Q3 FY2026
Filed Nov 10, 2026Marchex returns to year-over-year revenue growth and GAAP net income in Q3 2026, with Adjusted EBITDA up sharply
Q3 2026 improved on Q3 2025 (as adjusted) on revenue, GAAP net income, operating income and Adjusted EBITDA. The nine-month GAAP net loss, a sharp fall in stockholders' equity, higher total liabilities and lower cash offset that, and the Q4 2026 revenue outlook of $15.0 million or more sits below the Q3 2026 revenue of $15,974 thousand.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, Q3 2026 (three months ended Sep 30)GAAP | $15.97M | – | – |
| Cost of revenue, Q3 2026GAAP | 7.71M | – | – |
| Amortization of capitalized software development costs, Q3 2026GAAP | 129K | – | – |
| Total cost of revenue, Q3 2026GAAP | 7.84M | – | – |
| Sales and marketing, Q3 2026GAAP | 2.62M | – | – |
| Product development, Q3 2026GAAP | 2.02M | – | – |
| General and administrative, Q3 2026GAAP | 2.06M | – | – |
| Total operating expenses, Q3 2026GAAP | 14.54M | – | – |
| Income (loss) from operations, Q3 2026GAAP | 1.44M | – | – |
| Interest income (expense) and other, net, Q3 2026GAAP | −164K | – | – |
| Income (loss) before income tax expense, Q3 2026GAAP | 1.27M | – | – |
| Income tax expense, Q3 2026GAAP | — thousand (dash as printed) | – | – |
| Net income (loss) applicable to common stockholders, Q3 2026GAAP | $1.27M | – | – |
| Basic and diluted net income (loss) per Class A and B share, Q3 2026GAAP | $0.03 | – | – |
| Adjusted EBITDA, Q3 2026 (net of reorganization and acquisition-related costs)non-GAAP | $2.37M | – | – |
| Adjusted EBITDA before reorganization and acquisition-related costs, Q3 2026non-GAAP | $2.6M | – | – |
| Reorganization and acquisition-related costs included in Adjusted EBITDA, Q3 2026non-GAAP | $200K | – | – |
| Adjusted EBITDA margin, Q3 2026non-GAAP | approximately 15% | – | – |
| Adjusted EBITDA margin before reorganization and acquisition-related costs, Q3 2026non-GAAP | 16% | – | – |
| Adjusted non-GAAP income (loss) per share, Q3 2026non-GAAP | $0.04 | – | – |
| Revenue, nine months ended Sep 30, 2026GAAP | $45.87M | – | – |
| Total cost of revenue, nine months ended Sep 30, 2026GAAP | 22.36M | – | – |
| Sales and marketing, nine months ended Sep 30, 2026GAAP | 9.28M | – | – |
| Product development, nine months ended Sep 30, 2026GAAP | 6.96M | – | – |
| General and administrative, nine months ended Sep 30, 2026GAAP | 7.38M | – | – |
| Total operating expenses, nine months ended Sep 30, 2026GAAP | 45.99M | – | – |
| Income (loss) from operations, nine months ended Sep 30, 2026GAAP | −114K | – | – |
| Interest income (expense) and other, net, nine months ended Sep 30, 2026GAAP | −432K | – | – |
| Income tax expense, nine months ended Sep 30, 2026GAAP | 310K | – | – |
| Net income (loss) applicable to common stockholders, nine months ended Sep 30, 2026GAAP | −$856K | – | – |
| Basic and diluted net income (loss) per Class A and B share, nine months ended Sep 30, 2026GAAP | $(0.02) | – | – |
| Adjusted EBITDA, nine months ended Sep 30, 2026non-GAAP | $3.24M | – | – |
| Adjusted non-GAAP income (loss) per share, nine months ended Sep 30, 2026non-GAAP | $0.01 | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Q4 2026 (three months ending December 31, 2026) outlook
- Revenue$15.0 million or more
- NoteAdjusted EBITDA, net of reorganization and acquisition costs: $2.3 - $2.5 million
- NoteMarchex notes seasonality in the fourth quarter based on lower conversational volumes typically leads to lower sequential revenue and Adjusted EBITDA.
- NoteInitial 2027 financial outlook to be provided with Q4 2026 results, currently anticipated in early March 2027.
Capital returns
- The filing does not report share repurchases or dividends for Q3 2026 or the nine months ended Sep 30, 2026.
What drove it
- Management describes early commercial traction following the combination with Archenia, including expanded customer relationships, new AI-powered solution deployments and cross-sell opportunities.
- An existing advertising and media customer deployed the AI Voice Agent solution commercially after a paid pilot. The relationship currently generates approximately $400,000 in annualized revenue, with more than $200,000 in incremental annualized revenue expected in 2027.
- A major automotive OEM approved Marchex's Engage for Service solution for its dealer portal, enabling dealers to access OEM co-op funding. The solution was previously deployed in a pilot with 75 dealerships.
- Travis Fairchild, previously CEO of Archenia, was appointed President of the combined company effective November 9, 2026.
Concerns
- Nine-month GAAP net loss of $(856) thousand, compared with $(2,798) thousand in the prior-year period (As Adjusted).
- Total stockholders' equity fell to $14,738 thousand at Sep 30, 2026 from $28,299 thousand at Dec 31, 2025 (As Adjusted).
- Total liabilities rose to $26,593 thousand from $13,895 thousand, including related party obligations and contingent earn-outs.
- Cash fell to $8,671 thousand from $10,301 thousand at Dec 31, 2025 (As Adjusted).
- Q4 2026 revenue outlook of $15.0 million or more is below Q3 2026 revenue of $15,974 thousand; the company attributes the lower sequential outlook to fourth-quarter seasonality in conversational volumes.
- Q3 2026 interest income (expense) and other, net was $(164) thousand, compared with $(120) thousand in Q3 2025.
What to watch
- Q4 2026 revenue against the outlook of $15.0 million or more, and Adjusted EBITDA, net of reorganization and acquisition costs, against $2.3 - $2.5 million.
- The initial 2027 financial outlook, expected with Q4 2026 results in early March 2027.
- Revenue contribution from the Archenia combination, which the filing does not quantify.
- Movement in related party obligations, contingent earn-outs and stockholders' equity.
- Cash balance trend given the lower cash figure at Sep 30, 2026 compared with Dec 31, 2025 (As Adjusted).
- Management's plan to selectively invest in sales and product development in 2027 while maintaining expense discipline.
Balance sheet and cash flow
- Cash and cash equivalents: $8,671 thousand at Sep 30, 2026, compared with $10,301 thousand at Dec 31, 2025 (As Adjusted).
- Total assets: $41,331 thousand at Sep 30, 2026, compared with $42,194 thousand at Dec 31, 2025 (As Adjusted).
- Total liabilities: $26,593 thousand at Sep 30, 2026, compared with $13,895 thousand at Dec 31, 2025 (As Adjusted).
- Total stockholders' equity: $14,738 thousand at Sep 30, 2026, compared with $28,299 thousand at Dec 31, 2025 (As Adjusted).
- Related party obligations and related amounts, current: $4,910 thousand at Sep 30, 2026, compared with nil at Dec 31, 2025.
- Related party obligations, related amounts, and other non-current liabilities: $6,686 thousand at Sep 30, 2026, compared with $2,766 thousand at Dec 31, 2025 (As Adjusted).
- Contingent earn-out, current: $2,464 thousand at Sep 30, 2026, compared with nil at Dec 31, 2025.
- Contingent earn-out, non-current: $1,991 thousand at Sep 30, 2026, compared with nil at Dec 31, 2025.
- Goodwill: $17,558 thousand at both Sep 30, 2026 and Dec 31, 2025.
- The filing does not include a cash flow statement, operating cash flow or free cash flow.
Analysis
Marchex reported third quarter 2026 revenue of $15,974 thousand, compared with $15,192 thousand in the third quarter of 2025 as adjusted, and GAAP net income applicable to common stockholders of $1,274 thousand, or $0.03 per diluted share, compared with a net loss of $(1,293) thousand, or $(0.03) per share. Income from operations was $1,438 thousand against $(1,146) thousand a year earlier. Operating expenses fell year over year, with sales and marketing at $2,624 thousand versus $3,319 thousand, product development at $2,016 thousand versus $2,736 thousand, and general and administrative at $2,059 thousand versus $3,243 thousand. Adjusted EBITDA was $2,374 thousand, compared with $478 thousand, and the release states Adjusted EBITDA margin of approximately 15% against 3%. Before $0.2 million of reorganization and acquisition-related costs, Adjusted EBITDA was $2.6 million, or 16%.
The filing does not give a quarter-on-quarter comparison, a sequential revenue figure or any segment or product-line revenue, so the mix of growth across the combined business cannot be read from the document. The release describes early commercial traction after the July 2026 Archenia acquisition, citing an expanded AI Voice Agent deployment with an existing media customer and an OEM approval for Engage for Service through a dealer portal. It quantifies the media customer relationship at approximately $400,000 in annualized revenue and more than $200,000 in incremental annualized revenue in 2027. The filing does not state how much of Q3 revenue came from Archenia.
On a nine-month basis the picture is weaker. Revenue was $45,874 thousand against $49,039 thousand, the operating result was a loss from operations of $(114) thousand against $(3,017) thousand, and the GAAP net loss was $(856) thousand against $(2,798) thousand. Adjusted EBITDA for the nine months was $3,240 thousand against $1,010 thousand. The improvement in the operating result is narrower than the quarter suggests, and the nine-month revenue decline is still visible.
The balance sheet changed materially. Total stockholders' equity fell to $14,738 thousand from $28,299 thousand at December 31, 2025 (as adjusted). Total liabilities rose to $26,593 thousand from $13,895 thousand, and the filing lists current and non-current related party obligations, a current contingent earn-out and a non-current contingent earn-out that were nil or lower at year-end. Cash was $8,671 thousand, down from $10,301 thousand. The filing contains no cash flow statement, so operating cash flow and free cash flow cannot be assessed, and it reports no share repurchases or dividends.
The fourth-quarter outlook calls for revenue of $15.0 million or more and Adjusted EBITDA, net of reorganization and acquisition costs, of $2.3 - $2.5 million. Management attributes the lower sequential outlook to fourth-quarter seasonality in conversational volumes, and says pipeline and cost efficiencies may offset that seasonality. No prior outlook was supplied, so no comparison with earlier guidance is made here. The company will give its initial 2027 outlook with fourth-quarter results in early March 2027.
Management, verbatim
Our third quarter results reflect a new phase of growth and meaningful progress in strengthening Marchex's financial performance, with year-over-year revenue growth, positive GAAP net income, and a significant improvement in Adjusted EBITDA
Russell Horowitz, Chairman of Marchex
At the same time, we are seeing encouraging early commercial traction following our combination with Archenia, including expanded customer relationships, new AI-powered solutions deployments, and increased opportunities to cross-sell our combined capabilities.
Russell Horowitz, Chairman of Marchex
Having successfully led Archenia and played a key role in bringing our two businesses together, he is exceptionally well positioned to accelerate the commercialization of our combined capabilities, deepen customer relationships, and drive the next phase of growth.
Russell Horowitz, Chairman of Marchex
Not in the filing
stated, not guessed- Prior quarter (Q2 2026) figures for revenue, expenses, operating income, net income, EPS and Adjusted EBITDA, because the filing prints no sequential comparison.
- Percentage year-over-year change for revenue, operating expenses, net income and Adjusted EBITDA; the filing gives only the printed figures.
- Revenue or segment breakdown by business, product line or geography.
- Quantified contribution of Archenia to Q3 2026 and nine-month revenue.
- Cash flow statement, operating cash flow, investing and financing cash flows, and free cash flow.
- Gross margin as a percentage and any gross margin guidance.
- Operating expense guidance, tax rate guidance and full-year 2026 guidance.
- Prior-year (Sep 30, 2025) balance sheet figures; the balance sheet comparison is to December 31, 2025 (as adjusted).
- Prior outlook for comparison; no previous release outlook was provided, so vs_prior_guidance is empty.
- Amount of the 2027 outlook, which will be provided with Q4 2026 results.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.