MediaAlpha (MAX) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 results, with revenue up 109% to $264.3 million and transaction value up 116% to $473.1 million, driven by exceptional growth in the P&C insurance vertical and robust carrier investment.

• Adjusted EBITDA more than doubled year-over-year to $29.4 million, reflecting higher gross profit despite increased legal and compliance costs.

• Net loss was $2.3 million, compared to $1.5 million in Q1 2024, primarily due to a $13.4 million write-off of intangible assets and a $5 million increase in FTC-related reserves.

• Strategic focus in the health insurance vertical is shifting toward Medicare Advantage, scaling back under-65 business.

• High partner retention rates and a scalable, data-driven technology platform underpin continued growth and efficiency.

Financial highlights

• Q1 2025 transaction value reached $473.1 million, up 116% year-over-year; P&C vertical grew 200% year-over-year.

• Adjusted EBITDA was $29.4 million (11.1% margin), including $6.9 million in FTC-related add-backs.

• Gross margin was 15.8%, down from 18.7% in Q1 2024; Contribution margin was 16.6%, down from 21.9%.

• Cash and cash equivalents increased to $63.6 million as of March 31, 2025.

• Net cash provided by operating activities was $23.7 million, up from $1.7 million in Q1 2024.

Outlook and guidance

• Q2 2025 transaction value expected between $470 million and $495 million, up about 50% year-over-year at midpoint.

• Q2 2025 revenue guidance is $235 million to $255 million, up about 37% year-over-year at midpoint.

• Q2 2025 adjusted EBITDA forecasted at $25 million to $27 million, up about 39% year-over-year at midpoint.

• Overhead projected to rise by $500,000–$1 million sequentially due to selective headcount additions.

• Expecting significant conversion of adjusted EBITDA to unleveraged free cash flow due to operating efficiencies.