MediaAlpha (MAX) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 revenue of $310 million, up 17.3% year-over-year, driven by strong auto/P&C insurance demand and increased carrier participation in the Open Marketplace.

• Net income reached $14 million, reversing a net loss of $2.3 million in Q1 2025, reflecting higher gross profit and absence of prior-year charges.

• Adjusted EBITDA was $31.4 million, up 6.8% year-over-year, reflecting improved operational efficiency.

• Strategic focus on AI-powered insurance distribution and direct-to-consumer models, including new ChatGPT-powered shopping experiences.

• Significant share repurchases and refinancing activities enhanced shareholder value and financial flexibility, with over $25 million repurchased in 2026 and debt maturity extended to 2031.

Financial highlights

• Q1 2026 revenue reached $310 million, above guidance, with gross margin at 15.1% and contribution margin at 15.7%.

• Adjusted EBITDA was $31.4 million, up 7% year-over-year, with margin at 10.1%.

• Property & Casualty insurance accounted for 94.4% of total revenue, while health insurance revenue declined sharply to $11.2 million.

• Contribution increased to $48.7 million, with 64% conversion to Adjusted EBITDA.

• Net income per share was $0.21, compared to $(0.04) in Q1 2025.

Outlook and guidance

• Q2 2026 revenue expected at $290–$310 million, up 19% year-over-year at midpoint.

• Q2 contribution expected at $45.5–$48.5 million, up 18% year-over-year at midpoint.

• Q2 Adjusted EBITDA expected at $28–$30.5 million, up 19% year-over-year at midpoint.

• Excluding Under-65 Health, Q2 contribution and Adjusted EBITDA expected to increase 25% and 31% year-over-year, respectively.

• Full-year 2026 free cash flow projected at $90–$100 million.