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Marchex
(NASDAQ:MCHX)
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Rating:51Neutral
Price Target:
$1.50
▼(-17.13% Downside)
Action:Reiterated
Date:09/19/26
The score is held back primarily by weak financial performance (ongoing losses, negative operating/free cash flow, and revenue contraction) and bearish technicals (price below key moving averages with negative MACD). These are partially offset by a strong balance sheet with minimal leverage and a more upbeat earnings outlook driven by the Archenia acquisition and higher Q3 guidance with improved adjusted EBITDA expectations.
Positive Factors
Broader AI platform
Completing Archenia broadens Marchex from conversation analytics into customer acquisition, qualification and measurable outcomes. This wider platform can support bundled selling and cross-sell, potentially improving customer value and creating a more durable growth engine as integration progresses.
Negative Factors
Revenue contraction and losses
Multi-year revenue contraction, including a sharp TTM decline, limits operating leverage while the company remains loss-making with negative EBIT and EBITDA margins. Even with materially improved losses, sustained growth is still needed for fixed-cost absorption and a credible path to durable profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Broader AI platform
Completing Archenia broadens Marchex from conversation analytics into customer acquisition, qualification and measurable outcomes. This wider platform can support bundled selling and cross-sell, potentially improving customer value and creating a more durable growth engine as integration progresses.
Read all positive factors
Marchex (MCHX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$57.20M
Dividend Yield17.73%
Average Volume (3M)46.16K
Price to Earnings (P/E)―
Beta (1Y)1.07
Revenue Growth-7.47%
EPS Growth-16.48%
CountryUS
Employees139
SectorCommunication Services
Sector Strength97
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)-0.13
Shares Outstanding39,676,964
10 Day Avg. Volume87,432
30 Day Avg. Volume46,163
Financial Highlights & Ratios
PEG Ratio-1.52
Price to Book (P/B)2.42
Price to Sales (P/S)1.60
P/FCF Ratio-50.47
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$4.00Price Target Upside120.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.05
Revenue Forecast (FY)$44.90M
Marchex Business Overview & Revenue Model
Company Description
Marchex, Inc. is an analytical technology and solutions company that assists businesses throughout the United States and Canada in optimizing their customer acquisition journey. The company empowers clients to connect with, engage, measure, and su...
How the Company Makes Money
Marchex primarily makes money by selling access to its conversation intelligence software and related services to business customers. Revenue is generally generated through recurring software subscriptions (typically sold to enterprises or multi-l...
Marchex Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call emphasized strategic progress—most notably the Archenia acquisition, early cross-sell wins that materially increased customer annualized revenue in select cases, and aggressive Q3 revenue guidance reflecting the combined company. Management also outlined cost-efficiency work and a path to improved adjusted EBITDA margins and Rule of 30–40 metrics. Counterbalancing these positives are a near-term cash decline driven by acquisition and integration costs, high revenue concentration in top customers, and execution risk around converting pilots to recurring, scalable deployments. On balance, the highlights (acquisition, meaningful guidance lift, early customer proofs, and margin leverage potential) outweighed the lowlights, though execution remains critical.Positive Updates
Acquisition of Archenia Completed
Marchex closed the acquisition of Archenia on July 1, 2026, creating a combined AI-powered conversational intelligence and performance-based customer qualification platform intended to sell bundled solutions that link insights, automated actions and measurable outcomes.
Negative Updates
Q2 Cash Decline
Cash decreased to $8.2M at the end of Q2 2026 from $9.0M at the end of Q1 2026, a decline of approximately 8.9%, primarily due to transaction expenses, organizational realignment activities and other efficiency initiatives associated with the acquisition.
Read all updates
Q2-2026 Updates
Positive
Negative
Acquisition of Archenia Completed
Marchex closed the acquisition of Archenia on July 1, 2026, creating a combined AI-powered conversational intelligence and performance-based customer qualification platform intended to sell bundled solutions that link insights, automated actions and measurable outcomes.
Read all positive updates
Company Guidance
The company guided that Q2 revenue was $11.0M (up from $10.6M in Q1) with $8.2M cash on hand vs. $9.0M at quarter end, noted the Archenia acquisition closed July 1 (Q2 results exclude Archenia; Q3 will include a full quarter), and provided Q3 revenue guidance of $16.0M–$16.5M with adjusted EBITDA of $2.3M–$2.5M; management reiterated top-100 customers represent ~90% of revenue, said it has made presentations to nearly one‑third of that group (about half of those have purchased), cited a double‑digit number of customers with potential for 7‑figure incremental revenue (and many with multi‑million potential), gave customer examples (a home‑services client rising from ~$500K to >$1M annualized after adopting AI verified outcomes; an auto services client >$300K expanded a pilot from 40 to >60 locations with potential to reach at least $1M; an ad/media client at ~$400K that could grow >50% in 2027 if a pilot converts), signaled improving margins from a lower cost structure and operating leverage, reiterated a long‑term target to build a $100M+ business and pursue a Rule of 30–40 profile, noted an existing 3.0M share buyback authorization, and said it will provide Q4 and initial 2027 outlooks in early November.Marchex Financial Statement Overview
Summary
Income Statement
33
Negative
Balance Sheet
78
Positive
Cash Flow
40
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 43.98M | 45.42M | 48.12M | 49.91M | 52.17M | 53.48M |
| Gross Profit | 26.92M | 28.70M | 30.95M | 29.33M | 31.71M | 31.78M |
| EBITDA | -3.42M | -2.48M | -1.80M | -5.76M | -4.03M | 1.85M |
| Net Income | -5.47M | -5.24M | -4.95M | -9.91M | -8.24M | -4.39M |
Balance Sheet | ||||||
| Total Assets | 37.63M | 39.68M | 43.20M | 47.48M | 56.79M | 65.83M |
| Cash, Cash Equivalents and Short-Term Investments | 8.15M | 9.94M | 12.77M | 14.61M | 20.47M | 27.09M |
| Total Debt | 488.00K | 721.00K | 1.22M | 2.10M | 1.64M | 3.26M |
| Total Liabilities | 8.60M | 9.60M | 10.57M | 11.61M | 12.68M | 14.32M |
| Stockholders Equity | 29.03M | 30.09M | 32.63M | 35.87M | 44.11M | 51.50M |
Cash Flow | ||||||
| Free Cash Flow | -1.49M | -1.44M | -1.53M | -5.77M | -5.16M | -7.69M |
| Operating Cash Flow | -752.00K | -1.41M | -1.10M | -4.39M | -2.29M | -6.34M |
| Investing Cash Flow | -1.46M | -1.32M | -429.00K | -1.31M | -2.87M | -951.00K |
| Financing Cash Flow | -124.00K | -97.00K | -307.00K | -160.00K | -1.46M | 528.00K |
Marchex Technical Analysis
Negative
1.81
Price Trends
1.65
Negative
1.64
Negative
1.62
Negative
Market Momentum
-0.11
Negative
35.31
Neutral
33.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCHX, the sentiment is Negative. The current price of 1.81 is above the 20-day moving average (MA) of 1.43, above the 50-day MA of 1.65, and above the 200-day MA of 1.62, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 35.31 is Neutral, neither overbought nor oversold. The STOCH value of 33.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MCHX.
Marchex Risk Analysis
Marchex disclosed 36 risk factors in its most recent earnings report. Marchex reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Marchex Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
51 Neutral | $57.20M | -10.79 | -18.24% | 17.73% | -7.47% | -16.48% | |
51 Neutral | $34.51M | -6.02 | -30.13% | 10.90% | -11.62% | -87.59% | |
46 Neutral | $101.46M | -4.12 | -151.70% | ― | -12.05% | 43.57% | |
45 Neutral | $9.26M | -1.80 | -43.78% | ― | -46.61% | 7.26% | |
40 Underperform | $1.23M | -0.04 | 570.82% | ― | -15.24% | 61.99% |
* Communication Services Sector Average
MCHX
Marchex
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Marchex Corporate Events
Business Operations and StrategyM&A TransactionsPrivate Placements and FinancingShareholder Meetings
Marchex Completes Archenia Acquisition to Boost AI Marketing
Positive
Jul 1, 2026
On July 1, 2026, Marchex completed its previously announced acquisition of Archenia, Inc., a performance-based marketing technology firm, by purchasing 100% of its outstanding shares from existing stockholders, including Chairman Russell C. Horowi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.