Marchex (NASDAQ:MCHX – Get Free Report) issued its earnings results on Tuesday. The technology company reported $0.04 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.04, FiscalAI reports. The business had revenue of $15.97 million during the quarter, compared to analysts’ expectations 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 Trading Up 4.3%
Shares of Marchex stock traded up $0.06 on Wednesday, reaching $1.46. 16,926 shares of the stock were exchanged, compared to its average volume of 24,716. The firm has a market capitalization of $64.74 million, a PE ratio of -12.17 and a beta of 1.88. Marchex has a 1-year low of $1.15 and a 1-year high of $2.00. The business has a fifty day moving average price of $1.37 and a two-hundred day moving average price of $1.57.
Wall Street Analysts Forecast Growth
Separately, Weiss Ratings reiterated a “sell (d-)” rating on shares of Marchex in a research report on Thursday, October 15th. One equities research analyst has rated the stock with a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Reduce”.
Read Our Latest Research Report on MCHX
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.
Featured Stories
- Five stocks we like better than Marchex
- Can Constellation Energy’s Contracts Power a Stock Rebound?
- Why Apple Stock Looks Like a Safe Haven After the Midterms
- IonQ Raised the Bar, But 3 Quantum Rivals Face Tough Questions
- On Holding’s Sell-Off Overlooks a Key Part of Its Earnings Story
Receive News & Ratings for Marchex Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Marchex and related companies with MarketBeat.com's FREE daily email newsletter.
