Marchex-B | 8-K: FY2025 Q3 Revenue Misses Estimate at USD 11.51 M

Revenue: As of FY2025 Q3, the actual value is USD 11.51 M, missing the estimate of USD 11.93 M.

EPS: As of FY2025 Q3, the actual value is USD -0.02.

EBIT: As of FY2025 Q3, the actual value is USD -941 K.

Segment Revenue

• GAAP revenue for the third quarter of 2025 was $11.5 million, compared to $12.6 million for the third quarter of 2024.

Operational Metrics

• Net loss for the third quarter of 2025 was - $1.0 million or - $0.02 per diluted share, compared to a net loss of - $0.8 million or - $0.02 per diluted share for the third quarter of 2024.
• Adjusted EBITDA was a gain of $0.6 million for the third quarter of 2025, compared to a gain of $0.3 million for the third quarter of 2024. Excluding $0.5 million of reorganization costs, Adjusted EBITDA would be $1.1 million.
• Total operating expenses for the third quarter of 2025 were $12.5 million, compared to $13.4 million for the third quarter of 2024.

Cash Flow

• Cash and cash equivalents as of September 30, 2025, were $10.3 million, compared to $12.8 million as of December 31, 2024.

Unique Metrics

• Marchex has entered into an Agreement in Principle to acquire 100% of the stock of Archenia, Inc. for a $10 million convertible promissory note with interest at 6%, payable in three equal tranches on the 12, 18, and 24 monthly anniversaries of the closing date. Principal and interest under the note would be convertible into shares of Marchex’s Class B common stock at $1.80 per share. Additionally, Marchex would issue 2 million shares of its Class B common stock for each of the first and second 12-month periods following the closing date if Archenia’s revenue and Adjusted EBITDA exceed agreed thresholds.
• Adjusted non-GAAP income per share for the third quarter of 2025 was $0.00, compared to a loss per share of - $0.01 for the third quarter of 2024.

Outlook / Guidance

• The closing date for the acquisition of Archenia, Inc. is anticipated to occur in the first half of 2026, subject to the approval of disinterested stockholders and other conditions.
• Marchex anticipates revenue growth on a run rate basis in the 10% range from year-end levels in 2026, with Adjusted EBITDA margins of 10% or more.
• Revenue and Adjusted EBITDA are expected to be sequentially lower in the fourth quarter of 2025 compared to the third quarter due to typical seasonality and revenue migration dilution.