MediaAlpha (MAX) investor relations material

Industry environment and market cycle

• Auto insurance carriers are broadly profitable, shifting focus from underwriting to growth, with most industry growth previously concentrated among top players.

• The current soft market cycle is expected to last multiple years, with carriers aggressively competing for new customers and ad spend growth broadening beyond the top two carriers.

• Carriers ranked three, four, and five have shown a 4x year-over-year ad spend growth in the first half of 2026, signaling a strong recovery and increased investment from the broader field.

• Carrier participation is diversifying, with more carriers investing in performance marketing channels and leveraging measurable, data-driven strategies.

• Marketing spend is increasing, with a favorable mix shift toward higher-margin open marketplace transactions as less sophisticated carriers ramp up their investments.

Strategic initiatives and platform evolution

• Initiatives include partnering with agent-based carriers to create lead marketplaces and support their transition to direct-to-consumer models.

• Technology and partnership capabilities are leveraged to help agents acquire online shoppers and facilitate exclusive lead distribution.

• The platform offers both open and private marketplace models, with open marketplace transactions yielding higher margins due to greater involvement and support.

• As new entrants ramp up, most incremental demand is flowing through the open marketplace, enhancing overall profitability.

• The two-sided marketplace strategy deepens relationships, with most brokers and carriers active as both buyers and sellers, improving marketing mix efficiency.

Financial outlook and growth drivers

• Q3 revenue and profitability guidance is above consensus, driven by strong sequential performance and broadening demand.

• Customer diversification has improved, with more carriers contributing significant revenue and carriers three, four, and five growing 300% year-over-year.

• The platform is expected to become a more meaningful part of carriers' marketing mix, especially outside the top two, supporting future growth.

• Guidance is based on high-confidence, momentum-driven factors, with expectations for continued record results into 2027.

• Marketing spend is shifting from commissions and brand spend toward online advertising, where the platform is the largest insurance-specific channel.