Marchex (NASDAQ:MCHX) executives used the company’s fourth-quarter and full-year 2025 earnings call to highlight what they described as a strategic and operational “inflection point,” driven by completion of a major platform migration and expanding product efforts tied to artificial intelligence and a proposed acquisition of Archenia.
Chairman Russell Horowitz said Marchex believes it can evolve beyond primarily providing strategic analytics toward “highly measurable AI-powered bundled solutions” that combine insights, automated actions, and outcomes across the customer acquisition and optimization journey. Management emphasized that customers are relying on Marchex’s AI-driven insights to drive growth-oriented customer acquisition more efficiently, and that the company sees meaningful opportunity to expand within its existing customer base and verticals.
Platform migration and product roadmap
With the infrastructure project largely behind it, Hartless said Marchex expects to focus in 2026 on accelerating revenue growth and expanding margins. Over the past year, he said the company expanded its product platform capabilities and launched a new unified user interface across Marchex’s product suite, “new vertical AI capabilities,” and other products and features, with more planned for 2026 and beyond.
Marchex reiterated its focus on select large vertical markets, including automotive, auto services, home services, healthcare, and advertising and media, among others.
Early collaboration with Archenia and AI-driven bundled solutions
Management also discussed progress related to the previously announced proposed acquisition of Archenia. Hartless said Marchex and Archenia have established a collaboration framework and have been “jointly developing and selling initial products” reflecting combined capabilities. He cited examples including:
- Conversational AI agents intended to increase customer bookings and appointment rates
- AI-verified outcomes designed to drive increased revenue on a pay-per-event basis
Hartless said the companies are in trials with “a handful of customers” and expect to launch more in the next month and beyond. He added that while combined selling efforts are early, the company has seen initial positive indications of adoption from existing Marchex customers in the home services and auto services verticals.
In the Q&A portion, Horowitz said joint sales calls have been “very positive” and that Marchex already has “multiple orders in hand” from its installed base for these new products. He said the company is currently selling conversational AI agents and AI-verified outcomes into auto services and home services, with plans to expand to additional customers and other verticals over time.
Horowitz also framed AI as both a product catalyst and an operational efficiency driver, pointing to the company’s first-party data and vertical expertise as key inputs into its outlook for business acceleration.
Fourth-quarter financial results and 2026 outlook
Chief Financial Officer Brian Nagle reported fourth-quarter 2025 revenue of $10.8 million, down from $11.5 million in the third quarter of 2025. Nagle said new sales and upsells helped results, but were partially offset by migration-related impacts as customers moved from legacy platforms to Marchex Engage.
On expenses, Nagle said the company saw efficiencies from organizational realignment and completion of certain technology platform initiatives during 2025. He said Marchex anticipates gross profit margins can improve over time due to a lower cost structure, potentially providing operating leverage as new products and features gain adoption.
Cash was $9.9 million at quarter-end, down from $10.3 million at the end of the third quarter. Nagle attributed the decline primarily to timing of customer payments late in the quarter.
For guidance, Nagle said first-quarter 2026 revenue reflects migration-related dilution from the final platform switchover in December 2025, which impacted revenue run rates entering 2026. He said management expects:
- Q1 2026 revenue in the range of Q4 2025 levels
- Q1 2026 Adjusted EBITDA of $500,000 or more
- Q2 2026 revenue to increase sequentially versus Q1
- Q2 2026 Adjusted EBITDA potentially increasing to more than $1 million
Nagle added that the company anticipates sequential quarterly revenue increases during 2026 and said it expects revenue growth on a run-rate basis in the “10% range” from 2025 year-end levels. He also said Marchex anticipates Adjusted EBITDA margins of “10% or more” during 2026 as revenue rises and operating expenses remain lower.
Archenia transaction process and proposed financial profile
Chief Operating Officer Francis Feeney provided an update on the proposed Archenia transaction. He said Marchex entered into an agreement in principle (AIP) in November 2025 to acquire 100% of Archenia’s stock. Because certain sellers are related parties, a special committee of independent directors approved the company entering into the AIP.
Feeney said conditions to entering a definitive agreement include receiving audited Archenia financial statements as required by SEC rules and a customary fairness opinion from a financial advisor selected by the special committee. He said Archenia engaged RSM US LLP to audit its financial statements and the special committee engaged Craig-Hallum Capital Group LLC as its financial advisor. Closing conditions would include approval by a majority of Marchex’s disinterested stockholders. If a definitive agreement is reached and approved, Feeney said the closing is anticipated in June 2026.
Feeney described Archenia as a performance-based customer qualification and acquisition company focused on “AI-verified outcome-based results,” including appointments, sales, and high-intent conversations. He said Marchex believes a combination would create a vertically focused AI-driven platform integrating insights, actions, and verifiable outcomes, potentially improving customer value and “stickiness.”
Feeney also shared Marchex’s view of the potential combined company’s financial profile, stating management believes combined revenue run rates would be approximately $15 million quarterly, or roughly $60 million annualized, and could grow in the 15% to 20% range during 2026. He said Marchex expects its own Adjusted EBITDA margins to trend to 10% or more in 2026 and that Archenia could contribute additional positive Adjusted EBITDA beyond those levels. He also referenced a “Rule of 30 to Rule of 40” trajectory, which combines revenue growth and Adjusted EBITDA margin.
During Q&A, Horowitz said the company’s top 50 customers represent about 80% of revenue, and he believes the new capabilities are relevant to the “vast majority” of those customers. He reiterated past commentary about a $100 million revenue opportunity over time, adding that, on a combined basis, a $100 million revenue run rate appears “more tangible and achievable much sooner,” even within the existing customer base.
Bookings, call volumes, and investor outreach
In response to a question on bookings, management said bookings were similar to the prior quarter and viewed that as favorable considering seasonal impacts. The company said it is seeing booking acceleration month-to-month as it exits the first quarter and enters the second quarter, tied to new solutions.
On call volumes, management said volumes have been “relatively consistent” and are less of a drag than in the past, with the primary variables now being customer expansion, upselling new products, and scaling benefits from joint selling efforts around combined capabilities.
Horowitz also addressed investor relations, saying the company recently hired Ondel Wilkinson as a new IR firm to support outreach and storytelling. He noted Marchex has an existing authorized 3 million share buyback program and said the company will continue to assess its options, while emphasizing execution and communication as the primary drivers of value recognition.
About Marchex (NASDAQ:MCHX)
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.
