Third Quarter 2026
Filed Oct 28, 2026All-Time Record Revenue of $375.9 million, up 23% year over year; Third Quarter Net Income of $29.4 million; Record Adjusted EBITDA of $39.5 million
Third-quarter revenue, gross profit, net income, Contribution and Adjusted EBITDA all increased year over year, while gross margin and Contribution Margin improved. The company also guided to continued fourth-quarter growth and maintained its full-year free-cash-flow outlook.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, Three Months Ended September 30, 2026GAAP | $375.9M | – | 22.7% |
| Cost of revenue, Three Months Ended September 30, 2026GAAP | 320,618 | – | – |
| Gross profit, Three Months Ended September 30, 2026GAAP | $55.33M | – | 27.5% |
| Gross margin, Three Months Ended September 30, 2026GAAP | 14.7 % | – | – |
| Contribution, Three Months Ended September 30, 2026non-GAAP | $57.40M | – | 25.8% |
| Contribution Margin, Three Months Ended September 30, 2026non-GAAP | 15.3 % | – | – |
| Sales and marketing, Three Months Ended September 30, 2026GAAP | 5,245 | – | – |
| Product development, Three Months Ended September 30, 2026GAAP | 6,211 | – | – |
| General and administrative, Three Months Ended September 30, 2026GAAP | 15,038 | – | – |
| Total costs and operating expenses, Three Months Ended September 30, 2026GAAP | 347,112 | – | – |
| Income from operations, Three Months Ended September 30, 2026GAAP | 28,834 | – | – |
| Interest expense, Three Months Ended September 30, 2026GAAP | 2,760 | – | – |
| Income before income taxes, Three Months Ended September 30, 2026GAAP | 37,167 | – | – |
| Income tax expense, Three Months Ended September 30, 2026GAAP | 7,807 | – | – |
| Net income, Three Months Ended September 30, 2026GAAP | $29.36M | – | 66.4% |
| Net income attributable to MediaAlpha, Inc., Three Months Ended September 30, 2026GAAP | $25.75M | – | – |
| Net income attributable to MediaAlpha, Inc. per share of Class A common stock, basic, Three Months Ended September 30, 2026GAAP | $ 0.49 | – | – |
| Net income attributable to MediaAlpha, Inc. per share of Class A common stock, diluted, Three Months Ended September 30, 2026GAAP | $ 0.46 | – | – |
| Adjusted EBITDA, Three Months Ended September 30, 2026non-GAAP | $39.49M | – | 35.8% |
| Revenue, Nine Months Ended September 30, 2026GAAP | $1.00B | – | – |
| Gross profit, Nine Months Ended September 30, 2026GAAP | $147.2M | – | – |
| Gross margin, Nine Months Ended September 30, 2026GAAP | 14.7 % | – | – |
| Contribution, Nine Months Ended September 30, 2026non-GAAP | $153.2M | – | – |
| Contribution Margin, Nine Months Ended September 30, 2026non-GAAP | 15.3 % | – | – |
| Income from operations, Nine Months Ended September 30, 2026GAAP | 71,170 | – | – |
| Net income (loss), Nine Months Ended September 30, 2026GAAP | $85.19M | – | – |
| Net income attributable to MediaAlpha, Inc., Nine Months Ended September 30, 2026GAAP | $76.66M | – | – |
| Net income attributable to MediaAlpha, Inc. per share of Class A common stock, diluted, Nine Months Ended September 30, 2026GAAP | $ 1.32 | – | – |
| Adjusted EBITDA, Nine Months Ended September 30, 2026non-GAAP | $100.1M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fourth quarter of 2026 outlook
- Revenuebetween $355 million - $375 million
- NoteContribution between $54.0 million - $57.0 million
- NoteAdjusted EBITDA between $36.0 million - $39.0 million
- NoteHealth insurance vertical to account for approximately 4% of revenue in the fourth quarter
- NoteRevenue representing a 25% year-over-year increase at the midpoint of the guidance range
- NoteContribution representing a 18% year-over-year increase at the midpoint of the guidance range
- NoteAdjusted EBITDA representing a 22% year-over-year increase at the midpoint of the guidance range
- NoteExcluding under-65 Health, Contribution to increase by 21% year over year at the guidance midpoints
- NoteExcluding under-65 Health, Adjusted EBITDA to increase by 26% year over year at the guidance midpoints
- NoteFull year free cash flow between $90 million - $100 million
Capital returns
- Repurchased approximately 0.8 million shares for $9 million during the quarter.
- Cumulative repurchases under the $100 million share repurchase program were $64 million (6.2 million shares).
- As of October 26, completed $82 million of the $100 million repurchase authorization.
- Repurchased $115 million since last September.
- Repurchased a portion of the TRA liability with a book value of $23 million for $12 million in September.
- Repurchases of Class A common stock were $50,095 for the nine months ended September 30, 2026.
What drove it
- Management cited broadening marketplace demand and aggressive carrier competition for new policies in home and auto insurance.
- Fourth-quarter guidance reflects continued strength in the Property & Casualty insurance vertical, driven by strong carrier growth investment and continued share gains.
- The Health insurance vertical is expected to reach its seasonal peak in the fourth quarter due to annual enrollment periods.
- Third-quarter Contribution increased 25.8% year over year and Contribution Margin improved to 15.3 % from 14.9 %.
- The company recorded a gain on repurchase of interests in the tax receivables agreement of (10,733) in the third-quarter Adjusted EBITDA reconciliation.
Concerns
- Cash and cash equivalents declined to $ 18,677 as of September 30, 2026 from $ 46,876 as of December 31, 2025.
- Long-term debt, net of current portion, increased to 167,748 as of September 30, 2026 from 131,602 as of December 31, 2025.
- Accounts receivable increased to 166,945 as of September 30, 2026 from 123,019 as of December 31, 2025, and accounts receivable used (44,173) of cash in the nine-month operating cash-flow bridge.
- Income tax expense increased to 7,807 in the third quarter from 54 in the prior-year quarter.
- Full-year operating cash flow of $ 62,635 for the nine months ended September 30, 2026 was below $ 73,046 in the comparable 2025 period.
What to watch
- Execution against fourth-quarter revenue guidance of between $355 million - $375 million.
- Property & Casualty carrier growth investment and continued share gains cited in the fourth-quarter outlook.
- Health insurance's expected approximately 4% revenue contribution in the fourth quarter during annual enrollment periods.
- Progress toward full-year free cash flow of between $90 million - $100 million.
- Remaining capacity under the $100 million share repurchase authorization after $82 million had been completed as of October 26.
Balance sheet and cash flow
- Cash and cash equivalents were $ 18,677 as of September 30, 2026, compared with $ 46,876 as of December 31, 2025.
- Long-term debt, net of current portion, was 167,748 as of September 30, 2026, compared with 131,602 as of December 31, 2025. Current portion of long-term debt was 7,172.
- Liabilities under tax receivables agreement, net of current portion, were 29,577 as of September 30, 2026, compared with 124,212 as of December 31, 2025.
- Net cash provided by operating activities was $ 62,635 for the nine months ended September 30, 2026, compared with $ 73,046 for the nine months ended September 30, 2025.
- Purchases of property and equipment were (944) for the nine months ended September 30, 2026.
- Net cash used in financing activities was $ (89,890) for the nine months ended September 30, 2026.
- Net decrease in cash and cash equivalents and restricted cash was (28,199) for the nine months ended September 30, 2026.
Analysis
MediaAlpha reported record third-quarter revenue of $375.9 million, up 22.7% year over year, alongside gross profit of $55.3 million, up 27.5%. Gross margin expanded to 14.7% from 14.2%, while non-GAAP Contribution rose 25.8% to $57.4 million and Contribution Margin improved to 15.3% from 14.9%. Management attributed demand strength to aggressive carrier competition for new policies and meaningful budgets in home and auto insurance.
Profitability increased faster than revenue. GAAP net income rose 66.4% year over year to $29.4 million, income from operations increased to 28,834 from 19,733, and Adjusted EBITDA increased 35.8% to $39.5 million. The quarter included $7,807 of income tax expense, compared with 54 in the prior-year quarter. The Adjusted EBITDA reconciliation also included a gain on repurchase of interests in the tax receivables agreement of (10,733).
For the first nine months, revenue was $1,002,825 and net income was $85,189, compared with a net loss of $ (7,224) in the prior-year period. Nine-month operating cash flow was $62,635, compared with $73,046 in 2025, as accounts receivable increased by (44,173). Cash and cash equivalents were $18,677 at September 30, 2026, while long-term debt, net of current portion, was 167,748.
Capital allocation included repurchasing approximately 0.8 million shares for $9 million during the quarter and $50,095 of Class A common stock during the first nine months. The company also repurchased a portion of its TRA liability with a book value of $23 million for $12 million. As of October 26, it had completed $82 million of its $100 million share repurchase authorization.
Fourth-quarter guidance calls for revenue between $355 million - $375 million, Contribution between $54.0 million - $57.0 million, and Adjusted EBITDA between $36.0 million - $39.0 million. The outlook assumes continued P&C strength, while Health is expected to account for approximately 4% of fourth-quarter revenue due to seasonal enrollment activity. MediaAlpha continued to expect full-year free cash flow between $90 million - $100 million.
Management, verbatim
We delivered a milestone third quarter, achieving record results across all of our key metrics as demand continued to broaden in our marketplace.
Steve Yi, CEO of MediaAlpha
Carriers are competing aggressively for new policies and committing meaningful budgets in both home and auto insurance, which is driving stronger outcomes for our partners.
Steve Yi, CEO of MediaAlpha
Our strong operating leverage and cash generation continue to give us the flexibility to invest in growth while returning capital to shareholders.
Tigran Sinanyan, MediaAlpha CFO
Not in the filing
stated, not guessed- Prior-quarter comparisons were not reported for the third-quarter metrics.
- Revenue by reportable operating segment was not reported.
- Quarterly operating cash flow, quarterly capital expenditures and quarterly free cash flow were not reported.
- Actual free cash flow for the nine months ended September 30, 2026 was not reported as a line item.
- Fourth-quarter GAAP gross-margin, operating-expense and tax-rate guidance were not provided.
- No previous-release outlook was provided, so comparison of third-quarter actual results with prior guidance is unavailable.
- Dividend information was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.