MediaAlpha (NYSE:MAX) Releases Quarterly Earnings Results, Beats Estimates By $0.44 EPS

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

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 Up 0.4%

NYSE MAX traded up $0.06 during trading hours on Wednesday, hitting $13.85. 1,266,402 shares of the stock were exchanged, compared to its average volume of 778,728. The company has a market cap of $863.24 million, a price-to-earnings ratio of 21.63 and a beta of 1.08. MediaAlpha has a 12-month low of $7.09 and a 12-month high of $14.70. The stock has a 50-day moving average of $11.26 and a 200 day moving average of $10.15.

More 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.

Insiders Place Their Bets

In other MediaAlpha news, Director Eugene Nonko sold 4,952 shares of the business’s stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $14.05, for a total transaction of $69,575.60. Following the transaction, the director owned 860,862 shares in the company, valued at approximately $12,095,111.10. The trade was a 0.57% decrease in their position. The transaction was disclosed in a document filed with the SEC, 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. Over the last 90 days, insiders sold 440,820 shares of company stock valued at $5,368,786. 14.65% of the stock is currently owned by insiders.

Institutional Trading of MediaAlpha

Hedge funds have recently modified their holdings of the business. Hsbc Holdings PLC boosted its position in shares of MediaAlpha by 2.3% in the 2nd quarter. Hsbc Holdings PLC now owns 51,550 shares of the company’s stock worth $561,000 after buying an additional 1,144 shares in the last quarter. Tower Research Capital LLC TRC increased its holdings in MediaAlpha by 28.0% during the 2nd quarter. Tower Research Capital LLC TRC now owns 5,551 shares of the company’s stock valued at $61,000 after acquiring an additional 1,213 shares in the last quarter. Quarry LP raised its position in MediaAlpha by 43.3% during the third quarter. Quarry LP now owns 4,087 shares of the company’s stock worth $47,000 after acquiring an additional 1,234 shares during the last quarter. The Manufacturers Life Insurance Company raised its position in MediaAlpha by 13.4% during the second quarter. The Manufacturers Life Insurance Company now owns 12,757 shares of the company’s stock worth $140,000 after acquiring an additional 1,510 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd lifted its holdings in shares of MediaAlpha by 5,900.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 2,160 shares of the company’s stock valued at $28,000 after purchasing an additional 2,124 shares in the last quarter. 64.39% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the company. Keefe, Bruyette & Woods raised their price target on MediaAlpha from $15.00 to $17.00 and gave the stock an “outperform” rating in a research note on Wednesday, July 8th. Capital One Financial set a $11.00 target price on shares of MediaAlpha in a report on Tuesday, June 9th. TD Cowen decreased 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. Wall Street Zen raised MediaAlpha from a “hold” rating to a “buy” rating in a research report on Sunday, July 12th. Finally, Weiss Ratings upgraded MediaAlpha from a “hold (c-)” rating to a “hold (c)” rating in a research note on Wednesday, July 1st. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $12.64.

MediaAlpha Company Profile

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.