Marchex Reports $10.6 Million Revenue in Q1 2026, Down 7% Year-Over-Year

Marchex, Inc. reported a revenue of $10.6 million for the first quarter of 2026, a decrease of 7% from $11.4 million in the same period of 2025. The decline in revenue was attributed to customer migration activities from legacy platforms to the new Marchex Engage Platform, which adversely affected revenue run rates entering 2026. The company's net loss applicable to common stockholders for the quarter was $1.7 million, compared to a loss of $2.0 million in the prior year, resulting in a basic and diluted net loss per share of $(0.04), down from $(0.05) in the previous year.

Total operating expenses for the first quarter of 2026 were $12.0 million, a reduction from $13.3 million in the same quarter of 2025. The decrease was primarily driven by lower general and administrative expenses, which fell by 32% to $2.1 million, largely due to reduced personnel costs and share-based compensation. Cost of revenue remained stable at $4.2 million, representing 40% of total revenue, compared to 37% in the prior year. The company also incurred reorganization charges related to severance, impacting payroll costs across various expense categories.

In terms of operational metrics, Marchex's cash and cash equivalents decreased to $9.0 million as of March 31, 2026, down from $9.9 million at the end of 2025. The company reported a net cash used in operating activities of $0.5 million for the quarter, an improvement from $2.6 million in the same period last year. The company’s accounts receivable increased to $6.8 million, reflecting a slight rise from $6.7 million at the end of 2025. The company continues to maintain a significant concentration of revenue from a single customer, which accounted for 13% of total revenue in the first quarter.

Strategically, Marchex has entered into a stock purchase agreement to acquire Archenia, Inc. for $10 million in convertible promissory notes, subject to stockholder approval. This acquisition is expected to enhance Marchex's capabilities in conversation intelligence. The company also established a $0.1 million line of credit during the quarter, which is secured by a portion of its cash and cash equivalents. Looking ahead, Marchex anticipates that its resources will be sufficient to fund operations for at least the next twelve months, although it acknowledges that macroeconomic factors could significantly influence its operating plans and financial needs.