Projected Over 50% Increase in Adjusted EBITDA for Q3 2025 by Marchex Due to Expansion of Engage Platform
Marchex Inc. Reports Mixed Q2 2025 Results, Highlights Progress and Challenges
Marchex Inc. (MCHX) has reported a mixed financial performance for Q2 2025, with a slight decline in revenue and a significant turnaround in net income and strong adjusted EBITDA growth. The company's launch of the Marchex Engage platform is a strategic milestone expected to catalyse future growth.
The Q2 2025 results show a revenue of approximately $11.65 million, a decrease of around 3.5% year-over-year, but a slight sequential increase from $11.4 million in Q1 2025. Net income improved significantly, swinging from a loss of $756,000 in Q2 2024 to a positive $85,000 in Q2 2025. Adjusted EBITDA doubled compared to Q2 2024, highlighting a significant profitability improvement.
CEO Edwin Miller described 2025 as an inflection year, tied directly to milestones such as the platform launch driving sequential Adjusted EBITDA growth of about $1 million. The company is planning to expand sales and marketing in 2026 and is undergoing restructuring, appointing a new CTO, and expanding international teams to strengthen long-term profitability and diversification.
The revenue headwinds stem partly from customer migration and macroeconomic factors, but the Marchex Engage platform and technology milestones are positioning the company for sequential revenue and EBITDA growth moving forward. Management anticipates more than 50% sequential adjusted EBITDA growth in Q3 2025.
With the Engage platform, Marchex is seeing increasing average revenue per sale and additional uptake as part of their channel efforts with auto dealers. The Engage platform and upcoming AI product launches are key drivers for pipeline expansion. Gross profit margins are expected to improve as the company benefits from a lower cost structure.
However, management has acknowledged a more cautious outlook for Q4 2025 due to lingering macroeconomic uncertainty and migration impacts. Predicting actual 2025 performance is more difficult due to these factors, and results "may be more variable in terms of revenue and adjusted EBITDA."
In summary, while top-line growth remains modest or slightly challenged, the successful platform launch combined with improved profitability sets a foundation for accelerated growth in the upcoming quarters.
| Aspect | Q2 2025 Result | Context/Impact | |------------------------------|---------------------------------------------------|-------------------------------------------------| | Revenue | ~$11.65 million (down ~3.5% YoY, slight QoQ rise) | Slight decline but sequential stability | | Net Income | $85,000 (from -$756,000 YoY) | Strong turnaround driven by cost and efficiency | | Adjusted EBITDA | Doubled YoY | Significant profitability improvement | | Marchex Engage Platform | Launched/advancing | Key driver of operational efficiency and growth | | Strategic Outlook | Inflection year, $1M sequential Adj. EBITDA gain | Plans for sales/marketing expansion in 2026 | | Operational Developments | Restructuring, new CTO, international expansion | Supports future growth and diversification | | Revenue Challenges | Customer migration, macroeconomic factors | Positioning for sequential growth | | EBITDA Growth Prospects | >50% sequential growth in Q3 2025 | Improving cost structure, product launches | | Pipeline Expansion Drivers | Engage platform, upcoming AI product launches | Increasing average revenue per sale, channel efforts | | Cash Position | $10.5 million | Strengthens financial position | | Macroeconomic Uncertainty | Increased uncertainty, new federal tariffs | Cautious outlook for Q4 2025 | | 2025 Performance Prediction | More variable results | Difficult to predict due to macroeconomic factors |
[1] Seeking Alpha - Marchex Inc. (MCHX) Q2 2025 Earnings Call Transcript [2] GlobeNewswire - Marchex Reports Second Quarter 2025 Financial Results [3] Yahoo Finance - Marchex (MCHX) Q2 2025 Earnings Call Transcript [4] Northland Capital Markets - Marchex, Inc. (MCHX) Q2 2025 Earnings Call Transcript [5] The Motley Fool - Marchex (MCHX) Q2 2025 Earnings Call Transcript
- The strategic launch of the Marchex Engage platform, a key technology milestone, is expected to drive future business growth, positioning the company for sequential revenue and EBITDA growth.
- As part of their business strategy, Marchex is planning to invest in expanding sales and marketing efforts in 2026, aiming to strengthen long-term profitability and diversification.
- The company's plans to enhance profitability include undertaking restructuring, appointing a new CTO, and expanding international teams, with hopes of benefiting from advancements in technology and AI product launches.
