MediaAlpha (NYSE:MAX) Releases Quarterly Earnings Results, Misses Expectations By $0.04 EPS

MediaAlpha (NYSE:MAX) posted its earnings results on Wednesday. The company reported $0.21 EPS for the quarter, missing the consensus estimate of $0.25 by ($0.04), FiscalAI reports. MediaAlpha had a negative return on equity of 132.73% and a net margin of 2.30%.The company had revenue of $310.00 million during the quarter, compared to analysts’ expectations of $298.91 million.

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

• Q1 results beat guidance with $310M revenue (above the high end) and $31.4M Adjusted EBITDA (+7% YoY), driven by a favorable mix shift to the higher‑margin open marketplace as more carriers increased spend.
• The company will stop reporting Transaction Value and will guide to Contribution going forward; Q2 guidance: revenue $290M–$310M, contribution $45.5M–$48.5M, and Adjusted EBITDA $28M–$30.5M.
• Management returned over $25M via share repurchases (≈2.6M shares, ~4% of the company) and plans to buy the majority of the remaining $60M authorization in 2026, while reiterating full‑year free cash flow of $90M–$100M.
• Refinanced credit facilities with a new $150M senior secured term loan and a $60M revolver maturing in March 2031; quarter‑end liquidity was $26.1M cash and $45M undrawn on the revolver, with minimal change to interest economics.
• Under‑65 health continues to shrink by design and Q1 cash flow was hit by a one‑time $11.5M FTC payment plus annual bonuses and tax payments; management also cautions P&C growth will moderate in H2 as it laps strong prior‑year comparisons.

MediaAlpha Stock Down 0.1%

Shares of NYSE MAX traded down $0.01 during trading on Wednesday, reaching $10.00. 668,947 shares of the company traded hands, compared to its average volume of 754,992. The firm has a 50 day simple moving average of $9.51 and a 200-day simple moving average of $10.87. The stock has a market capitalization of $645.09 million, a PE ratio of 25.65 and a beta of 1.39. MediaAlpha has a 52-week low of $7.09 and a 52-week high of $13.92.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on the company. Wall Street Zen upgraded MediaAlpha from a “buy” rating to a “strong-buy” rating in a research note on Saturday, April 11th. Royal Bank Of Canada reduced their price target on MediaAlpha from $18.00 to $11.00 and set an “outperform” rating on the stock in a research note on Tuesday, February 24th. Keefe, Bruyette & Woods decreased their price objective on MediaAlpha from $16.00 to $15.00 and set an “outperform” rating for the company in a report on Tuesday, April 7th. JPMorgan Chase & Co. lowered their price objective on MediaAlpha from $15.00 to $11.00 and set an “overweight” rating for the company in a research report on Tuesday, February 24th. Finally, Weiss Ratings upgraded shares of MediaAlpha from a “sell (d)” rating to a “hold (c-)” rating in a report on Wednesday, February 25th. Four investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat, MediaAlpha has a consensus rating of “Moderate Buy” and a consensus price target of $12.70.

Insider Activity

In other news, Director Eugene Nonko sold 15,172 shares of the firm’s stock in a transaction dated Tuesday, April 21st. The shares were sold at an average price of $10.09, for a total transaction of $153,085.48. Following the sale, the director owned 1,015,356 shares of the company’s stock, valued at $10,244,942.04. This trade represents a 1.47% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available 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 10,000 shares of the firm’s stock in a transaction dated Wednesday, April 15th. The shares were sold at an average price of $9.68, for a total transaction of $96,800.00. Following the sale, the executive directly owned 296,754 shares in the company, valued at approximately $2,872,578.72. The trade was a 3.26% decrease in their position. 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 have sold a total of 529,898 shares of company stock valued at $5,159,509 in the last 90 days. 14.65% of the stock is currently owned by insiders.

Institutional Trading of MediaAlpha

A number of institutional investors have recently made changes to their positions in MAX. Millennium Management LLC lifted its stake in shares of MediaAlpha by 680.9% in the 3rd quarter. Millennium Management LLC now owns 1,429,556 shares of the company’s stock worth $16,268,000 after purchasing an additional 1,246,493 shares during the period. Victory Capital Management Inc. lifted its stake in shares of MediaAlpha by 1,261.9% in the 3rd quarter. Victory Capital Management Inc. now owns 710,819 shares of the company’s stock worth $8,089,000 after purchasing an additional 658,625 shares during the period. Lazard Asset Management LLC bought a new position in shares of MediaAlpha in the 2nd quarter worth approximately $4,268,000. Lighthouse Investment Partners LLC lifted its stake in shares of MediaAlpha by 831.7% in the 3rd quarter. Lighthouse Investment Partners LLC now owns 353,930 shares of the company’s stock worth $4,028,000 after purchasing an additional 315,943 shares during the period. Finally, JPMorgan Chase & Co. lifted its stake in shares of MediaAlpha by 29.2% in the 4th quarter. JPMorgan Chase & Co. now owns 1,367,896 shares of the company’s stock worth $17,714,000 after purchasing an additional 309,455 shares during the period. 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.