Marchex (NASDAQ:MCHX) Posts Quarterly Earnings Results, Hits Estimates

Marchex (NASDAQ:MCHX) issued its earnings results on Tuesday. The technology company reported $0.04 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.04, FiscalAI reports. Marchex had a negative net margin of 6.56% and a negative return on equity of 10.83%. The business had revenue of $15.97 million for the quarter, compared to the consensus estimate of $16.24 million.

Here are the key takeaways from Marchex’s conference call:

• Third-quarter revenue rose to $16 million from $15.2 million a year earlier; Marchex reported $1.3 million in GAAP net income and $2.4 million in Adjusted EBITDA, up from a year-ago loss and $0.5 million, respectively. Lower operating expenses drove much of the improvement, while gross margin declined to 51% from 54%.
• Marchex reported early commercial traction for its combined and AI-powered offerings: an existing customer’s paid pilot converted to an AI Voice Agent deployment, which management expects to add more than $200,000 to that customer’s annualized revenue in 2027. A major automaker also approved Engage for Service for its dealer portal after an early-access rollout across 75 dealerships.
• For Q4, the company expects revenue of at least $15 million and Adjusted EBITDA of $2.3 million to $2.5 million; management said the revenue outlook implies year-over-year growth but anticipates a sequential decline from typical seasonal softness in call volumes and advertising budgets.
• Management said it sees a path to accelerating growth in 2027, expanding Adjusted EBITDA beyond the current annualized run rate of more than $10 million, and ultimately building a business with over $100 million in annual revenue. It cited significant upsell potential in existing customers and a pipeline of deals, while noting that converting opportunities into broader deployments remains a priority.

Marchex Stock Performance

Shares of Marchex stock traded up $0.02 during trading on Thursday, reaching $1.46. 1,147 shares of the company’s stock were exchanged, compared to its average volume of 24,745. Marchex has a 1-year low of $1.15 and a 1-year high of $2.00. The company has a market cap of $64.91 million, a P/E ratio of -20.90 and a beta of 1.88. The firm’s 50-day moving average price is $1.36 and its 200 day moving average price is $1.56.

Analyst Ratings Changes

Separately, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Marchex in a research report on Thursday, October 15th. One analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Reduce”.

About Marchex

Marchex, Inc. is a conversational intelligence and analytics company that helps businesses understand and improve customer interactions. The company analyzes phone calls, text messages and other customer conversations to provide insights into marketing performance, sales effectiveness and service quality. Its solutions include call tracking and attribution, conversation analytics, lead management and artificial intelligence-powered tools that identify customer intent, buying signals and opportunities for follow-up.