Marchex (MCHX) AI Stock Analysis

• Market Cap: $72.88M
• Dividend Yield: N/A
• Average Volume (3M): 32.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• 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: 39,245,335
• 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: 1.33
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: $1.50 ▼(-10.71% Downside)

Marchex's overall stock score reflects significant financial challenges, particularly in profitability and cash flow. Despite these issues, the company's strategic initiatives, including acquisitions and product launches, provide a basis for potential future growth. Technical indicators and valuation metrics present a mixed picture, with some positive momentum but also significant valuation concerns.

Positive Factors

Strategic Acquisitions

The acquisition of Archenia is expected to enhance Marchex's AI-driven platform, potentially increasing market reach and revenue scale, supporting long-term growth.

Product Launches

New product launches and increased sales bookings indicate strong market demand and operational capability, supporting future revenue growth and competitive positioning.

Low Leverage

A low debt-to-equity ratio suggests financial stability and flexibility, allowing Marchex to invest in growth opportunities without significant financial strain.

Negative Factors

Negative Profit Margins

Persistent negative profit margins highlight operational inefficiencies and profitability challenges, potentially limiting reinvestment in growth initiatives.

Declining Revenue

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

Weak Cash Flow

Weak cash flow generation undermines the company's ability to fund operations and strategic initiatives, posing risks to financial sustainability.

Marchex Business Overview & Revenue Model

Company Description

Marchex, Inc. is a leading provider of call analytics and conversation intelligence solutions, primarily serving businesses in the advertising and marketing sectors. The company specializes in helping clients optimize their customer interactions and improve marketing ROI through data-driven insights derived from phone calls and other voice interactions. Marchex offers a suite of products that includes call tracking, call management, and analytics services, which enable businesses to understand customer behavior and make informed decisions based on real-time data.

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: Neutral
• Last Price: 1.68
• 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 Neutral. The current price of 1.68 is above the 20-day moving average (MA) of 1.62, below the 50-day MA of 1.69, and below the 200-day MA of 1.79, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.37 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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%
MCHX	55 Neutral	$72.88M	-15.14	-14.61%	―	-4.32%	-13.99%
INUV	48 Neutral	$40.46M	-8.75	-38.21%	―	25.10%	50.62%
HHS	47 Neutral	$23.80M	-4.46	-26.62%	―	-11.07%	82.06%
DRCT	41 Neutral	$3.01M	-0.05	―	―	-62.46%	-12.90%
FLNT	38 Underperform	$60.58M	-1.82	-127.41%	―	-18.94%	37.05%

Marchex Corporate Events

Marchex Completes Annual Stockholder Meeting and Approvals

On December 16, 2025, Marchex held its annual meeting of stockholders, during which all directors were re-elected and an independent registered public accounting firm was ratified. Following the meeting, Marchex’s Compensation Committee approved stock option grants for its directors as part of their annual board service, with a total of 50,000 options issued to each director under the 2021 Stock Incentive Plan. Directors will also receive quarterly cash compensation, aiming to strengthen corporate governance and align leadership incentives. These strategic decisions reflect the company’s efforts to foster stability in its board of directors while maintaining transparency for stakeholders.

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.