- Revenue was
$11.0 million for the second quarter of 2026, compared to$11.7 million for the second quarter of 2025. - Net loss was
$0.4 million or$(0.01) per diluted share for the second quarter of 2026, compared with net income of$0.1 million or$0.00 per diluted share for the second quarter of 2025. - Adjusted earnings before interest, taxes, depreciation, and amortization ("EBITDA") was
$0.7 million for the second quarter of 2026, compared with$0.6 million for the second quarter of 2025. Adjusted EBITDA includes$1.0 million of reorganization and acquisition-related costs. Adjusted EBITDA before those costs was$1.7 million . - Adjusted non-GAAP income per share was
$0.00 for the second quarter of 2026, compared with$0.02 for the second quarter of 2025.
Pro Forma Combined Marchex and Archenia 2026 Financial Highlights
Because the acquisition closed on
- For the first quarter of 2026, pro forma combined Revenue was
$14.4 million and Adjusted EBITDA was a loss of$0.1 million , which includes$0.7 million of reorganization and acquisition-related costs. Adjusted EBITDA before those costs was$0.6 million . - For the second quarter of 2026, pro forma combined Revenue was
$15.5 million and Adjusted EBITDA was$1.0 million , including$1.0 million of reorganization and acquisition-related costs. Adjusted EBITDA before those costs was$2.0 million .
“The acquisition of Archenia advances our strategy of extending Marchex’s conversational intelligence capabilities from insights to actions and measurable outcomes,” said Russell Horowitz, Chairman of Marchex. “By combining our first-party conversational data and analytics with Archenia’s customer-qualification and acquisition technology, we can deliver greater value to customers while expanding our revenue opportunities. While we operate in a rapidly evolving and dynamic industry with uncertainties and various risks, we believe that the combined company can achieve greater revenue scale and growth, higher margins, expanded market reach, and enhanced strategic flexibility. Early customer adoption is encouraging and based on this, we plan to make selective investments in incremental sales and product development to support our 2027 growth opportunities.”
Financial Outlook
THE FOLLOWING FORWARD-LOOKING LOOKING STATEMENTS REFLECT MARCHEX’S EXPECTATIONS AS OF
The Company currently anticipates that pro forma combined financial results for the three months ending
| First Quarter 2026 (actual) | Second Quarter 2026 (actual) | Third Quarter 2026 (outlook) | |||
| Revenue | |||||
| Adjusted EBITDA, net of reorganization and acquisition costs | |||||
Customer, Product, and New Growth Opportunities Updates
Examples of recent, successful sales of combined products to existing customers include:
(1) An existing home services client, representing approximately
(2) An existing auto services customer, representing more than
(3) An existing advertising/media customer, representing approximately
Archenia Transaction Update
On
Marchex’s acquisition of Archenia creates a vertically focused, AI-driven customer acquisition and outcome-optimization platform. Marchex brings a deep foundation of first-party data, derived from years of analyzing customer conversations for many industry-leading companies, with Archenia adding AI-powered lead qualification, conversational IVR, performance marketing infrastructure, and expertise in activating call intelligence at scale. Together, the companies provide a comprehensive platform that connects customer insights, automated actions, and measurable business outcomes.
About Marchex
Marchex and Archenia together harness proprietary AI-powered conversational intelligence and advanced customer acquisition technologies to transform consumer intent into actionable, outcome-driven business results. The combination of Marchex's prescriptive analytics and omnichannel intelligence with Archenia's AI-verified qualification, natural-language analytics, and automated decisioning capabilities creates a highly differentiated customer acquisition and optimization technology platform. Leveraging real-time AI signals, machine-learning models, and deep vertical market expertise, the company identifies consumer intent, improves qualification accuracy, and delivers verified outcomes such as high-intent conversations, appointments, and sales. Serving market leading companies across major verticals including automotive, insurance, home services, healthcare, and advertising/media, Marchex empowers organizations to optimize customer engagement and drive revenue growth through AI-driven insights, actions, and outcomes.
Please visit?www.marchex.com,?www.marchex.com/blog,?or?@marchex on X, where Marchex?discloses material information from time to time about the Company, its financial information, and its business.
Forward-Looking Statements
Certain statements included above contain forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included herein regarding Archenia’s estimated financial results and benefits of the combination, and the Company’s strategy, future operations, future financial position, future revenues, other financial guidance, acquisitions, dispositions, projected costs, prospects, plans and objectives of management are forward-looking statements. The Company may not actually achieve the plans, intentions, or expectations disclosed in its forward-looking statements and you should not place undue reliance on such statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in such statements due to a number of important factors, including but not limited to product demand, order cancellations and delays, competition, changes in business strategy or development plans, and general economic and business conditions. These factors are described in greater detail in the “Risk Factors” section of the Company’s most recent periodic report or registration statement filed with the SEC. All of the information provided herein is as of August 12, 2026 and the Company undertakes no duty to update the information provided herein.
In the event the earnings release contains links to third party websites or materials, the links are provided solely as a convenience to the user. Marchex is not responsible for the content of linked third-party sites or materials and does not make any representations regarding the content or accuracy thereof.
Non-GAAP Financial Information
To supplement Marchex's consolidated financial statements presented in accordance with GAAP and to provide clarity internally and externally, Marchex uses certain non-GAAP measures of financial performance and liquidity, including adjusted EBITDA and adjusted non-GAAP income (loss) per share. Financial analysts and investors may use adjusted EBITDA to help with comparative financial evaluation to make informed investment decisions. Financial analysts and investors may use adjusted non-GAAP income (loss) per share to analyze Marchex's financial performance since these groups have historically used earnings per share related measures, along with other measures, to estimate the value of a Company, to make informed investment decisions, and to evaluate a Company's operating performance compared to that of other companies in its industry.
Adjusted EBITDA represents net income (loss) before (1) interest, (2) income taxes, (3) amortization of intangible assets from acquisitions, (4) depreciation and amortization, (5) stock-based compensation expense, and (6) acquisition and disposition-related costs. Adjusted EBITDA is a metric by which Marchex has evaluated the performance of its business, to include being the basis on which Marchex's internal budgets have been based and by which Marchex's management has been evaluated. This measure is used by our management to understand and evaluate our core operating performance and trends, and management believes it provides meaningful information regarding the Company's liquidity and ability to fund its operations and financing obligations.
Adjusted non-GAAP income (loss) per share represents adjusted non-GAAP income (loss) divided by GAAP diluted shares outstanding. Adjusted non-GAAP income (loss) generally captures those items on the statement of operations that have been, or ultimately will be, settled in cash exclusive of certain items that are not indicative of Marchex’s recurring core operating results and represents net income (loss) applicable to common stockholders plus the net of tax effects of: (1) stock-based compensation expense, (2) acquisition and disposition related costs, (3) amortization of intangible assets from acquisitions, and (4) interest (income) expense and other, net.
Marchex's management believes that investors should have access to, and Marchex is obligated to provide, the same set of tools that management uses in analyzing the Company's results. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, and should not be considered in isolation, as a substitute for, or superior to, GAAP results. Marchex’s non-GAAP financial measures may be defined differently from time to time and may be defined differently than similar titled terms used by other companies, and accordingly, care should be exercised in understanding how Marchex defines its non-GAAP financial measures in this release. Marchex endeavors to compensate for the limitations of the non-GAAP measures presented by providing the comparable GAAP measure with equal or greater prominence, GAAP financial statements, and detailed descriptions of the reconciling items and adjustments, including quantifying such items, to derive the non-GAAP measure.
For further information, contact:
Marchex Investor Relations
Email: ir@marchex.com
Or
Marchex Corporate Communications
Email: pr@marchex.com
Consolidated Statements of Operations (In Thousands, except per share amounts) (Unaudited) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenue | $ | 11,002 | $ | 11,655 | $ | 21,620 | $ | 23,058 | ||||||||
| Expenses: | ||||||||||||||||
| Cost of revenue (1) | 4,289 | 4,058 | 8,409 | 8,246 | ||||||||||||
| Amortization of capitalized software development costs | 115 | 10 | 193 | 10 | ||||||||||||
| Total cost of revenue (1) | 4,404 | 4,068 | 8,602 | 8,256 | ||||||||||||
| Sales and marketing (1) | 2,298 | 3,165 | 5,556 | 6,431 | ||||||||||||
| Product development (1) | 1,991 | 2,501 | 4,399 | 5,173 | ||||||||||||
| General and administrative (1) | 2,655 | 2,457 | 4,760 | 5,604 | ||||||||||||
| Total operating expenses | $ | 11,348 | $ | 12,191 | $ | 23,317 | $ | 25,464 | ||||||||
| Loss from operations | (346 | ) | (536 | ) | (1,697 | ) | (2,406 | ) | ||||||||
| Interest income (expense) and other, net | 49 | 626 | (125 | ) | 623 | |||||||||||
| Income (loss) before income tax expense | (297 | ) | 90 | (1,822 | ) | (1,783 | ) | |||||||||
| Income tax expense | 111 | 5 | 310 | 114 | ||||||||||||
| Net income (loss) applicable to common stockholders | $ | (408 | ) | $ | 85 | $ | (2,132 | ) | $ | (1,897 | ) | |||||
| Basic and diluted net income (loss) per Class A and B share applicable to common stockholders | $ | (0.01 | ) | $ | 0.00 | $ | (0.05 | ) | $ | (0.04 | ) | |||||
| Shares used to calculate basic net income (loss) per share applicable to common stockholders: | ||||||||||||||||
| Class A | 4,661 | 4,661 | 4,661 | 4,661 | ||||||||||||
| Class B | 39,653 | 39,241 | 39,478 | 39,151 | ||||||||||||
| Shares used to calculate diluted net income (loss) per share applicable to common stockholders: | ||||||||||||||||
| Class A | 4,661 | 4,661 | 4,661 | 4,661 | ||||||||||||
| Class B | 44,314 | 43,902 | 44,139 | 43,812 | ||||||||||||
| (1) Includes stock-based compensation allocated as follows: | ||||||||||||||||
| Cost of revenue | $ | 8 | $ | 2 | $ | 11 | $ | 3 | ||||||||
| Sales and marketing | 196 | 172 | 367 | 196 | ||||||||||||
| Product development | 101 | 78 | 202 | 105 | ||||||||||||
| General and administrative | 226 | 304 | 440 | 707 | ||||||||||||
| Total | $ | 531 | $ | 556 | $ | 1,020 | $ | 1,011 | ||||||||
Consolidated Balance Sheets (In Thousands) | ||||||||
| (Unaudited) | ||||||||
| 2026 | 2025 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 8,151 | $ | 9,942 | ||||
| Accounts receivable, net | 7,062 | 6,670 | ||||||
| Prepaid expenses | 1,216 | 1,005 | ||||||
| Other current assets | 1,014 | 1,420 | ||||||
| Total current assets | 17,443 | 19,037 | ||||||
| Property and equipment, net | 2,153 | 1,854 | ||||||
| Other assets, net | 477 | 563 | ||||||
| Right-of-use lease assets | — | 668 | ||||||
| 17,558 | 17,558 | |||||||
| Total assets | $ | 37,631 | $ | 39,680 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 3,239 | $ | 3,198 | ||||
| Accrued benefits and payroll | 763 | 1,175 | ||||||
| Other accrued expenses and current liabilities | 2,761 | 2,739 | ||||||
| Deferred revenue and deposits | 458 | 598 | ||||||
| Operating lease liability, current | 385 | 355 | ||||||
| Total current liabilities | 7,606 | 8,065 | ||||||
| Deferred tax liabilities | 871 | 664 | ||||||
| Operating lease liability, non-current | 103 | 366 | ||||||
| Other non-current liabilities | 20 | 500 | ||||||
| Total liabilities | $ | 8,600 | $ | 9,595 | ||||
| Stockholders’ equity: | ||||||||
| Class A common stock | $ | 49 | $ | 49 | ||||
| Class B common stock | 397 | 392 | ||||||
| Additional paid-in capital | 362,130 | 361,057 | ||||||
| Accumulated deficit | (333,545 | ) | (331,413 | ) | ||||
| Total stockholders’ equity | 29,031 | 30,085 | ||||||
| Total liabilities and stockholders’ equity | $ | 37,631 | $ | 39,680 | ||||
(In Thousands) (Unaudited) | ||||||||||||||||
| Reconciliation of Net Income (Loss) to Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net income (loss) applicable to common stockholders | $ | (408 | ) | $ | 85 | $ | (2,132 | ) | $ | (1,897 | ) | |||||
| Interest income (expense) and other, net | (49 | ) | (626 | ) | 125 | (623 | ) | |||||||||
| Income tax expense | 111 | 5 | 310 | 114 | ||||||||||||
| Amortization of capitalized software development costs | 124 | 10 | 211 | 10 | ||||||||||||
| Depreciation and amortization | 434 | 618 | 1,063 | 1,250 | ||||||||||||
| Stock-based compensation | 531 | 556 | 1,020 | 1,011 | ||||||||||||
| Adjusted EBITDA | $ | 743 | $ | 648 | $ | 597 | $ | (135 | ) | |||||||
(In Thousands) (Unaudited) | ||||||||||||||||
| Reconciliation of Net Income (Loss) per Share to Adjusted Non-GAAP Income (Loss) per Share (1) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net income (loss) per share applicable to common stockholders, diluted | $ | (0.01 | ) | $ | 0.00 | $ | (0.05 | ) | $ | (0.04 | ) | |||||
| Stock-based compensation | 0.01 | 0.01 | 0.02 | 0.02 | ||||||||||||
| Interest income (expense) and other, net | — | 0.01 | — | 0.01 | ||||||||||||
| Adjusted non-GAAP income (loss) per share | $ | 0.00 | $ | 0.02 | $ | (0.03 | ) | $ | (0.01 | ) | ||||||
| Shares used to calculate diluted net income (loss) per share applicable to common stockholders (GAAP) and adjusted non-GAAP income (loss) per share | 44,314 | 43,902 | 44,139 | 43,812 | ||||||||||||
(1) For the purpose of computing the number of diluted shares for adjusted non-GAAP income (loss) per share,
Consolidated Combined Pro Forma Statements of Operations (In Thousands) (Unaudited) | ||||||||
| Pro Forma Combined | ||||||||
| (In Thousands) | For the Three Months Ended | For the Six Months Ended | ||||||
| Revenue | $ | 15,458 | $ | 29,905 | ||||
| Expenses: | ||||||||
| Cost of revenue | 7,424 | 14,312 | ||||||
| Amortization of capitalized software development costs | 115 | 193 | ||||||
| Total cost of revenue | 7,539 | 14,505 | ||||||
| Sales and marketing | 2,667 | 6,327 | ||||||
| Product development | 2,371 | 5,158 | ||||||
| General and administrative | 2,987 | 5,391 | ||||||
| Total operating expenses | $ | 15,564 | $ | 31,381 | ||||
| Loss from operations | (106 | ) | (1,476 | ) | ||||
| Interest expense and other, net | (18 | ) | (260 | ) | ||||
| Loss before income tax expense | $ | (124 | ) | $ | (1,736 | ) | ||
| Income tax expense | 111 | 310 | ||||||
| Net loss applicable to common stockholders | $ | (235 | ) | $ | (2,046 | ) | ||
(In Thousands) (Unaudited) | ||||||||
| Reconciliation of Combined Pro Forma Net Loss to Combined Pro Forma Adjusted EBITDA | ||||||||
| Pro Forma Combined | ||||||||
| For the Three Months Ended | For the Six Months Ended | |||||||
| Net loss applicable to common stockholders | $ | (235 | ) | $ | (2,046 | ) | ||
| Interest expense and other, net | 18 | 260 | ||||||
| Income tax expense | 111 | 310 | ||||||
| Amortization of capitalized software development costs | 124 | 211 | ||||||
| Depreciation and amortization | 449 | 1,092 | ||||||
| Stock-based compensation | 579 | 1,116 | ||||||
| Adjusted EBITDA | $ | 1,046 | $ | 943 | ||||
