Key Highlights

  • Revenue of USD 15.97 million missed the USD 16.24 million estimate, while Earnings of USD 0.04 per share matched estimates.
  • Net income was USD 1.3 million against a USD 1.3 million net loss, and adjusted EBITDA was USD 2.4 million.
  • Gross Margin was 51% against 54% a year earlier, reflecting Revenue mix and costs tied to paid pilots.
  • Q4 guidance is USD 15 million or more of revenue and USD 2.3 million to 2.5 million of adjusted EBITDA.

Marchex, Inc. (NASDAQ:MCHX), a conversational analytics company, reported third quarter 2026 revenue of USD 15.97 million, below the USD 16.24 million estimate and above the USD 15.2 million reported a year earlier. Earnings of USD 0.04 per share matched the estimate. Management reported Net Income of USD 1.3 million, or USD 0.03 per diluted share, against a net loss of USD 1.3 million, or USD 0.03 per diluted share, in the third quarter of 2025.

Adjusted EBITDA increased to USD 2.4 million from USD 0.5 million a year earlier, as adjusted, in a quarter where revenue and Earnings Per Share were both close to estimates. Management said adjusted EBITDA before certain costs was USD 2.6 million.

Margins, Customers and Products

Gross margin was 51% against 54% a year ago, which management attributed to revenue mix and costs associated with paid pilots during the quarter. Management said third quarter annualized adjusted EBITDA exceeded USD 10 million and that current operating efficiencies give it the opportunity to increase adjusted EBITDA beyond that run rate in 2027.

Management cited two customer examples. In one, an existing relationship representing about USD 400,000 in annualized revenue is adding a new deployment that management anticipates generating incremental revenue in the rest of 2026 and adding more than USD 200,000 of annualized revenue from that customer in 2027. In the other, an approval followed an early access deployment of Engage for Service across 75 dealerships, where the product helped improve service operations and identify missed appointments and revenue opportunities.

Cash and Fourth Quarter Guidance

Operating expenses excluding cost of revenue were USD 6.7 million against USD 9.3 million in the third quarter of 2025, which management attributed to expense efficiency initiatives and an organization realignment that streamlined its operations.

The company ended the quarter with USD 8.7 million in cash and cash equivalents. For the fourth quarter of 2026, management guided to revenue of USD 15 million or more and adjusted EBITDA of USD 2.3 million to USD 2.5 million. It plans to provide a first quarter 2027 outlook when it reports fourth quarter and full year results, currently anticipated in early March 2027.

Management said progress across the Business reinforces its belief that 2027 is an increasing growth year and that it sees a path to a business with more than USD 100 million of revenue as it executes.

Items to Follow

The company reported USD 8.7 million of cash and cash equivalents, and management said third quarter annualized adjusted EBITDA exceeded USD 10 million. The items to follow are gross margin, pilot conversion, dealership deployments, adjusted EBITDA and the cash balance.