MediaAlpha Announces $32.9 Million Private Stock Repurchase
Rhea-AI Summary
MediaAlpha (NYSE: MAX), a leading insurance marketing technology platform, has announced a significant private stock repurchase of 3,234,894 shares of its Class A common stock from Insignia Capital Group at $10.17 per share, totaling approximately $32.9 million.
The purchase price represents a 5.5% discount to the closing price on September 2, 2025. The repurchased shares will be canceled and retired. The transaction involved Insignia exchanging Class B common stock and Class B-1 units of QL Holdings LLC for Class A common stock. The repurchase was approved by a Special Committee of independent directors.
Positive
- Stock repurchase executed at a 5.5% discount to market price, demonstrating immediate accretion
- Company reports robust cash flow generation and strong balance sheet
- Strategic reduction in shares outstanding through cancellation of repurchased shares
- Management expresses confidence in company's multi-year growth prospects
Negative
- Significant cash outlay of $32.9 million for share repurchase
- Major shareholder (Insignia Capital) exits position, potentially signaling end of growth-stage backing
News Market Reaction
On the day this news was published, MAX gained 3.51%, reflecting a moderate positive market reaction. Argus tracked a peak move of +16.3% during that session. Our momentum scanner triggered 33 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $30M to the company's valuation, bringing the market cap to $897M at that time.
Data tracked by StockTitan Argus on the day of publication.
LOS ANGELES, Sept. 04, 2025 (GLOBE NEWSWIRE) -- MediaAlpha, Inc. (NYSE: MAX), the leading marketing technology platform powering real-time customer acquisition for the insurance industry, today announced that it has repurchased 3,234,894 shares of its Class A common stock at a price of
“This stock repurchase reflects our confidence in MediaAlpha’s strategy, execution and multi-year growth prospects,” said Pat Thompson, Chief Financial Officer. “Privately repurchasing these shares at a discount is immediately accretive, underscoring our disciplined approach to capital allocation and commitment to creating value for shareholders. With robust cash flow generation and a strong balance sheet, we are well-positioned to continue investing in innovation while also returning capital to shareholders.”
Tony Broglio, Insignia Managing Partner, said, “Our desire to sell our remaining shares in MediaAlpha is tied to the lifecycle of our private equity fund. We are proud to have supported MediaAlpha’s journey and are confident the company will continue to thrive in the years ahead.”
The private stock repurchase was approved by a Special Committee of MediaAlpha’s Board of Directors, comprised solely of independent and disinterested directors not affiliated with Insignia. Insignia exchanged its 3,234,894 shares of Class B common stock, together with an equivalent number of Class B-1 units of the Company’s QL Holdings, LLC subsidiary, for the 3,234,894 shares of Class A common stock repurchased. The repurchased shares will be canceled and retired.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation statements regarding the Company’s confidence in its strategy, execution and multi-year growth prospects, and its expectations regarding cash flow generation, continued investment, and returning capital to shareholders. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These forward-looking statements are based on current expectations, estimates, and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.
There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including those more fully described in MediaAlpha’s filings with the Securities and Exchange Commission (“SEC”), including the Form 10-K filed on February 24, 2025 and the Forms 10-Q filed on April 30, 2025 and August 6, 2025. These factors should not be construed as exhaustive. MediaAlpha disclaims any obligation to update any forward-looking statements to reflect events or circumstances that occur after the date of this press release.
About MediaAlpha
We believe we are the insurance industry’s leading programmatic customer acquisition platform. With more than 1,200 active partners, excluding our agent partners, we connect insurance carriers with online shoppers and generated nearly 119 million Consumer Referrals in 2024. Our programmatic advertising technology over the twelve months ended June 30, 2025 powered
Investor Contact
Denise Garcia
Hayflower Partners
Denise@HayflowerPartners.com
FAQ
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