MediaAlpha (MAX) Q4 2025 earnings summary

Executive summary

• Achieved record 2025 milestones: $2.2B transaction value (up 45%), $1.11B revenue (up 29%), and $113.7M adjusted EBITDA (up 18%), driven by strong P&C insurance vertical and strategic narrowing of Under-65 Health business.

• Q4 2025 revenue was $291M, down 3% year-over-year; Q4 transaction value hit $613M, up 23% year-over-year.

• Net income for 2025 was $26.8M, up 21% year-over-year; Q4 net income was $34M, up 365%.

• Embedded AI across the platform, increasing P&C click volume by over 20% year-over-year in Q4 and enhancing predictive optimization.

• Share repurchase authorization doubled to $100M, with $47M executed in 2025 and most remaining to be completed by end of 2026.

Financial highlights

• Q4 transaction value: $613M, up 23% year-over-year; P&C vertical up 38%, health vertical down 40%.

• Q4 revenue: $291M, down 3% year-over-year; full-year revenue: $1.11B, up 29%; adjusted EBITDA: $30.8M in Q4 (down 16%), $113.7M for 2025 (up 18%).

• Gross margin for Q4: 15.4%, down from 16.3% in Q4 2024; full-year gross margin: 15.0%, down from 16.6%.

• Free cash flow for 2025: $99M (excluding FTC payment), $65M net; ended year with $47M in cash.

• Net income margin for 2025: 2.4%; adjusted EBITDA margin: 10.2%.

Outlook and guidance

• Q1 2026 guidance: transaction value $570M–$595M (up ~23%), revenue $285M–$305M (up ~12%), adjusted EBITDA $29.5M–$31.5M (up ~4%).

• P&C insurance vertical expected to grow transaction value by ~35% in Q1 2026; health vertical expected to decline ~50%.

• 2026 free cash flow expected at $90M–$100M, including final $11.5M FTC payment.