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MCHX Stock Analysis 2026 - MARCHEX INC AI Rating

MCHX Nasdaq Services-Prepackaged Software DE CIK: 0001224133
Recently Updated • Analysis: Apr 1, 2026 • SEC Data: 2025-12-31
STRONG SELL
92% Conf
Pending
Analysis scheduled

📊 MCHX Key Takeaways

Revenue: $45.4M
Net Margin: -11.5%
Free Cash Flow: $-1.4M
Current Ratio: 2.36x
Debt/Equity: 0.00x
EPS: $-0.12
AI Rating: STRONG SELL with 92% confidence

Is MCHX a Good Investment? Thesis Analysis

Claude

Marchex demonstrates severe operational distress with persistent net losses, negative operating cash flow, and declining revenue trajectory. The company is burning cash operationally while maintaining negative profitability margins, indicating fundamental business model challenges in its software services segment.

Why Buy MCHX? Key Strengths

Claude
  • + Adequate liquidity position with 2.36x current ratio and $9.9M cash reserves
  • + Minimal financial leverage with no long-term debt constraining operations
  • + Low capital expenditure requirements suggesting asset-light business model

MCHX Investment Risks to Consider

Claude
  • ! Ongoing operating losses with -$1.4M negative operating cash flow indicates unsustainable business trajectory
  • ! Revenue declining 5.6% YoY coupled with -11.5% net margin suggests pricing power erosion or rising operational costs
  • ! Negative ROE of -17.4% and ROA of -13.2% demonstrate value destruction for shareholders and asset inefficiency
  • ! Interest coverage ratio of -20.3x with negative operating income creates solvency concerns if expenses remain uncontrolled

Key Metrics to Watch

Claude
  • * Quarterly revenue trend to confirm stabilization or continued decline
  • * Operating cash flow trajectory - critical to assess if losses narrow toward breakeven
  • * Cash burn rate and runway given current negative FCF of -$1.4M and $9.9M cash base

MCHX Financial Metrics

Revenue
$45.4M
Net Income
$-5.2M
EPS (Diluted)
$-0.12
Free Cash Flow
$-1.4M
Total Assets
$39.7M
Cash Position
$9.9M

💡 AI Analyst Insight

Strong liquidity with a 2.36x current ratio provides a solid financial cushion.

MCHX Profitability Ratios

Gross Margin N/A
Operating Margin -12.6%
Net Margin -11.5%
ROE -17.4%
ROA -13.2%
FCF Margin -3.2%

MCHX vs Technology Sector

How MARCHEX INC compares to Technology sector averages

Net Margin
MCHX -11.5%
vs
Sector Avg 18.0%
MCHX Sector
ROE
MCHX -17.4%
vs
Sector Avg 22.0%
MCHX Sector
Current Ratio
MCHX 2.4x
vs
Sector Avg 2.5x
MCHX Sector
Debt/Equity
MCHX 0.0x
vs
Sector Avg 0.5x
MCHX Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is MCHX Overvalued or Undervalued?

Based on fundamental analysis, MARCHEX INC has mixed fundamental signals relative to the Technology sector in 2026.

Return on Equity
-17.4%
Sector avg: 22%
Net Profit Margin
-11.5%
Sector avg: 18%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.00x
Sector avg: 0.5x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

MCHX Balance Sheet & Liquidity

Current Ratio
2.36x
Quick Ratio
2.36x
Debt/Equity
0.00x
Debt/Assets
24.2%
Interest Coverage
-20.30x
Long-term Debt
N/A

MCHX 5-Year Financial Trend & Growth Analysis

MCHX 5-year financial data: Year 2021: Revenue $53.5M, Net Income -$38.4M, EPS N/A. Year 2022: Revenue $53.5M, Net Income -$4.4M, EPS $-0.10. Year 2023: Revenue $52.2M, Net Income -$8.2M, EPS N/A. Year 2024: Revenue $49.9M, Net Income -$9.9M, EPS $-0.23. Year 2025: Revenue $48.1M, Net Income -$4.9M, EPS $-0.11.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: MARCHEX INC's revenue has declined by 10% over the 5-year period, indicating business contraction. The most recent EPS of $-0.11 indicates the company is currently unprofitable.

MCHX Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-3.2%
Free cash flow / Revenue

MCHX Quarterly Performance

Quarterly financial performance data for MARCHEX INC including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $11.5M $84.0K $-0.02
Q2 2025 $11.7M $85.0K $0.00
Q1 2025 $11.4M -$1.5M $-0.03
Q3 2024 $12.6M -$756.0K $-0.02
Q2 2024 $12.1M -$756.0K $-0.02
Q1 2024 $11.6M -$1.5M $-0.03
Q3 2023 $12.8M -$1.5M $-0.04
Q2 2023 $12.5M -$1.5M $-0.03

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

MCHX Capital Allocation

Operating Cash Flow
-$1.4M
Cash generated from operations
Stock Buybacks
$10.9M
Shares repurchased (TTM)
Capital Expenditures
$36.0K
Investment in assets
Dividends Paid
$21.9M
Returned to shareholders

MCHX SEC 10-K & 10-Q Filing Analysis

Access official SEC EDGAR filings for MARCHEX INC (CIK: 0001224133)

📋 Recent SEC Filings

Date Form Document Action
Mar 26, 2026 10-K mchx-20251231.htm View →
Mar 25, 2026 8-K mchx-20260325.htm View →
Mar 20, 2026 4 xslF345X06/ownership.xml View →
Mar 20, 2026 4 xslF345X06/ownership.xml View →
Mar 20, 2026 4 xslF345X06/ownership.xml View →

Frequently Asked Questions about MCHX

What is the AI rating for MCHX?

MARCHEX INC (MCHX) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.

What are MCHX's key strengths?

Claude: Adequate liquidity position with 2.36x current ratio and $9.9M cash reserves. Minimal financial leverage with no long-term debt constraining operations.

What are the risks of investing in MCHX?

Claude: Ongoing operating losses with -$1.4M negative operating cash flow indicates unsustainable business trajectory. Revenue declining 5.6% YoY coupled with -11.5% net margin suggests pricing power erosion or rising operational costs.

What is MCHX's revenue and growth?

MARCHEX INC reported revenue of $45.4M.

Does MCHX pay dividends?

MARCHEX INC pays dividends, with $21.9M distributed to shareholders in the trailing twelve months.

Where can I find MCHX SEC filings?

Official SEC filings for MARCHEX INC (CIK: 0001224133) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is MCHX's EPS?

MARCHEX INC has a diluted EPS of $-0.12.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Is MCHX a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, MARCHEX INC has a STRONG SELL rating with 92% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is MCHX stock overvalued or undervalued?

Valuation metrics for MCHX: ROE of -17.4% (sector avg: 22%), net margin of -11.5% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.

Should I buy MCHX stock in 2026?

Our dual AI analysis gives MARCHEX INC a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is MCHX's free cash flow?

MARCHEX INC's operating cash flow is $-1.4M, with capital expenditures of $36.0K. FCF margin is -3.2%.

How does MCHX compare to other Technology stocks?

Vs Technology sector averages: Net margin -11.5% (avg: 18%), ROE -17.4% (avg: 22%), current ratio 2.36 (avg: 2.5).

Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 1, 2026 | Data as of: 2025-12-31 | Powered by Claude AI