MCHX

Interested in Marchex, Inc.? Here are five stocks we like better. Marchex reported Q2 revenue of $11 million, up from $10.6 million in Q1, and forecast Q3 revenue of $16 million to $16.5 million with adjusted EBITDA of $2.3 million to $2.5 million, including a full quarter of Archenia’s contribution. The Archenia acquisition expands Marchex from conversational analytics into automated lead qualification, customer acquisition and measurable outcomes. Management expects the combined platform to support cross-selling and capture more customer-acquisition spending. Early cross-selling efforts have produced customer expansions and paid pilots, while management identified a double-digit number of customers with potential for at least $1 million in incremental annual revenue. Marchex ended Q2 with $8.2 million in cash and plans selective investments to support future growth while maintaining cost discipline. Marchex (NASDAQ:MCHX) reported second-quarter revenue of $11 million, up from $10.6 million in the first quarter, as new sales and customer upsells contributed to growth. The company also outlined its post-acquisition strategy following the July 1 closing of its purchase of Archenia, which management said expands Marchex’s ability to combine conversational intelligence with automated customer-acquisition and qualification tools. The second-quarter results did not include Archenia because the transaction closed after the quarter ended. For the third quarter, Marchex forecast revenue of $16 million to $16.5 million and adjusted EBITDA of $2.3 million to $2.5 million, reflecting a full quarter of Archenia’s expected financial contribution as well as continued growth in Marchex’s existing business. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat Chairman Russ Horowitz said the Archenia acquisition is intended to extend Marchex’s AI-powered conversational analytics business beyond customer insights and toward actions and measurable outcomes. Archenia contributes performance-based customer qualification and acquisition technology, including AI-powered lead qualification, conversational IVR and performance marketing infrastructure, according to management. “By combining Marchex’s conversational intelligence and analytics capabilities with Archenia’s performance-based customer qualification and acquisition technology, we are creating a highly differentiated, more comprehensive AI-powered solution,” Horowitz said. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be Management said the combined platform is designed to identify customer opportunities from conversation data, automate actions based on those insights and measure resulting business outcomes. Horowitz said this approach could enable the company to capture a larger share of customers’ spending related to acquisition and bottom-of-funnel performance than a model focused solely on analytics. Chief Operating Officer Francis Feeney said Marchex is focused on scaling financial performance toward a potential “Rule of 30 to Rule of 40” trajectory over time, a measure combining annual revenue growth and adjusted EBITDA margin. He said reaching that level would depend on achieving anticipated revenue growth while improving margins. → First Solar’s Profit Engine Faces a New Policy Test in Washington Marchex said its top 100 customers account for approximately 90% of revenue and have been the initial target for combined-product sales efforts. Management had previously presented new offerings to nearly one-third of those customers, with about half purchasing one or more products through recurring arrangements or paid pilots. Horowitz said the company has continued to make progress since then. The company cited three examples of customer expansions: An existing home-services client producing about $500,000 in annualized analytics revenue adopted Marchex’s AI-verified outcomes offering, bringing its total annualized revenue contribution to more than $1 million. An auto-services customer generating more than $300,000 in annualized analytics revenue began a paid pilot to improve sales-agent performance across 40 retail locations. The program has expanded to more than 60 locations. The customer operates thousands of locations, and Marchex said a broader rollout could represent at least $1 million in annualized revenue if performance objectives are met. An advertising and media customer with about $400,000 in annualized analytics revenue launched a paid pilot for a Marchex Conversational AI Agent designed to improve call handling. Marchex said a broader deployment could add incremental revenue in 2026 and increase annualized revenue from the customer by 50% or more in 2027. Horowitz said the company sees a double-digit number of customers with potential for at least $1 million in incremental annual revenue. He added that many of those customers could potentially generate multiple millions of dollars in incremental annual revenue over time, though he emphasized that realization depends on execution and customer adoption. Management identified AI-verified outcomes and Conversational AI Agents as early examples of offerings that combine the companies’ capabilities. Horowitz said Marchex has about five products in its broader combined-product roadmap, with one or two at later stages of development. Chief Financial Officer Brian Nagle said Marchex saw operating efficiencies from organizational realignment and other expense initiatives during the second quarter. Those benefits were partly offset by acquisition-related costs associated with completing the Archenia transaction. Nagle said the company expects overall margins to improve over time under its lower cost structure, potentially creating operating leverage as new products and features gain traction. Marchex ended the second quarter with $8.2 million in cash, compared with $9 million at the end of the first quarter. Nagle said the decline primarily reflected payments for transaction expenses, organizational realignment activities and other efficiency measures. During the question-and-answer session, Horowitz said the company will assess the best use of increasing cash generation as it progresses, noting that Marchex is a low-capital-expenditure business and has meaningful tax shields. He also pointed to an existing authorization to repurchase 3 million shares, while noting that the company has previously used buybacks, self-tender offers and special dividends. Horowitz said management plans to make selective investments in sales and development resources to support 2027 growth opportunities while continuing to manage expenses carefully. The company expects to provide fourth-quarter guidance and an initial 2027 business outlook when it reports third-quarter results, currently anticipated in early November. Marchex, Inc (NASDAQ: MCHX) operates a call data and analytics platform designed to help businesses measure and optimize customer interactions. The company's core services include call tracking, conversational analytics and performance marketing solutions that attribute phone calls to specific advertising campaigns. By capturing and analyzing voice interactions, Marchex enables advertisers, agencies and brands to gain actionable insights into caller intent, marketing ROI and customer behavior. Through its suite of technologies, Marchex offers real-time call monitoring, keyword spotting and AI-driven transcription to surface trends and conversion signals from inbound calls. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Marchex Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. The July 1 completion of the Archenia acquisition shifts Marchex from providing conversational insights to delivering automated actions and measurable business outcomes. Management attributes the strategic pivot to the need to bridge a gap where customers previously failed to operationalize insights due to internal logistical complexities and the need for operational changes. Performance is increasingly driven by bundled solutions that combine Marchex's first-party data and AI signals with Archenia's lead qualification and performance marketing infrastructure. The company is focusing on its top 100 customers, who represent approximately 90% of revenue, as the primary engine for cross-selling new AI-powered products. Early validation of the combined model is evidenced by existing customers increasing their annualized revenue contribution by 50% to over 100% upon adopting new AI verified outcome products. Operational efficiencies from recent organizational realignments are expected to provide meaningful financial leverage as new products scale. Q3 2026 guidance of $16 million to $16.5 million in revenue assumes a full quarter of Archenia operations and continued organic growth from bundled solution sales. Management is targeting a 'Rule of 30 to 40' trajectory, defined as the sum of annual revenue growth rates and adjusted EBITDA margins. The company plans to make selective investments in incremental sales and development resources during the second half of 2026 to support 2027 growth opportunities. Strategic focus is centered on a 'profitably focused sprint' toward a $100 million-plus annual revenue run rate over time. Future product availability includes one or two additional AI-driven solutions currently in the late stages of development. Q2 results were impacted by one-time acquisition-related costs and cash payments for organizational realignment activities. The company maintains a 3 million share buyback program and significant tax shields that management believes will optimize future free cash flow. Management acknowledges that success depends on the ability to convert successful paid pilots into broader, recurring deployments across large, complex organizations. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management identified a double-digit number of existing customers with the potential for 7-figure incremental revenue growth. The expanded Total Addressable Market (TAM) within the existing customer base is considered significant enough to drive the company toward its $100 million revenue goal. Deal sizes are increasing because Marchex can now 'take the action' for the customer via AI, rather than just providing data for the customer to act upon. Moving to the bottom of the customer acquisition funnel allows Marchex to tap into much larger existing budgets compared to pure analytics budgets. Marchex is a low-CapEx business with increasing cash generation, providing flexibility for future buybacks, dividends, or self-tenders. Management intends to be more active in investor relations to ensure the market recognizes the value of the new combined business model. The platform utilizes agentic AI for conversational lead qualification and real-time analysis to categorize consumer intent. The system creates a 'closed loop' by feeding real-time success/failure data back into the AI to optimize customer acquisition performance.

Reports Improved Profitability and Early Momentum Following Archenia Acquisition SEATTLE, Aug. 12, 2026 (GLOBE NEWSWIRE) -- Marchex, Inc. (NASDAQ: MCHX), a vertically focused, AI-driven conversation analytics, customer acquisition and optimization company, today announced its financial results for the second quarter ended June 30, 2026. Marchex Q2 2026 Financial Highlights 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 July 1, 2026, Marchex’s reported second-quarter results do not include Archenia. The following supplemental unaudited pro forma results present the companies on a combined basis for the periods shown. 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 AUGUST 12, 2026 The Company currently anticipates that pro forma combined financial results for the three months ending September 30, 2026 will be in the range of (in millions): Marchex will provide its Fourth Quarter 2026 Financial Outlook and initial 2027 business outlook when it reports its Third Quarter 2026 Financial results, currently anticipated in early November 2026. Customer, Product, and New Growth Opportunities Updates Marchex and Archenia have been jointly developing and selling new solutions combining the capabilities of the companies. These offerings leverage Marchex’s data and AI signals with Archenia’s AI tool sets and user interface, including AI-verified outcomes, which drive increased revenue on a Pay-Per-Event basis, and Conversational AI Agents, which help increase customer bookings and appointment rates. Marchex believes its ability to sell these and other combined solutions, which reflect the bundling of insights, actions and outcomes, to its installed customer base will be a meaningful sales catalyst in 2026 and beyond. In May 2026, Marchex shared that its top 100 customers represent approximately 90% of its revenue, and this customer base has been the initial focus for presenting the products which leverage the combined capabilities of the companies. At that time, Marchex had made presentations to nearly one third of these customers, approximately half of whom have already purchased one or more of these products on a recurring or paid pilot basis. Of those remaining, Marchex stated that it believes that over time, the majority are also likely to purchase one or more of these products on a recurring or paid pilot basis. Since this time, the company has continued to see further progress and validation with these efforts. Examples of recent, successful sales of combined products to existing customers include: (1)    An existing home services client, representing approximately $500,000 in annualized analytics revenue, adopted Archenia’s AI-verified outcomes, increasing total annualized revenue from the customer to more than $1 million. (2)    An existing auto services customer, representing more than $300,000 in annualized analytics revenue, adopted a paid pilot program to improve sales agent behaviors at 40 retail locations, since expanding to more than 60 locations. This customer operates thousands of retail locations and if the pilot is converted into broader adoption, Marchex believes the customer can represent $1 million or more in annualized revenue. (3)    An existing advertising/media customer, representing approximately $400,000 in annualized analytics revenue, launched a paid pilot program using the Marchex’s Conversational AI Agent to improve call handling. If the pilot is converted, Marchex believes the program could contribute incremental revenue in 2026 as well as increase annualized revenue from this customer by 50% or more in 2027. Archenia Transaction Update On July 1, 2026, the Company consummated the previously-announced acquisition of Archenia. 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 RelationsEmail: [email protected] Or Marchex Corporate CommunicationsEmail: [email protected] (1)    For the purpose of computing the number of diluted shares for adjusted non-GAAP income (loss) per share, Marchex uses the accounting guidance that would be applicable for computing the number of diluted shares for GAAP net income (loss) per share.

Akamai Technologies (AKAM) came out with quarterly earnings of $1.59 per share, beating the Zacks Consensus Estimate of $1.58 per share. This compares to earnings of $1.73 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +0.63%. A quarter ago, it was expected that this cloud services provider would post earnings of $1.61 per share when it actually produced earnings of $1.61, delivering no surprise. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Akamai Technologies, which belongs to the Zacks Internet - Services industry, posted revenues of $1.1 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.71%. This compares to year-ago revenues of $1.04 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Akamai Technologies shares have added about 40.1% since the beginning of the year versus the S&P 500's gain of 12.8%. While Akamai Technologies has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Akamai Technologies was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.67 on $1.13 billion in revenues for the coming quarter and $6.72 on $4.49 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Services is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Marchex (MCHX), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 12. This advertising and marketing company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Marchex's revenues are expected to be $11.19 million, down 4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Akamai Technologies, Inc. (AKAM) : Free Stock Analysis Report Marchex, Inc. (MCHX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management believes the company is crossing a positive inflection point, evolving from providing strategic analytics to delivering comprehensive AI-powered solutions across the entire customer acquisition journey. The shift toward bundled solutions—integrating insights, automated actions, and verified outcomes—is designed to address higher-value customer needs and unlock new revenue streams. Operational performance is benefiting from the completion of legacy platform migrations to the Marchex Engage platform, which has lowered the recurring cost structure. The company views itself as a primary AI beneficiary, leveraging first-party data and vertical expertise to deploy Agentic workflows and AI-verified outcome products. Sales momentum is building through increased penetration of the existing customer footprint, specifically targeting the top 100 customers who represent 90% of total revenue. Strategic focus remains on high-value verticals including automotive, home services, healthcare, and advertising, where industry-specific AI solutions provide competitive differentiation. Management anticipates sequential revenue increases throughout 2026, targeting a 10% revenue growth run rate from 2025 year-end levels on a standalone basis. The company expects to achieve adjusted EBITDA margins of 10% or more in 2026, driven by the combination of revenue growth and a reduced operating expense base. Upon the expected closing of the Archenia transaction in July 2026, the combined company targets an annualized revenue run rate of approximately $60 million. Management is aiming for a 'Rule of 30 to 40' trajectory, defined as the sum of annual revenue growth rates and adjusted EBITDA margins. The strategic roadmap includes a 'profitably focused sprint' toward a $100 million revenue run rate by scaling bundled solution sales across all core verticals. The proposed acquisition of Archenia is expected to close in July 2026, subject to approval by disinterested stockholders due to related-party components. Q1 2026 cash levels decreased to $9 million, primarily due to non-recurring annual payroll and severance payments related to organizational realignment. The company maintains significant tax shields and a low CapEx model, which management expects will optimize free cash flow generation as profitability scales. A $3 million share buyback program remains authorized, providing optionality for capital allocation as cash generation increases. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management attributed the guidance raise to a combination of expected sales acceleration and operational efficiencies. Operating expenses are expected to see a reduction in the 5% plus range compared to Q1 levels. Initial adoption of new bundled products suggests the potential to double revenue on a per-customer basis. Approximately half of the top customers pitched so far have already purchased products on a recurring or paid pilot basis. Marchex is using a vertical-specific approach, starting with auto and home services to validate the bundling model before expanding to all 100 top customers. The strategy focuses on identifying common pain points where AI-verified outcomes can drive immediate customer ROI. Management noted a history of stock buybacks, tender offers, and special dividends as potential tools for excess cash. The primary focus remains on driving organic growth and expanding margins to provide maximum financial latitude.

Interested in Marchex, Inc.? Here are five stocks we like better. Marchex said it is at a “positive inflection point,” driven by improving AI product momentum, operating efficiencies, and broader bundled solutions aimed at customer acquisition and optimization. The company raised its Q2 adjusted EBITDA guidance to $1.6 million-$1.8 million and said revenue should rise sequentially, with further improvement possible in Q3 if the Archenia deal closes. Marchex outlined its planned acquisition of Archenia, which could expand the company into a vertically focused AI-driven platform and potentially lift quarterly revenue run-rate to about $15 million, with 15% to 20% growth expected in 2026. Marchex (NASDAQ:MCHX) said it is seeing improving momentum from new artificial intelligence-driven products and operating efficiencies as management outlined first-quarter 2026 results, updated adjusted EBITDA guidance and details on its proposed acquisition of Archenia, Inc. On the company’s earnings call, Chairman Russell Horowitz said Marchex believes it is “crossing a positive inflection point both strategically and operationally,” citing improved execution, greater penetration of its customer base and the development of more comprehensive AI-powered offerings. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? Horowitz said the company is moving beyond its traditional focus on strategic analytics toward bundled solutions designed to address the customer acquisition and optimization process. He said Marchex sees opportunities to combine strategic insights, automated actions and measurable outcomes, particularly as customers look for ways to use AI to improve growth and efficiency. Marchex reported first-quarter 2026 revenue of $10.6 million, compared with $10.8 million in the fourth quarter of 2025. The company said new sales and upsells to existing customers benefited results, but those gains were offset by the impact of previously completed migration activity from legacy platforms to the Marchex Engage platform, which affected revenue run rates entering 2026. → MP Materials Is Quietly Building a Rare Earth Powerhouse The company also said it benefited from operating efficiencies tied to organizational realignment and the completion of certain technology platform initiatives during 2025. Management said those actions reduced the company’s recurring cost structure and could support improved gross profit margins and operating leverage as new products gain traction. Cash declined to $9 million at the end of the first quarter from $9.9 million at the end of the fourth quarter. The company said the decrease was primarily due to annual payroll and severance payments associated with organizational realignment and efficiency initiatives. → Micron Investors Face a High-Stakes Moment After the Latest Rally For the second quarter of 2026, Marchex said it expects revenue to increase sequentially from the first quarter. The company also raised its adjusted EBITDA outlook to a range of $1.6 million to $1.8 million, up from prior guidance of more than $1 million. Marchex also gave initial third-quarter guidance, saying it expects revenue to increase sequentially and potentially accelerate over second-quarter levels. On a standalone basis, the company said adjusted EBITDA could potentially be in the $2 million range or higher. If the Archenia transaction is approved and closes by the third quarter, Marchex said the combined company could potentially produce adjusted EBITDA in the $2.5 million range or higher for the third quarter, equivalent to an annualized run rate of $10 million or more. For 2026, management said it expects quarterly revenue increases and believes revenue growth could reach a run-rate basis in the 10% range from 2025 year-end levels. The company also said rising revenue and lower expenses could potentially drive adjusted EBITDA margins of 10% or more during the year. Chief Operating Officer Francis Feeney provided an update on Marchex’s proposed acquisition of Archenia. Marchex entered into a stock purchase agreement on May 8, 2026, to acquire 100% of Archenia’s stock. Because certain sellers are related parties, a special committee of independent Marchex directors approved the agreement. Feeney said the special committee retained Craig-Hallum Capital Group, LLC as financial adviser, which provided a fairness opinion on the purchase price. DLA Piper LLP (US) served as independent legal counsel to the special committee. The transaction is expected to close in July 2026, subject to approval by a majority of disinterested Marchex stockholders and other closing conditions. Feeney described Archenia as a performance-based customer qualification and acquisition company that uses AI signals, natural language analytics and automated decisioning to identify consumer intent and advertiser value in real time. He said Archenia enables customers to pay for AI-verified outcomes such as appointments, sales and high-intent conversations. Marchex said a combined company could create a vertically focused AI-driven customer acquisition and outcome optimization platform that integrates insights, automated actions and verifiable outcomes. Feeney said the potential combined company’s revenue run rate would be approximately $15 million quarterly, or about $60 million annualized, and could grow in the 15% to 20% range during 2026. President Troy Hartless said Marchex and Archenia have already been collaborating to jointly develop and sell initial products using capabilities from both companies. Examples include AI-verified outcomes, which are intended to drive increased revenue on a pay-per-event basis, and conversational AI agents, which aim to improve customer bookings and appointment rates. Hartless said Marchex’s top 100 customers represent about 90% of the company’s revenue, and that the initial focus has been presenting combined products to that group. He said Marchex has presented the products to nearly one-third of those customers, and approximately half of those contacted have purchased one or more products on a recurring or paid pilot basis. Hartless said the company believes most of the remaining customers already contacted are likely to buy one or more of the products on a recurring or paid pilot basis. He added that Marchex is focused on accelerating presentations to a majority of its top customers as the anticipated Archenia closing approaches. In response to an analyst question, Horowitz said the company has seen opportunities for some new product adoption to potentially double revenue on a per-customer basis. He said management’s intent is to sell bundled solutions broadly across the customer base, which he said could expand revenue opportunities and improve customer retention. During the question-and-answer session, Michael Latimore of Northland Capital Markets asked whether the higher second-quarter adjusted EBITDA guidance was largely driven by operating expense reductions. Horowitz said the improvement reflects a combination of expected sales acceleration, sequential revenue growth and operating efficiencies. He said that, at first-quarter revenue levels, operating expenses could decline in the “5% plus range.” Ross Koller of Koller Capital asked how Marchex plans to reach the rest of its top 100 customers. Horowitz said the company began by targeting specific customers and verticals, including auto and home services, where management believed bundled offerings addressed common pain points. He said the company’s experience so far supports management’s belief that the combined business has a $100 million revenue opportunity. On capital allocation, Horowitz said Marchex is focused first on driving organic growth and expanding profitability. He noted that the company is a low-capital-expenditure business, has “meaningful tax shields” and has an existing 3 million-share buyback authorization. He said higher cash generation would give the company flexibility as it evaluates the best use of capital. Marchex, Inc (NASDAQ: MCHX) operates a call data and analytics platform designed to help businesses measure and optimize customer interactions. The company's core services include call tracking, conversational analytics and performance marketing solutions that attribute phone calls to specific advertising campaigns. By capturing and analyzing voice interactions, Marchex enables advertisers, agencies and brands to gain actionable insights into caller intent, marketing ROI and customer behavior. Through its suite of technologies, Marchex offers real-time call monitoring, keyword spotting and AI-driven transcription to surface trends and conversion signals from inbound calls. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Marchex Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Image source: The Motley Fool. May 13, 2026, 5 p.m. ET Executive Chairman and CEO — Russell C. Horowitz Chief Operating Officer — Troy W. Hartless Chief Financial Officer — Brian Nagle General Counsel — Francis J. Feeney Jr. Need a quote from a Motley Fool analyst? Email [email protected] Russell C. Horowitz: I will now turn the call over to Russell. Thank you, Frank. I am going to start with a few current thoughts and then hand the call over to Troy, Brian, and then Frank again. The main item I would like to share is that we believe the company is crossing a positive inflection point both strategically and operationally. 2026 is marking an important step in showing our execution is beginning to translate into improved business performance. The indicators we care about are moving in the right direction. We have come a long way in evolving our product and technology capabilities we are beginning to increase penetration of our customer footprint. Which is starting to create real sales momentum. With this progress and deeper strategic understanding, which is against the backdrop of the very real and massive AI revolution, we have gained proprietary insight into what we believe may be a much bigger market opportunity. 1 where we are now evolving beyond mainly providing strategic analytics to vertical market leading companies to 1 where we accelerate delivering more comprehensive solutions that open up new revenue opportunities by addressing higher value impact needs across the entire customer acquisition and optimization journey. If you zoom out, you consider what our customers most fundamentally rely on, it is knowing how to leverage AI driven strategic solutions, to more efficiently drive growth oriented customer acquisition and optimization. We believe that we are seeing initial signs of validation that there is significant opportunity for us to rapidly expand into highly measurable AI powered bundled solutions which provide the strategic insights our customers need the automated actions those insights inform, and the outcomes those actions achieve. We believe that there are significant untapped opportunities within our existing customer base and within each of our current verticals. We believe selling bundled solutions across this entire customer value chain can accelerate our business and make us more valuable, within our vertical markets. As AI opens up new product possibilities that can help businesses grow meaningfully while driving efficiencies. At Marchex, we view ourselves as a meaningful AI beneficiary based on how rapidly we are now able to leverage AI develop and deploy new products into our customer base that can deliver high customer value as well as significant new company revenue opportunities. We see significant new business potential in introducing agentic workflows for customers who are integrated on our platform. Additionally, AI is making our business more agile and efficient to operate. The combination of these factors including our vast amount of first party data and vertical expertise, are key elements in our improving outlook for meaningful business acceleration as we move through the year. With that, I will hand the call to Troy to briefly discuss the first quarter. Troy W. Hartless: Thank you, Russell. With our previously announced proposed acquisition of Archenia, Marchex and Arcania have been collaborating to jointly develop and sell initial products that reflect the combined capabilities of the 2 companies. Product examples of this collaboration, which leverages Martex's data and AI signals, and Archenia's AI tool sets and user interface. Our AI verified outcomes which drive increased revenue on a pay per event basis, and conversational AI agents, which increase customer bookings and appointment rate. In the first quarter, our focus included continuing to define the initial key products that most leverage our strategic insights, into AI based action and outcome solutions. That we could present to our installed customer base. And so far, we have seen very encouraging initial adoption. While we operate in a rapidly evolving and dynamic industry with uncertainty, these sales efforts and customer interactions so far continue to reinforce our belief. That we are now in a strong position with our ability to leverage new AI capabilities across the customer acquisition and optimization journey with highly impactful insight. Action, and outcome based solutions. In terms of customers for background, Marchex's top 100 customers represent about 90% of our revenue. And this customer set has been initial focus of presenting the products which leverage the combined capabilities of the company. To date, we have made presentations to nearly a third of these customers. And approximately half of them have already purchased 1 or more of these products on a recurring or paid pilot basis. Of those remaining, we believe the majority are likely to also purchase 1 or more of these products on a recurring or paid pilot basis. Additionally, as the potential transaction closing approaches, we are focused on accelerating our efforts to present these products the majority of our top customers. Marchex believes our ability to sell these and other combined solutions reflect the bundling of insights, actions, and outcomes to our installed customer base, will be a meaningful sales catalyst in 2026 and beyond. As a reminder, we have a core focus on select large vertical markets. Where the combination of our expanding AI capabilities built on years of operating with first party data across these verticals give us the ability to deliver unique solutions for world class market leading companies. To that end, we deliver industry specific AI solutions for automotive, auto services, home services, health care, and advertising and media, as well as other industries and sub verticals. With that, I will turn the call over to Brian to provide an overview of the first quarter 2020 financial results. Brian Nagle: Thank you, Troy. Revenue for 2026 was $10.6 million, compared to $10.8 million for 2025. We saw favorable impact of new sales and existing customer upsells benefit the company in the first quarter. We also saw offsets to that growth due to the previously completed migration activities from our legacy platforms onto our new Marchex Engage platform. Which impacted revenue run rates entering 2026. For operating expenditures, we saw efficiencies throughout the business as we benefited from the continued realignment of the organization and the completion of certain technology platform initiatives during 2025, which have lowered our overall recurring cost structure. We anticipate that our gross profit margins can continue to improve over time as we are carrying an overall lower cost structure going forward. Which could enable meaningful future operating and financial leverage for the business as new products and features sell through. On the balance sheet, cash decreased to $9 million from $9.9 million at the end of 2025. The decrease in cash was primarily due to annual payroll and severance payments associated with our organizational realignment and efficiency initiatives. Moving to guidance. Based on our evolved strategic approach, with delivering bundled solutions across insights, actions, and outcomes, as well as other positive factors, for 2026, Marchex currently anticipates that revenue will see sequential increases from the first quarter. And that adjusted EBITDA is now anticipated to increase to a range of $1.6 million to $1.8 million up from prior guidance of more than $1 million. Additionally, in terms of initial guidance for 2026, we currently anticipate that revenue will sequentially increase and potentially accelerate over second quarter 26 levels. And that on a stand alone basis, adjusted EBITDA can potentially be in the $2 million range or more. To the extent the Archenia transaction has been approved, and closed by 2026, Marchex believes that the combined company can potentially see adjusted EBITDA in the $2.5 million range or more for the third quarter or an annualized run rate of $10 million or more. We currently anticipate that we can continue to see quarterly revenue increases during the 2026 and that over the course of the year, we can potentially see revenue growth on a run rate basis in the 10% range from the 2025 year end levels. We also currently anticipate that in the course of the 2026, the combination of anticipated increasing revenue growth combined with lower overall operating expenses can potentially lead to adjusted EBITDA margins of 10% or more. With that, I will hand the call to Frank. Francis J. Feeney Jr.: You, Brian. I would like to take a moment to provide an update on the Archenia transaction. On May 8, 2026, Marchex entered into a stock purchase agreement (the SPA), to acquire 100% of the stock of Archenia Inc. (the transaction), from the Archenia stockholders (the sellers). A special committee of Marchex's board of directors consisting solely of independent directors (the special committee), has approved Marchex entering into the SPA because certain of the sellers are related parties. In considering the SPA, the special committee retained Craig Hallum Capital Group LLC as financial adviser, which provided a fairness opinion with respect to the purchase price. DLA Piper LLP US served as independent legal counsel to the special committee. Subject to receiving approval of the transaction by a majority of Marchex's disinterested stockholders, and satisfaction of other closing conditions, the company expects the transaction to close in July of 2026. For your reference, Archenia is a performance based customer qualification and acquisition company, which transforms consumer intent into AI verified outcome based results. Leveraging advanced AI signals, natural language analytics, and automated decisioning, Archenia detects consumer intent and advertiser value in real time. Optimizing customer acquisition campaigns dynamically across channels. With machine learning models that continuously refine qualification accuracy in ROI, Archenia enables its customers to pay for verified AI validated outcomes such as appointments, sales, and high intent conversations. We believe that our potential combination with Archenia is successfully consummated, we create a vertically focused AI driven customer acquisition and outcome optimization platform. Integrating deep insights automated actions, and verifiable outcomes. Additionally, we believe that the expanded AI driven product offerings across insights, actions, and outcomes could create more ways to win new business and the bundling of solutions could create greater customer value stickiness, and risk mitigation. We believe that the potential combined company could have the opportunity to achieve greater revenue scale and growth higher margins, expanded market reach, and enhanced strategic flexibility. Which could include first, a potentially expandable addressable market with opportunity to cross sell and bundle. We believe the combined ability to sell insights, actions, and outcomes would meaningfully expand our addressable market into new large vertical markets. Additionally, we believe we would have the ability to relatively quickly offer or bundle Arcania's outcome based solutions to many of Marchex insights based enterprise customers. Second, greater potential revenue, scale, and growth. Marchex believes that revenue run rates for the potential combined company are approximately $15 million quarterly or approximately $60 million annualized which could grow in the 15% to 20% range in the course of the 2026. Third, we see the potential for adjusted EBITDA expansion. We believe that our adjusted EBITDA margins are anticipated to trend up to 10% or more in the 2026. And then Archenia could contribute additional positive adjusted EBITDA beyond these levels. And finally, Rule of 30 to 40 trajectory. For reference, the Rule of 30 to 40 metric represents the combination of annual revenue growth rates plus adjusted EBITDA margins. If we are able to achieve the anticipated revenue run rate growth, in the 15 to 20% range, and combine this with improving adjusted EBITDA margins in double digits, the combined company could be positioned to potentially achieve these Rule of 30 to 40 metric over time. Which we believe helps highlight the unique opportunity of the combined company if consummated. I will now hand the call back to Russell for closing remarks. Russell C. Horowitz: Thank you, Frank. I would like to close out today's call by thanking all of our investors, partners, and other stakeholders for your ongoing support. I would also like to deeply thank our employees for their expertise, sense of urgency, and continued commitment as we execute on what we believe is an increasingly dynamic opportunity. And with that, I will hand the call back to the operator. Operator: We will now begin the question-and-answer session. Please limit yourself to 1 question and 1 follow-up. If you would like to ask a question, please press *1 to raise your hand. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Your first question comes from the line of Mike Latimore with Northland Markets. Mike, your line is open. Please go ahead. Analyst (Mike Latimore): Alright. Thanks. So the EBITDA guidance for the second quarter, is that largely driven by OpEx refinements? And if so, what kind of reduction OpEx should we see? Brian Nagle: Yeah. it is driven by a combination of our expected sales acceleration. And the sequential growth in the second quarter and then there is also contribution from some of the operations efficiencies. So if you are looking at Q1 revenue levels, I think you could see a kind of reduction in the 5% plus range on the OpEx side. And on the other parts of it, you know, we see the sell through on products and upsells and expansion of the new revenue opportunities. being drivers as well. Analyst (Mike Latimore): Okay. Thanks. And then, it sounds like you are already selling some bundles with Archenia, and I think the kind of math suggests, like 15% of the base that already bought them. I guess talk a little bit about the size of the upsell there? How much revenue per sale and if you are already selling some bundles, like, assume there is more bundles to come. Like, what percent of the total bundle potential are we selling right now? Russell C. Horowitz: Yeah. If you hit on the metrics as it relates to, the initial customer outreach, Yeah. it is been very validating. When you look at, some of the elements that I think we are most encouraged by, it is that the adoption of some of these new products are seeing opportunities to potentially double revenue on a per customer basis. And the fact that we are seeing guesses pretty quickly and indications on you know, the ones we have met with is what gives us, I think, a an encouraging lens in combination with the efficiency and just the acceleration of the whole business both with product development customers, some more than expansion. So the intent is to sell bundles to everybody. We know that is going to allow them to maximize the value of our capabilities And we are leveraging our vertical expertise and their data illuminate where they have big opportunities to drive increased customer acquisition as well as drive more customer bookings and appointments, with the qualified leads they already have coming into their ecosystem. Bundled solution we think meaningfully expands per customer revenue opportunity and also is going to drive a lot of increased stickiness as well. So, all the pulse metrics that we think translate to more dynamic company that can support the kind of growth we foresee and expanding EBITDA margins that we are starting to message. Good questions. Okay. Great. Thank you. Operator: Your next question comes from the line of Ross Koller with Koller Capital. Ross, your line is open. Please go ahead. Analyst (Ross Koller): A few questions here. Russ, you mentioned that you have met with or pitched about a third of your top 100 customers. Do you go about targeting the other 2/3? Russell C. Horowitz: Yeah. it is another good question. Yeah. As we got started pitching the new stuff, we decided to focus on specific customers and specific verticals like auto and home services. Who we believe had common problems and where bundling was the logical next step. Given what we knew to be their pain points and the value impacts of our solutions against those pain points. Doing it this way was really first to try and have success with revenue expansion, but also to validate our approach expose ourselves into the learnings we need to scale our sales efforts and then iterate. We feel like this approach has worked really well so far and what we have learned in terms of is informing us on how to start expanding. To our other verticals and also to more of the top customers. Obviously, our intent is to get to all of the top 100 customers as soon as practical, and then go beyond where we see strategic product fit and meaningful revenue opportunities. So this is happening, like, right now as we speak. We are at that inflection point. You know, the metrics we provided around initial update has given us the line of sight on how we approach and scale those efforts to more of the top 100 and beyond. So what we have also learned in this process is doing nothing but continuing to support our belief that on a combined basis, the business has a $100 million revenue opportunity. And we are approaching all of our efforts in viewing this as a profitably focused sprint to that $100 million revenue run rate and beyond. Awesome. Thanks, Ross. Analyst (Ross Koller): And then the $10 million annualized adjusted EBITDA guidance for Q3 is impressive. As the business returns to substantial profitability, what are your thoughts on capital allocation? Allocation? Russell C. Horowitz: Yeah. The first and most important thing is we think we are at a really positive inflection point and, obviously, the updated guidance today with the increased EBITDA reflects that. You know, we are just getting started in this new up cycle. And we are working toward the Archenia transaction approval and formalization. But in looking at increasing cash generation, we will assess the best and highest use of increasing cash as we go forward and we achieve these milestones. But it is worth noting we are a low CapEx business. And we have meaningful tax shields. And with the Archenia transaction, this will help us optimize our free cash flow generation as we go forward. And as I have noted before in our history, we have had times where we have done stock buybacks, self tender offers, record special dividends, and more. As a reminder, we do have an existing 3 million share buyback program authorized at this time. In terms of primary focus, we understand it is a simple concept. But if we can just keep driving increasing organic growth with expanding profitability, and we will have a lot of flexibility and latitude with the business and with our cash. Awesome. that is us. Thank you. Operator: We have reached the end of the Q&A. I will now turn the call back to the management team to conclude the call. Russell C. Horowitz: Once again, just want to thank everybody for your ongoing support, participation in today's call. And, we are just energized with where we are. Look forward to executing on what we think is an increasingly dynamic opportunity. And updating you as we move forward. Thanks again. Operator: Thank you for attending. You may now disconnect. Before you buy stock in Marchex, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Marchex wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Marchex (MCHX) Q1 2026 Earnings Transcript was originally published by The Motley Fool

On Wednesday, Marchex (NASDAQ:MCHX) discussed first-quarter financial results during its earnings call. The full transcript is provided below. This content is powered by Benzinga APIs. For comprehensive financial data and transcripts, visit https://www.benzinga.com/apis/. Access the full call at https://events.q4inc.com/attendee/291371739 Marchex Inc reported first-quarter 2026 revenue of $10.6 million, a slight decrease from the previous quarter due to platform migration impacts. The company is at a strategic inflection point, leveraging AI to provide bundled solutions that enhance customer acquisition and optimization, with plans for expansion into new verticals. A proposed acquisition of Arcania is expected to close in July 2026, aiming to enhance product offerings and drive revenue growth. Guidance for the second quarter of 2026 anticipates revenue increases and adjusted EBITDA growth to $1.6-$1.8 million, with further growth expected in the third quarter if the Arcania transaction is completed. The company is focused on improving operating efficiencies, leading to better profit margins and cash flow, despite a decrease in cash reserves due to payroll and severance payments. OPERATOR Hello everyone. Thank you for joining us and welcome to March X first quarter 2026 earnings conference call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Francis Feeney, Chief Operating Officer. Francis, please go ahead. Francis Feeney (Chief Operating Officer) Good afternoon everyone and welcome to Marchex's business update and first quarter 2026 conference call. Joining us today are Russ Horowitz, our Chairman of the Board, Troy Hartless, our President and Brian Nagel, our Chief Financial Officer. Before we get started, I would like to take this opportunity to remind you that our remarks today will include forward looking statements including references to our financial and operational performance and actual results may differ materially from those contemplated by these forward looking statements. Risks and uncertainties that could cause these results to differ materially are set forth in today's earnings press release and in our most recent annual or quarterly report filed with the SEC. Any forward looking statements that we make on this call are based on assumptions as of today and we undertake no obligation to update these statements for subsequent events. During this call we will present both GAAP and non GAAP financial measures. A reconciliation of GAAP to non GAAP measures is included in today's earnings press release. The earnings press release is available in the Investor Relations SECtion of our website. I will now turn the call over to Russ. Russ Horowitz (Chairman of the Board) Thank you Frank. I'm going to start with a few current thoughts and then hand the call over to Troy, Brian and then Frank again. The main item I'd like to share is that we believe the company is crossing a positive inflection point both strategically and operationally. The first half of 2026 is marking an important step in showing how our execution is beginning to translate into improved business performance with the indicators we care about moving in the right direction. We've come a long way in evolving our product and technology capabilities and we are beginning to increase penetration of our customer footprint which is starting to create real sales momentum. With this progress and deeper strategic understanding, which is against the backdrop of the very real and massive AI revolution, we've gained proprietary insight into what we believe may be a much bigger market opportunity. One where we are now evolving beyond mainly providing strategic analytics to vertical market leading companies to one where we accelerate delivering more comprehensive solutions that open up new revenue opportunities by addressing higher value impact needs across the entire customer acquisition and optimization journey. If you zoom out and consider what our customers most fundamentally rely on, it's knowing how to leverage AI driven strategic solutions to more efficiently drive growth oriented customer acquisition and optimization. We believe that we are seeing initial signs of validation that there is significant opportunity for us to rapidly expand into highly measurable AI powered bundled solutions which provide the strategic insights our customers need, the automated actions those insights inform and the outcomes those actions achieve. We believe that there are significant untapped opportunities within our existing customer base and within each of our current verticals. We believe selling bundled solutions across this entire customer value chain can accelerate our business and make us more valuable within our vertical markets as AI opens up new product possibilities that can help businesses grow meaningfully while driving efficiencies. At Marchex, we view ourselves as a meaningful AI beneficiary based on how rapidly we are now able to leverage AI to develop and deploy new products into our customer base that can deliver high customer value as well as significant new company revenue opportunities. We see significant new business potential in introducing agent-based workflows for customers who are integrated on our platform. Additionally, AI is making our business more agile and efficient to operate. The combination of these factors, including our vast amount of first party data and vertical expertise are key elements in our improving outlook for meaningful business acceleration as we move through the year. With that, I'll hand the call to Troy to briefly discuss the first quarter. Troy Hartless (President) Thank you Russ. With our previously announced proposed acquisition of Arcania, Marchex and Arcania have been collaborating to jointly develop and sell initial products that reflect the combined capabilities of the two companies. Product examples of this collaboration which leverages Marchex's data and AI signals and Arcania's AI toolsets and user interface are AI verified outcomes which drive increased revenue on a pay per event basis and conversational AI agents which increase customer bookings and appointment rate. In the first quarter our focus included continuing to define the initial key products that most leverage our strategic insights into AI based action and outcome solutions that we could present to our installed customer base and so far we have seen very encouraging initial adoption. While we operate in a rapidly evolving and dynamic industry with uncertainty, these sales efforts and customer interactions so far continue to reinforce our belief that we are now in a strong position with our ability to leverage new AI capabilities across the customer acquisition and optimization journey with highly highly impactful insight, action and outcome based solutions. In terms of customers for background, Marchex's top 100 customers represent about 90% of our revenue and this customer set has been initial focus of presenting the products which leverage the combined capabilities of the companies. To date we have made presentations to nearly a third of these customers and approximately half of them have already purchased one or more of these products on a recurring or paid pilot basis. Of those remaining, we believe the majority are likely to also purchase one or more of these products on a recurring or paid pilot basis. Additionally, as the potential transaction closing approaches, we are focused on accelerating our efforts to present these products to the majority of our top customers. Martech believes our ability to sell these and other combined solutions which reflect the bundling of Insights, actions and outcomes to our installed customer base will be a meaningful sales catalyst in 2026 and beyond. As a reminder, we have a core focus on select large vertical markets where the combination of our expanding AI capabilities built on years of operating with first party data across these verticals give us the ability to deliver unique solutions for world class market leading companies. To that end, we deliver industry specific AI solutions for automotive, auto services, home services, healthcare and advertising and media as well as other industries and sub verticals. With that, I will turn the call over to Brian to provide an overview of the first quarter 2026 financial results. Brian Nagel (Chief Financial Officer) Thank you Troy Revenue for the first quarter of 2026 was 10.6 million compared to 10.8 million for the fourth quarter of 2025. We saw favorable impact of new sales and existing customer upsells benefit the company in the first quarter. We also saw offsets to that growth due to the previously completed migration activities from our legacy platforms onto our new Marchex Engage platform which impacted revenue run rates entering 2026. For operating expenditures, we saw efficiencies throughout the business as we benefited from the continued realignment of the organization and the completion of certain technology platform initiatives during 2025 which have lowered our overall recurring cost structure. We anticipate that our gross profit margins can continue to improve over time as we are carrying an overall lower cost structure going forward which could enable meaningful future operating and financial leverage for the business as new products and features sell through on the balance sheet. Cash decreased to 9 million from 9.9 million at the end of the fourth quarter of 2025. The decrease in cash was primarily due to annual payroll and severance payments associated with our organizational realignment and efficiency initiatives. Moving to guidance based on our evolved strategic approach with delivering bundled solutions across Insights actions and outcomes as well as other positive factors for the second quarter of 2026. Marchex currently anticipates that revenue will see sequential increases from the first quarter and that adjusted EBITDA is now anticipated to increase to a range of 1.6 to 1.8 million, up from prior guidance of more than 1 million. Additionally, in terms of initial guidance for the third quarter of 2026, we currently anticipate that revenue will sequentially increase and potentially accelerate over second quarter 2026 levels and that on a standalone basis adjusted EBITDA can potentially be in the 2 million range or more. To the extent the Arcana transaction has been approved and closed by the third quarter of 2026, Marchex believes that the combined company can potentially see adjusted EBITDA in the 2.5 million range or more for the third quarter or an annualized run rate of 10 million or more. We currently anticipate that we can continue to see quarterly revenue increases during 2026 and that over the course of the year we can potentially see revenue growth on a run rate basis in the 10% range from 2025 year end levels. We also currently anticipate that in the course of 2026 the combination of anticipated increasing revenue growth combined with lower overall operating expenses can potentially lead to adjusted EBITDA margins of 10% or more. With that, I will hand the call to Frank. Francis Feeney (Chief Operating Officer) Thank you Brian. I would like to take a moment to provide an update on the Arcana transaction. On May 8, 2026, Marchex entered into a stock purchase agreement the SBA to acquire 100% of the stock of Arcana Inc. The transaction from the Arcania stockholders, the sellers, a special committee of Marchex's Board of Directors consisting solely of independent directors. The special committee has approved Marchex entering into the SPA because certain of the sellers are rDLAted parties in considering the SPA. The special committee retained Craig Hallam Capital Group LLC as financial advisor which provided a fairness opinion with respect to the purchase price. ELA Piper LLP US served as independent legal Counsel to the special committee subject to receiving approval of the transaction by majority of Marchex's disinterested stockholders. In satisfaction of other closing additions, the Company expects the transaction to close in July 2026. For your reference Arcana is a performance based customer qualification and acquisition company which transforms consumer intent into AI verified outcome based results. Leveraging advanced AI signals, natural language analytics and automated decisioning, Arcana detects consumer intent and advertiser value in real time, optimizing customer acquisition campaigns dynamically across channels. With machine learning models that continuously refine qualification, accuracy and roi, Arcana enables its customers to pay for verified AI validated outcomes such as appointments, sales and high intent conversations. We believe that our potential combination with Arcania is successfully consummated. We create a vertically focused AI driven customer acquisition and outcome optimization platform integrating deep insights, automated actions and verifiable outcomes. Additionally, we believe that the expanded AI driven product offerings across Insights actions and outcomes could create more ways to win new business and the bundling of solutions could create greater customer value, stickiness and risk mitigation. We believe that the potential combined company could have the opportunity to achieve greater revenue scale and growth, higher margins, expanded market reach and enhanced strategic flexibility which could include first, a potentially expandable addressable market with opportunity to cross sell and bundle. We believe the combined ability to sell Insights actions and outcomes would meaningfully expand our addressable market into new large vertical markets. Additionally, we believe we would have the ability to rDLAtively quickly offer or bundle Arcana's outcome based solutions to many of Marchex Insights based enterprise customers. Second, greater potential revenues, scale and growth. Marchex believes that revenue run rates for the potential combined company are approximately 15 million quarterly or approximately 60 million annualized, which could grow in the 15 to 20% range in the course of 2026. Third, we see the potential for adjusted EBITDA expansion. We believe that we believe that our adjusted EBITDA margins are anticipated to trend up to 10% or more in 2026 and that Arcana could contribute additional positive adjusted EBITDA beyond these levels. And finally, we will 30 to 40 trajectory for reference, the rule of 30 to 40 metric represents the combination of annual revenue growth rates plus adjusted EBITDA margins. If we're able to achieve the anticipated revenue run rate growth in the 15 to 20% range and combine this with improving adjusted EBITDA margins in double digits, the combined company could be positioned to potentially achieve these Rule 30 to 40 metrics over time, which we believe helps highlight the unique opportunity of the combined company if consummated. I will now hand the call back to Russ for closing remarks. Russ Horowitz (Chairman of the Board) Thank you, Frank. I'd like to close out today's call by thanking all of our investors, partners and other stakeholders for your ongoing support. I would also like to deeply thank our employees for their expertise, sense of urgency and continued commitment to execute on what we believe is an increasingly dynamic opportunity. And with that, I'll hand the call back to the operator. OPERATOR We will now begin the question and answer session. Please limit yourself to one question and one follow up. If you would like to ask a question, please press Star one to raise your hand. We ask that you pick up your handset when asking a question to allow for optimum sound quality if you are muted locally. Please remember to unmute your device. Your first question comes from the Line of Mike Latimore with Northland Capital Markets. Mike, your line is open. Please, go ahead. Brian Nagel (Chief Financial Officer) All right, thanks. So the EBITDA guidance for the second quarter, is that largely driven by OPEX refinements and, and if so, what kind of reduction operating expenditures should we see? Yeah, it's driven by a combination of our expected sales acceleration and the sequential growth in the second quarter. And then there's also contribution from some of the operations efficiency. So if you're looking at Q1 revenue levels, I think you could see, kind of a reduction in the 5% plus range on the operating expenditures side and on the other, on the other parts of it, we, we see the sell through on products and upsells and expansion of the new revenue opportunities, being drivers as well. Russ Horowitz (Chairman of the Board) Okay, thanks. And then it sounds like you're already selling some bundles with Arcania and I think kind of the Mass suggests like 15% of the base that already bought them, I guess. Can you talk a little about the size of the upsell there? You know, how much revenue per sale? And if you're already selling some bundles, like I assume there's more bundles to come, like what percent of the total bundle potential are we selling right now? Yeah, if you hit on the metrics as it relates to, call it the initial customer outreach. Yeah, it's been very validating. When you look at some of the elements that I think we're most encouraged by, it's that the adoption of some of these new products are seeing opportunities to potentially double revenue on a per customer basis. And the fact that we're seeing yeses pretty quickly and indications on the ones we met with is what gives us, I think, a kind of an encouraging lens in combination with the efficiency and just the acceleration of the whole business, both with product development, customer support and expansion. So the intent is to sell bundles to everybody we know that's going to allow them to maximize the value of our capabilities. And you know, we're leveraging our vertical expertise and you know, their data to illuminate where they have big opportunities to drive increased customer acquisition as well as, you know, drive more customer bookings and appointments, you know, with the qualified leads they already have coming into their ecosystem. The bundled solution we think meaningfully expands per customer revenue opportunity and also is going to drive a lot of increased stickiness as well. So all the pulse metrics that we think translate to a more dynamic company that can support the kind of growth we foresee and expanding EBITDA margins that we're starting to message. Good questions. Mike Latimore (Equity Analyst) Thank you. OPERATOR Your next question comes from the line of Ross Koller with Koller Capital. Ross, your line is open. Please go ahead. Ross Koller Ross, few questions here. Russ, you mentioned that you've met with or pitched about a third of your top hundred customers. How do you go about targeting the other 2/3? Russ Horowitz (Chairman of the Board) It's another good question. As we got started pitching the new stuff, we decided to focus on specific customers in specific verticals like auto and home services, who we believe had common problems and where bundling was the logical next step, given what we knew to be their pain points and the value impacts of our solutions against those pain points. Doing it this way was really first to try and have success with revenue expansion, but also to validate our approach, expose ourselves into the learnings we need to scale our sales efforts and then iterate. We feel like this approach has worked really well so far. And what we've learned in terms of is informing us on how to start expanding to our other verticals and also to more of the top customers. Obviously, our intent is to get to all of the top 100 customers as soon as practical and then go beyond where we see strategic product fit in meaningful revenue opportunities. So this is happening, like right now, as we speak, we're at that inflection point. You know, the metrics we provided around initial uptake has kind of given us the line of sight on how we approach and scale those efforts to more of the top hundred and beyond. So, you know, what we've also learned in this process is continuing to continuing to support our belief that on a combined basis, the business has $100 million revenue opportunity. And we're approaching all of our efforts in viewing this as a profitably focused sprint to that $100 million revenue run rate and beyond. Ross Koller Awesome. Thanks, Ross. And then the $10 million annualized adjusted EBITDA guidance for Q3 is impressive as the business returns to substantial profitability. What are your thoughts on capital allocation? Russ Horowitz (Chairman of the Board) Yeah, the first and most important thing is we think we're at a really positive inflection point. And obviously the updated guidance today with the increased EBITDA reflects that. We're just getting started in this new upcycle and we're working toward the Arcadia transaction approval and formalization. But in looking at increasing cash generation and we'll assess the best and highest use of increasing cash as we go forward and we achieve these milestones. But it is worth noting, low capex business and we have meaningful tax shields. And with the Arcadia transaction, this will help us optimize our free cash flow generation as we go forward. As I've noted before in our history we've had times where we've had stock buybacks, sell tender offers, record special dividends and more. And as a reminder we do have an existing 3 million share buyback program authorized at this time. In terms of primary focus, we understand it's a simple concept but if we can just keep driving increasing organic growth with expanding profitability and we'll have a lot of flexibility and latitude with the business and with our cash. Ross Koller Awesome. Thanks Russ. Thank you. OPERATOR We have reached the end of the Q and A session. I will now turn the call back to the management team to conclude the call. Russ Horowitz (Chairman of the Board) Once again just want to thank everybody for your ongoing support participation in today's call and we're just energized with where we are look forward to executing on what we think is an increasingly dynamic opportunity and updating you as we move forward. Thanks again. Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice. Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga: MARCHEX (MCHX): Free Stock Analysis Report This article Transcript: Marchex Q1 2026 Earnings Conference Call originally appeared on Benzinga.com ﾩ 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

This article first appeared on GuruFocus. Release Date: May 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Marchex Inc (NASDAQ:MCHX) is experiencing a positive inflection point strategically and operationally, with improved business performance indicators. The company is leveraging AI to develop new products, creating significant new revenue opportunities and enhancing customer value. Marchex Inc (NASDAQ:MCHX) has seen encouraging initial adoption of its AI-driven solutions, with nearly half of the targeted TOP100 customers purchasing products. The proposed acquisition of Arcania is expected to enhance Marchex Inc (NASDAQ:MCHX)'s product offerings and expand its market reach. The company anticipates sequential revenue increases and improved adjusted EBITDA in the upcoming quarters, indicating financial growth and stability. Revenue for the first quarter of 2026 was slightly down compared to the fourth quarter of 2025, indicating potential challenges in maintaining consistent growth. Cash reserves decreased from $9.9 million to $9 million, primarily due to annual payroll and severance payments, which could impact liquidity. The company faces uncertainties in a rapidly evolving industry, which may affect its ability to consistently execute its strategic plans. Marchex Inc (NASDAQ:MCHX) is still in the process of targeting two-thirds of its TOP100 customers, indicating that full market penetration has not yet been achieved. The success of the Arcania acquisition is contingent on approval and closing conditions, introducing potential risks to the anticipated benefits. Warning! GuruFocus has detected 3 Warning Signs with MCHX. Is MCHX fairly valued? Test your thesis with our free DCF calculator. Q: The EBITDA guidance for the second quarter, is that largely driven by OpEx refinements? And if so, what kind of reduction in OpEx should we see? A: Yes, it's driven by a combination of expected sales acceleration and sequential growth in the second quarter, along with contributions from operational efficiencies. We anticipate a reduction in the 5% plus range on the OpEx side, alongside sell-through on products and upsells driving new revenue opportunities. - Russ Horowitz, Chairman of the Board Q: You're already selling some bundles with Arcania. Can you talk about the size of the upsell and the potential for more bundles? A: The initial customer outreach has been validating, with opportunities to potentially double revenue on a per-customer basis. We aim to sell bundles to all customers, leveraging our vertical expertise to drive increased customer acquisition and bookings. This approach is expected to expand customer revenue opportunities and increase stickiness. - Russ Horowitz, Chairman of the Board Q: How do you plan to target the remaining two-thirds of your TOP100 customers? A: We initially focused on specific customers and verticals like auto and home services to validate our approach. This has informed our strategy to expand to other verticals and more top customers. Our intent is to reach all TOP100 customers and beyond, viewing this as a sprint to a $100 million revenue run rate. - Russ Horowitz, Chairman of the Board Q: With the $10 million annualized adjusted EBITDA guidance for Q3, what are your thoughts on capital allocation as the business returns to profitability? A: We are at a positive inflection point, and with increasing cash generation, we'll assess the best use of cash. We have a low CapEx business with meaningful tax shields, and the Arcania transaction will optimize free cash flow. We have an existing $3 million share buyback program and will focus on driving organic growth with expanding profitability. - Russ Horowitz, Chairman of the Board Q: Can you provide an update on the Arcania transaction and its expected impact? A: Marchex entered into a stock purchase agreement to acquire 100% of Arcania. The transaction is expected to close in July 2026, subject to approval. The combination is anticipated to create a vertically focused AI-driven platform, expanding market reach and enhancing strategic flexibility, with potential revenue growth in the 15% to 20% range. - Francis Feeney, Chief Operating Officer For the complete transcript of the earnings call, please refer to the full earnings call transcript.