Operating performance remains challenged by structural gross margins capped at 61.2% and a consistent inability to achieve profitability, evidenced by a -12.7% operating margin in 2026Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 |
|---|
| Sales/Revenue | 44.63M | 45.42M | 48.12M | 49.91M | 52.17M | 53.48M | 51.22M | 54.49M | 85.25M | 90.29M | 129.55M | 143.01M | 182.64M | 152.55M | 138.31M | 146.73M | 97.57M | 93.26M | 146.37M | 139.39M | 127.76M | 95M | 43.8M | 19.89M | 10.07M |
| Revenue Growth % | -6.92% | -5.61% | -3.58% | -4.33% | -2.44% | 4.41% | -6% | -36.08% | -5.58% | -30.3% | -9.42% | -21.7% | 19.73% | 10.3% | -5.74% | 50.39% | 4.62% | -36.29% | 5.01% | 9.1% | 34.49% | 116.86% | 120.21% | 97.53% | - |
| Cost of Goods Sold | 16.64M | 16.71M | 17.17M | 20.58M | 20.46M | 21.69M | 20.89M | 18M | 47.8M | 49.34M | 76.97M | 78.77M | 114.58M | 91.86M | 80.59M | 81.83M | 56.75M | 47.63M | 66.02M | 70.9M | 60.43M | 58.92M | 4.97M | 0 | 6.33M |
| COGS % of Revenue | - | 36.8% | 35.68% | 41.24% | 39.22% | 40.57% | 40.78% | 33.04% | 56.07% | 54.64% | 59.41% | 55.08% | 62.73% | 60.21% | 58.27% | 55.77% | 58.17% | 51.07% | 45.11% | 50.87% | 47.3% | 62.02% | 11.34% | - | 62.9% |
| Gross Profit | 28M | 28.7M | 30.95M | 29.33M | 31.71M | 31.78M | 30.33M | 36.49M | 37.45M | 40.95M | 52.58M | 64.25M | 68.06M | 60.69M | 57.71M | 64.89M | 40.81M | 45.63M | 80.35M | 68.49M | 67.33M | 36.08M | 38.84M | 19.89M | 3.74M |
| Gross Margin % | 62.73% | 63.2% | 64.32% | 58.76% | 60.78% | 59.43% | 59.22% | 66.96% | 43.93% | 45.36% | 40.59% | 44.92% | 37.27% | 39.78% | 41.73% | 44.23% | 41.83% | 48.93% | 54.9% | 49.13% | 52.7% | 37.98% | 88.66% | 100% | 37.1% |
| Gross Profit Growth % | - | -7.25% | 5.53% | -7.51% | -0.23% | 4.79% | -16.87% | -2.57% | -8.56% | -22.11% | -18.16% | -5.61% | 12.14% | 5.17% | -11.06% | 58.99% | -10.55% | -43.21% | 17.32% | 1.73% | 86.6% | -7.1% | 95.25% | 432.4% | - |
| Operating Expenses | 31.85M | 33.08M | 35.4M | 38.97M | 39.86M | 43.58M | 74.39M | 50.45M | 40.87M | 47.31M | 72.51M | 66.03M | 63.17M | 60.84M | 64.7M | 66.39M | 51.37M | 53.91M | 255.64M | 71.41M | 66.77M | 31.23M | 44.32M | 23.22M | 3.97M |
| OpEx % of Revenue | - | 72.83% | 73.56% | 78.08% | 76.4% | 81.49% | 145.24% | 92.58% | 47.94% | 52.4% | 55.97% | 46.17% | 34.59% | 39.88% | 46.78% | 45.25% | 52.66% | 57.81% | 174.65% | 51.23% | 52.27% | 32.88% | 101.18% | 116.73% | 39.47% |
| Selling, General & Admin | 22.28M | 23.33M | 22.38M | 21.62M | 23.3M | 22.84M | 29.45M | 24.93M | 24.67M | 29.22M | 44.06M | 34.97M | 33.17M | 30.57M | 36.58M | 38.14M | 32.86M | 33.94M | 51.6M | 42.74M | 36.58M | 8.34M | 36.87M | 18.62M | 2.8M |
| SG&A % of Revenue | - | 51.37% | 46.51% | 43.31% | 44.67% | 42.72% | 57.5% | 45.75% | 28.94% | 32.36% | 34.01% | 24.45% | 18.16% | 20.04% | 26.45% | 26% | 33.68% | 36.39% | 35.26% | 30.66% | 28.63% | 8.78% | 84.16% | 93.61% | 27.79% |
| Research & Development | 9.48M | 9.75M | 12.41M | 15.36M | 14.36M | 16.11M | 21M | 17.88M | 15.42M | 18.09M | 28.45M | 31.06M | 29.56M | 27.35M | 23.39M | 22.79M | 15.79M | 14.48M | 17.49M | 12.02M | 10.09M | 4.47M | 2.29M | 1.29M | 811.67K |
| R&D % of Revenue | - | 21.46% | 25.8% | 30.77% | 27.52% | 30.13% | 41% | 32.81% | 18.09% | 20.04% | 21.96% | 21.72% | 16.18% | 17.93% | 16.92% | 15.54% | 16.18% | 15.52% | 11.95% | 8.62% | 7.9% | 4.7% | 5.23% | 6.49% | 8.06% |
| Other Operating Expenses | 88K | 0 | 602K | 2M | 2.2M | 4.62M | 23.93M | 7.64M | 781K | 14K | -73K | -8K | 12K | 24K | -25K | 5.46M | 2.73M | -42.14M | 186.55M | 16.65M | 20.1M | 18.43M | 5.17M | 3.31M | 364.69K |
| Operating Income | -3.86M | -4.37M | -4.45M | -9.64M | -8.15M | -11.8M | -44.06M | -13.96M | -3.89M | -6.36M | -83.9M | -507K | 4.96M | 2.75M | -18.19M | 6.03M | -3.79M | -3.57M | -175.29M | -3.04M | 551.86K | 4.85M | -1.02M | -3.33M | -238.15K |
| Operating Margin % | -8.64% | -9.63% | -9.24% | -19.32% | -15.62% | -22.06% | -86.02% | -25.62% | -4.56% | -7.04% | -64.76% | -0.35% | 2.72% | 1.8% | -13.15% | 4.11% | -3.88% | -3.83% | -119.75% | -2.18% | 0.43% | 5.1% | -2.32% | -16.73% | -2.36% |
| Operating Income Growth % | - | 1.64% | 53.88% | -18.33% | 30.92% | 73.23% | -215.6% | -259.05% | 38.88% | 92.42% | -16447.73% | -110.22% | 80.5% | 115.11% | -401.66% | 259.15% | -6.12% | 97.96% | -5671% | -650.39% | -88.62% | 576.5% | 69.42% | -1297.32% | - |
| EBITDA | -2.35M | -1.7M | -1.8M | -5.77M | -4.12M | -5.83M | -36.81M | -5.83M | -1.27M | -3.57M | -80.7M | 3.15M | 5.4M | 5.67M | -13.46M | 11.48M | -1.06M | 1.92M | -148.75M | 23.13M | 27.09M | 27.56M | 4.64M | 9.38K | -23.59K |
| EBITDA Margin % | -5.26% | -3.74% | -3.74% | -11.56% | -7.89% | -10.89% | -71.87% | -10.71% | -1.49% | -3.95% | -62.3% | 2.21% | 2.95% | 3.72% | -9.73% | 7.83% | -1.09% | 2.06% | -101.62% | 16.6% | 21.2% | 29.01% | 10.6% | 0.05% | -0.23% |
| EBITDA Growth % | 17.25% | 5.61% | 68.79% | -40.18% | 29.35% | 84.17% | -530.85% | -359.81% | 64.45% | 95.58% | -2658.75% | -41.55% | -4.92% | 142.16% | -217.21% | 1183.09% | -155.15% | 101.29% | -743.02% | -14.6% | -1.72% | 493.82% | 49357.15% | 139.79% | - |
| D&A (Non-Cash Add-back) | 1.51M | 2.67M | 2.65M | 3.87M | 4.03M | 5.97M | 7.25M | 8.13M | 2.62M | 2.79M | 3.19M | 3.66M | 434K | 2.93M | 4.73M | 5.46M | 2.73M | 5.49M | 26.54M | 26.17M | 26.54M | 22.71M | 5.66M | 3.34M | 214.56K |
| EBIT | -3.22M | -4.37M | -4.45M | -9.63M | -8.06M | -4.12M | -43.91M | -14.41M | -3.43M | -6.36M | -83.97M | -515K | 4.98M | 2.71M | -17.25M | 5.87M | -3.55M | -3.49M | -173.72M | -2.92M | 551.86K | 4.85M | -518.67K | -3.33M | -238.15K |
| Net Interest Income | 114K | 0 | -120K | 26K | 99K | -34K | 107K | 752K | 1.05M | 316K | -42K | -55K | -74K | -61K | -424K | -463K | -31K | -39K | 582.8K | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 319K | 99K | 3K | 137K | 752K | 1.05M | 316K | 67K | 21K | 2K | 15K | 14K | 141K | 76.16K | 16.56K | 673.67M | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | -114K | 0 | 120K | 293K | 0 | 37K | 30K | 0 | 0 | 0 | 109K | 76K | 76K | 76K | 438K | 604K | 107.21K | 98.54K | 90.87K | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -951K | -782K | -120K | -173K | 88K | 7.64M | 123K | 752K | 1.05M | 316K | -115K | -63K | -62K | 3.94M | -11.69M | -458K | 6.9M | 4.7M | 1.48M | 2.49M | 3.14M | 1.98M | 318.59K | 74.06K | 5.49K |
| Pretax Income | -4.81M | -5.16M | -4.57M | -9.82M | -8.06M | -4.16M | -43.94M | -13.21M | -2.83M | -6.04M | -84.01M | -570K | 4.9M | 2.71M | -18.64M | 5.57M | -3.66M | -3.59M | -173.81M | -544.87K | 3.7M | 6.83M | -699.15K | -3.25M | -232.66K |
| Pretax Margin % | -10.77% | -11.35% | -9.49% | -19.67% | -15.45% | -7.78% | -85.78% | -24.24% | -3.32% | -6.69% | -64.85% | -0.4% | 2.68% | 1.78% | -13.48% | 3.8% | -3.75% | -3.85% | -118.74% | -0.39% | 2.89% | 7.19% | -1.6% | -16.36% | -2.31% |
| Income Tax | 169K | 79K | 380K | 94K | 184K | 232K | -1.92M | -3.48M | -156K | 42K | 54K | 27K | 24.28M | 1.75M | 16.56M | 2.61M | -616.99K | -1.52M | -45.95M | 960.4K | 4.29M | 2.92M | 33.94K | -1.08M | -142.88K |
| Effective Tax Rate % | -3.52% | -1.53% | -8.32% | -0.96% | -2.28% | -5.58% | 4.36% | 26.32% | 5.5% | -0.69% | -0.06% | -4.74% | 495.45% | 64.71% | -88.83% | 46.9% | 16.86% | 42.51% | 26.43% | -176.26% | 116.1% | 42.77% | -4.85% | 33.33% | 61.41% |
| Net Income | -4.98M | -5.24M | -4.95M | -9.91M | -8.24M | -4.39M | -38.45M | -4.04M | -2.68M | -6.09M | -84.07M | 26.72M | -19.09M | 1.82M | -35.2M | 2.96M | -3.04M | -2.06M | -127.86M | -1.51M | -443.64K | 3.91M | -733.09K | -2.17M | -89.78K |
| Net Margin % | -11.15% | -11.53% | -10.28% | -19.86% | -15.8% | -8.21% | -75.06% | -7.42% | -3.14% | -6.74% | -64.89% | 18.68% | -10.45% | 1.19% | -25.45% | 2.02% | -3.12% | -2.21% | -87.35% | -1.08% | -0.35% | 4.11% | -1.67% | -10.91% | -0.89% |
| Net Income Growth % | 9.18% | -5.82% | 50.08% | -20.19% | -87.81% | 88.58% | -851.16% | -50.93% | 56% | 92.76% | -414.61% | 239.97% | -1150.63% | 105.16% | -1289.46% | 197.23% | -47.59% | 98.39% | -8394.41% | -239.3% | -111.35% | 633.06% | 66.21% | -2316.22% | - |
| Net Income (Continuing) | -4.98M | -5.24M | -4.95M | -9.91M | -8.24M | -4.39M | -42.02M | -9.73M | -2.68M | -6.09M | -84.07M | -597K | -19.38M | 957K | -35.2M | 2.96M | -3.04M | -2.06M | -127.86M | -1.51M | -594.98K | 3.91M | -733.09K | -2.17M | -89.78K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 3.57M | 5.69M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.10 | -0.11 | -0.11 | -0.23 | -0.19 | -0.10 | -0.83 | -0.09 | -0.06 | -0.13 | -1.79 | 0.65 | -0.42 | 0.05 | -0.81 | 0.08 | -0.07 | -0.05 | -3.51 | -0.03 | -0.01 | 0.04 | -0.03 | -0.16 | -0.00 |
| EPS Growth % | 20.16% | 0% | 52.17% | -21.05% | -90% | 87.95% | -833.63% | -57.62% | 56.62% | 92.74% | -375.38% | 254.76% | -940% | 106.17% | -1112.5% | 213.8% | -52.16% | 98.68% | -11678.52% | -166.07% | -128% | 220.48% | 79.25% | - | - |
| EPS (Basic) | - | -0.12 | -0.11 | -0.23 | -0.19 | -0.10 | -0.83 | -0.09 | -0.06 | -0.14 | -2.01 | 0.65 | -0.48 | 0.05 | -1.04 | 0.08 | -0.09 | -0.06 | -3.51 | -0.04 | -0.01 | 0.04 | -0.03 | -0.16 | -0.01 |
| Diluted Shares Outstanding | 48.56M | 48.56M | 43.16M | 42.62M | 43.22M | 43.92M | 46.26M | 45.46M | 47.5M | 47.77M | 46.93M | 46.4M | 45.86M | 45.81M | 43.56M | 45.25M | 43.31M | 44.6M | 36.43M | 50.5M | 39.5M | 36.91M | 22.09M | 13.26M | 13.07M |
| Basic Shares Outstanding | 43.9M | 43.9M | 43.16M | 42.62M | 43.22M | 43.92M | 46.26M | 45.46M | 47.5M | 42.71M | 41.74M | 41.17M | 40.01M | 35.61M | 33.99M | 33.29M | 32.65M | 33.71M | 36.43M | 38.94M | 38.26M | 34.56M | 22.09M | 13.26M | 13.45M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | 6.31% | - | - | - | 99.29% | - | - | - | - | - | - | - | - | - |
Persistent Revenue Erosion
As indicated by the most recent quarterly data, Marchex's revenue has experienced a sustained decline, reaching $10.6 million in 2026Q1, which represents a 6.9% year-over-year contraction and highlights the ongoing difficulty in offsetting legacy product churn with new AI-driven conversational intelligence offerings.
The consistent negative growth trajectory suggests that the company's pivot toward higher-value software solutions has yet to gain sufficient market traction to stabilize the top line. Investors should monitor whether this trend reflects structural weakness in the automotive vertical or a broader competitive displacement by more agile, generalist AI platforms.
Based on reported financial statements, Marchex maintains a gross margin profile hovering around 61-63%, a level that appears structurally capped by the high variable costs associated with third-party telecommunications carrier fees and cloud infrastructure required to process voice data at scale.
These margins suggest that the company lacks the operating leverage typical of pure-play SaaS providers, as its cost of revenue remains tethered to usage-based telephony expenses. Without a significant shift toward higher-margin, automated AI processing, it appears unlikely that gross margins will expand meaningfully from current levels.
According to historical income statement data, Marchex has struggled to achieve positive operating leverage, with operating margins remaining consistently negative, bottoming out at -16.4% in 2025Q1 and failing to scale despite the company's ongoing efforts to optimize its R&D and SG&A cost structures.
The inability to generate positive operating income suggests that fixed costs, particularly in research and development, continue to outpace the revenue generated by the core business. This persistent gap warrants further investigation into whether the current investment in AI capabilities will eventually yield a scalable, profitable product suite.
Analysis of recent filings reveals that Marchex's net income is frequently impacted by non-cash expenses, including stock-based compensation which reached $920,000 in 2025Q3, complicating the assessment of true operational performance and masking the underlying cash burn inherent in the company's current business model.
The reliance on stock-based compensation as a tool for talent retention in a micro-cap environment may dilute shareholder value without a corresponding improvement in bottom-line profitability. Investors should remain cautious of these non-operating items when evaluating the company's progress toward achieving sustainable, GAAP-compliant net income.
While management emphasizes the potential of its proprietary conversational datasets, the persistent negative operating margins and declining revenue suggest that the company may be facing a 'melting ice cube' scenario where legacy churn outpaces the adoption of new AI-driven products in a competitive market.
Short-term observers might argue that the company's lack of scale makes it increasingly vulnerable to larger, better-funded competitors who can replicate its call-tracking features. The absence of a clear path to profitability suggests that the current valuation may be overly optimistic regarding the company's ability to monetize its data assets.
Quick answers to the most common questions about buying MCHX stock.
For fiscal year 2025, Marchex, Inc. (MCHX) reported total revenue of $45.4M. This represents a 351.0% increase compared to $10.1M in 2002.
Marchex, Inc. (MCHX) reported a net loss of $5.2M for the fiscal year ending 2025.
Marchex, Inc. (MCHX) reported an operating income of $-4.4M, resulting in an operating profit margin of -9.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Marchex, Inc. (MCHX) generated $28.7M in gross profit for the year, representing a gross profit margin of 63.2%. This demonstrates the company's core pricing power and production efficiency.