MediaAlpha (NYSE:MAX) Issues Quarterly Earnings Results

MediaAlpha (NYSE:MAX) released its quarterly earnings results on Wednesday. The company reported $0.21 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.25 by ($0.04), FiscalAI reports. MediaAlpha had a negative return on equity of 132.09% and a net margin of 3.37%.The firm had revenue of $310.00 million for the quarter, compared to the consensus estimate of $298.91 million. During the same quarter in the previous year, the business posted ($0.04) EPS. The firm’s revenue for the quarter was up 17.3% compared to the same quarter last year.

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 Trading Up 5.5%

NYSE MAX traded up $0.47 during mid-day trading on Friday, hitting $8.98. The company’s stock had a trading volume of 94,634 shares, compared to its average volume of 771,167. The company’s 50 day simple moving average is $9.58 and its 200 day simple moving average is $10.85. MediaAlpha has a twelve month low of $7.09 and a twelve month high of $13.92. The firm has a market capitalization of $579.27 million, a price-to-earnings ratio of 13.98 and a beta of 1.39.

More MediaAlpha News

Here are the key news stories impacting MediaAlpha this week:

• Positive Sentiment: Record top‑line and cash metrics: MediaAlpha reported record Q1 revenue of $310.0M (+17% YoY) and adjusted EBITDA of $31.4M; management cited strong auto insurance demand and a favorable mix shift. Read More.
• Positive Sentiment: Analyst support — JPMorgan raised its price target to $12 and kept an overweight rating, signaling upside versus current levels and providing buy‑side validation. Read More.
• Positive Sentiment: Capital return & FCF outlook: Management repurchased >$25M of stock YTD and forecasted materially higher free cash flow ($90M–$100M for 2026), which supports valuation and EPS upside from buybacks. Read More.
• Neutral Sentiment: Q2 revenue guidance provided as a range ($290M–$310M) roughly in line with consensus, but management did not give clear EPS guidance for Q2, leaving near‑term profit expectations ambiguous. Read More.
• Neutral Sentiment: Earnings call materials and slides are available for deeper color on mix, pricing and marketplace cadence — useful for assessing sustainability of the revenue/margin beat. Read More.
• Neutral Sentiment: Insider activity disclosed — CEO Steven Yi and director Eugene Nonko executed multiple sales under pre‑arranged Rule 10b5‑1 plans to cover tax withholding from vested awards; planned sales increase near‑term free float but are not unexpected. Read More.
• Negative Sentiment: EPS miss — reported Q1 EPS of $0.21 missed consensus $0.25, an immediate disappointment that offsets the revenue beat and can pressure short‑term sentiment. Read More.
• Negative Sentiment: Regulatory/litigation overhang — a shareholder‑rights firm has announced an investigation tied to recent FTC litigation, adding uncertainty and potential legal costs or distraction if the matter escalates. Read More.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on MAX shares. Royal Bank Of Canada lowered their price objective on shares of MediaAlpha from $18.00 to $11.00 and set an “outperform” rating for the company in a research note on Tuesday, February 24th. Wall Street Zen upgraded shares of MediaAlpha from a “buy” rating to a “strong-buy” rating in a research note on Saturday, April 11th. JPMorgan Chase & Co. lifted their price objective on shares of MediaAlpha from $11.00 to $12.00 and gave the company an “overweight” rating in a research note on Thursday. Weiss Ratings upgraded shares of MediaAlpha from a “sell (d)” rating to a “hold (c-)” rating in a research note on Wednesday, February 25th. Finally, The Goldman Sachs Group lowered their price objective on shares of MediaAlpha from $13.50 to $11.50 and set a “neutral” rating for the company in a research note on Tuesday, February 24th. Four equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $12.90.

Insiders Place Their Bets

In other MediaAlpha news, Director Eugene Nonko sold 59,202 shares of MediaAlpha stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $10.01, for a total transaction of $592,612.02. Following the transaction, the director directly owned 1,395,320 shares of the company’s stock, valued at $13,967,153.20. The trade was a 4.07% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Steven Yi sold 39,252 shares of MediaAlpha stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $9.99, for a total transaction of $392,127.48. Following the transaction, the insider directly owned 2,649,624 shares in the company, valued at $26,469,743.76. This represents a 1.46% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 711,997 shares of company stock worth $6,982,907 over the last ninety days. Insiders own 14.65% of the company’s stock.

Institutional Investors Weigh In On MediaAlpha

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Caitong International Asset Management Co. Ltd increased its position in shares of MediaAlpha by 5,900.0% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 2,160 shares of the company’s stock valued at $28,000 after buying an additional 2,124 shares during the period. Quarry LP increased its position in shares of MediaAlpha by 43.3% during the third quarter. Quarry LP now owns 4,087 shares of the company’s stock valued at $47,000 after buying an additional 1,234 shares during the period. Tower Research Capital LLC TRC increased its position in shares of MediaAlpha by 28.0% during the second quarter. Tower Research Capital LLC TRC now owns 5,551 shares of the company’s stock valued at $61,000 after buying an additional 1,213 shares during the period. Raymond James Financial Inc. bought a new stake in shares of MediaAlpha during the second quarter valued at about $62,000. Finally, Invesco Ltd. bought a new stake in shares of MediaAlpha during the second quarter valued at about $117,000. 64.39% of the stock is currently owned by institutional investors.

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.