Overview

• US AI conversation intelligence platform's Q1 revenue declined yr/yr

• Adjusted EBITDA loss narrowed from prior year

• Company expects Archenia acquisition to close in July 2026

Outlook

• Marchex sees Q2 2026 revenue rising sequentially and Adjusted EBITDA of $1.6-$1.8 mln, above prior view

• Company expects Q3 2026 revenue to rise sequentially and Adjusted EBITDA to reach $2 mln or more

• If Archenia deal closes by Q3, combined Adjusted EBITDA could reach $2.5 mln for the quarter

Result Drivers

• REORGANIZATION AND ACQUISITION COSTS - Adjusted EBITDA included $0.7 mln of reorganization and acquisition-related costs

• AI PRODUCT DEPLOYMENT - Co said it continued developing and selling new AI-based products, with initial adoption among top customers

Company press release: ID:nBw7D250ha

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Miss	$10.62 mln	$10.89 mln (1 Analyst)
Q1 Adjusted EPS	Miss	-$0.03	$0 (1 Analyst)
Q1 Net Income		-$1.72 mln
Q1 Adjusted EBITDA	Miss	-$147,000	$486,000 (1 Analyst)
Q1 Income from Operations		-$1.35 mln
Q1 Operating Expenses		$11.97 mln

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the advertising & marketing peer group is "buy"

• Wall Street's median 12-month price target for Marchex Inc is $4.00, about 151.6% above its May 12 closing price of $1.59

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