MediaAlpha, Inc. (NYSE: MAX) is a marketing technology company specializing in performance-based customer acquisition. Its core business is a transparent, real-time platform that facilitates the buying and selling of vertical search advertising, with a primary focus on the insurance industry (property & casualty, health, life). The platform uses data science ...MediaAlpha, Inc. (NYSE: MAX) is a marketing technology company specializing in performance-based customer acquisition. Its core business is a transparent, real-time platform that facilitates the buying and selling of vertical search advertising, with a primary focus on the insurance industry (property & casualty, health, life). The platform uses data science and programmatic technology to match consumers who are actively searching for insurance with carriers willing to quote, enhancing efficiency and scalability for both advertisers and publishers. As of the latest TTM data, the company generated revenues of approximately $1.22 billion (implied by revenue per share of $22.349 and shares outstanding), with a net profit margin of 7.9%. However, its EBITDA margin is very low (0.1%), and net debt to EBITDA is extremely high (156.6), indicating significant leverage. The company is led by co-founder and CEO Steven Yi, who has served since 2011. With 147 employees, it maintains a lean operation. Key financial metrics include a price-to-earnings ratio of 7.66, a price-to-sales ratio of 0.58, and a dividend yield of 0%. The company has a market capitalization of approximately $710 million and was incorporated in 2020, while its predecessor was formed in 2014. Its customer acquisition solutions are designed to provide transparency and control, aiming to maximize return on investment for clients. Recently, the company launched a ChatGPT-powered app for insurance shopping, reflecting its commitment to innovation. As a subsidiary of White Mountains Insurance Group, it benefits from strategic support while operating independently. The company's financial health shows a current ratio of 1.288, indicating adequate liquidity, but a high debt-to-equity ratio of 6.22 suggests aggressive capital structure. Overall, MediaAlpha is positioned as a key player in the digital insurance marketing space, leveraging technology to disrupt traditional customer acquisition methods.
Operator : Ladies and gentlemen, thank you for standing by. My name is Angela, and I will be your conference operator today. At this time, I would like to welcome everyone to the MediaAlpha, Inc. Second Quarter 2026 Earnings Call. I'd like to remind everyone that this call is being recorded. I would now like to turn the call over to Alex Liloia. Please go ahead.
Alex Liloia : Thanks, Angela. Good afternoon, and thank you for joining us. With me, our Co-Founder and CEO, Steve Yi, and CFO, Pat Thompson. On today's call, we'll make forward-looking statements relating to our business and outlook for future financial results, including our financial guidance for the third quarter of 2026. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. Please refer to our SEC filings, including our Annual Report on Form 10-K and quarterly reports on Form 10-Q for a fuller explanation of these risks and uncertainties and the limits applicable to forward-looking statements. All the forward-looking statements we make on this call reflect our assumptions and beliefs as of today, and we disclaim any obligation to update such statements except as required by law. Today's discussion will include non-GAAP financial measures, which are not a substitute for GAAP results. Reconciliations of these non-GAAP financial measures to the corresponding GAAP measures can be found in our press release and investor supplement issued today, which are available on the Investor Relations section of our website. I'll now turn this call over to Steve.
Steven Yi : Thanks, Alex. Hi, everyone. Thank you for joining us. We delivered record second quarter results as demand continued to broaden across our marketplace. Each quarter, additional P&C carriers are unlocking advertising spend, expanding their campaign, and leaning further into our marketplace. This is no longer just a story about concentrated growth among a handful of large partners. It's a widening base of carriers that keeps ramping. Although down from peak levels, underwriting profitability in personal auto remains historically strong. This is driving carriers to compete more aggressively by lowering rates and spending more on advertising to acquire new customers. We're seeing this intensified competition show up in a meaningful way across our marketplace. When we look at the current concentration of carrier advertising spend, we believe the inevitability of further broadening becomes clear. Since 2021, over 80% of P&C ad spend growth, both in our marketplace and others, has come from just 2 carriers. That leaves a wide segment of the market that has yet to meaningfully scale, and we're increasingly seeing those carriers begin to close the gap. To put this in perspective, our top 2 carriers spent a double-digit percentage of their total ad budgets with us in 2025, compared with the rest of our top 10 carriers, which collectively spent about 3% of their …
