MediaAlpha (NYSE:MAX) Announces Earnings Results, Beats Expectations By $0.44 EPS

MediaAlpha (NYSE:MAX) posted its earnings results on Wednesday. The company reported $0.65 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.21 by $0.44, FiscalAI reports. The firm had revenue of $316.88 million for the quarter, compared to analyst estimates of $300.87 million. MediaAlpha had a negative return on equity of 147.82% and a net margin of 3.37%.

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

• Record second-quarter results: Revenue rose 26% year over year to $317 million, while Adjusted EBITDA increased 19% to $29.3 million, exceeding or reaching the high end of guidance. Core business revenue and EBITDA, excluding Under 65 Health, each grew more than 30%.
• Carrier demand is broadening: The third-, fourth-, and fifth-largest carriers nearly quadrupled spending with MediaAlpha in the first half of 2026, supporting management’s expectation for continued growth through 2026 and into 2027 as insurers expand direct-to-consumer advertising.
• AI could expand the opportunity: Management said predictive AI is improving carrier returns and publisher yield, while AI-powered search is producing more detailed, higher-intent insurance shoppers. However, LLM-driven traffic remains relatively small, despite reportedly scaling toward the level of Google organic search for some partners.
• Shareholder returns remain a priority: The company repurchased approximately 2.2 million shares for $20 million in the second quarter and expects to complete the vast majority of the remaining $45 million authorization by year-end. It also repurchased $69 million of tax receivable agreement obligations for $31 million, generating a $38 million gain and an expected mid-teens unlevered IRR.
• Health remains a drag: Under 65 Health is expected to contribute only about 1% of total revenue in the third quarter and reduce year-over-year contribution by approximately $1 million, although management expects easier comparisons beginning in the fourth quarter of 2026 and first quarter of 2027.

MediaAlpha Stock Performance

MediaAlpha stock traded up $0.06 during trading on Wednesday, hitting $13.85. The company’s stock had a trading volume of 1,266,402 shares, compared to its average volume of 778,728. The stock’s fifty day moving average is $11.26 and its 200 day moving average is $10.15. MediaAlpha has a 1-year low of $7.09 and a 1-year high of $14.70. The stock has a market capitalization of $863.24 million, a price-to-earnings ratio of 21.63 and a beta of 1.08.

Key MediaAlpha News

Here are the key news stories impacting MediaAlpha this week:

• Positive Sentiment: MediaAlpha reported second-quarter EPS of $0.65, far above the $0.21 analyst consensus, while revenue reached a record $316.9 million, exceeding expectations of $300.9 million. Revenue increased 26% year over year, net income was $41.8 million, and adjusted EBITDA totaled $29.3 million. MediaAlpha Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Third-quarter revenue guidance of $330 million to $355 million brackets and exceeds the $332.4 million consensus at its midpoint, suggesting continued demand across the company’s insurance marketplace. EPS guidance was not provided in the supplied update.
• Positive Sentiment: The company repurchased more than $41 million of stock during the first half of 2026, potentially supporting per-share value and signaling management’s confidence in the business.
• Neutral Sentiment: Analyst views remain mixed but generally constructive. MediaAlpha carries a “Moderate Buy” consensus rating, although the previously reported average price target of $12.64 was below the recent trading range.
• Negative Sentiment: Director Eugene Nonko sold shares in multiple transactions, including 4,952 shares for $68,684 and 9,524 shares for $131,622. However, the sales were conducted under a pre-arranged Rule 10b5-1 plan to cover tax withholding, and his remaining ownership remains substantial, reducing the negative signal.

Insider Transactions at MediaAlpha

In other MediaAlpha news, Director Eugene Nonko sold 4,952 shares of MediaAlpha stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $14.05, for a total value of $69,575.60. Following the completion of the sale, the director owned 860,862 shares in the company, valued at $12,095,111.10. The trade was a 0.57% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, 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. Over the last quarter, insiders sold 440,820 shares of company stock valued at $5,368,786. 14.65% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On MediaAlpha

Several hedge funds have recently modified their holdings of MAX. Invesco Ltd. raised its stake in MediaAlpha by 32.1% during the fourth quarter. Invesco Ltd. now owns 26,024 shares of the company’s stock worth $337,000 after purchasing an additional 6,319 shares during the period. Mercer Global Advisors Inc. ADV increased its holdings in shares of MediaAlpha by 32.1% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 16,960 shares of the company’s stock worth $220,000 after buying an additional 4,120 shares during the last quarter. State of Tennessee Department of Treasury acquired a new position in MediaAlpha in the fourth quarter valued at $167,000. Mackenzie Financial Corp grew its position in MediaAlpha by 184.3% during the fourth quarter. Mackenzie Financial Corp now owns 42,975 shares of the company’s stock valued at $559,000 after acquiring an additional 27,858 shares during the period. Finally, XTX Topco Ltd grew its position in MediaAlpha by 212.0% during the fourth quarter. XTX Topco Ltd now owns 90,702 shares of the company’s stock valued at $1,175,000 after acquiring an additional 61,628 shares during the period. 64.39% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

MAX has been the subject of a number of analyst reports. Wall Street Zen raised MediaAlpha from a “hold” rating to a “buy” rating in a report on Sunday, July 12th. Weiss Ratings upgraded MediaAlpha from a “hold (c-)” rating to a “hold (c)” rating in a research report on Wednesday, July 1st. TD Cowen cut their target price on shares of MediaAlpha from $13.00 to $11.00 and set a “hold” rating for the company in a research note on Tuesday, June 23rd. Capital One Financial set a $11.00 target price on shares of MediaAlpha in a report on Tuesday, June 9th. Finally, Texas Capital upgraded shares of MediaAlpha to a “strong-buy” rating in a report on Tuesday, June 9th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $12.64.

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.