MediaAlpha (MAX) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of $316.9 million, up 26% year-over-year, driven by strong Property & Casualty insurance demand and increased carrier participation, with net income of $41.8 million reversing a prior-year loss due to a $37.7 million TRA gain and improved gross profit.

• Adjusted EBITDA rose 19% year-over-year to $29.3 million, reflecting higher contribution from core operations.

• Industry shift from agent-based to direct-to-consumer distribution is accelerating, driven by AI and digital adoption, enhancing targeting and operational efficiency.

• Property & Casualty insurance accounted for 97.4% of total revenue in Q2 2026, while health insurance revenue declined sharply due to scaling back under-65 health.

• Major share repurchases and TRA obligation buyback improved capital structure.

Financial highlights

• Q2 2026 revenue was $316.9 million, up 26% year-over-year, with gross margin at 14.3% and contribution margin at 14.9%, both slightly down from the prior year.

• Net income reached $41.8 million, compared to a net loss of $22.5 million in Q2 2025; diluted EPS was $0.65.

• Adjusted EBITDA was $29.3 million, up 19% year-over-year, with an adjusted EBITDA margin of 9.2%.

• Contribution was $47.2 million, up 18% year-over-year.

• General and administrative expenses dropped significantly to $14.0 million from $47.1 million, reflecting lower legal costs after the FTC settlement.

Outlook and guidance

• Q3 2026 revenue guidance: $330–$355 million, representing 12% year-over-year growth at midpoint.

• Q3 2026 contribution guidance: $51.5 million–$54.5 million, up 16% year-over-year at midpoint.

• Q3 2026 adjusted EBITDA guidance: $32 million–$35 million, up 15% year-over-year at midpoint.

• Full-year free cash flow expected between $90 million–$100 million.

• Health insurance revenue is expected to remain challenged due to industry headwinds and strategic reduction in under-65 health.