Marchex(MCHX)
$1.41+0.03 (+2.55%)
MCHX
Marchex earnings date
$1.41
At close:+0.03 (+2.55%)
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Marchex (MCHX) Q3 2026 Earnings Report
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MCHX Q3 2026 EPS Results
- Actual EPS
- $0.04
- Consensus EPS
- $0.04
- Beat/Miss
- Met expectations
- One Year Ago EPS
- $0.00
MCHX Q3 2026 Revenue Results
- Actual Revenue
- $15.97M
- Expected Revenue
- $16.24M
- Beat/Miss
- Missed by -$270.00K
- YoY Revenue Growth
- +38.74%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/10/2026
- Time
- After Close
- Conference Call
- Tuesday, November 10, 2026
MCHX Upcoming Earnings
Marchex's next earnings date is estimated for March 2, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MCHX Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall, with year-over-year revenue growth, a return to positive GAAP net income, substantial adjusted EBITDA improvement, lower operating expenses, early commercial traction for AI products, OEM distribution approval, and a large upsell and pipeline opportunity. The main negatives were lower gross margin, reorganization and acquisition-related costs, expected seasonal fourth-quarter revenue softness, and the absence of quantified customer-conversion metrics.
Company Guidance
For the fourth quarter of 2026, Marchex currently expects revenue of $15 million or more and adjusted EBITDA in the range of $2.3 million to $2.5 million, implying year-over-year growth on both revenue and adjusted EBITDA versus Q4 2025 revenue in the low $14 million; based on the current sales pipeline and cost efficiencies, there may be opportunities to offset or potentially outperform the typical seasonality depending on the timing and formalization of opportunities. Management said 2027 will be an increasing growth year, with a tangible path to a more than $100 million revenue business and an opportunity to increase adjusted EBITDA levels beyond third quarter's annualized run rate of more than $10 million, while selective investments focused primarily on sales and product development should not have any substantial effect on the EBITDA profile; first quarter 2027 financial outlook is currently anticipated in early March of 2027.
- Year-Over-Year Revenue GrowthThird-quarter revenue increased to $16 million from $15.2 million in the third quarter of 2025, an increase of approximately 5.3%. Management attributed the growth to favorable customer activity, upsell initiatives within the existing customer base, and coordinated sales efforts following the Archenia acquisition.
- Return to Positive GAAP Net IncomeThird-quarter net income was $1.3 million, or $0.03 per diluted share, compared with a net loss of $1.3 million, or negative $0.03 per diluted share, in the prior-year period. Management said the improvement primarily reflected operational and organizational initiatives that significantly reduced operating expenses.
- Significant Adjusted EBITDA ImprovementAdjusted EBITDA increased to $2.4 million from $0.5 million in the third quarter of 2025, an increase of $1.9 million, or approximately 380%. Adjusted EBITDA before approximately $0.2 million of reorganization and acquisition-related costs was $2.6 million.
- Operating Expense EfficiencyOperating expenses excluding cost of revenue declined to $6.7 million from $9.3 million a year earlier, a reduction of $2.6 million, or approximately 28%, reflecting expense-efficiency initiatives and an organizational realignment that streamlined operations and reduced the operating cost base.
- Archenia Integration and Expanded Solution OfferingSince completing the Archenia acquisition in July, Marchex has focused on combining the companies' complementary technologies. Management said the combined solutions help customers use consumer-conversation insights to qualify leads, improve call handling, and convert more inquiries into appointments and sales, while broadening the company's revenue-generation opportunities.
- AI Voice Agent Commercial DeploymentFollowing a successful paid pilot, an existing advertising and media customer commercially deployed Marchex's AI Voice Agent solution. The existing relationship represents approximately $400,000 in annualized revenue, and the new deployment is expected to generate incremental revenue in the remainder of 2026 and add more than $200,000 to annualized revenue from the customer in 2027.
- Additional AI Voice Agent TractionMarchex said it has added additional customers for its AI Voice Agent solution and is discussing paid pilot programs with several large enterprises. The solution qualifies callers when sales representatives are unavailable, helping businesses capture opportunities they might otherwise miss.
- OEM Approval and Dealer-Network ExpansionSince quarter end, Marchex received approval from a major automotive OEM to offer its Engage for Service solution through the OEM's dealer portal, allowing eligible dealers to use OEM co-op funding. The approval followed an early-access deployment across 75 dealerships and creates an additional channel for expanding adoption across the OEM's dealer network.
- Engage for Service Customer FunctionalityIn the 75-dealership early-access deployment, Engage for Service helped improve service operations and identify missed appointments and revenue opportunities. The solution also provides real-time alerts for missed appointment opportunities and customer frustration, helping dealership teams prioritize follow-up.
- Material Upsell Potential in Existing CustomersManagement said that, in selective customer examples, bundling insights, actions, and outcomes has produced revenue-per-customer expansion of 50% to 100% or more. Management identified penetration of the existing customer base as the company's biggest opportunity to drive growth toward its $100 million revenue goal.
- Large Incremental-Revenue PipelineMarchex said it has a double-digit number of customers with potential for $1 million or more of incremental revenue, with many potentially capable of delivering multimillions of dollars of revenue per year over time. A number of these opportunities have positively progressed since the prior quarter, and the company is seeking to formalize several by year-end.
- AI-Enabled Action and Outcome-Based ProductsManagement said larger deal sizes are being driven by the ability to bundle analytics and insights with action and revenue-generating outcomes. Three or four new products are currently being bundled and sold, with AI helping connect insights to automated actions and measure impacts such as increased bookings, appointment rates, and revenue.
- Strong Cash PositionMarchex ended the quarter with $8.7 million in cash and cash equivalents.
- Positive Fourth-Quarter Year-Over-Year OutlookFor the fourth quarter of 2026, Marchex expects revenue of $15 million or more and adjusted EBITDA of $2.3 million to $2.5 million. Management said the revenue guidance implies year-over-year growth compared with the prior year's fourth-quarter revenue in the low $14 million range.
- 2027 Growth and Profitability OpportunityManagement said the customer and product developments reinforce its belief that 2027 will be an increasing growth year and that Marchex has a tangible path to becoming a more than $100 million revenue business. Based on current operating efficiencies, the company also sees an opportunity to increase adjusted EBITDA beyond the third quarter's annualized run rate of more than $10 million.
- Targeted Investments with Expected EBITDA DisciplineMarchex plans to make selective investments primarily in sales and product development to support growth. Management said that, based on its current outlook, these investments should not have any substantial effect on the EBITDA profile, while additional revenue and planned operating efficiencies could support adjusted EBITDA above the current $10 million-plus annualized run rate.
- Leadership and Investor-Relations ExpansionTravis Fairchild was appointed President effective the day before the call, bringing experience as Archenia's former CEO and 18 years in Marchex strategy and development roles. Troy Hartless will remain Chief Revenue Officer. Marchex also expanded its Investor Relations program, plans to attend conferences, and is seeking additional sell-side research coverage.
- Management View of Valuation and EBITDA ProgressManagement said the stock is meaningfully undervalued and cited approximately 1x sales on an enterprise-value basis and approximately 6x enterprise value to adjusted EBITDA. Management also said the current annualized adjusted EBITDA level is the highest the company has seen in over a decade.
MCHX Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Mar 02, 2027 | 2026 (Q4) | 0.04- | -0.04 | ― | ― |
| Nov 10, 2026 | 2026 (Q3) | 0.040.04 | 0 | ― | |
| Aug 12, 2026 | 2026 (Q2) | 0.020.00 | 0.02 | -100.00% (-0.02) | |
| May 13, 2026 | 2026 (Q1) | 0.00-0.03 | -0.04 | 25.00% (+0.01) | |
| Mar 25, 2026 | 2025 (Q4) | -0.01-0.04 | -0.03 | -33.33% (-0.01) | |
| Nov 13, 2025 | 2025 (Q3) | 0.010.00 | -0.01 | 100.00% (+0.01) | |
| Aug 12, 2025 | 2025 (Q2) | -0.010.02 | -0.01 | 300.00% (+0.03) | |
| May 13, 2025 | 2025 (Q1) | -0.02-0.04 | -0.02 | -100.00% (-0.02) | |
| Mar 06, 2025 | 2024 (Q4) | -0.02-0.03 | 0 | ― | |
| Oct 31, 2024 | 2024 (Q3) | -0.01-0.01 | -0.01 | 0.00% (+0.00) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
