MediaAlpha Reports 41.1% Revenue Growth to $251.6 Million in Q2 2025

MediaAlpha, Inc. reported significant financial results for the second quarter of 2025, with revenues reaching $251.6 million, a 41.1% increase from $178.3 million in the same period last year. The company's Transaction Value, which reflects the total gross dollars transacted on its platform, also saw a substantial rise, climbing 49.4% to $480.8 million. However, the company recorded a net loss of $22.5 million, compared to a net income of $4.4 million in the prior year, primarily due to a $33 million increase in reserves related to a Federal Trade Commission (FTC) matter.

In terms of operational metrics, MediaAlpha experienced a notable increase in Consumer Referrals, with 34 million referrals in the second quarter, up from 26.2 million a year earlier. The company's focus on the property and casualty (P&C) insurance sector contributed to this growth, as customer acquisition spending from P&C carriers increased in response to improved underwriting profitability. However, revenue from the health insurance vertical declined significantly, driven by compliance actions taken in response to the FTC investigation, which are expected to reduce full-year revenue from the under-65 health segment by approximately $70 million.

The company's costs and operating expenses for the quarter totaled $271.7 million, up from $171.8 million in the previous year, largely due to increased legal costs associated with the FTC matter and higher revenue share payments to supply partners. General and administrative expenses surged to $47.1 million, reflecting a $34 million increase in legal costs. Additionally, MediaAlpha wrote off $13.4 million in intangible assets during the quarter, further impacting its financial performance.

Strategically, MediaAlpha has extended the maturity of its credit facilities, with lenders agreeing to a one-year extension to July 29, 2027, for $138.1 million of term loans and $4.6 million of revolving credit. The company maintains a strong liquidity position, with cash and cash equivalents totaling $85.4 million as of June 30, 2025. Looking ahead, MediaAlpha anticipates continued growth in customer acquisition spending, particularly in the P&C insurance sector, while navigating the challenges posed by regulatory compliance and market conditions. The company remains focused on optimizing its platform and expanding its partnerships to drive future revenue growth.