Key Highlights

  • Revenue rose 22.7% to USD 375.9 million and beat the USD 347.93 million consensus estimate on wider carrier budgets.
  • Diluted EPS of USD 0.46 compared with USD 0.26 a year earlier and topped the USD 0.28 consensus estimate.
  • Adjusted EBITDA climbed 35.8% to USD 39.5 million, while contribution grew 25.8% to USD 57.4 million.
  • Fourth-quarter guidance projects revenue of USD 355 million to USD 375 million, roughly 25% growth at the midpoint.

MediaAlpha, Inc. (NYSE:MAX) reported third-quarter 2026 revenue of USD 375.9 million, up 22.7% from USD 306.5 million and above a consensus estimate of USD 347.93 million. Diluted EPS was USD 0.46 under GAAP, against USD 0.26 a year earlier and a consensus estimate of USD 0.28. Net income reached USD 29.4 million, helped by a USD 10.7 million gain from settling part of its tax receivables agreement liability.

Property and casualty insurance revenue rose 27.1% to USD 365.9 million and made up 97.3% of the total. Chief executive Steve Yi called it the strongest quarter in company history, tied to carriers raising budgets amid competition for policy growth. Auto insurance revenue grew 17%, while home and renters revenue hit a record USD 66 million, up 116%.

Contribution, Margins and Mix Shifts

Contribution, defined as revenue less revenue share payments and online advertising costs, grew 25.8% to USD 57.4 million, and contribution margin edged up to 15.3% from 14.9%. Management attributed the gain to a higher mix of Open Marketplace transactions. Adjusted EBITDA of USD 39.5 million, a non-GAAP measure, converted 69% of contribution, the highest share since 2024. Operating income rose to USD 28.8 million from USD 19.7 million.

Health insurance revenue fell 77.3% to USD 2.9 million after the company scaled back its under-65 health sub-vertical, where revenue dropped to USD 0.8 million from USD 9.0 million. Consumer referrals declined to 33.2 million from 36.5 million for the same reason. Life insurance revenue rose 22.2% to USD 6.8 million. Agent revenue reached USD 21 million against USD 14 million, with more than 3,000 active agents. Three carriers each exceeded 10% of revenue, and the fourth largest stood at 9.6%.

Fourth-Quarter Guidance and Capital Deployment

For the fourth quarter, the company guided to revenue of USD 355 million to USD 375 million, contribution of USD 54 million to USD 57 million and adjusted EBITDA of USD 36 million to USD 39 million. The health vertical is projected at about 4% of revenue. Full-year free cash flow is projected at USD 90 million to USD 100 million. The company also flagged that renewed escalation of the Middle East conflict could raise auto claims costs and weigh on carrier profitability, though it has seen no material effect on carrier spending so far.

The company repurchased about 818,700 shares for USD 9.2 million in the quarter and has since bought another 1.8 million shares for USD 18 million, using USD 82 million of its USD 100 million authorization. Cash stood at USD 18.7 million, with USD 146.3 million of term loan principal outstanding. A further USD 10 million was drawn on the revolving credit facility in October to support buybacks.

Areas of Focus Going Forward

Four items frame the next report. Guidance is first: USD 355 million to USD 375 million of revenue and USD 36 million to USD 39 million of adjusted EBITDA for the fourth quarter. Carrier concentration is second, with three carriers above 10% of revenue and a fourth at 9.6%. Funding is third: USD 18.7 million of cash, USD 82 million of the USD 100 million buyback authorization used, and the October revolver draw. Health is fourth, where full-year under-65 revenue is projected at USD 6.0 million to USD 7.0 million, and Medicare Advantage carriers continue to cut back marketing.