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

Key Points

• MediaAlpha reported strong second-quarter results: EPS was $0.65 versus the $0.21 consensus, while revenue rose 26% year over year to a record $316.9 million and adjusted EBITDA reached $29.3 million.
• Growth momentum remains positive: Broadening carrier demand and AI improvements are supporting the insurance marketplace, while third-quarter revenue guidance of $330 million to $355 million is generally above analyst expectations.
• Capital returns are significant, but health is still a headwind: MediaAlpha repurchased roughly $41 million of stock in the first half of 2026, although its Under 65 Health business is expected to contribute only about 1% of third-quarter revenue.

MediaAlpha (NYSE:MAX - Get Free Report) released its quarterly earnings results on Wednesday. The company reported $0.65 EPS for the quarter, beating the consensus estimate of $0.21 by $0.44, FiscalAI reports. The firm had revenue of $316.88 million during the quarter, compared to the consensus estimate of $300.87 million. MediaAlpha had a net margin of 3.37% and a negative return on equity of 147.82%.

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 Trading Up 0.4%

Shares of MAX traded up $0.06 during mid-day 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. MediaAlpha has a 1-year low of $7.09 and a 1-year high of $14.70. The firm has a market capitalization of $863.24 million, a P/E ratio of 21.63 and a beta of 1.08. The firm has a 50-day simple moving average of $11.26 and a 200 day simple moving average of $10.15.

Analyst Ratings Changes

A number of research analysts have commented on MAX shares. TD Cowen dropped their price objective on shares of MediaAlpha from $13.00 to $11.00 and set a "hold" rating on the stock in a research note on Tuesday, June 23rd. Keefe, Bruyette & Woods lifted their price objective on shares of MediaAlpha from $15.00 to $17.00 and gave the company an "outperform" rating in a research report on Wednesday, July 8th. Weiss Ratings raised shares of MediaAlpha from a "hold (c-)" rating to a "hold (c)" rating in a research note on Wednesday, July 1st. Zacks Research downgraded shares of MediaAlpha from a "hold" rating to a "strong sell" rating in a research report on Tuesday, May 19th. Finally, Wall Street Zen upgraded shares of MediaAlpha from a "hold" rating to a "buy" rating in a research note on Sunday, July 12th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, MediaAlpha has a consensus rating of "Moderate Buy" and an average target price of $12.64.

Insider Buying and Selling

In other MediaAlpha news, insider Steven Yi sold 96,000 shares of the business's stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $12.90, for a total transaction of $1,238,400.00. Following the sale, the insider directly owned 2,759,690 shares in the company, valued at approximately $35,600,001. The trade was a 3.36% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 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. Also, CRO Keith Cramer sold 13,000 shares of the company's stock in a transaction on Monday, June 15th. The stock was sold at an average price of $9.47, for a total transaction of $123,110.00. Following the transaction, the executive directly owned 280,528 shares in the company, valued at approximately $2,656,600.16. This trade represents a 4.43% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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. Insiders have sold 440,820 shares of company stock valued at $5,368,786 over the last quarter. Company insiders own 14.65% of the company's stock.

Institutional Trading of MediaAlpha

A number of institutional investors have recently added to or reduced their stakes in MAX. Millennium Management LLC increased its holdings in MediaAlpha by 680.9% in the third quarter. Millennium Management LLC now owns 1,429,556 shares of the company's stock valued at $16,268,000 after buying an additional 1,246,493 shares in the last quarter. Victory Capital Management Inc. boosted its stake in shares of MediaAlpha by 1,261.9% during the 3rd quarter. Victory Capital Management Inc. now owns 710,819 shares of the company's stock worth $8,089,000 after acquiring an additional 658,625 shares in the last quarter. Lazard Asset Management LLC acquired a new stake in shares of MediaAlpha in the 2nd quarter worth approximately $4,268,000. Lighthouse Investment Partners LLC raised its stake in shares of MediaAlpha by 831.7% during the 3rd quarter. Lighthouse Investment Partners LLC now owns 353,930 shares of the company's stock worth $4,028,000 after buying an additional 315,943 shares during the last quarter. Finally, JPMorgan Chase & Co. raised its stake in shares of MediaAlpha by 29.2% during the 4th quarter. JPMorgan Chase & Co. now owns 1,367,896 shares of the company's stock worth $17,714,000 after buying an additional 309,455 shares during the last quarter. Hedge funds and other institutional investors own 64.39% of the company's stock.

MediaAlpha News Summary

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.

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.

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