Marchex Inc. (NASDAQ:MCHX) Reports Mixed Q2 2025 Results with Revenue Miss and Adjusted EBITDA Growth

MARCHEX REPORTS MIXED Q2 2025 RESULTS AS REVENUE MISSES, ADJUSTED EBITDA IMPROVES

Marchex Inc. (NASDAQ:MCHX [https://www.chartmill.com/stock/quote/MCHX]) reported its second-quarter 2025 financial results, delivering a mixed performance relative to analyst expectations. The company, which specializes in AI-driven conversational analytics, posted GAAP revenue of $11.7 million, down 3.4% year-over-year and below the consensus estimate of $12.6 million. However, adjusted earnings per share (EPS) came in at $0.02, surpassing the estimated loss of $0.01 per share.

KEY FINANCIAL HIGHLIGHTS VS. ESTIMATES

* REVENUE: $11.7M (actual) vs. $12.6M (estimate) – a 7.3% MISS
* ADJUSTED EPS: $0.02 (actual) vs. -$0.01 (estimate) – BEATING EXPECTATIONS
* NET INCOME: $0.1M vs. a net loss of $0.8M in Q2 2024
* ADJUSTED EBITDA: $0.6M, up from $0.3M in the prior-year quarter

The revenue decline was attributed to customer migration impacts related to the company’s new Engage platform, which CEO Edwin Miller described as a short-term headwind. Despite the revenue miss, cost efficiencies and operational improvements helped Marchex swing to profitability on an adjusted basis.

MARKET REACTION

Following the earnings release, Marchex shares dipped ~2.9% in after-hours trading, reflecting investor concerns over the revenue shortfall. However, the stock has shown relative stability over the past month, with a slight gain of ~1%. The market’s reaction suggests that while the revenue miss is a concern, the improved profitability and forward-looking commentary may be mitigating deeper losses.

BUSINESS UPDATES AND STRATEGIC INITIATIVES

Marchex highlighted several key developments in Q2:

* EXPANDED PARTNERSHIP WITH FORDDIRECT: A multi-year deal extending Marchex’s conversational AI solutions to over 3,000 Ford dealerships.
* HEALTHCARE AI SOLUTIONS LAUNCH: New AI-powered sentiment analysis tools tailored for healthcare providers.
* PRODUCT AWARDS: The Engage for Auto Sales & Service platform won the _2025 AI Agent Product of the Year Award_.
* GROSS MARGIN EXPANSION: The company expects continued margin improvement due to SaaS revenue growth and cloud efficiency gains.

OUTLOOK VS. ANALYST ESTIMATES

Management anticipates sequential growth in Q3, with:

* REVENUE AND ADJUSTED EBITDA EXPECTED TO INCREASE from Q2 levels.
* ADJUSTED EBITDA COULD RISE BY MORE THAN 50% in Q3.

However, Q4 is expected to see a sequential decline due to customer migration delays and macroeconomic factors. Analysts currently estimate Q3 revenue at $13.2M and EPS at -$0.01, suggesting that Marchex’s internal projections may align with or slightly exceed expectations.

For the full year, analysts project revenue of $50.9M and an EPS loss of $0.06, indicating that the company’s performance will hinge on successful platform migrations and new customer acquisitions in the latter half of 2025.

CONCLUSION

Marchex’s Q2 results reflect a company in transition, balancing short-term revenue pressures with long-term operational improvements. While the top-line miss is a concern, profitability trends and strategic partnerships provide a foundation for future growth. Investors will be watching for signs of accelerated revenue recovery in Q3 and beyond.

For more detailed earnings estimates and historical performance, visit Marchex’s earnings page [https://www.chartmill.com/stock/quote/MCHX/earnings-estimates].

DISCLAIMER: This article is for informational purposes only and does not constitute investment advice.