MediaAlpha, Inc. SEC 10-Q Report

MediaAlpha, Inc., a leading technology company in the insurance marketing industry, has released its Form 10-Q report for the second quarter of 2025. The report highlights significant revenue growth driven by increased customer acquisition spending by Property & Casualty (P&C) insurance carrier partners, despite facing operational challenges and a notable settlement charge related to an FTC matter.

Financial Highlights

• Revenue: $251.6 million, increased by 41.1% compared to the same period last year, driven primarily by significant increases in customer acquisition spending by P&C carrier partners.
• (Loss) Income from Operations: $(20.0) million, compared to $6.5 million in the prior year, primarily due to a charge of $33.0 million related to the FTC Matter.
• Net (Loss) Income: $(22.5) million, compared to net income of $4.4 million in the prior year, impacted by the FTC settlement charge.
• Net (Loss) Income Per Share of Class A common stock - Basic and Diluted: $(0.33), compared to $0.07 in the prior year, reflecting the net loss incurred during the period.

Business Highlights

• Revenue Segments: The company reported a significant increase in Property & Casualty insurance revenue, driven by increased customer acquisition spending by P&C insurance carrier partners and the addition of new Supply Partners. Health insurance revenue decreased due to actions taken in the under-65 vertical to address FTC concerns and industry-wide headwinds in Medicare. Life insurance revenue declined due to a reduced supply of Consumer Referrals from a Supply Partner ceasing operations.
• Consumer Referrals: The aggregate number of consumer clicks, calls, and leads purchased by insurance buyers on the platform increased to 34.0 million for the three months ended June 30, 2025, from 26.2 million in the same period in 2024. This increase was driven by a higher supply of Consumer Referrals and increased customer acquisition spending.
• Cyclicality and Seasonality: The P&C insurance industry experienced a recovery in customer acquisition spending as profitability improved, leading to increased marketing investments. The company anticipates continued strong near-term momentum despite potential pressures from automotive tariffs. The health insurance vertical is typically stronger in the fourth quarter due to open enrollment periods.
• Future Outlook: The company expects compliance procedures implemented due to the FTC Matter settlement to reduce full-year 2025 revenue from the under-65 health vertical by approximately $70 million. Despite this, the company remains focused on Medicare Advantage as a significant growth opportunity.
• Operational Strategy: The company continues to focus on optimizing customer acquisition spend for insurance carriers and distributors, leveraging its technology platform to provide high-quality Consumer Referrals. The company aims to maintain strong retention rates by offering versatile and high-quality products to its partners.

SEC Filing: MediaAlpha, Inc. [ MAX ] - 10-Q - Aug. 06, 2025