Marchex (MCHX) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $11.7 million, down 3% year-over-year, but net income improved to $0.1 million from a $0.8 million loss, with operational efficiencies from platform migration and new product launches positioning for future growth.

• Six-month revenue was $23.1 million, a 2% decrease from the prior year, with a net loss of $1.9 million, improved from a $2.2 million loss in 2024.

• Focused on large vertical markets, leveraging AI-driven conversation intelligence for industry-specific solutions in automotive, home services, healthcare, and advertising.

• Expanded channel partnerships and introduced new AI-powered features, enhancing customer value and business performance.

• Major migration to the new Engage platform largely completed, supporting future growth and operational efficiencies.

Financial highlights

• Q2 2025 revenue was $11.7 million, down 3% year-over-year, with net income of $0.1 million and Adjusted EBITDA of $0.6 million, or $0.7 million excluding reorganization costs.

• Cash and cash equivalents at June 30, 2025, were $10.5 million, down from $12.8 million at year-end 2024.

• Gross margin for Q2 2025 was 65%, unchanged from the prior year, with improvements expected from SaaS revenue and cost controls.

• Stock-based compensation for Q2 2025 was $556,000, up from $437,000 in Q2 2024.

• Q2 2025 operating loss was $536,000, improved from $722,000 loss in Q2 2024.

Outlook and guidance

• Revenue and Adjusted EBITDA are expected to increase sequentially in Q3 2025, with Adjusted EBITDA potentially rising over 50% from Q2 levels.

• Q4 2025 revenue and Adjusted EBITDA anticipated to be lower than Q3 due to customer migration, seasonality, and macroeconomic factors, delaying annual run rate goals.

• Management expects current resources to fund operations for at least twelve months, but macroeconomic factors could impact plans.

• Additional equity or debt financing may be needed for acquisitions or long-term obligations.

• Migration to the Engage platform is expected to be completed by year-end, positioning for accelerated sales in 2026.