MediaAlpha Reaches Settlement with FTC
MediaAlpha (NYSE: MAX) has reached a settlement with the Federal Trade Commission (FTC) regarding its under-65 health insurance business. The company will pay $45 million ($0.61 per diluted share) and implement enhanced compliance measures, with $33.5 million due within 7 days and $11.5 million within 90 days of court approval.
The settlement's impact on under-65 health business is significant, expected to reduce 2025 Transaction Value by $80-85 million (6% of 2024 consolidated results) and Contribution by $18-20 million (12% of 2024 consolidated results). The company maintains $85.4 million in cash as of June 30, 2025, and expects to remain compliant with its credit agreement terms.
MediaAlpha (NYSE: MAX) ha raggiunto un accordo con la Federal Trade Commission (FTC) riguardo alla sua attività di assicurazione sanitaria per under 65. La società pagherà 45 milioni di dollari (0,61 dollari per azione diluita) e implementerà misure di conformità migliorate, con 33,5 milioni di dollari dovuti entro 7 giorni e 11,5 milioni di dollari entro 90 giorni dall'approvazione del tribunale.
L'impatto dell'accordo sull'attività sanitaria under 65 è significativo, con una riduzione prevista del valore delle transazioni 2025 di 80-85 milioni di dollari (6% dei risultati consolidati 2024) e del contributo di 18-20 milioni di dollari (12% dei risultati consolidati 2024). La società dispone di 85,4 milioni di dollari in contanti al 30 giugno 2025 e si aspetta di rimanere conforme ai termini del proprio accordo di credito.
MediaAlpha (NYSE: MAX) ha llegado a un acuerdo con la Comisión Federal de Comercio (FTC) respecto a su negocio de seguros de salud para menores de 65 años. La compañía pagará 45 millones de dólares (0,61 dólares por acción diluida) e implementará medidas de cumplimiento mejoradas, con 33,5 millones de dólares a pagar en 7 días y 11,5 millones de dólares en 90 días tras la aprobación judicial.
El impacto del acuerdo en el negocio de salud para menores de 65 años es significativo, con una reducción esperada del valor de transacciones en 2025 de 80-85 millones de dólares (6% de los resultados consolidados de 2024) y una disminución del contribución de 18-20 millones de dólares (12% de los resultados consolidados de 2024). La compañía mantiene 85,4 millones de dólares en efectivo al 30 de junio de 2025 y espera cumplir con los términos de su acuerdo de crédito.
MediaAlpha (NYSE: MAX)는 65세 미만 건강 보험 사업과 관련하여 연방거래위원회(FTC)와 합의를 이루었습니다. 회사는 4,500만 달러(희석 주당 0.61달러)를 지불하고 강화된 준수 조치를 시행할 예정이며, 법원 승인 후 7일 이내에 3,350만 달러, 90일 이내에 1,150만 달러를 납부할 예정입니다.
이번 합의는 65세 미만 건강 보험 사업에 큰 영향을 미쳐 2025년 거래 가치가 8,000만~8,500만 달러(2024년 통합 실적의 6%) 감소하고, 기여도는 1,800만~2,000만 달러(2024년 통합 실적의 12%) 줄어들 것으로 예상됩니다. 회사는 2025년 6월 30일 기준으로 8,540만 달러 현금을 보유하고 있으며, 신용 계약 조건을 준수할 것으로 기대하고 있습니다.
MediaAlpha (NYSE : MAX) a conclu un accord avec la Federal Trade Commission (FTC) concernant son activité d'assurance santé pour les moins de 65 ans. La société versera 45 millions de dollars (0,61 dollar par action diluée) et mettra en place des mesures de conformité renforcées, avec 33,5 millions de dollars dus dans les 7 jours et 11,5 millions de dollars dans les 90 jours suivant l'approbation du tribunal.
L'impact de cet accord sur l'activité santé des moins de 65 ans est important, avec une réduction prévue de la valeur des transactions 2025 de 80 à 85 millions de dollars (6 % des résultats consolidés 2024) et une baisse de la contribution de 18 à 20 millions de dollars (12 % des résultats consolidés 2024). La société dispose de 85,4 millions de dollars en liquidités au 30 juin 2025 et prévoit de rester conforme aux termes de son accord de crédit.
MediaAlpha (NYSE: MAX) hat eine Einigung mit der Federal Trade Commission (FTC) bezüglich seines Gesundheitsversicherungs-Geschäfts für unter 65-Jährige erzielt. Das Unternehmen wird 45 Millionen US-Dollar (0,61 US-Dollar pro verwässerter Aktie) zahlen und verbesserte Compliance-Maßnahmen umsetzen, wobei 33,5 Millionen US-Dollar innerhalb von 7 Tagen und 11,5 Millionen US-Dollar innerhalb von 90 Tagen nach Gerichtsbestätigung fällig werden.
Die Auswirkungen der Einigung auf das Gesundheitsgeschäft unter 65 Jahren sind erheblich und werden voraussichtlich den Transaktionswert 2025 um 80-85 Millionen US-Dollar (6 % der konsolidierten Ergebnisse 2024) und den Beitrag um 18-20 Millionen US-Dollar (12 % der konsolidierten Ergebnisse 2024) reduzieren. Das Unternehmen hält zum 30. Juni 2025 85,4 Millionen US-Dollar in bar und erwartet, weiterhin die Bedingungen seines Kreditvertrags einzuhalten.
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Insights
FTC settlement costs MediaAlpha $45M and reduces 2025 under-65 health business by ~80%, but core insurance verticals remain unaffected.
MediaAlpha's
The financial impact is precisely quantified: the
More concerning from a business perspective are the operational restrictions. MediaAlpha projects the settlement will reduce under-65 health Transaction Value by
The settlement structure—allowing MediaAlpha to continue operations while implementing new compliance measures—indicates regulators identified specific problematic practices rather than fundamental business model flaws. The company's assertion that core Property & Casualty and Medicare verticals remain unaffected suggests the non-compliant practices were isolated to the under-65 health segment.
LOS ANGELES, Aug. 06, 2025 (GLOBE NEWSWIRE) -- MediaAlpha, Inc. (NYSE: MAX) ("MediaAlpha" or the "Company") today announced that it has reached a settlement with the Federal Trade Commission (“FTC”) to fully resolve matters related to the previously disclosed FTC investigation focused primarily on the Company’s under-65 health insurance sub-vertical.
Under the terms of the settlement, which is subject to court approval, MediaAlpha will pay
The Company issued the following statement:
We are pleased to put this matter behind us. While we strongly disagree with the FTC’s allegations, we believe that settling this matter is in the best interests of MediaAlpha and our shareholders. MediaAlpha has always been committed to transparency and compliance, and we share the FTC’s goal of preventing the misuse of our under-65 health marketplaces by third parties. As part of this settlement, we have agreed to further enhance our industry-leading compliance processes in under-65 health.
We remain very excited about the multi-year growth prospects for our core Property & Casualty and Medicare verticals, driven by strong secular tailwinds, the efficiency of our marketplace model, and our continued focus on innovation. We expect these factors to continue to produce strong, sustainable and profitable growth for MediaAlpha for years to come.
The
Additional information related to the FTC settlement is available in a Form 8-K filed today with the U.S. Securities and Exchange Commission.
Financial Impact of the FTC Settlement for Under-65 Health
As previously disclosed, in early 2025 following a comprehensive strategic review, MediaAlpha began implementing enhanced compliance measures and scaling back certain areas within under-65 health. During the second quarter, the Company took additional measures to address concerns raised by the FTC. As a result of these actions, under-65 health’s top and bottom lines declined significantly in the first and second quarters of 2025.
On a year-over-year basis, the Company expects these additional compliance procedures agreed to in connection with the FTC settlement, together with actions implemented in the first half of the year, to reduce under-65 Transaction Value by approximately
| Transaction Value ($ in millions) | Q1 2025 | Q2 2025 | H2 2025 | |||||
| $ Increase (Decrease) year over year | ||||||||
| % Change year over year (at the midpoint) | (20)% | (41)% | (61)% | |||||
| Contribution ($ in millions) | Q1 2025 | Q2 2025 | H2 2025 | |||||
| $ Increase (Decrease) year over year | ||||||||
| % Change year over year (at the midpoint) | (32)% | (63)% | (79)% | |||||
Second Quarter 2025 Financial Results
The Company will report its second quarter 2025 financial results and hold an investor call today (Wednesday, August 6, 2025) at 5:00 p.m. Eastern Time, at which time it will discuss the FTC settlement, provide a review of the quarter and issue its outlook for the third quarter of 2025.
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 expectation that the settlement terms will not have a material impact on its core Property & Casualty and Medicare operations; its expectations regarding the long-term growth outlook for the Company’s core Property & Casualty and Medicare business, driven by secular tailwinds, the efficiency of its marketplace model, and its continued focus on innovation, and that such factors will continue to produce strong, sustainable and profitable growth for MediaAlpha for years to come; the Company’s expectation that the settlement payments will not impact the Company’s ability to operate its business in the normal course and the Company will remain in full compliance with the terms of its credit agreement; and the expected impact of the settlement on the Company's under-65 Transaction Value and Contribution. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would,” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and 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. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. 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 to be filed on or about 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 transacted nearly 119 million Consumer Referrals in our marketplaces in 2024. Our programmatic advertising technology powered
Investor Contact:
Denise Garcia
Hayflower Partners
Denise@HayflowerPartners.com
