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 carrier spend, increased carrier participation in the Open Marketplace, and a strategic focus on AI-powered insurance distribution and direct-to-consumer models.

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

• Adjusted EBITDA rose 6.8% year-over-year to $31.4 million, reflecting improved operational efficiency and higher gross profit.

• Significant share repurchases in 2026, with over $25 million spent YTD and a total of $73 million over the past three quarters, representing 10% of outstanding shares.

• Refinanced credit facilities with a new $150 million term loan and $60 million revolver, extending debt maturity to 2031 and enhancing financial flexibility.

Financial highlights

• Q1 2026 revenue was $310 million, up 17.3% year-over-year, exceeding guidance.

• Adjusted EBITDA reached $31.4 million, up 7% year-over-year, with a margin of 10.1%.

• Gross margin was 15.1%, down from 15.8% in Q1 2025; Contribution Margin was 15.7%, down from 16.6%.

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

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

• Q2 Adjusted EBITDA projected 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 free cash flow guidance of $90–$100 million; majority of $100 million share repurchase program expected to be completed by year-end 2026.