Marchex Inc-Class B (NASDAQ:MCHX) Reports Q3 2025 Earnings Miss, Announces Archenia Acquisition

Marchex Inc-Class B (NASDAQ:MCHX) Reports Q3 2025 Results Amid Strategic Acquisition Announcement

Earnings Overview

Marchex Inc-Class B (NASDAQ:MCHX) has released its financial results for the third quarter of 2025, revealing a performance that fell short of analyst revenue expectations while meeting adjusted profitability metrics. The company simultaneously announced a significant strategic move with an agreement in principle to acquire Archenia, Inc., a performance-based customer acquisition firm.

The key financial results compared to analyst expectations were:

• Q3 2025 Revenue: $11.5 million, compared to analyst estimates of $12.1 million.
• Q3 2025 Adjusted EPS: $0.00, compared to analyst estimates of $0.01.

Financial Performance and Market Reaction

The company's third-quarter revenue of $11.5 million represents a decrease from the $12.6 million reported in the same period last year. This decline was anticipated by management and attributed to ongoing revenue migration dilution as the company nears completion of moving over 1,000 customers onto its new technology platform. Despite the top-line miss, the company highlighted progress in its operational efficiency.

• Net Loss: The GAAP net loss was $1.0 million, or $(0.02) per diluted share, compared to a net loss of $0.8 million, or $(0.02) per share, in Q3 2024.
• Adjusted EBITDA: This metric showed improvement, coming in at a gain of $0.6 million. Excluding $0.5 million in reorganization costs, the adjusted EBITDA gain would have been $1.1 million, a significant increase from the $0.3 million gain in the prior year period.

The market's initial reaction has been notably positive, with the stock rising approximately 3.9% in after-hours trading following the announcement. This suggests that investors are looking beyond the revenue miss and focusing on the improved profitability, strong sales bookings, and the potential long-term benefits of the planned acquisition.

Strategic Acquisition and Forward Outlook

A central piece of the earnings announcement was the agreement to acquire Archenia, Inc. The deal is structured around a $10 million convertible note and potential future stock issuances contingent on Archenia's performance. Marchex believes the acquisition will create a vertically focused, AI-driven customer acquisition platform.

Key projected benefits of the combination include:

• An estimated combined company revenue run rate of approximately $60 million annualized.
• Potential revenue growth in the 15-20% range during 2026.
• Expansion of the company's addressable market and cross-selling opportunities.

Regarding its standalone outlook, Marchex provided forward-looking statements indicating an expectation for revenue growth on a run-rate basis in the 10% range during 2026, alongside Adjusted EBITDA margins of 10% or more. For the immediate next quarter, the company anticipates that both revenue and Adjusted EBITDA will be sequentially lower in Q4 2025 due to typical seasonality and the final phase of the platform migration.

Product Launches and Operational Highlights

Throughout 2025, Marchex has been actively launching new products on its unified technology platform. Recent introductions highlighted in the report include:

• AI Benchmarking: Provides industry-specific performance benchmarks for enterprise customers.
• AgentAI Optimizer: A soon-to-launch tool designed to analyze the performance of third-party AI agents.
• Marchex Engage GPT: Expected later in Q4, this will offer business-specific large language model capabilities.
• Vertical Solutions: The company has also released new AI-powered conversational intelligence solutions tailored for the healthcare and senior living industries.

Conclusion

Marchex's third-quarter results present a mixed but strategically forward-looking picture. While revenue missed analyst targets due to a known, transitional headwind, the company demonstrated meaningful improvement in its underlying profitability. The market's positive reaction appears to be driven by this operational leverage, a record quarter for sales bookings, and the strategic rationale behind the acquisition of Archenia. Investors are being presented with a narrative of short-term transition paving the way for accelerated growth and scaled profitability in 2026.

For a detailed look at historical earnings and future analyst estimates for Marchex, you can review the data here.

Disclaimer: This article is for informational purposes only and is not intended as investment advice. The author has no position in any stock mentioned. All investment decisions should be based on your own research, financial circumstances, and risk tolerance.