable double-digit growth into 2027 and beyond.
• Capital deployment remains aggressive: The company repurchased approximately 800,000 shares for $9 million during the quarter and an additional 1.8 million shares for $18 million after quarter-end. It also repurchased $23 million of tax receivable agreement liability for $12 million, recording an $11 million gain, and has used $82 million of its $100 million buyback authorization.
• AI is viewed as a potential channel expansion rather than an immediate threat: Management has not yet seen meaningful personal-AI-agent-driven shopping, but expects AI to influence the upper funnel while carriers retain control of quoting and binding. Executives believe AI could ultimately benefit MediaAlpha by creating new advertising inventory and making complex insurance products more accessible through direct digital channels.

MediaAlpha Stock Performance

Shares of NYSE MAX traded up $0.30 during trading on Friday, hitting $14.43. 1,080,961 shares of the company traded hands, compared to its average volume of 802,263. The firm has a market capitalization of $883.98 million, a price-to-earnings ratio of 7.94 and a beta of 1.14. The business’s fifty day moving average is $11.24 and its 200 day moving average is $10.64. MediaAlpha has a fifty-two week low of $7.09 and a fifty-two week high of $14.87.

Insider Activity

In related news, CRO Keith Cramer sold 13,000 shares of the stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $12.76, for a total transaction of $165,880.00. Following the completion of the transaction, the executive owned 264,303 shares in the company, valued at approximately $3,372,506.28. This represents a 4.69% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, 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, Director Eugene Nonko sold 8,283 shares of the company’s stock in a transaction dated Tuesday, October 27th. The shares were sold at an average price of $11.85, for a total transaction of $98,153.55. Following the sale, the director directly owned 797,174 shares in the company, valued at approximately $9,446,511.90. This trade represents a 1.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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 sold 425,550 shares of company stock valued at $5,148,791 over the last ninety days. Company insiders own 14.65% of the company’s stock.

Wall Street Analysts Forecast Growth

MAX has been the subject of several recent analyst reports. Keefe, Bruyette & Woods upped their target price on shares of MediaAlpha from $15.00 to $17.00 and gave the company an “outperform” rating in a research note on Wednesday, July 8th. Royal Bank Of Canada increased their target price on shares of MediaAlpha from $15.00 to $17.00 and gave the stock an “outperform” rating in a report on Thursday. Canaccord Genuity Group upped their price objective on MediaAlpha from $17.00 to $18.00 and gave the stock a “buy” rating in a research note on Thursday. The Goldman Sachs Group upped their price objective on MediaAlpha from $10.50 to $13.00 and gave the company a “neutral” rating in a research note on Thursday. Finally, Zacks Research downgraded MediaAlpha from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, October 21st. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $14.71.

About MediaAlpha

MediaAlpha, Inc operates a technology platform that helps insurance carriers and distributors acquire customers through digital channels. Its marketplace connects consumers who are shopping for insurance with providers seeking qualified prospects, using data, analytics and automated systems to facilitate the matching process.

The company’s platform supports customer acquisition across insurance categories, including property and casualty products such as auto and home insurance, as well as health, life and Medicare-related coverage.