Mediaalpha 2025 Q2 Earnings Net Loss Widens Significantly

Mediaalpha (MAX) reported its fiscal 2025 Q2 earnings on Aug 07th, 2025. The results showed a substantial deterioration in profitability despite a strong revenue growth. The earnings failed to meet expectations, as the company swung to a loss from a profit, and the stock price experienced mixed short-term movements post-earnings.

Revenue
Mediaalpha’s total revenue surged by 41.1% to $251.62 million in 2025 Q2, compared to $178.27 million in the same period last year. The Property & casualty insurance segment led the way with $227.16 million in revenue, showcasing robust demand from leading carriers and a growing partner base. The Health insurance segment reported $18.07 million, Life insurance brought in $5.22 million, and the Other segment contributed $1.16 million. The performance highlights the company’s strong position in the property & casualty insurance vertical, while the health and life insurance segments showed more modest contributions.

Earnings/Net Income
Mediaalpha’s earnings swung to a loss of $0.33 per share in 2025 Q2 from a profit of $0.07 per share in 2024 Q2, marking a 571.4% negative change. The company reported a net loss of $-22.53 million, reflecting a 609.8% deterioration from the net income of $4.42 million in the prior year. This significant shift to a loss underscores the challenges the company faces, including the impact of the FTC inquiry and related legal expenses. The earnings performance is clearly negative given the substantial loss and the sharp decline from profitability.

Price Action
The stock price of Mediaalpha dropped 6.64% during the latest trading day. However, it showed a rebound with a 13.67% increase during the most recent full trading week and a 9.94% gain month-to-date. The mixed price action reflects the market's response to the earnings report and broader investor sentiment.

Post Earnings Price Action Review
The strategy of buying MAX when earnings beat expectations and holding for 30 days underperformed significantly, with a total return of -46.06% compared to the benchmark return of 69.53%. The strategy had a maximum drawdown of 0.00%, indicating no significant losses during the backtest period, but it also failed to capture any gains. This resulted in a compound annual growth rate (CAGR) of -12.51% and a Sharpe ratio of -0.45, highlighting the inefficacy of the strategy in this context.

CEO Commentary
The CEO of MediaAlpha, Matthew G. Schiltz, emphasized the company’s commitment to addressing past challenges and reiterating a focus on ethical business practices moving forward. He acknowledged the issues raised in the recent FTC action and stated that the company is fully cooperating with all legal and regulatory requirements. Schiltz highlighted that the company remains focused on strengthening compliance frameworks and rebuilding trust with stakeholders. Despite the legal hurdles, he expressed a cautious but constructive outlook, noting that the organization is prioritizing long-term stability and adherence to legal standards over short-term gains.

Guidance
The company provided no explicit forward-looking financial guidance in the provided filing. However, it reaffirmed its commitment to resolving legal matters and maintaining regulatory compliance. There were no numerical expectations or projections for future earnings, revenue, or operational metrics stated within the document. The focus of the guidance centered on legal resolution and adherence to compliance measures, with no indication of expected business performance improvements in the near term.

Additional News
MediaAlpha recently resolved the FTC inquiry, marking a significant step forward for the company. Additionally, the CEO, Steve Yi, highlighted that the P&C insurance vertical delivered record second quarter results, driven by sustained demand from leading carriers and a growing partner base. The company also set a financial outlook for the third quarter of 2025, which includes expectations for P&C insurance vertical growth and a decline in the Health insurance vertical. MediaAlpha will host a conference call to discuss the second quarter 2025 results and its financial outlook for the third quarter of 2025.