Marchex — Second Quarter 2026 Earnings Summary

Financial Performance

• Q2 2026 revenue was $11.0 million, a decrease from $11.7 million in Q2 2025.
• Q2 2026 net loss was $0.4 million ($0.01 per diluted share), compared to net income of $0.1 million ($0.00 per diluted share) in Q2 2025.
• Q2 2026 Adjusted EBITDA was $0.7 million, up from $0.6 million in Q2 2025; this figure includes $1.0 million in reorganization and acquisition-related costs. Adjusted EBITDA excluding these costs was $1.7 million.
• Q2 2026 Adjusted non-GAAP income per share was $0.00, down from $0.02 in Q2 2025.
• Pro forma combined revenue for Q2 2026 was $15.5 million, with Adjusted EBITDA of $1.0 million (including $1.0 million in reorganization and acquisition costs); Adjusted EBITDA excluding these costs was $2.0 million.
• Pro forma combined revenue for Q1 2026 was $14.4 million, with Adjusted EBITDA of a $0.1 million loss (including $0.7 million in reorganization and acquisition costs); Adjusted EBITDA excluding these costs was $0.6 million.
• Cash and cash equivalents were $8.2 million as of June 30, 2026, down from $9.9 million as of December 31, 2025.
• Total liabilities were $8.6 million as of June 30, 2026, down from $9.6 million as of December 31, 2025.
• Deferred revenue and deposits were $0.5 million as of June 30, 2026, down from $0.6 million as of December 31, 2025.

Guidance and Future Outlook

• Pro forma combined revenue for Q3 2026 is anticipated to be between $16.0 million and $16.5 million.
• Pro forma combined Adjusted EBITDA (net of reorganization and acquisition costs) for Q3 2026 is anticipated to be between $2.3 million and $2.5 million.
• Fourth Quarter 2026 financial outlook and initial 2027 business outlook will be provided during the Third Quarter 2026 earnings report, expected in early November 2026.
• Management plans to make selective investments in incremental sales and product development to support 2027 growth opportunities.

Business Segments and Product Lines

• The company has consummated the acquisition of Archenia on July 1, 2026, creating a vertically focused, AI-driven customer acquisition and outcome-optimization platform.
• New combined solutions leverage Marchex's data and AI signals with Archenia's AI tool sets, including AI-verified outcomes (driving Pay-Per-Event revenue) and Conversational AI Agents (increasing bookings and appointment rates).
• Top 100 customers represent approximately 90% of revenue; nearly one-third of this base had been presented with combined products, with approximately half purchasing on a recurring or paid pilot basis.
• An existing home services client increased total annualized revenue from approximately $500,000 to over $1 million by adopting Archenia's AI-verified outcomes.
• An existing auto services customer expanded a paid pilot from 40 to over 60 retail locations, with potential to reach $1 million or more in annualized revenue upon broader adoption.
• An existing advertising/media customer launched a paid pilot using Conversational AI Agents, with potential to increase annualized revenue by 50% or more in 2027 if converted.

Market and Competitive Landscape

• The company operates in a rapidly evolving and dynamic industry with uncertainties.
• The combined platform serves market-leading companies across automotive, insurance, home services, healthcare, and advertising/media verticals.
• Management believes the combined entity can achieve greater revenue scale, growth, higher margins, expanded market reach, and enhanced strategic flexibility.

Risks and Challenges

• The company faces risks including product demand fluctuations, order cancellations and delays, competition, changes in business strategy or development plans, and general economic and business conditions.
• Actual results may differ materially from forward-looking statements regarding estimated financial results and benefits of the combination.

Management Commentary and Tone

• Russell Horowitz, Chairman, stated the acquisition advances the strategy of extending conversational intelligence capabilities from insights to actions and measurable outcomes.
• Management expressed that early customer adoption is encouraging and believes the combined company can deliver greater value to customers while expanding revenue opportunities.
• Management noted that while the industry is dynamic with various risks, they believe the combined company is well-positioned for growth.

Other Key Points

• The acquisition of Archenia closed on July 1, 2026.
• Marchex reported $1.0 million in reorganization and acquisition-related costs in Q2 2026 Adjusted EBITDA calculations.
• The company disclosed that the top 100 customers represent approximately 90% of its revenue.
• Marchex intends to provide initial 2027 business outlook in early November 2026.