MediaAlpha Posts $0.46 Per-Share Profit and Record Third-Quarter Revenue
Key Facts
MediaAlpha reported third-quarter 2026 results on October 28, with diluted earnings per share of $0.46, $0.19 above analysts’ estimate of $0.27, according to Investing.com. Revenue was $375.94 million, topping the consensus estimate of $347.93 million. The company said revenue reached a record $375.9 million, up 22.7% year over year. Net income also rose to $29.4 million, a 66.4% year-over-year increase. Adjusted earnings before interest, taxes, depreciation and amortization were $39.5 million, up 35.8% from the year-earlier period.
Company figures show earnings growth outpaced revenue growth in the quarter, with net income up 66.4% and adjusted earnings up 35.8%, compared with a 22.7% year-over-year increase in revenue. Gross profit was $55.3 million, up 27.5%. Contribution was $57.4 million, up 25.8% year over year. Gross margin widened to 14.7% from 14.2% in the third quarter of 2025. Contribution margin also rose to 15.3%, compared with 14.9% a year earlier, according to company data published via Nasdaq and GlobeNewswire.
Management attributed the strong performance to broader market demand, saying insurers are competing aggressively for new policies and allocating significant budgets to home and auto insurance. The company said insurers “are competing fiercely for new policies and allocating large budgets to home and auto insurance.” Management linked this to industry spending on customer acquisition in those areas, according to the earnings statement. In the third quarter of 2025, MediaAlpha reported revenue of $306.5 million, up 18% year over year, and net income of $17.6 million, up 48%. Contribution was $45.6 million, up 10%, while adjusted earnings reached $29.1 million, up 11% year over year.
The company provided guidance ranges for the fourth quarter of 2026, forecasting revenue of between $355 million and $375 million, representing 25% year-over-year growth at the midpoint. It expects contribution of between $54 million and $57 million, with 18% growth at the midpoint, and adjusted earnings before interest, taxes, depreciation and amortization of between $36 million and $39 million, up 22% year over year at the midpoint. The company said the outlook reflects continued strength in the property and casualty insurance sector. By contrast, it expects health insurance to account for about 4% of revenue in the quarter, as annual enrollment reaches its seasonal peak during that period. These figures are management’s outlook for the coming quarter.
Chief Executive Officer Steve Yi said the shift to digital customer acquisition and scale advantages “will allow us to deliver double-digit growth in 2027 and beyond.” On capital allocation, the company said it repurchased about 0.8 million shares during the quarter for $9 million. Those transactions brought total repurchases under its program to $64 million, equivalent to 6.2 million shares, according to the earnings statement. After closing the regular session at $11.72 on October 28, the stock rose 19.37% in extended trading to $13.99, according to Investing.com. The stock move followed the company’s results and quarterly guidance announcement.