MediaAlpha (MAX) Q4 2025 Earnings Call Transcript
The Motley Fool
by newsfeedback@fool.com (Motley Fool Transcribing)February 23, 2026
AI-Generated Deep Dive Summary
MediaAlpha (MAX) reported a strong Q4 2025 earnings call, highlighting significant growth in transaction value, revenue, and adjusted EBITDA. The company achieved $2 billion in transaction volume for the year, marking a 45% increase, driven by robust performance in its property and casualty (P&C) vertical, which saw over 65% growth. Despite a slight dip in Q4 revenue to $291 million, down 3% year-over-year but up 9% excluding under-65 health results, MediaAlpha demonstrated resilience across key metrics. Adjusted EBITDA reached $100 million annually, a record high, with free cash flow totaling $99 million before an FTC payment and $65 million net of that payment.
The company's strategic focus on share repurchases stood out, with $47 million spent during the year, including $14 million in Q4, representing about 7% of shares outstanding. This reflects MediaAlpha's confidence in its growth potential. The P&C vertical saw more than 20% growth in Q4 click volume, fueled by AI-driven and LLM-related searches, positioning the segment for even stronger performance in Q1. Management emphasized the role of AI and large language models (LLMs) in reshaping customer experiences and driving demand partner contributions.
Looking ahead, MediaAlpha provided Q1 2026 guidance, projecting transaction value between $570 million and $595 million, with P&C expected to grow by about 35% year-over-year. Revenue is forecasted at $285 million to $305 million, up roughly 12% at the midpoint. Adjusted EBITDA guidance of $29.5 million to $31.5 million suggests a modest growth outlook, with expectations for higher growth excluding under-65 health results.
The company's pivot away from the health insurance vertical is notable, as under-65 health revenue dropped significantly from $41 million in 2024 to $7 million in 2025. MediaAlpha remains confident in its infrastructure role, supported by carrier brand strategies and industry structure. The CFO highlighted open marketplace transactions as a key driver of revenue growth, aligning with investor expectations.
For finance readers, MediaAlpha's performance underscores the potential of AI-driven models in enhancing transactional efficiency and growth. The company's strategic investments in technology and share repurchases signal confidence in its long-term prospects. While challenges persist in the health insurance sector, particularly Medicare Advantage, MediaAlpha's focus on P&C
Verticals
financeinvesting
Originally published on The Motley Fool on 2/23/2026