MARCHEX INC Leases Disclosure
Note 9: Leases
The Company has an operating lease for its corporate office headquarters in Seattle, WA. The Company had an operating lease for office space in Wichita, KS, which was terminated during the second quarter of 2025. The Company recognizes its operating lease agreements in accordance with ASC 842, Leases, and recognizes rent expense on a straight-line basis over the lease term with any lease incentives amortized as a reduction of rent expense over the lease term. Assets under operating leases are included in Right-of-use lease assets, and the related liabilities are included in Operating lease liability, current and Operating lease liability, non-current on the Consolidated Balance Sheets.
Assets that were under finance leases, which primarily represented computer equipment, were subject to a rental agreement for a third-party's utilization of this equipment; however, we retained our primary obligation under the original financing terms. Therefore, the Company did not have a right-of-use asset, but did carry the lease liability related to this financed equipment, on the Consolidated Balance Sheets. During the fourth quarter of 2025, the Company made its final payment under the finance leases and therefore does not carry any liabilities related to these previous obligations as of December 31, 2025.
Lease cost recognized in the Consolidated Statements of Operations and other lease information is summarized as follows:
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|
Year Ended December 31, |
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(In Thousands, Except Lease Terms and Percentages) |
|
2025 |
|
|
2024 |
|
||
Operating lease cost |
|
$ |
460 |
|
|
$ |
575 |
|
Finance lease cost: |
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|
|
|
|
|
||
Interest on lease liabilities |
|
|
24 |
|
|
|
72 |
|
Variable and short-term lease cost |
|
|
21 |
|
|
|
23 |
|
Total lease cost |
|
$ |
505 |
|
|
$ |
670 |
|
Other information: |
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|
|
|
|
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||
Weighted-average remaining lease term - operating leases |
|
|
1.9 |
|
|
|
2.6 |
|
Weighted-average remaining lease term - finance leases |
|
|
— |
|
|
|
0.9 |
|
Weighted-average discount rate - operating leases |
|
|
7.5 |
% |
|
|
7.0 |
% |
Weighted-average discount rate - finance leases |
|
|
14.1 |
% |
|
|
14.1 |
% |
Cash paid for operating leases |
|
$ |
462 |
|
|
$ |
562 |
|
Cash paid for finance leases |
|
$ |
421 |
|
|
$ |
459 |
|
As of December 31, 2025, the Company’s future payments under operating lease liabilities were as follows:
(In Thousands) |
|
|
|
|
2026 |
|
$ |
397 |
|
2027 |
|
|
380 |
|
Gross future lease payments |
|
$ |
777 |
|
Less: imputed interest |
|
|
(56 |
) |
Present value of total lease liabilities |
|
$ |
721 |
|
Less: |
|
|
(355 |
) |
Total long-term lease liabilities |
|
$ |
366 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 26, 2026 | Showing above |
| 2024 | Mar 14, 2025 | |
| 2023 | Apr 1, 2024 | |
| 2022 | Mar 31, 2023 | |
| 2021 | Mar 29, 2022 | |
| 2020 | Mar 31, 2021 | |
| 2019 | Mar 13, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.