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MediaAlpha Q1 2025 Earnings Report
MediaAlpha exceeded first quarter guidance with significant revenue and transaction value growth, driven by strong performance in the Property & Casualty insurance vertical.
Key Takeaways
MediaAlpha reported a strong first quarter in 2025, surpassing expectations with a 109% year-over-year increase in revenue to $264.3 million and a 116% increase in Transaction Value to $473.1 million. The Property & Casualty insurance vertical was a key driver, with its Transaction Value growing 200% year over year to $407 million. Despite a net loss of $(2.3) million, Adjusted EBITDA reached $29.4 million, demonstrating strong operational performance.
Revenue increased by 109% year-over-year to $264.3 million, exceeding first quarter guidance.
Transaction Value grew by 116% year-over-year to $473.1 million, with the Property & Casualty vertical contributing $407 million.
Adjusted EBITDA reached $29.4 million, compared to $14.4 million in the prior year, indicating improved profitability.
The company reported a net loss of $(2.3) million for the quarter, a slight increase from $(1.5) million in the same period last year.
Forward Guidance
For the second quarter of 2025, MediaAlpha anticipates continued growth in its P&C insurance vertical, with overall Transaction Value projected to increase by 50% year-over-year at the midpoint of guidance. Revenue is expected to grow by 37% year-over-year, and Adjusted EBITDA by 39% year-over-year at the midpoint of guidance.
Positive Outlook
- P&C insurance Transaction Value expected to grow 65%-75% year-over-year in Q2 2025, driven by strong carrier profitability and high platform engagement.
- Total Transaction Value projected between $470 million - $495 million for Q2 2025, representing a 50% year-over-year increase at the midpoint.
- Revenue projected between $235 million - $255 million for Q2 2025, representing a 37% year-over-year increase at the midpoint.
- Adjusted EBITDA projected between $25.0 million and $27.0 million for Q2 2025, representing a 39% year-over-year increase at the midpoint.
- Contribution less Adjusted EBITDA is projected to be approximately $0.5 - $1.0 million higher than in Q1 2025.
Challenges Ahead
- Automotive tariff developments could introduce upward pressure on claims costs later in the year.
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