Marchex Reports 3% Revenue Decline in Q2 2025, Achieves Net Income of $85,000

Marchex, Inc. reported a decline in financial performance for the second quarter of 2025, with revenues totaling $11.7 million, a decrease of 3% from $12.1 million in the same period of 2024. For the first half of 2025, revenues also fell by 2% to $23.1 million compared to $23.6 million in the prior year. The company attributed this decline to lower call volumes, customer consolidation activities, and the impacts of a challenging macroeconomic environment, including new federal tariffs. Despite the revenue drop, Marchex managed to achieve a net income of $85,000 for the second quarter, a notable improvement from a net loss of $756,000 in the same quarter of 2024.

In terms of expenses, total operating costs for the second quarter of 2025 were $12.2 million, slightly down from $12.8 million in the previous year. The cost of revenue decreased by 2% to $4.1 million, maintaining a consistent percentage of revenue at 35%. However, sales and marketing expenses rose by 19% to $3.2 million, reflecting increased payroll and related charges. Product development costs also saw a significant reduction, down 22% to $2.5 million, primarily due to a reorganization of personnel and the capitalization of software development costs.

Operationally, Marchex's customer base remains predominantly domestic, with 98% of revenue generated from U.S. customers. The company continues to focus on enhancing its AI-powered conversational analytics technology, which is designed to provide actionable insights for businesses. As of June 30, 2025, Marchex reported cash and cash equivalents of $10.5 million, down from $12.8 million at the end of 2024. The company’s total liabilities decreased to $9.9 million from $10.6 million, indicating a slight improvement in its financial position.

Looking ahead, Marchex is optimistic about its strategic initiatives, including a new share repurchase program authorized in May 2025, allowing for the repurchase of up to 3 million shares of Class B common stock. The company believes 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 plans. Marchex remains committed to leveraging its technology to enhance customer interactions and drive revenue growth, despite the current challenges in the market.