Fathom Holdings Reports Third Quarter 2025 Results
– Fathom achieved 38% year-over-year revenue growth, driven by 23% transaction growth –
"In the third quarter, we continued to build on the momentum achieved in the first half of the year," said Marco Fregenal, Chief Executive Officer of Fathom Holdings. "Despite a challenging housing market, we delivered 38% year-over-year revenue growth and achieved Adjusted EBITDA profitability. We also expanded our agent base and advanced multiple initiatives across our platform.
"Our ancillary businesses continued to perform exceptionally well, led by 29% year-over-year growth in title revenue. The strength of our ancillary businesses underscores Fathom's ability to deliver complementary services to both buyers and sellers and demonstrates the power of our integrated platform. We're also seeing strong traction across our flagship programs. Elevate continues to scale, with over 165 agents onboarded and another 45 in the pipeline. Elevate remains one of our most exciting initiatives, providing agents with greater time and support to close more transactions while driving higher productivity, retention, and profitability for both our agents and the Company.
"We also executed on several strategic growth initiatives during the quarter and October.
"Our continued investment in innovation has positioned Fathom among the leading brokerages in the nation, offering exceptional opportunities for agents and homebuyers alike. Looking ahead, we remain focused on driving agent success, increasing attachment rates in our title and mortgage businesses, and unlocking new revenue streams through the expansion of our flagship programs, strategic partnerships, and a growing pipeline of organic and inorganic initiatives. With housing market conditions expected to improve, Fathom is well positioned to capture these opportunities and deliver continued growth in revenue, profitability, and shareholder value."
Third Quarter 2025 Financial Highlights – November Update
- Fathom's total revenue increased 37.7% to
$115.3 million for the third quarter of 2025, up from$83.7 million in the third quarter of 2024. - Brokerage revenue increased by 39.0% to
$109.2 million for the third quarter of 2025, up from$78.6 million in the third quarter of 2024. - Mortgage revenue increased 20.7% to
$3.5 million for the third quarter of 2025, up from$2.9 million in the third quarter of 2024. - Title revenue increased 28.6% to
$1.8 million for the third quarter of 2025, up from$1.4 million in the third quarter of 2024. - Gross profit increased 39.1% to
$9.6 million for the third quarter of 2025, up from$6.9 million in the third quarter of 2024. - Fathom completed a
$6.9 million common stock offering inSeptember 2025 , issuing 3.45 million shares at$2.00 per share and receiving$6.5 million in net proceeds.
Third Quarter 2025 Operational Highlights – November Update
- Fathom's real estate agent network grew 24.1% to approximately 15,371 agent licenses at
September 30, 2025 , up from approximately 12,383 agent licenses atSeptember 30, 2024 . - Fathom's real estate transactions grew 23.0% to approximately 11,479 in the third quarter of 2025, up from approximately 9,331 transactions in the third quarter of 2024.
- Successfully onboarded 70 agents to our Elevate program.
- Fathom partnered with leadership expert J'aime Nowak to strengthen Elevate agent training and development programs.
Verus Title expanded intoArizona andAlabama , increasing its footprint to 34 states and theDistrict of Columbia .- Fathom acquired START Real Estate in October, expanding its first-time homebuyer program nationwide and adding approximately 70 agents, primarily to the Elevate program.
Third Quarter 2025 Financial Results
Real estate transactions increased approximately 23.0% year-over year to 11,479 in the third quarter of 2025, primarily driven by the addition of My Home Group in
Total revenue for the third quarter of 2025 increased 37.7% year-over-year to
Segment revenue for the 2025 third quarter, compared with the 2024 third quarter was as follows:
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Revenue |
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Three months ended
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(Revenue $ in millions) |
2025 |
|
2024 |
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|
|
UNAUDITED |
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|
Real Estate Brokerage |
$ 109.2 |
|
$ 78.6 |
|
|
Mortgage |
3.5 |
|
2.9 |
|
|
Technology |
1.3 |
|
1.1 |
|
|
Corporate and other services (a) |
1.3 |
|
1.1 |
|
|
Total revenue |
$ 115.3 |
|
$ 83.7 |
|
|
|
|
|
(a) |
Transactions between segments are eliminated in consolidation. Such amounts are eliminated through the Corporate and other services line. |
GAAP net loss for the third quarter of 2025 was
Adjusted EBITDA*, a non-GAAP measure, was positive
First Nine Months of 2025 Financial Results
Real estate transactions increased approximately 24.8% year-over-year to 33,904 transactions in the first nine months of 2025. The increase in real estate transactions was primarily due to the addition of My Home Group in
Total revenue for the first nine months of 2025 increased 35.5% to
Segment revenue for the 2025 first nine months, compared with the 2024 first nine months, was as follows:
|
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Revenue |
|||
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|
Nine months ended
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|
||
|
(Revenue $ in millions) |
2025 |
|
2024 |
|
|
|
UNAUDITED |
|
||
|
Real Estate Brokerage |
$ 314.1 |
|
$ 227.1 |
|
|
Mortgage |
9.4 |
|
8.9 |
|
|
Technology |
3.4 |
|
3.4 |
|
|
Corporate and other services (a) |
3.0 |
|
4.0 |
|
|
Total revenue |
$ 329.9 |
|
$ 243.4 |
|
|
|
|
|
(a) |
Transactions between segments are eliminated in consolidation. Such amounts are eliminated through the Corporate and other services line. |
GAAP net loss for the first nine months of 2025 was
Adjusted EBITDA* loss, a non-GAAP measure, was
*Fathom provides Adjusted EBITDA, a non-GAAP financial measure, because it offers additional information for monitoring the Company's cash flow performance. A table providing a reconciliation of Adjusted EBITDA to its most comparable GAAP measure, as well as an explanation of, and important disclosures about, this non-GAAP measure, is included in the tables at the end of this press release.
Guidance/Long-Term Targets
The Company has elected to withhold guidance for the fourth quarter ending
Conference Call
Fathom management will hold a conference call today (
International dial-in: 1-201-389-0878
Conference ID: 13756651
Please call the conference telephone number five minutes prior to the start time. An operator will register your name and organization.
A live audio webcast of the conference call will be available in listen-only mode simultaneously and available via the investor relations section of the Company's website at www.FathomInc.com.
A telephone replay of the call will be available through
International replay dial-in: 1-412-317-6671
Replay Access Code: 13756651
About Fathom Holdings Inc.
Fathom Holdings Inc. is a national, technology-driven, real estate services platform integrating residential brokerage, mortgage, title, and SaaS offerings to brokerages and agents by leveraging its proprietary cloud-based software, intelliAgent. The Company's brands include Fathom Realty, Encompass Lending, intelliAgent, LiveBy, Real Results,
Cautionary Note Concerning Forward-Looking Statements
This press release contains "forward-looking statements" that involve risks and uncertainties which we expect will or may occur in the future and may impact our business, financial condition and results of operations. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including: risks associated with general economic conditions, including rising interest rates; its ability to generate positive operational cash flow; risks associated with the Company's ability to continue achieving significant growth; its ability to continue its growth trajectory while achieving profitability over time; risks related to ongoing and future litigation; and other risks as set forth in the Risk Factors section of the Company's most recent Form 10-K as filed with the SEC and supplemented from time to time in other Company filings made with the SEC. Copies of Fathom's Form 10-K and other SEC filings are available on the SEC's website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.
Investor Contact:
Gateway Group, Inc.
949-574-3860
[email protected]
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FATHOM HOLDINGS INC. |
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CONDENSED CONSOLIDATED BALANCE SHEET |
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(in thousands, except share data) |
|||
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|
|||
|
|
|
|
|
|
ASSETS |
(Unaudited) |
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
$ 9,756 |
|
$ 7,127 |
|
Restricted cash |
161 |
|
263 |
|
Accounts receivable |
8,130 |
|
3,147 |
|
Other receivable - current |
3,000 |
|
4,000 |
|
Mortgage loans held for sale, at fair value |
9,091 |
|
4,772 |
|
Prepaid and other current assets |
7,361 |
|
5,647 |
|
Total current assets |
37,499 |
|
24,956 |
|
Property and equipment, net |
1,659 |
|
1,854 |
|
Lease right of use assets |
4,269 |
|
3,781 |
|
Intangible assets, net |
18,213 |
|
20,234 |
|
Goodwill |
21,498 |
|
21,498 |
|
Other receivable - long-term |
— |
|
3,000 |
|
Other assets |
99 |
|
74 |
|
Total assets |
$ 83,237 |
|
$ 75,397 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
$ 10,590 |
|
$ 4,305 |
|
Accrued and other current liabilities |
5,060 |
|
4,894 |
|
Warehouse lines of credit |
8,914 |
|
4,556 |
|
Lease liability - current portion |
1,584 |
|
1,237 |
|
Long-term debt - current portion |
491 |
|
4,389 |
|
Total current liabilities |
26,639 |
|
19,381 |
|
Lease liability, net of current portion |
3,518 |
|
3,522 |
|
Long-term debt, net of current portion |
5,082 |
|
5,087 |
|
Other long-term liabilities |
4,617 |
|
2,726 |
|
Total liabilities |
39,856 |
|
30,716 |
|
Commitments and contingencies (Note 18) |
|
|
|
|
Shareholders' equity: |
|
|
|
|
Common stock (no par value) |
— |
|
— |
|
Additional paid-in capital |
150,139 |
|
137,844 |
|
Accumulated deficit |
(106,758) |
|
(93,163) |
|
Total shareholders' equity |
43,381 |
|
44,681 |
|
Total liabilities and shareholders' equity |
$ 83,237 |
|
$ 75,397 |
|
|
|
The accompanying notes are an integral part of the condensed consolidated financial statements. |
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FATHOM HOLDINGS INC. |
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CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS |
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|
(UNAUDITED) |
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|
(in thousands, except share data) |
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|
|
|||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
|
|
|
|
|
|
|
|
|
Revenue |
$ 115,313 |
|
$ 83,733 |
|
$ 329,871 |
|
$ 243,443 |
|
Commission and service costs |
105,743 |
|
76,822 |
|
302,815 |
|
221,531 |
|
General and administrative |
8,261 |
|
8,066 |
|
24,881 |
|
25,393 |
|
Marketing |
979 |
|
1,361 |
|
3,753 |
|
3,898 |
|
Technology and development |
1,818 |
|
1,702 |
|
5,594 |
|
4,848 |
|
Litigation contingency |
2,000 |
|
3,099 |
|
2,011 |
|
3,437 |
|
Depreciation and amortization |
550 |
|
444 |
|
1,658 |
|
1,718 |
|
Gain on sale of business |
— |
|
— |
|
— |
|
(2,958) |
|
Loss from operations |
(4,038) |
|
(7,761) |
|
(10,841) |
|
(14,424) |
|
|
|
|
|
|
|
|
|
|
Other expense (income), net |
|
|
|
|
|
|
|
|
Interest expense, net |
112 |
|
104 |
|
475 |
|
318 |
|
Other nonoperating expense |
183 |
|
238 |
|
2,176 |
|
572 |
|
Other expense (income), net |
295 |
|
342 |
|
2,651 |
|
890 |
|
Loss before income taxes |
(4,333) |
|
(8,104) |
|
(13,492) |
|
(15,314) |
|
Income tax expense |
24 |
|
17 |
|
102 |
|
28 |
|
Net loss |
$ (4,357) |
|
$ (8,121) |
|
$ (13,594) |
|
$ (15,342) |
|
|
|
|
|
|
|
|
|
|
Net loss per share: |
|
|
|
|
|
|
|
|
Basic |
$ (0.15) |
|
$ (0.40) |
|
$ (0.51) |
|
$ (0.78) |
|
Diluted |
$ (0.15) |
|
$ (0.40) |
|
$ (0.51) |
|
$ (0.78) |
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
29,569,936 |
|
20,429,791 |
|
26,844,457 |
|
19,792,773 |
|
Diluted |
29,569,936 |
|
20,429,791 |
|
26,844,457 |
|
19,792,773 |
|
|
|
The accompanying notes are an integral part of the condensed consolidated financial statements. |
|
FATHOM HOLDINGS INC. |
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|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
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|
(UNAUDITED) |
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|
(in thousands) |
|||
|
|
|||
|
|
Nine Months Ended |
||
|
|
2025 |
|
2024 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
Net loss |
$ (13,594) |
|
$ (15,342) |
|
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
Depreciation and amortization |
4,380 |
|
4,050 |
|
Gain on sale of business |
— |
|
(2,958) |
|
Non-cash lease expense |
1,063 |
|
1,372 |
|
Deferred financing cost amortization |
29 |
|
— |
|
Gain on sale of mortgages |
(5,393) |
|
(5,033) |
|
Stock-based compensation |
3,013 |
|
7,118 |
|
Deferred income taxes |
3 |
|
— |
|
Change in operating assets and liabilities: |
|
|
|
|
Accounts receivable |
(4,983) |
|
51 |
|
Prepaid and other current assets |
(1,450) |
|
(1,704) |
|
Other assets |
(24) |
|
(23) |
|
Accounts payable |
6,284 |
|
1,708 |
|
Accrued and other current liabilities |
2,174 |
|
1,383 |
|
Operating lease liabilities |
(1,209) |
|
(1,510) |
|
Other long-term liabilities |
— |
|
1,916 |
|
Mortgage loans held for sale originations |
(184,187) |
|
(192,230) |
|
Proceeds from sale and principal payments on mortgage loans held for sale |
185,261 |
|
196,832 |
|
Net cash used in operating activities |
(8,633) |
|
(4,371) |
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
Purchase of property and equipment |
(78) |
|
(46) |
|
Purchase of intangible assets |
(2,085) |
|
(2,160) |
|
Proceeds from sale of business |
4,000 |
|
7,435 |
|
Amounts paid for business and asset acquisitions, net of cash acquired |
(120) |
|
— |
|
Other investing activities |
— |
|
(130) |
|
Net cash provided by investing activities |
1,717 |
|
5,099 |
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
Principal payments on debt |
(4,196) |
|
(557) |
|
Proceeds from note payable |
— |
|
5,435 |
|
Deferred acquisition consideration payments |
(33) |
|
— |
|
Proceeds from other financing activities |
— |
|
20 |
|
Borrowings from warehouse lines of credit |
184,032 |
|
191,837 |
|
Repayment on warehouse lines of credit |
(179,674) |
|
(191,550) |
|
Proceeds from the issuance of common stock in connection with a public offering |
9,513 |
|
— |
|
Payment of offering cost in connection with issuance of common stock in connection with public |
(198) |
|
(28) |
|
Net cash provided by financing activities |
9,444 |
|
5,157 |
|
Net increase in cash, cash equivalents, and restricted cash |
2,528 |
|
5,886 |
|
Cash, cash equivalents, and restricted cash at beginning of period |
7,389 |
|
7,540 |
|
Cash, cash equivalents, and restricted cash at end of period |
$ 9,917 |
|
$ 13,426 |
|
|
|
|
|
|
Supplemental disclosure of cash and non-cash transactions: |
|
|
|
|
Cash paid for interest |
$ 178 |
|
$ 299 |
|
Right of use assets obtained in exchange for new lease liabilities |
$ 1,621 |
|
$ 1,572 |
|
Reconciliation of cash and restricted cash: |
|
|
|
|
Cash and cash equivalents |
$ 9,756 |
|
$ 13,104 |
|
Restricted cash |
161 |
|
322 |
|
Total cash, cash equivalents, and restricted cash shown in statement of cash flows |
$ 9,917 |
|
$ 13,426 |
|
|
|
The accompanying notes are an integral part of the condensed consolidated financial statements. |
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES |
|||||||
|
(UNAUDITED) |
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|
(in thousands) |
|||||||
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|
|||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Loss before income tax |
$ (4,333) |
|
$ (8,104) |
|
$ (13,492) |
|
$ (15,314) |
|
Gain on sale of business |
- |
|
- |
|
- |
|
(2,958) |
|
Stock based compensation |
562 |
|
1,967 |
|
3,013 |
|
7,118 |
|
Depreciation and amortization |
1,483 |
|
1,251 |
|
4,380 |
|
4,050 |
|
Litigation contingency |
2,000 |
|
3,099 |
|
2,011 |
|
3,437 |
|
Other expense, net |
295 |
|
342 |
|
2,651 |
|
890 |
|
Adjusted EBITDA |
$ 6 |
|
$ (1,445) |
|
$ (1,437) |
|
$ (2,777) |
Note about Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use Adjusted EBITDA, a non-GAAP financial measure, to understand and evaluate our core operating performance. This non-GAAP financial measure, which may be different than similarly titled measures used by other companies, is presented to enhance investors' overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
We define the non-GAAP financial measure of Adjusted EBITDA as net income (loss), excluding other expense, income tax benefit, depreciation and amortization, share-based compensation expense, gain on sale of business benefit, NAR related litigation contingency expenses and transaction-related cost.
We believe that Adjusted EBITDA provides useful information about our financial performance, enhances the overall understanding of our past performance and future prospects, and allows for greater transparency with respect to a key metric used by our management for financial and operational decision-making. We believe that Adjusted EBITDA helps identify underlying trends in our business that otherwise could be masked by the effect of the expenses that we exclude in Adjusted EBITDA. In particular, we believe the exclusion of share-based compensation expense related to restricted stock awards and stock options and transaction-related costs associated with our acquisition activity provides a useful supplemental measure in evaluating the performance of our operations and provides better transparency into our results of operations. Adjusted EBITDA also excludes other income and expense, net which primarily includes nonrecurring items, such as, gain on debt extinguishment, gain on sale of business, severance costs, and non-cash items representing reserves on certain agent fee collection, if applicable.
We are presenting the non-GAAP measure of Adjusted EBITDA to assist investors in seeing our financial performance through the eyes of management, and because we believe this measure provides an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry.
Adjusted EBITDA should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. There are a number of limitations related to the use of Adjusted EBITDA compared to net income (loss), the closest comparable GAAP measure. Some of these limitations are that:
- Adjusted EBITDA excludes share-based compensation expense related to restricted stock awards, restricted stock unit awards, and stock options, which have been, and will continue to be for the foreseeable future, significant recurring expenses in our business and an important part of our compensation strategy;
- Adjusted EBITDA excludes transaction-related costs primarily consisting of professional fees and any other costs incurred directly related to acquisition activity, which is an ongoing part of our growth strategy and therefore likely to occur;
- Adjusted EBITDA excludes certain recurring, non-cash charges such as depreciation and amortization of property and equipment and capitalized software costs, however, the assets being depreciated and amortized may have to be replaced in the future;
- Adjusted EBITDA excludes the gain on the sale of the business, as this item is non-recurring and not indicative of the Company's core operating performance; and
- Adjusted EBITDA excludes litigation contingency expenses, which could continue to be significant recurring expenses in our business until a final settlement has been approved by the court.
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SOURCE Fathom Holdings Inc.