MediaAlpha Reports Strong 2025 Financial Results With P&C Growth
MediaAlpha, Inc. recently announced its 2025 financial results, revealing a revenue of $1.1 billion and a transaction value of $2.2 billion, driven by growth in the Property & Casualty (P&C) insurance segment. The company's fourth-quarter revenue was $291 million with a transaction value of $613 million, reflecting a year-over-year increase in P&C transaction value. However, despite a decrease in overall revenue compared to the previous year, the net income for the fourth quarter surged to $34 million, amounting to a full-year net income of $26.8 million.
The Board of Directors authorized an increase in the share repurchase program to $100 million, demonstrating confidence in MediaAlpha’s financial strength and future potential, especially concerning AI's potential in customer acquisition enhancement. Looking ahead to the first quarter of 2026, MediaAlpha projects a 35% rise in transaction value within the P&C vertical, counterbalanced by an expected decline in the health insurance sector.
CEO Steve Yi acknowledged the company's strong 2025 performance and expressed faith in AI's capacity to optimize customer acquisition strategies. CFO Pat Thompson highlighted the expanded share repurchase program, stressing MediaAlpha’s robust free cash flow projection and plans to execute most of the program by the end of 2026. Despite a projected decrease in health insurance transactions for those under 65, the first quarter of 2026 is expected to see continued growth in P&C transactions.
MediaAlpha held a conference call to elaborate on these financial outcomes and future forecasts, offering detailed investor materials online as an alternative to the conventional quarterly shareholder letter. The company prioritizes non-GAAP metrics like Adjusted EBITDA and Contribution Margin to gauge operational performance, aiding efficiency and leverage analyses while not substituting GAAP-based evaluations. MediaAlpha continues to lead as an innovative programmatic platform in the insurance industry, with over 1,150 active partners facilitating significant consumer referrals through its cutting-edge advertising technology.