MediaAlpha's Q3 revenue beats estimates on strength in property & casualty insurance business

MediaAlpha

29/10/2025 20:58

Overview

MediaAlpha Q3 revenue grows 18% yr/yr, beating analyst expectations

Adjusted EBITDA for Q3 beats consensus, reflecting robust operational performance

Company announces $50 mln share repurchase program, indicating confidence in future growth

Outlook

Company expects Q4 2025 transaction value between $620 mln and $645 mln

MediaAlpha sees Q4 P&C transaction value up 45% year-over-year

Company anticipates Q4 health transaction value to decline 45% year-over-year

Result Drivers

P&C GROWTH - Co attributes 41% increase in P&C transaction value to intensified carrier demand and expanded partner base

SHARE REPURCHASE - Co authorizes $50 mln share repurchase program, reflecting confidence in stock value

HEALTH DECLINE - Health insurance transaction value fell 40% yr/yr, impacting overall growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$306.51 mln
$284.09 mln (7 Analysts)
Q3 Net Income
$17.64 mln
Q3 Adjusted EBITDA
Beat
$29.10 mln
$26.69 mln (6 Analysts)
Q3 Gross Margin
14.20%
Q3 Operating Income
$19.73 mln
Q3 Pretax Profit
$17.69 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the online services peer group is "buy"

Wall Street's median 12-month price target for Mediaalpha Inc is $16.50, about 31.6% above its October 28 closing price of $11.28

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nGNX4nPybj

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)