MediaAlpha Reports 108.7% Revenue Growth to $264.3 Million in Latest Quarter

MediaAlpha, Inc. reported significant financial growth in its latest quarterly filing, with revenues reaching $264.3 million for the three months ended March 31, 2025, marking a 108.7% increase from $126.6 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 115.9% to $473.1 million. Despite this growth, MediaAlpha recorded a net loss of $2.3 million, compared to a loss of $1.5 million in the prior year, primarily due to a $13.4 million write-off of certain intangible assets and increased legal reserves related to ongoing regulatory matters.

The company's operational metrics indicate a strong performance in its core property and casualty (P&C) insurance vertical, which generated $223.2 million in revenue, a 222.4% increase year-over-year. This growth was driven by heightened customer acquisition spending from insurance carriers responding to improved underwriting profitability. However, revenue from the health insurance vertical declined by 28.2% to $33.9 million, attributed to reduced supply of Consumer Referrals and decreased advertising spend from partners. The life insurance segment also experienced a revenue drop of 26.3%, reflecting similar challenges.

MediaAlpha's customer engagement metrics showed an increase in Consumer Referrals, with 35 million clicks, calls, and leads purchased on its platform during the quarter, up from 26.6 million a year earlier. The company continues to expand its partnerships, with 15 of the top 20 largest auto insurance carriers by customer acquisition spend utilizing its platform. As of March 31, 2025, MediaAlpha had 55.9 million shares of Class A common stock and 11.6 million shares of Class B common stock outstanding.

Looking ahead, MediaAlpha remains focused on leveraging its technology platform to enhance customer acquisition for insurance carriers. The company anticipates continued growth in digital insurance customer acquisition spending, driven by ongoing secular trends in the insurance industry. However, it also faces potential challenges from regulatory scrutiny, particularly from the Federal Trade Commission (FTC), which has proposed significant monetary relief and civil penalties related to its marketing practices. The company is actively engaging with the FTC to resolve these matters while maintaining its operational strategies to ensure compliance and growth.