Executive Summary

Q1 2025 was a record first quarter, materially above guidance: revenue $0.264B (+109% YoY), Transaction Value $0.473B (+116% YoY), Adjusted EBITDA $29.4M (+104% YoY), driven by a 200% YoY surge in P&C Transaction Value to $0.407B .
Results beat S&P Global consensus: revenue $235.99M estimate vs $264.31M actual; Primary EPS $0.15 estimate vs $0.446 actual; strong top-line/margin conversion despite lower take rates as mix shifted to P&C and private marketplace transactions (see Estimates Context) *.
Q2 2025 guidance implies continued momentum: Transaction Value $470–$495M (+50% YoY mid-point), revenue $235–$255M (+37% YoY mid-point), Adjusted EBITDA $25–$27M (+39% YoY mid-point); P&C TV expected +65–75% YoY, Health TV down 25–30% YoY as under-65 is scaled back; Travel exit by end of Q2 .
Management flagged possible late-2025 tariff headwinds (loss-cost pressure), but expects impacts to be low-to-mid single-digit and manageable as carriers are profitable and can reprice quickly; the FTC matter reserve increased to $12M, with active settlement discussions ongoing .

What Went Well and What Went Wrong

What Went Well

P&C vertical strength: “Transaction Value more than doubled year over year… we delivered over $100 million of Adjusted EBITDA over a trailing twelve month period” with P&C TV up 200% YoY to $0.407B; revenue from P&C grew 222% YoY to $223.2M .
Broad-based demand and late-quarter acceleration: “Several carriers meaningfully increased marketing investments in March,” lifting Transaction Value above expectations; Adjusted EBITDA reached $29.4M (67% of Contribution) .
Cash generation and leverage: operating cash flow $23.7M; net debt-to-Adjusted EBITDA ratio under 1.0x, ending cash ~$63.6M; management expects strong conversion of Adjusted EBITDA to unlevered FCF given low capex and working capital needs .

What Went Wrong

Margin compression: gross margin fell to 15.8% (from 18.7% YoY) and Contribution Margin to 16.6% (from 21.9%) due to mix shift toward P&C and private marketplace (lower take rates); management explained take-rate pressure and publisher scale effects .
Health vertical softness: Transaction Value down 17% YoY to $57.7M and revenue down 28% YoY to $33.9M as under-65 weakens; strategic scale-back underway, pivoting focus to Medicare Advantage .
FTC matter drag: additional $5.0M reserve recognized (total reserve $12.0M); $6.9M of legal-related add-backs included in Adjusted EBITDA; timeline remains uncertain .

Financial Results

Consolidated performance vs prior quarters and YoY

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD Billions)	$0.259	$0.301	$0.264
GAAP EPS ($)	$0.17	$0.08	$(0.04)
Gross Margin (%)	15.1%	16.3%	15.8%
Contribution Margin (%)	16.0%	17.1%	16.6%
Adjusted EBITDA ($USD Millions)	$26.3	$36.7	$29.4

Segment revenue breakdown

Segment Revenue ($USD Millions)	Q3 2024	Q4 2024	Q1 2025
Property & Casualty	$219.0	$235.5	$223.2
Health	$32.9	$58.6	$33.9
Life	$5.2	$5.1	$5.6
Other (incl. Travel, Consumer Finance)	$2.0	$1.5	$1.6

KPIs and marketplace mix

KPI	Q3 2024	Q4 2024	Q1 2025
Total Transaction Value ($USD Millions)	$451.8	$499.2	$473.1
P&C Transaction Value ($USD Millions)	$387.5	$401.0	$406.8
Health Transaction Value ($USD Millions)	$55.6	$90.3	$57.7
Open Marketplace (% of TV)	56.0%	59.0%	54.6%
Private Marketplace (% of TV)	44.0%	41.0%	45.4%
Gross Profit ($USD Millions)	$39.2	$49.0	$41.6
Contribution ($USD Millions)	$41.5	$51.5	$44.0

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Transaction Value ($M)	Q1 2025	$415–$440	Actual $473.1	Raised vs guidance (beat)
Revenue ($M)	Q1 2025	$225–$245	Actual $264.3	Raised vs guidance (beat)
Adjusted EBITDA ($M)	Q1 2025	$24.5–$26.5	Actual $29.4	Raised vs guidance (beat)
Transaction Value ($M)	Q2 2025	N/A	$470–$495	Introduced
Revenue ($M)	Q2 2025	N/A	$235–$255	Introduced
Adjusted EBITDA ($M)	Q2 2025	N/A	$25.0–$27.0	Introduced
P&C TV YoY Growth	Q2 2025	N/A	+65% to +75%	Introduced
Health TV YoY Growth	Q2 2025	N/A	−25% to −30%	Introduced
Overhead ($)	Q2 2025	N/A	+$0.5–$1.0M seq.	Introduced
Contribution − Adj. EBITDA ($)	Q2 2025	N/A	~$0.5–$1.0M higher than Q1	Introduced

Note: No explicit guidance provided on gross/EBITDA margins, OI&E, tax rate, or dividends in Q1 materials .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024, Q4 2024)	Current Period (Q1 2025)	Trend
P&C carrier spend recovery	Q3: record P&C TV (+766% YoY), broadening demand; Q4: record P&C TV $401M, pricing moderated into Q1 as volumes rise	Continued strength; March acceleration; Q2 P&C TV +65–75% YoY expected	Positive momentum, broadening participation
Open vs Private marketplace mix	Q3 open/private 56%/44%; Q4 59%/41%	Q1 54.6%/45.4%; near-term mix can skew private; longer-term trend toward open as recovery broadens	Near-term more private; medium-term shift to open
Health vertical	Q3 TV +9% YoY; Q4 TV −8% YoY, headwinds in Medicare	Under-65 scaled back; Medicare expected >40% of Health TV in Q2; Health TV −25–30% YoY in Q2	Re-basing under-65; focus on Medicare
Regulatory/legal (FTC)	Q4: $7.0M reserve established	Q1: +$5.0M, reserve now $12.0M; active discussions; timing uncertain	Ongoing; reserve increased
Macro: Automotive tariffs	Not highlighted in Q3/Q4	Potential loss-cost pressure later in year; impacts likely low-to-mid single digits; carriers can reprice	Watch item; manageable per mgmt

Management Commentary

“We had a record first quarter, beating expectations across the board, thanks largely to the continued strength in our P&C insurance vertical.” — Steve Yi (CEO) .
“Q1 adjusted EBITDA doubled year-over-year to $29.4 million… several carriers meaningfully increased marketing investments in March.” — Patrick Thompson (CFO) .
“We’ve made the strategic decision to scale back certain areas of our under-65 business as we continue to shift our focus to Medicare Advantage.” — Steve Yi (CEO) .
“We increased our reserve related to [the FTC matter] by $5 million, bringing the total reserve to $12 million at the end of the quarter.” — Steve Yi (CEO) .
“Tariffs could introduce upward pressure on claims costs later in the year… estimates are low to mid-single digits; carriers are well positioned to react quickly.” — Steve Yi (CEO) .

Q&A Highlights

P&C momentum and conservatism fading: March uplift tied to carriers allocating more budget as profitability remained strong; strength continued into Q2 .
Marketplace mix: private vs open discussion — near-term could skew more private with larger partners; over time, recovery broadening should shift mix toward open .
Health strategy: under-65 scale-back is not an exit; business is being “rebaselined” while Medicare outlook improves over time; Medicare to >40% of Health TV in Q2 .
Contribution/take-rate drivers: mix shift to P&C (lower take rates), publisher scale compression, and private exchange mix reduce contribution margin as % of revenue .
FTC timeline: active discussions; no statutory timeline; investor updates upon resolution .
Medicare Advantage market context: temporary hard-market-like environment; CMS >5% payment rate increase supportive; brokers doing relatively well .

Estimates Context

Metric	Consensus Estimate*	Actual*
Revenue ($USD Billions), Q1 2025	$0.236*	$0.264*
Primary EPS ($), Q1 2025	$0.15*	$0.446*

Values retrieved from S&P Global.*

Interpretation: MAX delivered a strong beat on revenue and Primary EPS vs consensus for Q1 2025, reflecting stronger-than-anticipated carrier spend late in the quarter and efficient operating leverage despite lower take rates *.

Key Takeaways for Investors

P&C-led upside continues: Q2 guide implies sustained momentum (TV +50% YoY; revenue +37% YoY), with P&C TV +65–75% YoY; the recovery is broadening across carriers and publishers — a tailwind for growth and share gains .
Mix dynamics to watch: rising private marketplace share and P&C mix compress take rates; margin expansion hinges on open marketplace growth and publisher diversification .
Health vertical rebase: under-65 pullback will weigh near-term (Q2 Health TV −25–30% YoY), while Medicare becomes the focus; medium-term opportunity as seniors increasingly shop online .
Legal overhang manageable but unresolved: FTC reserve at $12M and ongoing discussions; headline risk persists, but operations and cash generation remain robust .
Macro optionality: tariff headwinds likely manageable given carrier profitability and ability to reprice; monitor for loss-cost pressure in 2H25 .
Cash and leverage: strong cash generation (Q1 CFO $23.7M) and net leverage <1x support flexibility; expect continued solid conversion of Adjusted EBITDA to unlevered FCF .
Near-term trading lens: positive estimate revisions likely on sustained P&C strength and Q2 setup; margins could lag top-line if private mix persists — focus on take-rate trajectory and open mix progression .

Other Relevant Press Releases (Q1 2025)

MediaAlpha To Report First Quarter 2025 Financial Results on April 30, 2025 (scheduling/IR logistics) .
Board refresh: Bradley Hunt added to Board of Directors (March 31, 2025) .

Citations:

Q1 2025 8-K press release and shareholder letter:
Q1 2025 earnings call transcript:
Prior quarters’ 8-Ks: Q3 2024 ; Q4 2024
Other PRs:

S&P Global disclaimer: Items marked with an asterisk (*) are values retrieved from S&P Global.

MediaAlpha, Inc. (MAX)·Q1 2025 Earnings Summary