Marchex, Inc (MCHX) AI Stock Analysis

Marchex, Inc. operates as an analytics and solutions provider focused on enhancing business connectivity, driving customer conversions, and measuring marketing effectiveness across the United States and Canada. The company offers Marchex Call Analytics to help enterprises optimize sales, appointments, and reservations through insights derived from inbound call data. It also provides Text Analytics and Communications solutions for intelligent customer engagement via SMS. Through its Marchex Sales Engagement suite, including Marchex Engage and Marchex Spotlight, the company deploys artificial intelligence and machine learning for call monitoring and scoring, serving sectors such as automotive. Additionally, Marchex Platform Services enables enterprises to integrate conversation intelligence directly into operational workflows.

Marchex has experienced persistent top-line contraction, with revenue falling at a five-year compound annual growth rate of -2.4% from FY2020 to FY2025. Annual revenue decreased from $53.5M in FY2021 to $45.4M in FY2025, falling 5.6% in FY2025 alone. Operating margins improved from -22.1% in FY2021 to -9.6% in FY2025 as research and development expenses declined from $16.1M to $9.7M. Net income remained negative across all five years, standing at -$5.2M in FY2025. For the trailing twelve months ending June 30, 2026, revenue was $44.0M with a net profit margin of -12.4%, while quarterly revenue dropped 5.6% year-over-year.

Marchex maintains a liquid financial profile with $8.2M in cash and short-term investments against total debt of $488,000 as of June 30, 2026, resulting in net cash of $7.7M. The company recorded a current ratio of 2.29 and a debt-to-equity ratio of 0.02 against $29.0M in shareholders' equity. Operating cash flow for FY2025 was -$1.4M, and free cash flow was -$1.4M after capital expenditures of $36,000. Over five years, the company reduced its share count by 0.6%.

At a share price of $1.26, Marchex trades at a forward price-to-earnings ratio of 333.3x, significantly above the 14.1x median of its US-listed Communication Services peers. Its price-to-sales ratio of 1.3x also trades at a premium to the peer median of 0.8x, while its enterprise value to revenue sits at 1.1x. The stock has underperformed the broader market, falling 30.4% over the past year and 61.5% over five years, compared to gains of 16.8% and 83.0% for the S&P 500 benchmark over the same periods.

One analyst covers Marchex, rating the company a Strong Buy with a price target of $4.00, representing a 217.5% premium to the last closing price of $1.26. For the current fiscal year ending December 31, 2026, consensus estimates project an earnings per share of $0.04 on revenue of $53.5M, reflecting 166.7% earnings growth. Over the last four quarters, Marchex recorded zero earnings beats. The company's next earnings report is scheduled for November 12, 2026.

This page is an AI-written research summary of Marchex, Inc (MCHX). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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