Marchex (MCHX) AI Stock Analysis

• Market Cap: $76.43M
• Dividend Yield: N/A
• Average Volume (3M): 32.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.22
• Revenue Growth: -4.32%
• EPS Growth: -13.99%
• Country: US
• Employees: 163
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 0.00
• Shares Outstanding: 39,518,050
• 10 Day Avg. Volume: 47,109
• 30 Day Avg. Volume: 32,057
• PEG Ratio: 0.29
• Price to Book (P/B): 2.31
• Price to Sales (P/S): 1.57
• P/FCF Ratio: -49.27
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 2.08
• Enterprise Value/Gross Profit: 3.27
• Enterprise Value/Ebitda: -41.33
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $1.50 ▼(-5.66% Downside)

Marchex's overall stock score reflects significant financial challenges, particularly in profitability and cash flow generation. The technical analysis indicates bearish momentum, and the valuation is unattractive due to ongoing losses and no dividend yield. Despite some optimism from strategic initiatives, the current financial and technical conditions weigh heavily on the stock's attractiveness.

Positive Factors

Strategic Expansion

The acquisition of Archenia is expected to enhance Marchex's platform, potentially improving customer acquisition and optimizing outcomes, which could drive long-term growth and competitive advantage.

Product Innovation

New product launches and increased sales bookings indicate a strong pipeline and innovation capability, positioning Marchex for future growth and improved market penetration.

Operating Leverage

The improvement in adjusted EBITDA reflects effective cost management and operational efficiency, which can enhance profitability and financial stability over time.

Negative Factors

Profitability Challenges

Persistent profitability challenges, as evidenced by negative profit margins, highlight operational inefficiencies that could hinder long-term financial performance.

Cash Flow Issues

The significant decline in cash flow generation capability poses a risk to Marchex's ability to fund operations and growth initiatives, impacting financial flexibility.

Revenue Decline

The ongoing revenue decline suggests challenges in maintaining market share and customer retention, which could affect long-term growth prospects.

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 enterprises, which depend on inbound phone calls to drive sales, appointments, and reservations; Marchex Call Analytics, Conversation Edition that enable actionable insights for enterprise, mid-sized, and small businesses; Text Analytics and Communications, a solution for intelligent mobile messaging, which enables sales, marketing, and operations teams in businesses to engage in two-way communications with field staff, prospects, and customers through text/SMS messages; Call Monitoring for call recording; and Marchex Marketing Edge, an analytics solution for marketers in enterprise, mid-sized and small businesses that depend on inbound phone calls to drive sales, appointments and reservations. The company's Marchex Sales Engagement products comprise Marchex Engage, which combines Marchex artificial intelligence and machine learning with call monitoring and scoring services; Marchex Spotlight, a product for corporate and regional managers; Marchex Engage for Automotive; and Marchex Platform Services that allows businesses to add Marchex conversation intelligence to their existing workflows and enabling them to decode what happens in their conversations with customers. Marchex, Inc. was incorporated in 2003 and is headquartered in Seattle, Washington.

How the Company Makes Money

Marchex generates revenue through a combination of subscription fees and performance-based pricing models. Its primary revenue streams include the sale of call tracking services, which allow businesses to track and analyze incoming calls from various advertising channels. Additionally, the company earns money from its conversation analytics platform, which provides actionable insights based on customer phone interactions. Key partnerships with major advertising platforms and agencies enhance Marchex's market reach and effectiveness, while its focus on delivering high-quality analytics helps attract and retain a diverse client base across multiple industries.

Marchex Financial Statement Overview

Summary

Marchex faces significant financial challenges, particularly in profitability and cash flow generation. Despite a strong equity position with low leverage, the company struggles with negative profit margins and declining revenue, indicating a need for strategic interventions.

Income Statement

Marchex's income statement reveals challenges in profitability and revenue growth. The TTM data shows a negative net profit margin of -9.76% and a declining revenue growth rate of -2.18%. Despite a relatively stable gross profit margin of 64.54%, the company struggles with negative EBIT and EBITDA margins, indicating operational inefficiencies. The consistent decline in revenue over the years highlights a need for strategic adjustments to reverse this trend.

Balance Sheet

The balance sheet shows a strong equity position with a low debt-to-equity ratio of 0.027, indicating low leverage and financial stability. However, the return on equity is negative at -15.09%, reflecting the company's inability to generate profits from its equity base. The equity ratio stands at a healthy level, suggesting a solid capital structure, but the negative ROE points to inefficiencies in utilizing shareholder funds.

Cash Flow

Cash flow analysis indicates significant challenges, with negative operating and free cash flows. The free cash flow growth rate is -45.09%, highlighting a deterioration in cash generation capabilities. The operating cash flow to net income ratio is negative, suggesting that the company is not converting its accounting profits into cash effectively. Despite a high free cash flow to net income ratio, the overall cash flow position remains weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	46.49M	48.12M	49.91M	52.17M	53.48M	51.22M
Gross Profit	29.62M	30.95M	29.33M	31.71M	31.78M	30.33M
EBITDA	-2.34M	-1.80M	-5.76M	-4.03M	1.85M	-36.66M
Net Income	-4.83M	-4.95M	-9.91M	-8.24M	-4.39M	-38.45M
Balance Sheet
Total Assets	41.15M	43.20M	47.48M	56.79M	65.83M	76.93M
Cash, Cash Equivalents and Short-Term Investments	10.32M	12.77M	14.61M	20.47M	27.09M	33.85M
Total Debt	802.00K	1.22M	2.10M	1.64M	3.26M	10.09M
Total Liabilities	9.20M	10.57M	11.61M	12.68M	14.32M	24.24M
Stockholders Equity	31.94M	32.63M	35.87M	44.11M	51.50M	52.69M
Cash Flow
Free Cash Flow	-850.00K	-1.53M	-5.77M	-5.16M	-7.69M	-4.73M
Operating Cash Flow	-654.00K	-1.10M	-4.39M	-2.29M	-6.34M	-3.37M
Investing Cash Flow	-1.06M	-429.00K	-1.31M	-2.87M	-951.00K	981.00K
Financing Cash Flow	-46.00K	-307.00K	-160.00K	-1.46M	528.00K	-5.49M

Marchex Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 1.59 is below the 20-day moving average (MA) of 1.61, below the 50-day MA of 1.75, and below the 200-day MA of 1.81, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 45.60 is Neutral, neither overbought nor oversold. The STOCH value of 75.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MCHX.

Marchex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
INUV	48 Neutral	$41.74M	-8.73	-38.21%	―	25.10%	50.62%
MCHX	45 Neutral	$76.43M	-16.17	-14.61%	―	-4.32%	-13.99%
HHS	45 Neutral	$24.10M	―	-26.62%	―	-11.07%	82.06%
DRCT	41 Neutral	$4.60M	―	―	―	-62.46%	-12.90%
FLNT	38 Underperform	$56.99M	-1.47	-127.41%	―	-18.94%	37.05%

Marchex Corporate Events

Marchex Earnings Call: Strategic Moves Amid Challenges

The recent earnings call for Marchex presented a mixed sentiment, balancing both positive achievements and challenges. While the company celebrated strategic advancements, product launches, and a promising acquisition, it also faced a slight revenue decline and anticipated lower performance in the upcoming quarter. Despite these hurdles, Marchex remains optimistic about its future growth and profitability.

Marchex Reports Q3 2025 Results and Acquisition Plans

Marchex, Inc. is a company specializing in AI and conversational intelligence, providing solutions that enhance operational efficiency and drive revenue growth across various industries. In its latest earnings report, Marchex announced a decrease in GAAP revenue to $11.5 million for the third quarter of 2025, compared to $12.6 million in the same period of 2024. Despite the revenue decline, the company reported an improved adjusted EBITDA of $0.6 million, up from $0.3 million the previous year, highlighting its operational leverage. Additionally, Marchex has entered into an agreement to acquire Archenia, a company focused on AI-driven customer acquisition, which is expected to enhance Marchex’s market reach and strategic capabilities. The acquisition, if completed, could lead to a significant expansion in Marchex’s addressable market and revenue growth potential. Looking ahead, Marchex management remains optimistic about sustainable sales growth and improved EBITDA margins, driven by new product launches and the completion of its technology platform migration.

Marchex Announces Acquisition of Archenia, Inc.

On November 13, 2025, Marchex announced an agreement in principle to acquire Archenia, Inc., a performance-based customer qualification company, for $10 million in convertible promissory notes. This acquisition aims to create a vertically focused, AI-driven customer acquisition platform, potentially enhancing Marchex’s revenue scale, market reach, and strategic flexibility. Additionally, Marchex reported its third-quarter 2025 financial results, highlighting a decrease in GAAP revenue to $11.5 million compared to the previous year, but an improvement in adjusted EBITDA to $1.1 million. The company is optimistic about its future growth prospects, anticipating a 10% revenue growth in 2026 due to its ongoing product launches and technology platform migration.

The most recent analyst rating on (MCHX) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Marchex stock, see the MCHX Stock Forecast page.

Marchex Announces Executive Team Reshuffle for Growth

On September 16, 2025, Marchex announced significant changes to its executive team, with CEO Edwin Miller stepping down to become a senior advisor, and new appointments including Troy Hartless as President, Francis Feeney as Chief Operating Officer, and Brian Nagle as Chief Financial Officer. These changes are part of Marchex’s strategic evolution towards growth, leveraging its expanding AI product portfolio to enhance customer penetration and market reach, positioning the company for future growth and increased operational efficiencies.

The most recent analyst rating on (MCHX) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Marchex stock, see the MCHX Stock Forecast page.