Edenbrook capital increases stake in Marchex with $177,829 purchase

Published 27/03/2025, 22:44
Edenbrook capital increases stake in Marchex with $177,829 purchase

Edenbrook Capital, LLC, a significant shareholder in Marchex Inc. (NASDAQ:MCHX), has recently expanded its position in the company. According to a recent SEC filing, Edenbrook Capital acquired a total of 102,475 shares of Marchex’s Class B common stock over three days, from March 25 to March 27, 2025. The company, currently valued at $73 million, has shown significant price volatility over the past year, with shares trading between $1.20 and $2.40.

The purchases were made at prices ranging from $1.69 to $1.7499 per share, amounting to a total investment of $177,829. Following these transactions, Edenbrook Capital and its affiliated entities, including Edenbrook Long Only Value Fund, LP, and managing member Jonathan Brolin, now hold a total of 14,248,813 shares of Marchex. According to InvestingPro data, the company maintains a healthy balance sheet with a current ratio of 2.4, indicating strong liquidity.

These transactions emphasize Edenbrook Capital’s continued interest in Marchex, as the fund seeks to solidify its position as a major stakeholder in the business services company. While analysts have set price targets ranging from $2.50 to $4.00 per share, the company faces near-term profitability challenges, with earnings results expected on May 8, 2025.

In other recent news, Marchex Inc. reported its fourth-quarter 2024 earnings, revealing a larger-than-expected loss per share and a decline in revenue compared to forecasts. The company posted an actual EPS of -$0.03, missing the forecast of -$0.01, and revenue came in at $11.9 million, falling short of the anticipated $12.35 million. Despite these financial misses, the company is focusing on strategic growth areas, including AI-driven solutions and partnerships with major companies like Microsoft (NASDAQ:MSFT). Analysts have not upgraded or downgraded the stock, but the company has provided guidance indicating expected revenue growth and positive adjusted EBITDA for 2025. Marchex’s CEO, Edwin Miller, emphasized the company’s strategic direction, highlighting plans to become a $100 million revenue business and the importance of their new unified technology platform. The company also aims to launch new AI-powered products and expand its sales channels, which could potentially offset some historical seasonal patterns in call volumes. These developments are part of Marchex’s efforts to navigate a competitive market landscape and achieve long-term growth.

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