Marchex Inc. Class B Common Stock (MCHX)

FairStock Score: 28/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I look first for a durable business earning consistent profits. Marchex does not pass that test. It sells conversation intelligence and analytics, a useful niche, but revenue has slipped from $49.9M in FY2023 to $48.1M in FY2024 and $45.4M in FY2025. Net losses were $9.9M, $4.9M, and $5.2M over those same years. In fiscal Q2 2026, ended 2026-06-30, revenue was $11.0M and net loss was $408,000, an improvement from the fiscal Q1 2026 loss of $1.7M, but still not profitability. Trailing free cash flow is negative $2.5M, a -3.2% FCF yield, so the company is consuming cash. The balance sheet has low leverage — D/E 0.02 — which gives some staying power, but Altman Z-score is -6.46 and Piotroski is 4/9, both signs of financial fragility. At $1.23 on 2026-10-13, market cap is $77.1M and FairStock's P/B calculation is 1.86. With negative earnings and no clear growth, that is not an obvious bargain; it is a hope-based valuation. Lynch category none, because the company lost money in each of last four years. Moat? I see limited evidence; conversation analytics is competitive, and the company is small. Unless revenue stabilizes and margins turn positive, the math remains difficult.

In plain English: Marchex sells conversation intelligence and analytics tools that help businesses understand calls and messages, with about 139 employees. The business looks weak today: revenue is shrinking, it has lost money in each of the last four years, and it burned cash over the past year. At $1.23, the price may look low, but with no profits and declining sales, it does not look clearly cheap based on the company's current numbers.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer