MediaAlpha Shares Soar 11.69% on Q2 Revenue Growth

MediaAlpha, Inc. (MAX) shares surged 11.69% in pre-market trading on August 7, 2025, driven by a strong performance in the second quarter of the year.

MediaAlpha reported a 41.1% year-over-year revenue growth to $251.62 million in Q2 2025, primarily driven by a 71% surge in property and casualty (P&C) insurance transactions. This growth was partially offset by a 32% drop in health insurance transactions, which put pressure on profit margins. The company posted a net loss of $22.53 million, mainly due to a $33 million reserve for an FTC settlement and slim gross margins of 15%.

Despite the net loss, MediaAlpha's adjusted EBITDA hit $24.50 million, just under Wall Street’s target. The company's guidance for Q3 includes transaction values up to $570 million and revenue close to $290 million, driven by continued strength in the P&C segment. Analysts remain optimistic, with a median price target sitting over 35% above current levels.

The FTC settlement highlights the regulatory challenges faced by digital insurance marketplaces. As MediaAlpha navigates these hurdles, its strong performance in the P&C segment has caught investors' attention, contributing to the positive market sentiment. However, ongoing losses and regulatory scrutiny could lead to continued volatility in the stock.