Shares of MediaAlpha, Inc. (MAX) surged 11.59% in after-hours trading on Wednesday following the release of its second quarter 2025 financial results and the announcement of a settlement with the Federal Trade Commission (FTC).

The insurance customer acquisition platform reported Q2 revenue of $251.622 million, surpassing analyst expectations of $250.7 million. This strong performance was primarily driven by a 71% year-over-year Transaction Value growth in the company's Property & Casualty (P&C) insurance vertical. CEO Steve Yi attributed this growth to "sustained demand from leading carriers and a growing partner base."

While the company's overall financial results were mixed, with a net loss of $22.533 million and adjusted EBITDA of $24.5 million (below the estimated $26.2 million), investors seemed to focus on the positive revenue growth and the resolution of the FTC inquiry. MediaAlpha announced it had reached a settlement with the FTC, fully resolving matters related to its under-65 health insurance sub-vertical. The company has recorded an additional $33 million reserve related to this settlement.

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, with a projected 40% to 45% year-over-year decrease in Q3 Transaction Value.

The after-hours stock surge suggests that investors are focusing on MediaAlpha's strong revenue performance, the resolution of the FTC inquiry, and the company's positive outlook for its core P&C business, despite challenges in other segments.