Marchex (MCHX) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $10.6 million, down from $11.4 million in Q1 2025, primarily due to legacy platform migration and customer run rate impacts.

• Net loss for Q1 2026 was $1.7 million, an improvement from $2.0 million in Q1 2025, with Adjusted EBITDA loss narrowing to $0.1 million; excluding $0.7 million in reorganization/acquisition costs, Adjusted EBITDA would have been a $0.6 million gain.

• Operating expenses decreased 10% year-over-year, driven by organizational realignment and lower personnel and share-based compensation costs.

• The company is leveraging AI-powered solutions and deeper customer penetration, with new bundled AI products seeing strong initial adoption among top customers.

• The company operates in a single segment focused on conversational analytics and related solutions.

Financial highlights

• Q1 2026 revenue was $10.6 million, down from $10.8 million in Q4 2025 and $11.4 million in Q1 2025.

• Gross margin for Q1 2026 was 60%, compared to 63% in Q1 2025.

• Cash and cash equivalents at March 31, 2026, were $9.0 million, down from $9.9 million, mainly due to annual payroll and severance payments.

• Operating cash flow for Q1 2026 was $(0.5) million, improved from $(2.6) million in Q1 2025.

• Net loss for Q1 2026 was $1.7 million, compared to $2.0 million in Q1 2025.

Outlook and guidance

• Q2 2026 revenue is expected to increase sequentially, with Adjusted EBITDA guidance raised to $1.6–$1.8 million from prior guidance of over $1 million.

• Q3 2026 revenue and Adjusted EBITDA anticipated to further increase, potentially reaching $2 million standalone or $2.5 million if the Archenia acquisition closes.

• Full-year 2026 revenue growth projected at a 10% run rate over 2025, with Adjusted EBITDA margins expected to reach 10% or more.

• Management expects resources to be sufficient to fund operations for at least twelve months, but macroeconomic factors could impact plans.

• Additional equity or debt financing may be needed to support acquisition strategy and long-term obligations.