MAXMediaAlpha, Inc.
Is the business good?
The checks split: margins widening, but returns that lean on debt.
Operating profit is mostly backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 750% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is MAX?
MediaAlpha, Inc. earns 37% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 28 points above what the capital costs: growth creates value
- Operating margin
- 6.9%
Operating margin · Internet Content & Information median 5.7% · 12 months to Q2 2026
- Cash conversion
- 0.86×
Cash conversion · 6.54× a year ago · most of the operating profit arrived as cash, working capital took the rest
- Share count, year on year
- +11%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 3.3% |
| FY2021 | 0.33% |
| FY2022 | −7.7% |
| FY2023 | −10% |
| FY2024 | 4.9% |
| FY2025 | 2.0% |
Details›
- Gross margin12 months to Q2 2026
- 15%
- Operating margin12 months to Q2 2026
- 6.9%
- Net margin12 months to Q2 2026
- 7.9%
- Free cash flow margin
- 4.6%
- R&D as % of revenue
- 1.8%
- Revenue, trailing twelve months
- $1.22B
- Free cash flow, trailing twelve months
- $56M
- Net income, trailing twelve months
- $97M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 37%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from MAX and who it buys from, as the companies report it.
- Top two customers49%
Combined share of revenue · FY2025 10-K
None disclosed.
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; MAX’s own figures are from its FY2025 10-K. Smaller customers and suppliers go unreported.
Internet Content & Information
Ranks #13 of 30 by RyuScore