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Jun 30, 2025
MediaAlpha Q2 2025 Earnings Report
MediaAlpha announced its second quarter 2025 financial results, reporting significant revenue and transaction value growth, particularly in the Property & Casualty insurance vertical, despite a net loss.
Key Takeaways
MediaAlpha delivered record second quarter results, with revenue increasing by 41% year-over-year to $251.6 million and total transaction value growing by 49% to $480.8 million. This growth was primarily driven by a 71% increase in transaction value within the Property & Casualty insurance vertical. However, the company reported a net loss of $(22.5) million, largely due to an additional $33.0 million reserve related to an FTC settlement.
Revenue for Q2 2025 increased by 41% year-over-year to $251.6 million.
Total Transaction Value grew by 49% year-over-year to $480.8 million, with Property & Casualty insurance transaction value surging by 71% to $435 million.
The company reported a net loss of $(22.5) million, primarily impacted by a $33.0 million reserve for an FTC settlement.
Adjusted EBITDA increased to $24.5 million, up from $18.7 million in the second quarter of 2024.
Forward Guidance
For the third quarter of 2025, MediaAlpha expects Transaction Value to be between $545 million and $570 million, revenue between $270 million and $290 million, and Adjusted EBITDA between $25.5 million and $27.5 million. The guidance reflects strengthening trends in P&C insurance but a decline in Health insurance.
Positive Outlook
- Expected 23% year-over-year increase in total Transaction Value at the midpoint for Q3 2025.
- Anticipated 35% year-over-year growth in Property & Casualty insurance vertical Transaction Value for Q3 2025.
- Strong carrier growth investment and profitability are expected to drive P&C growth.
- Continued market share gains are projected in the P&C insurance vertical.
- Adjusted EBITDA is expected to increase year-over-year in Q3 2025, despite some margin pressures.
Challenges Ahead
- Health insurance vertical Transaction Value is expected to decline by 40% to 45% year-over-year in Q3 2025.
- Under-65 health Transaction Value is projected to decline by approximately $21 million (54%) year-over-year in Q3.
Historical Earnings Impact
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