Marchex, Inc. (NASDAQ: MCHX) announced its financial results for the third quarter ended September 30, 2025, and revealed an agreement in principle to acquire Archenia, Inc., a performance-based customer acquisition company. The transaction, subject to due diligence and approval by disinterested stockholders, is expected to close in the first half of 2026. In the third quarter, Marchex reported revenue of $11.5 million, a decline from $12.5 million in the same period of 2024, primarily due to ongoing technology platform migration affecting customer revenue. However, the company achieved significant progress in sales bookings, reaching its highest levels of the year. Adjusted EBITDA, net of reorganization costs, improved to $1.1 million—approximately 50% higher than the second quarter of 2025—demonstrating strong operating leverage. Marchex anticipates that with the platform migration nearing completion and new product launches gaining momentum, revenue growth could reach a 10% run rate in 2026 compared to year-end 2025 levels. The company also projects Adjusted EBITDA margins of 10% or more in 2026, driven by revenue growth and reduced operating expenses. Key product developments in 2025 include the launch of AI Benchmarking within the Marchex Engage Platform, offering Fortune 500 clients industry-specific performance insights. The AgentAI Optimizer, expected soon, will analyze third-party AI agents for performance and effectiveness. Marchex Engage GPT, set for release later in the fourth quarter, will provide business-specific large language model capabilities for searching internal structured data. The company also launched AI-powered solutions for healthcare and senior living industries. The healthcare solution enhances patient lead attribution and identifies critical engagement opportunities, while the senior living offering helps optimize marketing spend and understand prospect preferences. Under the agreement in principle, Marchex will acquire 100% of Archenia for a $10 million convertible promissory note at 6% interest, payable in three equal installments over 12, 18, and 24 months. The note can be converted into Marchex Class B common stock at $1.80 per share. Additionally, the company may issue 2 million shares to Archenia’s sellers for each of the first two 12-month periods post-closing, if revenue and Adjusted EBITDA targets are met. Archenia, which has estimated revenue of over $14 million for the first nine months of 2025 and expects full-year revenue to exceed $17 million, uses AI, natural language analytics, and automated decisioning to turn consumer intent into verified, outcome-based results. It serves major brands in insurance, home services, healthcare, and automotive. Marchex believes the acquisition will create a vertically focused, AI-driven platform that integrates insights, automated actions, and verifiable outcomes. The combination is expected to accelerate growth, improve margins, expand market reach, and enhance strategic flexibility. The transaction was approved by a special committee of independent directors due to related-party interests among the sellers. Final terms will be outlined in a definitive agreement, pending audited financials, a fairness opinion, and shareholder approval. Marchex continues to leverage AI and conversational intelligence to drive revenue and operational efficiency across B2B2C industries, with a focus on delivering actionable, industry-specific analytics.