Marchex Targets Fourth-Quarter Revenue of at Least $15 Million
Key Facts
Marchex expects fourth-quarter 2026 revenue of $15.0 million or more and adjusted EBITDA of $2.3 million to $2.5 million after restructuring and acquisition costs. The company issued its financial guidance on November 10, alongside third-quarter results that showed year-over-year revenue growth and a return to positive net income under generally accepted accounting principles. The guidance puts the next quarter’s revenue target below reported third-quarter revenue, while adjusted earnings are projected in a range close to the prior quarter’s result. Marchex said lower conversation volumes in the fourth quarter typically lead to sequential declines in revenue and adjusted EBITDA. It said its sales pipeline and cost efficiencies may help offset or exceed that effect, depending on the timing and formal completion of opportunities.
The company reported revenue of $16.0 million in the third quarter of 2026, compared with $15.2 million in the same period a year earlier. Net income turned positive at $1.3 million, after a net loss of the same amount in the third quarter of 2025. Net income was $0.03 per diluted share, compared with a loss of $0.03 per share a year earlier. Adjusted EBITDA also rose to $2.4 million from $0.5 million. The margin on that measure widened to about 15%, compared with 3% in the third quarter of 2025. Chairman Russell Horwitz said the results reflect “a new phase of growth and tangible progress in strengthening financial performance,” citing year-over-year revenue growth, positive net income and improved adjusted EBITDA.
In business development, Marchex expanded its relationship with an existing customer in the advertising and media sector through a commercial deployment of an AI-powered voice agent solution, following a successful paid trial. The relationship currently generates revenue at an annualized rate of about $400,000, and the company expects the deployment to add more than $200,000 to annualized revenue in 2027. The company said the solution qualifies leads when sales representatives are unavailable. It added that it has signed additional customers for the solution and is in discussions with several large enterprise customers about paid pilot programs. The financial guidance shows how the company is betting on growth in these solutions and cost efficiencies, while any additional revenue depends on broader deployment and converting opportunities into formal business.
Engage for Service has also received approval from a major automaker for display through its dealer portal, following a previous trial involving 75 dealerships. Marchex said the approval allows dealers in the network to purchase and deploy the solution, with eligible purchases potentially supported by the automaker’s cooperative marketing funds. This gives the company a distribution channel through the dealer network, while the solution’s contribution to revenue depends on dealers’ purchasing and deployment decisions. The development is part of the company’s expansion of products aimed at the automotive sector, alongside deployment of its voice agent with an existing customer. The company did not specify expected revenue from Engage for Service in its financial guidance.
In the market, Marchex shares, trading under the ticker MCHX, closed at $1.4 in the November 10, 2026 session. The company is watching whether its sales pipeline and cost efficiencies will cushion the usual seasonal impact in the fourth quarter as it prepares to close the period ending December 31. It said it plans to announce preliminary financial expectations for 2027 when it reports fourth-quarter results, currently expected in early March 2027. Those expectations will provide a further indication of the company’s ability to sustain revenue growth and turn product expansion into revenue and earnings. Until then, fourth-quarter guidance remains anchored on revenue of at least $15.0 million and adjusted EBITDA of $2.3 million to $2.5 million.