Marchex (MCHX)
NASDAQ:MCHX
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Marchex
(NASDAQ:MCHX)
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Rating:50Neutral
Price Target:
$1.50
▼(-13.79% Downside)
Action:ReiteratedDate:03/26/26
The score is held back primarily by weak financial performance (declining revenue, ongoing losses, and multi-year cash burn) despite a conservatively levered balance sheet. Technicals are neutral-to-weak with the price below key longer-term moving averages. Offsetting these, the latest earnings call provides a more positive forward setup with specific 2026 adjusted EBITDA targets, expected sequential revenue improvement, and early AI product traction, though execution and acquisition-contingency risks remain.
Positive Factors
Completed platform migration
Completing the technology migration is a durable operational improvement: it removes legacy integration drag, standardizes the customer estate, and enables faster product releases and AI feature rollouts. This structural upgrade supports higher long-term product velocity, lower support costs and clearer upsell paths.
Negative Factors
Negative cash flow & losses
Multi-year cash burn and ongoing net losses limit the company's ability to self-fund growth initiatives or absorb prolonged sales cycles. Persistent negative free cash flow raises reliance on external financing or equity actions, increasing risk that planned investments or acquisitive growth will be constrained if revenues don’t stabilize.
Read all positive and negative factors
Positive Factors
Negative Factors
Completed platform migration
Completing the technology migration is a durable operational improvement: it removes legacy integration drag, standardizes the customer estate, and enables faster product releases and AI feature rollouts. This structural upgrade supports higher long-term product velocity, lower support costs and clearer upsell paths.
Read all positive factors
Marchex (MCHX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$68.94M
Dividend YieldN/A
Average Volume (3M)32.06K
Price to Earnings (P/E)―
Beta (1Y)1.14
Revenue Growth-4.32%
EPS Growth-13.99%
CountryUS
Employees163
SectorCommunication Services
Sector Strength97
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)-0.04
Shares Outstanding39,249,270
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 Cap0.87
Enterprise Value/Revenue1.31
Enterprise Value/Gross Profit2.08
Enterprise Value/Ebitda-31.10
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.01
Revenue Forecast (FY)$48.60M
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:Mar 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call presents a cautiously optimistic outlook: near-term results showed a modest sequential revenue decline and a slight cash decrease driven largely by platform migration, but management completed the migration, reported early commercial traction for new AI-driven bundled solutions (including initial orders and trials), outlined concrete adjusted EBITDA and revenue growth targets for 2026 (including a ~10% run-rate growth target and 10%+ margin goal), and highlighted a potentially transformative Archenia acquisition that could expand annualized run rate to ~$60M with projected 15%–20% growth in 2026 if closed. Execution risks remain (migration dilution effects, acquisition contingencies, customer concentration and currently flat bookings), but the balance of forward-looking strategic progress and clear targets leads management to a positive near-to-medium term outlook.Positive Updates
Completed Platform Migration
Primary completion of the technology platform migration by year-end 2025, migrating ~1,000 customers to the new Marchex Engage platform, positioning the company to leverage new AI capabilities and accelerate product delivery.
Negative Updates
Sequential Revenue Decline in Q4
Revenue fell to $10.8M in Q4 2025 from $11.5M in Q3 2025, a decline of approximately 6.1% quarter-over-quarter, in part due to migration-related revenue dilution and offsets.
Read all updates
Q4-2025 Updates
Positive
Negative
Completed Platform Migration
Primary completion of the technology platform migration by year-end 2025, migrating ~1,000 customers to the new Marchex Engage platform, positioning the company to leverage new AI capabilities and accelerate product delivery.
Read all positive updates
Company Guidance
Marchex guided that Q1 2026 revenue is expected to be roughly in line with Q4 2025 levels (Q4 revenue was $10.8M, down from $11.5M in Q3), noting migration-related revenue dilution from the December 2025 platform switchover, and that adjusted EBITDA in Q1 should be $0.5M or more; management expects Q2 2026 revenue to rise sequentially versus Q1 with adjusted EBITDA potentially exceeding $1.0M, and anticipates sequential quarterly revenue increases through 2026 that could lift revenue run rates about 10% above 2025 year-end levels. They also forecast adjusted EBITDA margins of 10%+ in 2026, see the potential combined Marchex–Archenia company at roughly $15M quarterly (~$60M annualized) with 15%–20% growth in ’26, and suggested that achieving double-digit margins plus that growth could put the business on a Rule-of-30-to-40 trajectory; cash on the balance sheet was $9.9M (down from $10.3M).Marchex Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
67
Positive
Cash Flow
29
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 45.42M | 48.12M | 49.91M | 52.17M | 53.48M |
| Gross Profit | 28.79M | 30.95M | 29.33M | 31.71M | 31.78M |
| EBITDA | -3.00M | -1.80M | -5.76M | -4.03M | 1.85M |
| Net Income | -5.24M | -4.95M | -9.91M | -8.24M | -4.39M |
Balance Sheet | |||||
| Total Assets | 39.68M | 43.20M | 47.48M | 56.79M | 65.83M |
| Cash, Cash Equivalents and Short-Term Investments | 9.94M | 12.77M | 14.61M | 20.47M | 27.09M |
| Total Debt | 721.00K | 1.22M | 2.10M | 1.64M | 3.26M |
| Total Liabilities | 9.60M | 10.57M | 11.61M | 12.68M | 14.32M |
| Stockholders Equity | 30.09M | 32.63M | 35.87M | 44.11M | 51.50M |
Cash Flow | |||||
| Free Cash Flow | -1.44M | -1.53M | -5.77M | -5.16M | -7.69M |
| Operating Cash Flow | -1.41M | -1.10M | -4.39M | -2.29M | -6.34M |
| Investing Cash Flow | -1.32M | -429.00K | -1.31M | -2.87M | -951.00K |
| Financing Cash Flow | -97.00K | -307.00K | -160.00K | -1.46M | 528.00K |
Marchex Technical Analysis
Neutral
1.74
Price Trends
1.52
Positive
1.59
Negative
1.76
Negative
Market Momentum
0.03
Negative
55.65
Neutral
74.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCHX, the sentiment is Neutral. The current price of 1.74 is above the 20-day moving average (MA) of 1.49, above the 50-day MA of 1.52, and below the 200-day MA of 1.76, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 55.65 is Neutral, neither overbought nor oversold. The STOCH value of 74.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MCHX.
Marchex Risk Analysis
Marchex disclosed 32 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% | |
50 Neutral | $68.94M | -13.92 | -15.09% | ― | -4.32% | -13.99% | |
47 Neutral | $91.52M | -2.29 | -134.23% | ― | -18.94% | 37.05% | |
44 Neutral | $27.66M | -7.12 | -44.34% | ― | 25.10% | 50.62% | |
42 Neutral | $1.88M | -0.06 | ― | ― | -62.46% | -12.90% | |
41 Neutral | $17.94M | -27.44 | -26.62% | ― | -11.07% | 82.06% |
* Communication Services Sector Average
MCHX
Marchex
1.57
0.19
13.77%
HHS
Harte-Hanks
2.42
-2.18
-47.39%
INUV
Inuvo
1.88
-1.79
-48.77%
FLNT
Fluent
3.07
0.87
39.55%
DRCT
Direct Digital Holdings
0.67
-25.67
-97.45%
Marchex Corporate Events
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...
Regulatory Filings and Compliance
Marchex Announces Entry into New Material Definitive Agreement
Neutral
Jan 31, 2026
Marchex released a brief update that appears to reference information incorporated from another section or filing but does not itself provide substantive new operational or financial details. As the text only indicates that information is set fort...
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.