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ZYBERNO

Stock Report

Updated Aug 31, 2026

Marchex, Inc. (MCHX)

Technology • NASDAQ

$1.81

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

39.0/100

WEAK BUSINESS

Marchex, Inc. (MCHX) scores 39/100 — weak fundamentals with mixed indicators requiring careful analysis before acting.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full MCHX quality analysis & detailed breakdown

VALUATION SIGNAL

N/A (Requires more data)

Requires fair value calculation and current price data

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full MCHX valuation analysis · → View full MCHX Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):CRITICAL (-18.2%)

Debt-to-Equity (Solvency Risk):EXCELLENT (0.04x)

Operating Margin (Operational Efficiency):CRITICAL (-11.4%)

Return on Capital (Capital Efficiency):CRITICAL (-17.3%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

Marchex, Inc. (MCHX) stock report — Zyberno Score 39/100 (WEAK BUSINESS). Full financial analysis on Zyberno.

Over the trailing twelve months, MCHX generated $1.89M in Owner Earnings. Reinvestment rate: 34.9%.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:1.81

Market Cap:$222.75M

Enterprise Metrics (1)

Enterprise Value:$215.47M

Price Action & Momentum (3)

12-1 Momentum:

-9.4% (18th pctile)

📈 Click to view full MCHX Momentum analysis →

Momentum Percentile:18 / 100

% of 52-Week High:88.7%

B. Profitability Assessment

Return Metrics (5)

ROE:

-18.2%

📊 Click to view full MCHX ROE analysis →

ROA:-13.9%

Roic:

-17.3%

📊 Click to view full MCHX ROIC analysis →

Reinvestment Rate:34.9%

Fundamental Growth Rate (g):-6.0%

Margin Analysis (3)

Operating Margin Ttm:-11.4%

Net Margin Ttm:-12.4%

Ebitda Margin:-8.6%

TTM Performance (3)

Gross Margin Ttm:61.8%

Operating Margin Ttm:-11.4%

Net Margin Ttm:-12.4%

Yield Metrics (1)

Dividend Yield:-999.0%

C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):

-0.41

📊 Click to view full MCHX Earnings Surprise analysis →

EPS Surprise vs Expected:-128.1%

Latest Earnings Filed:2026-08-13

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):-4.4%

Cash Flow Growth (Linear) (2)

Free Cash Flow Growth Rate (Linear):-2.9%

Operating Cash Flow Growth Rate (Linear):-27.6%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:2.29x

Quick Ratio:2.29x

Cash Ratio:1.07x

Leverage Analysis (3)

Debt To Equity Ttm:0.04x

Debt-to-Equity Ratio:0.04x

Debt To Ebitda:-999.00x

Coverage Ratios (1)

Times Interest Earned:-999.00

Capital Structure (4)

Working Capital:9,837,000.00

Cash And Cash Equivalents:8,151,000.00

Long Term Debt:$488.00K

Net Debt:-$7.28M

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $43.98M

Linear Growth: -4.4%

📊 Click to view full MCHX Revenue analysis & methodology →

Cost Of Revenue Ttm:$16.79M

Profitability Breakdown (2)

Gross profit TTM: $27.20M

Linear Growth: -2.0%

📊 Click to view full MCHX Gross Profit analysis & methodology →

-$5.01M

Bottom Line Performance (3)

-$5.47M

Income Before Tax:-$5.19M

Ebitda Ttm:-3,802,000.00

Operating Expenses (5)

Operating Expenses:48,997,000.00

R And D Expense:8,973,000.00

Sga Expense:9,962,000.00

Income Tax Expense:$389.00K

Interest Expense:0.00

Expense Ratios (3)

R And D To Revenue Percentage:81.6%

Sga To Revenue Percentage:90.5%

Ebitda Margin:-8.6%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$37.63M

Current Assets:$17.44M

Ppe Net:6,746,000.00

Goodwill:17,558,000.00

Intangible Assets:$0.00

Liability Structure (4)

Total Liabilities:8,600,000.00

Current Liabilities:7,606,000.00

Long Term Debt:$488.00K

Short Term Debt:$385.00K

Equity & Capital (3)

Equity:$29.03M

Retained Earnings:-$333.55M

Common Stock:137,500,000.00

Working Capital Items (3)

Accounts Receivable:7,062,000.00

Inventory:0.00

Accounts Payable:3,239,000.00

Special Items (2)

Contract Liabilities:458,000.00

Stock Based Compensation:531,000.00

C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: $700.00K

Linear Growth: -27.6%

Free cash flow TTM: $1.89M

Linear Growth: -2.9%

📊 Click to view full MCHX Free Cash Flow analysis & methodology →

Investment Activities (1)

Investing Cash Flow:-$411.00K

Financing Activities (3)

Financing Cash Flow:$2.00K

Dividends Paid Ttm:0.00

Stock Repurchase:0.00

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$0.00

Non-Cash Items (1)

Depreciation Amortization Ttm:1,212,000.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (2)

EPS (Basic TTM):-0.12

-$0.12

Dividend Policy (1)

Dividend Payout Ratio:-999.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:1.12x

Working Capital Turnover Ttm:4.47x

Receivables Management (2)

Receivables Turnover Ttm:6.23x

Days Sales Outstanding Ttm:58.61

Inventory Management (2)

Inventory Turnover Ttm:-999.00x

Days Inventory Outstanding Ttm:-999.00

Payables & Cash Cycle (2)

Days Payable Outstanding:70.42

Cash Conversion Cycle:-1,010.82

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:100.00

Quality Score:40.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Owner Earnings Analysis (1)

$1.89M

Damodaran Growth Analysis (2)

Reinvestment Rate:34.9%

Fundamental Growth Rate (g):-6.0%

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (1)

Revenue Growth Rate (Linear):-4.4%

Cash Flow Growth Rates (2)

Free Cash Flow Growth Rate (Linear):-2.9%

Operating Cash Flow Growth Rate (Linear):-27.6%

Other Growth Rates (2)

Gross Profit Growth Rate (Linear):-2.0%

Book Value Growth Rate (Linear):-12.4%

C. Company Profile & Context

Corporate Information (6)

Symbol:MCHX

Company Name:Marchex, Inc.

Sector:Technology

Industry:Software

Exchange:NASDAQ

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:low

Volume Category:N/A

Share Structure (3)

Shares Outstanding:0

Shares Outstanding Basic:0

Shares Outstanding Diluted:0

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-08-31 23:20:54 UTC

Data Timestamp:2026-08-20T03:15:55.660489