Marchex (NASDAQ:MCHX) Posts Earnings Results, Meets Estimates

Marchex (NASDAQ:MCHX) released 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. The firm had revenue of $15.97 million for the quarter, compared to analyst estimates of $16.24 million. Marchex had a negative net margin of 12.44% and a negative return on equity of 18.25%.

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 Price Performance

Shares of NASDAQ MCHX traded up $0.10 during midday trading on Tuesday, hitting $1.40. 38,438 shares of the company’s stock were exchanged, compared to its average volume of 24,757. The firm’s fifty day simple moving average is $1.38 and its 200-day simple moving average is $1.57. The company has a market cap of $62.08 million, a PE ratio of -11.67 and a beta of 1.88. Marchex has a twelve month low of $1.15 and a twelve month high of $2.00.

Analysts Set New Price Targets

Separately, Weiss Ratings reissued a “sell (d-)” rating on shares of Marchex in a research report on Thursday, October 15th. One investment analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Reduce”.

Marchex Company Profile

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.