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% year-over-year.

• Embedded AI across the platform, increasing P&C click volume by over 20% year-over-year in Q4 and strengthening competitive positioning.

• Board doubled share repurchase authorization to $100M, with $47M repurchased in 2025 and most of the remainder to be executed by end of 2026.

Financial highlights

• Full-year gross profit was $167.5M (up 17%); Q4 gross profit was $44.8M (down 9% year-over-year).

• Q4 adjusted EBITDA was $30.8M (down 16% year-over-year); full-year adjusted EBITDA was $113.7M (up 18%).

• Q4 contribution was $46.9M (down 9% year-over-year); full-year contribution was $176.3M (up 14%).

• Q4 take rate was 7.6%, slightly above expectations; expected to rise in Q1.

• 2025 free cash flow was $99M (excluding $34M FTC payment), or $65M net; ended year with $47M in cash.

Outlook and guidance

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

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

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

• Excluding Under-65 Health, adjusted EBITDA expected to increase ~25% YoY in Q1 2026.