Shares of MediaAlpha, Inc. (MAX) are soaring 20.77% in pre-market trading on Thursday, following the release of the company's second quarter 2025 financial results and the announcement of a settlement with the Federal Trade Commission (FTC). This surge builds upon the previous day's after-hours gain, signaling strong investor confidence in the insurance customer acquisition platform's performance and future prospects.

The dramatic rise in stock price is primarily attributed to MediaAlpha's impressive Q2 revenue of $251.622 million, which surpassed analyst expectations of $250.7 million. This strong performance was driven by a remarkable 71% year-over-year Transaction Value growth in the company's Property & Casualty (P&C) insurance vertical. CEO Steve Yi credited this growth to "sustained demand from leading carriers and a growing partner base." Additionally, the company announced it had reached a settlement with the FTC, fully resolving matters related to its under-65 health insurance sub-vertical, which has further boosted investor confidence.

Despite reporting a net loss of $22.533 million for the quarter, investors appear to be focusing on the positive revenue growth and the resolution of the FTC inquiry. Looking ahead, MediaAlpha provided an optimistic outlook for its P&C insurance vertical, projecting approximately 35% year-over-year growth in Transaction Value for the third quarter. However, the company expects its Health insurance vertical to continue declining. The substantial pre-market stock surge suggests that investors are prioritizing MediaAlpha's strong revenue performance, the resolution of regulatory concerns, and the company's positive outlook for its core P&C business, overlooking challenges in other segments.