MediaAlpha, Inc. (MAX) stock is surging 15.94% in pre-market trading on Thursday, following the company's 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 $251.62 million, surpassing analyst expectations of $250.67 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." Additionally, MediaAlpha announced it had reached a settlement with the FTC, fully resolving matters related to its under-65 health insurance sub-vertical, although the company has recorded an additional $33 million reserve related to this settlement.

Despite reporting a quarterly loss of $18.74 million and adjusted EBITDA of $24.5 million (below the estimated $26.2 million), investors seem 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 pre-market stock surge suggests that investors are prioritizing 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.