On Wednesday, Marchex (NASDAQ:MCHX) discussed first-quarter financial results during its earnings call. The full transcript is provided below.
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Access the full call at https://events.q4inc.com/attendee/291371739
Summary
Marchex Inc reported first-quarter 2026 revenue of $10.6 million, a slight decrease from the previous quarter due to platform migration impacts.
The company is at a strategic inflection point, leveraging AI to provide bundled solutions that enhance customer acquisition and optimization, with plans for expansion into new verticals.
A proposed acquisition of Arcania is expected to close in July 2026, aiming to enhance product offerings and drive revenue growth.
Guidance for the second quarter of 2026 anticipates revenue increases and adjusted EBITDA growth to $1.6-$1.8 million, with further growth expected in the third quarter if the Arcania transaction is completed.
The company is focused on improving operating efficiencies, leading to better profit margins and cash flow, despite a decrease in cash reserves due to payroll and severance payments.
Full Transcript
OPERATOR
Hello everyone. Thank you for joining us and welcome to March X first quarter 2026 earnings conference call. After today’s prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Francis Feeney, Chief Operating Officer. Francis, please go ahead.
Francis Feeney (Chief Operating Officer)
Good afternoon everyone and welcome to Marchex’s business update and first quarter 2026 conference call. Joining us today are Russ Horowitz, our Chairman of the Board, Troy Hartless, our President and Brian Nagel, our Chief Financial Officer. Before we get started, I would like to take this opportunity to remind you that our remarks today will include forward looking statements including references to our financial and operational performance and actual results may differ materially from those contemplated by these forward looking statements. Risks and uncertainties that could cause these results to differ materially are set forth in today’s earnings press release and in our most recent annual or quarterly report filed with the SEC. Any forward looking statements that we make on this call are based on assumptions as of today and we undertake no obligation to update these statements for subsequent events. During this call we will present both GAAP and non GAAP financial measures. A reconciliation of GAAP to non GAAP measures is included in today’s earnings press release. The earnings press release is available in the Investor Relations SECtion of our website. I will now turn the call over to Russ.
Russ Horowitz (Chairman of the Board)
Thank you Frank. I’m going to start with a few current thoughts and then hand the call over to Troy, Brian and then Frank again. The main item I’d like to share is that we believe the company is crossing a positive inflection point both strategically and operationally. The first half of 2026 is marking an important step in showing how our execution is beginning to translate into improved business performance with the indicators we care about moving in the right direction. We’ve come a long way in evolving our product and technology capabilities and we are beginning to increase penetration of our customer footprint which is starting to create real sales momentum. With this progress and deeper strategic understanding, which is against the backdrop of the very real and massive AI revolution, we’ve gained proprietary insight into what we believe may be a much bigger market opportunity. One where we are now evolving beyond mainly providing strategic analytics to vertical market leading companies to one where we accelerate delivering more comprehensive solutions that open up new revenue opportunities by addressing higher value impact needs across the entire customer acquisition and optimization journey. If you zoom out and consider what our customers most fundamentally rely on, it’s knowing how to leverage AI driven strategic solutions to more efficiently drive growth oriented customer acquisition and optimization. We believe that we are seeing initial signs of validation that there is significant opportunity for us to rapidly expand into highly measurable AI powered bundled solutions which provide the strategic insights our customers need, the automated actions those insights inform and the outcomes those actions achieve. We believe that there are significant untapped opportunities within our existing customer base and within each of our current verticals. We believe selling bundled solutions across this entire customer value chain can accelerate our business and make us more valuable within our vertical markets as AI opens up new product possibilities that can help businesses grow meaningfully while driving efficiencies. At Marchex, we view ourselves as a meaningful AI beneficiary based on how rapidly we are now able to leverage AI to develop and deploy new products into our customer base that can deliver high customer value as well as significant new company revenue opportunities. We see significant new business potential in introducing agent-based workflows for customers who are integrated on our platform. Additionally, AI is making our business more agile and efficient to operate. The combination of these factors, including our vast amount of first party data and vertical expertise are key elements in our improving outlook for meaningful business acceleration as we move through the year. With that, I’ll hand the call to Troy to briefly discuss the first quarter.
Troy Hartless (President)
Thank you Russ. With our previously announced proposed acquisition of Arcania, Marchex and Arcania have been collaborating to jointly develop and sell initial products that reflect the combined capabilities of the two companies. Product examples of this collaboration which leverages Marchex’s data and AI signals and Arcania’s AI toolsets and user interface are AI verified outcomes which drive increased revenue on a pay per event basis and conversational AI agents which increase customer bookings and appointment rate. In the first quarter our focus included continuing to define the initial key products that most leverage our strategic insights into AI based action and outcome solutions that we could present to our installed customer base and so far we have seen very encouraging initial adoption. While we operate in a rapidly evolving and dynamic industry with uncertainty, these sales efforts and customer interactions so far continue to reinforce our belief that we are now in a strong position with our ability to leverage new AI capabilities across the customer acquisition and optimization journey with highly highly impactful insight, action and outcome based solutions. In terms of customers for background, Marchex’s top 100 customers represent about 90% of our revenue and this customer set has been initial focus of presenting the products which leverage the combined capabilities of the companies. To …
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