MeritValue

MARCHEX INC

MCHXdata completeness 75%17 fiscal years on file

Data notes: no data for concept 'dilutedShares'; no data for concept 'sharesOutstanding'; no data for concept 'investmentsAtFairValue'; no data for concept 'netInvestmentIncome'

The thesis, from the filings

MARCHEX INC earns about -23% on invested capital. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$53.5M1$52.2M2$49.9M3$48.1M4$45.4M4
Net income−$4.39M5−$8.25M6−$9.91M7−$4.95M8−$5.24M8
Operating cash flow−$6.34M9−$2.29M10−$4.4M11−$1.1M12−$1.41M12
Capital expenditure$1.35M13$2.87M14$1.38M15$382,00016$36,00016
Free cash flow (derived)−$7.69M9−$5.16M10−$5.77M11−$1.49M12−$1.44M12
Total debt——$800,00017——
Cash & equivalents$27.1M18$20.5M19$14.6M20$12.8M21$9.94M21
Diluted shares—————

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

iii. Is this a good business?
Moat signal · return on invested capital
-23% avg · 5y
FY21 -13%FY22 -27%FY23 -34%FY24 -18%FY25 -20%

It earned an average -23% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
— shares · 5y

Total debt has held roughly steady.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.5.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001564590-23-005061 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0000950170-24-038807 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0000950170-25-039513 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2024-12-31 · accession 0001193125-26-125205 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 10-K · period ending 2021-12-31 · accession 0001564590-23-005061 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0000950170-24-038807 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0000950170-25-039513 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001193125-26-125205 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001564590-23-005061 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0000950170-24-038807 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0000950170-25-039513 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001193125-26-125205 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0001564590-23-005061 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2022-12-31 · accession 0000950170-24-038807 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2023-12-31 · accession 0000950170-25-039513 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2024-12-31 · accession 0001193125-26-125205 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2023-12-31 · accession 0000950170-24-038807 (ShortTermBorrowings)
  18. 10-K · period ending 2021-12-31 · accession 0001564590-23-005061 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2022-12-31 · accession 0000950170-24-038807 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2023-12-31 · accession 0000950170-25-039513 (CashAndCashEquivalentsAtCarryingValue)
  21. 10-K · period ending 2024-12-31 · accession 0001193125-26-125205 (CashAndCashEquivalentsAtCarryingValue)