MediaAlpha (MAX) AI Stock Analysis

• Market Cap: $828.33M
• Dividend Yield: N/A
• Average Volume (3M): 583.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.88
• Revenue Growth: 64.86%
• EPS Growth: -112.92%
• Country: US
• Employees: 144
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 0.26
• Shares Outstanding: 56,868,572
• 10 Day Avg. Volume: 817,902
• 30 Day Avg. Volume: 583,163
• PEG Ratio: -0.27
• Price to Book (P/B): 251.84
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 13.13
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 0.62
• Enterprise Value/Gross Profit: 4.03
• Enterprise Value/Ebitda: 7.82
• 1Y Price Target: $16.42
• Price Target Upside: 28.68% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $13.00 ▲(1.88% Upside)

MediaAlpha's overall stock score is primarily influenced by its financial performance challenges, particularly in profitability and leverage. While technical indicators show bullish momentum, the valuation remains weak due to a negative P/E ratio. The earnings call highlights growth in certain areas but also points to significant challenges, especially in the health vertical.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a robust market position and effective business model, enhancing long-term sustainability.

Cash Flow Generation

Strong cash flow generation provides financial flexibility, supporting strategic investments and resilience against market fluctuations.

AI and Technology Advancements

AI advancements position the company to capitalize on technological trends, maintaining competitive advantage and operational efficiency.

Negative Factors

Profitability Challenges

Negative profitability impacts financial health, limiting reinvestment capacity and potentially affecting long-term growth prospects.

High Leverage

High leverage increases financial risk, constraining the company's ability to navigate economic downturns and invest in growth opportunities.

Health Vertical Challenges

Declines in the health vertical indicate sector-specific challenges, potentially affecting overall revenue diversification and stability.

MediaAlpha Business Overview & Revenue Model

Company Description

MediaAlpha, Inc., through its subsidiaries, operates an insurance customer acquisition platform in the United States. It optimizes customer acquisition in various verticals of property and casualty insurance, health insurance, and life insurance. The company was founded in 2014 and is headquartered in Los Angeles, California. MediaAlpha, Inc. is a subsidiary of White Mountains Insurance Group, Ltd.

How the Company Makes Money

MediaAlpha generates revenue primarily through a performance-based model, where it charges insurance companies for leads generated from its platform. The company earns a fee for each qualified lead that is delivered to its clients, which creates a direct link between advertising spend and measurable outcomes. Additionally, MediaAlpha may earn revenue from transactional fees associated with the buying and selling of ad space on its platform. Key partnerships with leading insurance carriers and a growing network of publishers enhance its revenue potential by increasing the volume of transactions and leads processed through the platform.

MediaAlpha Financial Statement Overview

Summary

MediaAlpha shows positive revenue growth and strong cash flow generation, but faces significant challenges in profitability and leverage. The negative net profit margin and high debt levels pose risks to financial stability. Improving cost efficiency and reducing leverage are crucial for enhancing the company's financial position.

Income Statement

MediaAlpha's revenue has shown a positive growth trend, with a TTM growth rate of 4.41%. However, profitability is a concern, as indicated by a negative net profit margin of -0.61% in the TTM. The gross profit margin is relatively low at 15.53%, and the EBIT and EBITDA margins are also modest at 0.78% and 1.10%, respectively. The company needs to improve its cost management and profitability to enhance its financial health.

Balance Sheet

The balance sheet reveals significant leverage issues, with a negative debt-to-equity ratio of -41.87 in the TTM, indicating high financial risk. The return on equity is positive at 14.28%, suggesting some efficiency in generating returns from equity. However, the negative stockholders' equity is a critical concern, reflecting potential solvency issues.

Cash Flow

Cash flow analysis shows a strong free cash flow growth rate of 21.68% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.48, and the free cash flow to net income ratio is 0.99, suggesting effective cash flow management. Despite the positive cash flow trends, the company needs to address its profitability challenges to sustain cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.12B	864.70M	388.15M	459.07M	645.27M	584.81M
Gross Profit	171.71M	143.57M	66.71M	70.06M	101.52M	85.38M
EBITDA	88.46M	60.50M	-28.35M	-29.24M	5.50M	23.02M
Net Income	-1.14M	16.63M	-40.42M	-57.67M	-5.28M	14.80M
Balance Sheet
Total Assets	266.23M	262.45M	153.93M	170.08M	289.80M	213.93M
Cash, Cash Equivalents and Short-Term Investments	38.84M	43.27M	17.27M	14.54M	50.56M	23.55M
Total Debt	22.00M	162.44M	174.30M	183.07M	186.80M	182.67M
Total Liabilities	332.01M	308.68M	248.35M	256.17M	351.37M	315.45M
Stockholders Equity	-29.75M	2.38M	-10.29M	-15.99M	-4.34M	-101.52M
Cash Flow
Free Cash Flow	87.23M	45.62M	20.16M	28.18M	27.97M	51.11M
Operating Cash Flow	87.58M	45.87M	20.23M	28.27M	28.62M	51.41M
Investing Cash Flow	-347.00K	-654.00K	-73.00K	-49.77M	-650.00K	-10.30M
Financing Cash Flow	-47.19M	-19.22M	-17.43M	-14.52M	-961.00K	-27.59M

MediaAlpha Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MAX, the sentiment is Positive. The current price of 12.76 is above the 20-day moving average (MA) of 11.71, above the 50-day MA of 11.87, and above the 200-day MA of 10.55, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 60.60 is Neutral, neither overbought nor oversold. The STOCH value of 72.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MAX.

MediaAlpha Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SSTK	74 Outperform	$769.79M	12.03	10.76%	6.02%	13.06%	66.19%
EVER	73 Outperform	$891.35M	17.77	36.81%	―	57.83%	293.63%
TBLA	71 Outperform	$1.11B	52.13	2.63%	―	10.96%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
MAX	59 Neutral	$828.33M	―	―	―	64.86%	-112.92%
PERI	56 Neutral	$403.98M	―	-0.67%	―	-38.18%	-107.00%
NXDR	51 Neutral	$698.11M	―	-14.07%	―	6.65%	50.32%

MediaAlpha Corporate Events

MediaAlpha’s Earnings Call: Growth Amidst Challenges

The recent earnings call for MediaAlpha, Inc. painted a mixed picture for the company, reflecting both promising growth and notable challenges. While the company celebrated strong performance in its P&C vertical and record third quarter results, these achievements were somewhat overshadowed by difficulties in the health vertical and a reduction in revenue and EBITDA guidance. Despite these challenges, MediaAlpha expressed confidence through advancements in AI technology and a new share repurchase plan, though it faces ongoing pressure in take rates and health vertical performance.

MediaAlpha Reports Strong Q3 2025 Growth

MediaAlpha, Inc., a leading programmatic customer acquisition platform in the insurance industry, connects insurance carriers with online shoppers through its advanced advertising technology. The company recently reported its financial results for the third quarter of 2025, highlighting significant growth in its Property & Casualty insurance vertical.

MediaAlpha Announces $50M Share Repurchase Program

On October 28, 2025, MediaAlpha‘s Board of Directors authorized a new $50 million Share Repurchase Program for Class A common stock, highlighting the company’s strategy to enhance shareholder value. The announcement follows MediaAlpha’s strong third quarter 2025 financial results, which saw an 18% increase in revenue and a 30% rise in transaction value, driven by robust growth in the P&C insurance vertical. The company anticipates continued growth in this sector, despite a projected decline in the health insurance vertical. The repurchase program is expected to be completed by the end of 2026, but may be adjusted based on market conditions.

The most recent analyst rating on (MAX) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on MediaAlpha stock, see the MAX Stock Forecast page.

MediaAlpha Completes $32.9 Million Share Repurchase

On September 3, 2025, MediaAlpha, Inc. entered into an agreement to repurchase 3,234,894 shares of its Class A common stock from Insignia Capital Group for approximately $32.9 million, a transaction that closed on September 4, 2025. This strategic move, approved by a special committee of independent directors, reflects MediaAlpha’s confidence in its growth prospects and commitment to shareholder value, while Insignia’s exit aligns with its private equity fund lifecycle.

The most recent analyst rating on (MAX) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on MediaAlpha stock, see the MAX Stock Forecast page.

MediaAlpha’s Earnings Call: Mixed Outlook with Strong P&C Growth

The recent earnings call for MediaAlpha, Inc. revealed a mixed sentiment, highlighting robust growth in the Property and Casualty (P&C) insurance vertical alongside positive financial guidance. However, these positive aspects were tempered by significant challenges in the health insurance vertical, particularly due to the impact of the FTC settlement and declining transaction values in the under-65 business segment.

MediaAlpha Settles FTC Claims with $45 Million Agreement

On August 6, 2025, MediaAlpha, Inc. reached a settlement with the Federal Trade Commission (FTC) regarding claims of unfair or deceptive practices. The FTC approved a Consent Order requiring MediaAlpha to pay $45 million in monetary relief and implement various compliance measures related to its advertising and marketing practices. The settlement aims to address issues concerning the company’s handling of consumer information and adherence to telemarketing rules.

The most recent analyst rating on (MAX) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on MediaAlpha stock, see the MAX Stock Forecast page.

MediaAlpha, Inc. Reports Record Q2 2025 Growth

MediaAlpha, Inc. is a technology company operating in the insurance sector, specializing in customer acquisition through its platform that connects insurance carriers with consumers.

MediaAlpha Amends Credit Agreement for Financial Flexibility

On August 4, 2025, MediaAlpha subsidiaries QuoteLab, LLC and QL Holdings LLC amended their credit agreement, extending the maturity dates for certain loans and commitments. This amendment affects $138.1 million in term loans and $45.6 million in revolving commitments, providing financial flexibility. Additionally, MediaAlpha announced strong financial results for Q2 2025, with a 41% revenue increase and a 71% growth in transaction value in the property & casualty vertical. Despite a net loss, the company resolved an FTC inquiry and anticipates continued growth in 2025.

The most recent analyst rating on (MAX) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on MediaAlpha stock, see the MAX Stock Forecast page.