MediaAlpha, Inc.

Revenue was $317 million in Q2 2026, up 26% year over year. Contribution was $47.2 million, up 18% year over year, and adjusted EBITDA was $29.3 million, up 19% year over year. Excluding under-65 health, management said core business revenue and adjusted EBITDA each grew over 30% year over year. For Q3 2026, the company guided to revenue of $330 million to $355 million, contribution of $51.5 million to $54.5 million, and adjusted EBITDA of $32 million to $35 million; it also reiterated full-year 2026 free cash flow of $90 million to $100 million.

Steve Yi said the quarter reflected a broadening of carrier demand across the marketplace, not just concentration among a few large partners. He framed the opportunity as a continuing shift from agent-based distribution toward direct-to-consumer digital acquisition, with AI accelerating that transition on both the carrier and consumer sides. His tone was notably optimistic, pointing to a long runway as carriers still spend more than $2 in agent commissions for every $1 spent on advertising and only 40% of that ad spend is currently digital.

Pat Thompson emphasized that Q2 results came in above the high end of guidance, with revenue of $317 million, contribution of $47.2 million, and adjusted EBITDA of $29.3 million. He noted a mid-quarter dip in take rates that recovered by quarter end, and said the company expects Q3 contribution growth and EBITDA growth to remain strong even with about a $1 million year-over-year decline in under-65 health contribution. On capital allocation, MediaAlpha repurchased about 2.2 million shares for $20 million in Q2 at an average price of $9.22, had $23.7 million of cash and $30 million undrawn on the revolver at quarter end, and used $31 million to retire $69 million of TRA liability for a $38 million gain and an estimated mid-teens unlevered IRR.

Analysts pressed on how broadening carrier participation could affect economics, and Pat said the newer carriers mostly transact in the open marketplace, where take rates are higher and revenue is recognized gross, versus the private marketplace where revenue is net. Questions also focused on the under-65 health business, with management saying Q2 was in line with expectations at about 1% of revenue and that comps should get easier into Q4 and Q1. On AI and LLM-driven traffic, Steve said the traffic is still small but growing, with higher-intent, more granular searches that are often higher quality than Google organic. Pat also said the June TRA repurchase was not necessarily a one-off, but future deals would depend on seller willingness and whether the IRR beats other capital uses.