Marchex (MCHX)
NASDAQ:MCHX
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Marchex
(NASDAQ:MCHX)
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Rating:56Neutral
Price Target:
$1.50
▼(-13.79% Downside)
Action:Reiterated
Date:05/15/26
The score is driven primarily by a stable balance sheet and improving forward EBITDA guidance, offset by ongoing losses and continued revenue contraction. Technical indicators are broadly neutral, while valuation support is limited due to negative earnings and no dividend yield provided.
Positive Factors
Conservative balance sheet / low leverage
Very low leverage and a sizable equity base provide durable financial flexibility: the company can fund product investments, absorb integration or migration costs, and pursue the Archenia deal without immediate refinancing pressure, reducing solvency risk despite ongoing operating losses.
Negative Factors
Multi-year revenue contraction
A persistent top-line decline reduces scale economics and makes margin recovery harder. Even with margin and product initiatives, reversing multi-year revenue loss is needed to achieve durable profitability and to realize the company’s stated run‑rate and Rule‑of‑30–40 targets.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / low leverage
Very low leverage and a sizable equity base provide durable financial flexibility: the company can fund product investments, absorb integration or migration costs, and pursue the Archenia deal without immediate refinancing pressure, reducing solvency risk despite ongoing operating losses.
Read all positive factors
Marchex (MCHX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$73.53M
Dividend YieldN/A
Average Volume (3M)32.06K
Price to Earnings (P/E)―
Beta (1Y)1.02
Revenue Growth-6.92%
EPS Growth10.29%
CountryUS
Employees163
SectorCommunication Services
Sector Strength97
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)-0.12
Shares Outstanding39,636,246
10 Day Avg. Volume47,109
30 Day Avg. Volume32,057
Financial Highlights & Ratios
PEG Ratio-1.53
Price to Book (P/B)2.42
Price to Sales (P/S)1.60
P/FCF Ratio-50.47
Enterprise Value/Market Cap0.90
Enterprise Value/Revenue1.48
Enterprise Value/Gross Profit2.36
Enterprise Value/Ebitda-38.45
Forecast
1Y Price Target
$4.00Price Target Upside129.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.01
Revenue Forecast (FY)$46.92M
Marchex Business Overview & Revenue Model
Company Description
Marchex, Inc. operates as an analytics and solutions company that helps businesses connect, drive, measure, and convert callers into customers in the United States and Canada. Its products include Marchex Call Analytics, an analytics platform for ...
How the Company Makes Money
Marchex primarily makes money by selling access to its marketing analytics and conversation intelligence capabilities to business customers. Revenue is generally generated through (1) recurring subscription/software fees for its platforms and anal...
Marchex Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call emphasizes a clear strategic pivot toward AI-driven bundled solutions, early customer validation, improved adjusted EBITDA guidance, and potential transformative upside from the Archenia acquisition. Offsetting items include a modest sequential revenue decline in Q1, a cash reduction from one-time payroll/severance, revenue impacts from platform migration, and execution/transaction risks tied to concentration in the top 100 customers and the pending acquisition. Overall, management presented stronger near-term profitability guidance and encouraging early adoption signals that outweigh the operational headwinds described.Positive Updates
Strategic AI Inflection Point
Management states the company is at a positive inflection point driven by AI: evolving from analytics to bundled AI-powered solutions that combine insights, automated actions and verifiable outcomes, positioning Marchex as an AI beneficiary leveraging first-party data and vertical expertise.
Negative Updates
Sequential Revenue Decline in Q1
Q1 2026 revenue of $10.6M was down from $10.8M in Q4 2025, a sequential decrease of approximately 1.9%, driven in part by migration impacts from legacy platforms to the new Marchex Engage platform that reduced revenue run rates entering 2026.
Read all updates
Q1-2026 Updates
Positive
Negative
Strategic AI Inflection Point
Management states the company is at a positive inflection point driven by AI: evolving from analytics to bundled AI-powered solutions that combine insights, automated actions and verifiable outcomes, positioning Marchex as an AI beneficiary leveraging first-party data and vertical expertise.
Read all positive updates
Company Guidance
Marchex guided that Q2 2026 revenue should increase sequentially from Q1’s $10.6M (Q4’25 was $10.8M) and raised Q2 adjusted EBITDA to $1.6–$1.8M (from prior “> $1M”), helped by OpEx efficiencies of roughly 5%+ versus Q1 and a cash balance of $9.0M (down from $9.9M); for Q3 they expect further sequential revenue acceleration and standalone adjusted EBITDA “in the $2M range or more,” and if the Archenia deal closes by Q3 the combined company could deliver Q3 adjusted EBITDA of ~$2.5M+ (or an annualized run rate of $10M+); management expects quarterly revenue increases through 2026 with potential run-rate revenue growth of ~10% from 2025 year‑end, sees combined-company revenue run‑rates of about $15M quarterly ($60M annualized) that could grow 15–20% in 2026, anticipates adjusted EBITDA margins trending to 10%+ (supporting a possible Rule-of-30–40 outcome), and highlighted that top 100 customers drive ~90% of revenue, with presentations made to nearly 1/3 of them and roughly half of those already purchasing (some bundles indicating potential to roughly double revenue per customer).Marchex Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
74
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 44.63M | 45.42M | 48.12M | 49.91M | 52.17M | 53.48M |
| Gross Profit | 28.00M | 28.70M | 30.95M | 29.33M | 31.71M | 31.78M |
| EBITDA | -1.72M | -1.70M | -1.80M | -5.76M | -4.03M | 1.85M |
| Net Income | -4.98M | -5.24M | -4.95M | -9.91M | -8.24M | -4.39M |
Balance Sheet | ||||||
| Total Assets | 38.55M | 39.68M | 43.20M | 47.48M | 56.79M | 65.83M |
| Cash, Cash Equivalents and Short-Term Investments | 9.02M | 9.94M | 12.77M | 14.61M | 20.47M | 27.09M |
| Total Debt | 578.00K | 721.00K | 1.22M | 2.10M | 1.64M | 3.26M |
| Total Liabilities | 9.69M | 9.60M | 10.57M | 11.61M | 12.68M | 14.32M |
| Stockholders Equity | 28.85M | 30.09M | 32.63M | 35.87M | 44.11M | 51.50M |
Cash Flow | ||||||
| Free Cash Flow | -386.00K | -1.44M | -1.53M | -5.77M | -5.16M | -7.69M |
| Operating Cash Flow | 700.00K | -1.41M | -1.10M | -4.39M | -2.29M | -6.34M |
| Investing Cash Flow | -1.44M | -1.32M | -429.00K | -1.31M | -2.87M | -951.00K |
| Financing Cash Flow | -259.00K | -97.00K | -307.00K | -160.00K | -1.46M | 528.00K |
Marchex Technical Analysis
Positive
1.74
Price Trends
1.58
Positive
1.60
Positive
1.70
Negative
Market Momentum
<0.01
Positive
57.39
Neutral
59.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCHX, the sentiment is Positive. The current price of 1.74 is above the 20-day moving average (MA) of 1.67, above the 50-day MA of 1.58, and above the 200-day MA of 1.70, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 57.39 is Neutral, neither overbought nor oversold. The STOCH value of 59.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MCHX.
Marchex Risk Analysis
Marchex disclosed 33 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% | |
56 Neutral | $73.53M | -9.87 | -16.69% | ― | -6.92% | 10.29% | |
48 Neutral | $21.05M | 4.02 | -44.34% | ― | -27.87% | 61.14% | |
45 Neutral | $83.19M | -4.62 | -134.35% | ― | -18.64% | 51.79% | |
44 Neutral | $20.77M | -6.70 | -26.62% | ― | -14.38% | 96.63% | |
43 Neutral | $3.12M | -0.09 | ― | ― | -31.04% | 49.18% |
* Communication Services Sector Average
MCHX
Marchex
1.68
0.01
0.60%
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FLNT
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DRCT
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3.50
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Marchex Corporate Events
Business Operations and StrategyM&A Transactions
Marchex Signs Agreement to Acquire Archenia with Earnouts
Positive
May 12, 2026
On May 8, 2026, Marchex, Inc. signed a Stock Purchase Agreement to acquire 100% of Archenia, Inc. for a base consideration of $10 million in convertible promissory notes bearing 6% interest, payable in three equal tranches over 12, 18 and 24 month...
Business Operations and StrategyFinancial Disclosures
Marchex Subleases Seattle Office and Records Impairment Charge
Negative
May 1, 2026
On April 29, 2026, Marchex entered into a sublease agreement with RentSpree for its entire 12,300‑square‑foot office at 1200 5th Avenue, Suite 1300, in Seattle, with the term running from May 1, 2026, through September 28, 2027. RentSp...
Financial DisclosuresLegal Proceedings
Marchex Resolves Delaware Litigation with $2 Million Settlement
Positive
Apr 15, 2026
Marchex, Inc. reported that it has finalized a settlement in the civil action Chris Barnard and Sinc McEvenue v. Marchex, Inc., previously disclosed in its 2025 annual filing, confirming that the anticipated settlement recorded as an expense accru...
Regulatory Filings and Compliance
Marchex Announces Entry into New Material Definitive Agreement
Neutral
Feb 18, 2026
The referenced text appears to be a fragment of a regulatory or disclosure statement, indicating that certain information is being incorporated or referenced, but it does not contain substantive operational, financial, or strategic details about M...
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.