Marchex(US:MCHX)2025-11-13 21:20Financial Performance - GAAP revenue for Q3 2025 was $11.5 million, a decrease from $12.6 million in Q3 2024[6] - Revenue for Q3 2025 was $11,514 million, a decrease of 8.3% compared to $12,553 million in Q3 2024[31] - For the nine months ended September 30, 2025, Archenia's estimated revenue was over $14 million, with a projected full-year revenue of more than $17 million[16] - Marchex anticipates a revenue growth run rate of approximately 10% in 2026, driven by ongoing product launches and platform migration completion[4] - Marchex believes the combined company could achieve quarterly revenue run rates of approximately $15 million, or $60 million annualized, with growth in the 15-20% range in 2026[24] Adjusted EBITDA - Adjusted EBITDA for Q3 2025 was $0.6 million, up from $0.3 million in Q3 2024, with a potential adjusted EBITDA gain of $1.1 million after excluding reorganization costs[6] - Adjusted EBITDA for Q3 2025 was $621 million, an increase of 98.7% from $313 million in Q3 2024[35] - The company expects Adjusted EBITDA margins to reach 10% or more in 2026 due to increasing revenue and lower operating expenses[4] - Marchex expects sequentially lower revenue and Adjusted EBITDA in Q4 2025 due to typical seasonality and revenue migration dilution[5] Operating Expenses and Losses - Total operating expenses for Q3 2025 were $12,455 million, down from $13,378 million in Q3 2024, reflecting a reduction of 6.9%[31] - Net loss applicable to common stockholders for Q3 2025 was $1,020 million, compared to a loss of $831 million in Q3 2024, representing a 22.7% increase in losses[31] - Basic and diluted net loss per share for Q3 2025 remained at $(0.02), consistent with Q3 2024[37] - Stock-based compensation for Q3 2025 was $920 million, significantly higher than $411 million in Q3 2024[35] Cash and Assets - Cash and cash equivalents as of September 30, 2025, were $10,321 million, down from $12,767 million at the end of 2024[33] - Total assets decreased to $41,145 million as of September 30, 2025, from $43,200 million at the end of 2024[33] - Total liabilities decreased to $9,203 million as of September 30, 2025, from $10,567 million at the end of 2024[33] - The company reported a total accumulated deficit of $(329,096) million as of September 30, 2025, compared to $(326,178) million at the end of 2024[33] Strategic Initiatives - Marchex has entered into an agreement to acquire Archenia for a $10 million convertible promissory note, with interest at 6%[12] - The potential combination with Archenia could create a vertically focused, AI-driven customer acquisition platform, enhancing revenue scale and market reach[17] - The company launched new AI-powered solutions for healthcare and senior living industries, enhancing its product offerings[10][11]