MediaAlpha's Q1 2025: Contradictions Unveiled in P&C Dynamics, Health Strategy, and Marketplace Trends

P&C market dynamics and carrier spending, health vertical performance and strategic focus, P&C marketplace growth and carrier spending, health business scaling back, and open and private marketplace dynamics are the key contradictions discussed in MediaAlpha's latest 2025Q1 earnings call.



P&C Insurance Vertical Growth:
- MediaAlpha's P&C insurance vertical transaction value grew by 200% year-over-year in Q1 2025.
- This growth was driven by robust investment from several carriers amid solid underlying profitability in the personal auto insurance sector.

Health Insurance Vertical Adjustment:
- The company's health insurance vertical transaction value decreased by 17% year-over-year in Q1 2025.
- MediaAlpha is focusing on scaling back parts of its under-65 business and shifting towards Medicare Advantage, a growing market with significant long-term potential.

FTC Matter and Reserve Adjustment:
- MediaAlpha increased its reserve related to the FTC Matter by $5 million, bringing the total reserve to $12 million at the end of the quarter.
- The increase reflects evolving discussions with the FTC staff, demonstrating a proactive approach to resolving the matter in the best interests of shareholders.

Financial Performance and Guidance:
- Q1 2025 adjusted EBITDA doubled year-over-year to $29.4 million, representing 67% of contribution, up from 52% in the prior year.
- The company expects Q2 2025 transaction value to grow by 50% year-over-year at the midpoint, with a focus on continued strength in the P&C vertical.