Marchex Announces Q4 and Full Year 2025 Results, Provides Archenia Acquisition Update

Key Financial Highlights for Q4 and Full Year 2025

• GAAP Revenue: Q4 2025 revenue was \$10.8 million, down from \$11.9 million in Q4 2024. Full year 2025 revenue was \$45.4 million, a decrease from \$48.1 million in 2024.
• Net Loss: Net loss for Q4 2025 was \$2.3 million (\$0.05 per diluted share), compared to \$1.9 million (\$0.04 per diluted share) in Q4 2024. For the full year, net loss was \$5.2 million (\$0.12 per diluted share), compared to \$4.9 million (\$0.11 per diluted share) in 2024.
• Adjusted EBITDA: Q4 2025 Adjusted EBITDA was a loss of \$1.2 million, versus a loss of \$0.4 million in Q4 2024. Adjusted EBITDA for 2025 was a loss of \$0.7 million, compared to a loss of \$0.2 million in 2024. This includes \$1.6 million in Q4 and \$2.6 million in FY 2025 for reorganization and historical acquisition-related costs. Excluding these, Adjusted EBITDA would have been a gain of \$0.4 million in Q4 and \$1.9 million for the year.
• Adjusted Non-GAAP Loss Per Share: \$(0.04) in Q4 2025 vs \$(0.03) in Q4 2024; \$(0.06) in 2025, unchanged from 2024.

Operational and Strategic Updates

• Technology Platform Migration: Marchex completed its migration of approximately 1,000 customers to a new tech platform in Q4 2025, achieving its stated goal. This migration led to some revenue dilution but positions Marchex to leverage new AI capabilities and deliver innovative solutions more rapidly.
• 2026 Outlook: Q1 2026 revenue is expected to be in line with Q4 2025, with Adjusted EBITDA anticipated to be \$500,000 or more. Sequential revenue and Adjusted EBITDA growth are expected in Q2 2026, with Adjusted EBITDA potentially above \$1 million.
• Revenue Growth Guidance: Marchex expects sequential quarterly revenue increases in 2026, targeting a run rate growth of approximately 10% from 2025 year-end levels. Adjusted EBITDA margins are projected to reach 10% or higher during 2026, driven by revenue growth and lower operating expenses.
• AI Capabilities: Marchex highlighted its rapid deployment of new AI-driven products, which are improving agility, efficiency, and customer value. This is expected to be a meaningful catalyst for business acceleration in the second half of 2026, especially if the Archenia acquisition closes.

Archenia Acquisition – Transaction Update

• Acquisition Status: Marchex entered into an Agreement in Principle (AIP) in November 2025 to acquire 100% of Archenia, Inc.’s stock. The deal is subject to several conditions, including audited financials, a fairness opinion, and approval by a majority of disinterested Marchex shareholders.
• Timeline: If all conditions are met, the closing is anticipated for June 2026.
• Archenia Overview: Archenia is a performance-based customer qualification and acquisition company, using advanced AI, natural-language analytics, and automated decisioning to optimize customer acquisition campaigns. The company enables advertisers to pay for AI-verified outcomes such as appointments, sales, and high-intent conversations.
• Archenia Financials: For FY 2025, Archenia estimates revenue of over \$17 million with positive Adjusted EBITDA (based on unaudited results).

Implications and Potential Benefits of the Combination

• Strategic Rationale: Marchex expects that a successful acquisition would create a vertically focused, AI-driven customer acquisition and outcome-optimization platform, integrating deep insights, automated actions, and verifiable outcomes.
• Revenue and Market Expansion: The combined company could potentially achieve quarterly revenue run rates of ~\$15 million (annualized ~\$60 million), with 15-20% growth in 2026. Adjusted EBITDA margins are expected to trend toward 10% or more, with Archenia contributing additional positive EBITDA.
• Product Bundling and Cross-Selling: Marchex anticipates meaningful expansion of its addressable market, with the ability to bundle Archenia’s outcome-based solutions to Marchex’s enterprise customers and drive greater customer value and retention.
• Industry Trends: Marchex cited the rapid emergence of AI and industry shift toward Pay-Per-Event models, which aligns with the capabilities of the potential combined company.

Balance Sheet and Liquidity

• Cash Position: Marchex ended 2025 with \$9.9 million in cash and cash equivalents, down from \$12.8 million in 2024.
• Current Assets: \$19.0 million at year-end 2025, compared to \$22.3 million at year-end 2024.
• Stockholders’ Equity: \$30.1 million at year-end 2025, down from \$32.6 million at year-end 2024.

Non-GAAP Financial Metrics Explanation

• Marchex uses Adjusted EBITDA and Adjusted Non-GAAP Income (Loss) Per Share to supplement GAAP results, providing additional clarity for internal and external stakeholders.
• Adjusted EBITDA is defined as net income (loss) before interest, income taxes, depreciation and amortization, stock-based compensation, and acquisition/disposition-related costs.
• Adjusted Non-GAAP Income (Loss) Per Share excludes items not indicative of ongoing operations, such as stock-based compensation, acquisition/disposition costs, and amortization of intangibles.

Shareholder Considerations and Potential Price-Sensitive Factors

• Archenia Acquisition: The successful completion of the Archenia acquisition could be highly price-sensitive, potentially expanding Marchex’s revenue, margin, and market opportunities. The deal is subject to shareholder approval and other closing conditions.
• AI Integration and Product Launches: Marchex’s migration to a new tech platform and ongoing AI-driven product launches could accelerate revenue growth and improve margins, which may positively impact share value.
• 2026 Guidance: Sequential quarterly revenue growth and margin expansion, if achieved, could drive investor sentiment and share price higher.
• Industry Shift: The move toward outcome-based, Pay-Per-Event models aligns Marchex with broader industry trends and could enhance its competitiveness and valuation.
• Financial Performance: Despite recent losses, Marchex’s improving Adjusted EBITDA outlook, cost management, and new revenue opportunities are critical for investors assessing future value.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. All forward-looking statements are subject to substantial risks and uncertainties, including but not limited to product demand, competition, business strategy changes, and general economic conditions. Marchex’s actual results may differ materially from those projected. Investors should consult official filings and disclosures from Marchex and conduct their own due diligence before making any investment decisions.

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