Marchex posts Q3 profit, reports $16 million revenue and issues seasonal Q4 guidance
Marchex reported GAAP net income of $1.3 million for the third quarter of 2026, with revenue of $16 million, up from $15.2 million a year earlier. Adjusted EBITDA rose to $2.4 million, a 15% margin, while gross margin fell to 51%. The company guided Q4 revenue of $15 million or more and adjusted EBITDA of $2.3‑$2.5 million, and announced former Archenia CEO Travis Fairchild as president to lead AI‑driven product expansion.
Why it matters
The return to profitability and the guidance suggest the business is scaling after the Archenia acquisition, but the seasonal revenue dip signals near‑term earnings pressure. Management also highlighted that the stock trades at roughly 1 × sales and 6 × EV/EBITDA, implying potential valuation upside.
Key facts
- 1Revenue was $16 million, up from $15.2 million in Q3 2025. fool.com
- 2GAAP net income was $1.3 million, or $0.03 per diluted share, versus a loss a year earlier. fool.com
- 3Adjusted EBITDA was $2.4 million, representing a 15% margin. fool.com
- 4Gross margin declined to 51% from 54% a year ago. fool.com
- 5Operating expenses (excluding cost of revenue) were $6.7 million, down from $9.3 million. fool.com
- 6Cash and cash equivalents totaled $8.7 million at quarter end. fool.com
Summary written by AlphAI AI Desk from 4 of 4 sources. Not investment advice. Figures are as stated by the linked sources.