One-glance verdict
Undervalued
$1.49 our estimate vs market $1.29
Wall Street consensus: $4.00 (168.5% higher than our fair-value estimate)
13% below our estimate, below the bear case
Fundamentals snapshot
Marchex, Inc.
MCHX · NMS · Communication Services · Advertising Agencies
Current price
$1.29
52-week range
$1.15 - $2.04
Market cap
$57.20M
Balance sheet
Healthy
-14.93x Concerning
Net cash $7.66M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
1 Risk
1 rewards · 1 risks
- Reward Free cash flow was positive in 3/10 years.
- Risk Return on equity was -17.9% last year — the company lost money on shareholders' equity.
What this company does
Marchex, Inc.
Marchex sells software that uses artificial intelligence (AI) to analyze the phone calls and text messages between a business and its customers. Companies pay Marchex for these tools to discover which of their ads are actually making the phone ring and to improve how their employees handle customer conversations. This helps businesses increase their sales and provide better service.
How the company got here
Marchex was founded in 2003 and initially focused on internet advertising. [5] After going public in 2004, the company saw an opportunity in the growing importance of customer phone calls and shifted its focus to call analytics (the science of tracking and understanding phone conversations). [2, 5] Over the years, it has evolved into what is now called a "conversation intelligence" company, using artificial intelligence (AI) to analyze not just calls but also text messages. [2] A key recent turning point was its 2026 acquisition of a company called Archenia, which expanded its services from simply analyzing conversations to actively helping businesses find and qualify new customers. [4, 26]
What it actually does
Marchex provides software that acts like a smart assistant for businesses, listening to their phone calls and reading their text messages with customers to find important information. [6, 8] For example, it can tell a home services company which of its advertisements are actually making the phone ring and leading to booked jobs. [13] The software can also identify if a potential customer had a bad experience on a call, and send an alert to a manager so they can try to save the sale. [6] Essentially, Marchex helps businesses understand what happens in their customer conversations so they can improve their marketing, sales, and service. [1]
Conversation Intelligence Platform
Marchex operates as a single business focused on its AI-powered software platform. [12] Businesses pay Marchex to use this platform, which offers a variety of tools to analyze customer conversations from phone calls and texts. [3, 15] This service helps companies figure out which marketing efforts are working, improves how their sales teams talk to potential buyers, and gives them insights into what customers are asking for. [13] This single, integrated platform is the core of Marchex's business and represents all of its revenue (the total money it brings in before expenses).
What management is betting on now
Management's main bet is on artificial intelligence to do more than just provide insights. [21] Following the acquisition of Archenia, they are focused on creating a platform that not only analyzes conversations but also takes action, such as qualifying potential customers and helping to secure sales. [26] They are concentrating on tailoring their AI solutions for specific industries, or verticals (a group of similar businesses), like automotive, home services, and healthcare. [14] Another key part of their strategy is to expand how they sell their products, such as by offering them through large cloud marketplaces like Microsoft Azure to reach more big companies. [14]
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$199.00K
FY2024 Q4
$710.00K
FY2025 Q2
$772.00K
FY2025 Q3
$290.00K
FY2025 Q4
$116.00K
FY2026 Q2
$-651.00K
Revenue
$11.00M
Net income
$-408.00K
Diluted EPS
-0.01
Operating cash flow
$-649.00K
Free cash flow
$-651.00K
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Sources
Revenue
$10.62M
Net income
$-1.72M
Diluted EPS
-0.04
Operating cash flow
$-514.00K
Free cash flow
—
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Sources
Revenue
$10.85M
Net income
$-2.32M
Diluted EPS
-0.05
Operating cash flow
$121.00K
Free cash flow
$116.00K
Fetching…
Sources
Revenue
$11.51M
Net income
$-1.02M
Diluted EPS
-0.02
Operating cash flow
$290.00K
Free cash flow
$290.00K
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Sources
Revenue
$11.65M
Net income
$85.00K
Diluted EPS
0.00
Operating cash flow
$803.00K
Free cash flow
$772.00K
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Sources
Revenue
$11.40M
Net income
$-1.98M
Diluted EPS
-0.05
Operating cash flow
$-2.62M
Free cash flow
—
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Sources
Revenue
$11.92M
Net income
$-1.91M
Diluted EPS
-0.04
Operating cash flow
$875.00K
Free cash flow
$710.00K
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Sources
Revenue
$12.55M
Net income
$-831.00K
Diluted EPS
-0.02
Operating cash flow
$382.00K
Free cash flow
$199.00K
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Sources
Is it cheap or expensive?
Fair value $1.49 vs current price $1.29
Wall Street consensus is the average analyst price target: $4.00 (168.5% higher than our fair-value estimate).
Our most-likely fair value is $1.49 a share — about 15.5% above today's price of $1.29, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $7.7M - more cash than debt. Interest coverage -14.9x.
Net debt
$-7.66M
Interest coverage
-14.93x
Marchex, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
MCHX
BASELINE
Marchex, Inc.
Total debt $488.00K Interest coverage -14.93x This is the baseline the peer rows are being compared against.
Total debt $77.66M Interest coverage 8.06x This peer still has a real interest-payment cushion, while MCHX does not.
Total debt $22.09M Interest coverage -20.30x Neither company has much profit cushion over interest right now.
Total debt $36.73M Interest coverage 14.75x This peer still has a real interest-payment cushion, while MCHX does not.
Total debt $148.19M Interest coverage 82.39x This peer still has a real interest-payment cushion, while MCHX does not.
What you should know
The case for and against MCHX
1 Reward
1 Risk
Rewards
-
Free cash flow was positive in 3/10 years.
Risks
-
Return on equity was -17.9% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
8.06x
P/B
1.97x
P/S
1.30x
EV/EBITDA
-31.42x
PEG ratio
21.93x
Profitability
How much profit each dollar creates
Gross margin
61.2%
Operating margin
-2.2%
Net margin
-12.4%
ROE
-17.9%
ROA
-5.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.02x
Current ratio
2.29x
Quick ratio
2.04x
Total debt
$488.00K
Total cash
$8.15M
Growth
How the business has been compounding
Revenue TTM
$43.98M
Revenue 5Y CAGR
-4.0%
EPS TTM
-0.13
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$-752.00K
Free CF TTM
$-1.44M
FCF margin
-3.3%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2018-03-07