Fathom Holdings Reports Fourth Quarter and Full Year 2025 Results
Rhea-AI Summary
Fathom Holdings (Nasdaq: FTHM) reported fourth-quarter and full-year 2025 results on March 30, 2026. For full-year 2025, revenue was $420.5 million, up 25.4% year-over-year, driven by a 26.8% rise in brokerage revenue and a 14.6% increase in transactions to 42,405. Q4 2025 revenue was $90.6 million (-1.2% YoY); GAAP net loss was $6.7 million in Q4 and $20.3 million for the year. Adjusted EBITDA loss improved to $4.0 million for 2025 from $5.7 million in 2024.
Company announced partnerships, a new lead program, leadership appointment, and a divestiture completed in November 2025.
Positive
- Total revenue +25.4% to $420.5M in 2025
- Full-year transactions +14.6% to 42,405
- Full-year brokerage revenue +26.8% to $399.0M
- Adjusted EBITDA loss improved ~29.8% year-over-year
- Q4 mortgage revenue +70.0% to $3.4M
Negative
- Q4 transactions -14.2% to 8,501
- Q4 total revenue -1.2% to $90.6M
- GAAP net loss of $20.3M for full-year 2025
Key Figures
Market Reality Check
Peers on Argus
FTHM fell 7.79% with sector context showing 2 peers in momentum also moving down (median about -0.8%) and 1 up, pointing to broader real estate services pressure alongside stock-specific earnings reaction.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 11 | Q3 2025 earnings | Positive | -17.4% | Strong Q3 2025 revenue and transaction growth with narrowed net loss and positive EBITDA. |
| Aug 12 | Q2 2025 earnings | Positive | -9.7% | Q2 2025 revenue up 36.1% with agent and transaction growth and EBITDA profitability. |
| May 13 | Q1 2025 earnings | Positive | +29.4% | Q1 2025 beat with 32.1% revenue growth, network expansion and improving net loss. |
| Mar 12 | Q4/FY 2024 earnings | Neutral | +6.2% | Mixed 2024: Q4 growth and higher agents but full‑year revenue decline and losses. |
| Nov 07 | Q3 2024 earnings | Negative | -12.2% | Q3 2024 revenue decline, higher net loss, and NAR settlement impact despite agent growth. |
Earnings releases often showed strong revenue growth but mixed profitability, with three of five past earnings moves negative and an average move of about -0.73%.
Across the last five earnings reports from Nov 2024 through Nov 2025, Fathom consistently highlighted double‑digit revenue growth, expanding agent counts, and rising transactions, while remaining GAAP‑loss making. Adjusted EBITDA briefly turned positive in Q2 and Q3 2025 before reverting to a loss in Q4 2025 and for full‑year 2025. Capital raises and acquisitions, including My Home Group, supported growth. Today’s Q4/FY 2025 release continues that theme of scale gains with ongoing but narrowing losses.
Historical Comparison
Over the last 5 earnings releases, FTHM’s average 24h move was -0.73%, showing cautious market reactions to recurring growth-with-losses updates.
From Q3 2024 through Q3 2025, earnings showed accelerating revenue and transaction growth, expanding agent counts, and periodic adjusted EBITDA profitability against persistent GAAP net losses.
Market Pulse Summary
This announcement details Fathom’s Q4 and full‑year 2025 performance, highlighting $420.5M in revenue, continued GAAP net losses, and improved Adjusted EBITDA. Operationally, transactions and higher‑margin mortgage and title revenue grew, while the agent network edged lower. Historically, earnings updates have paired strong growth with ongoing losses. Investors may watch future guidance, transaction trends, cost actions, and execution on ancillary services and partnerships to assess progress toward sustained profitability.
Key Terms
adjusted ebitda financial
non-gaap financial
gaap financial
AI-generated analysis. Not financial advice.
– Fathom delivered
CARY, N.C., March 30, 2026 /PRNewswire/ -- Fathom Holdings Inc. (Nasdaq: FTHM) ("Fathom" or the "Company"), a national, technology-driven, end-to-end real estate services platform integrating residential brokerage, mortgage, title, and SaaS offerings for brokerages and agents, today reported financial results for the fourth quarter and full year ended December 31, 2025.
"During 2025, we continued executing our strategy and strengthening the foundation of the Fathom platform, generating
Fourth Quarter 2025 Financial Highlights – March Update
- Fathom's total revenue decreased
1.2% to$90.6 million $91.7 million - Brokerage revenue decreased by
3.2% to$84.9 million $87.7 million - Mortgage revenue increased
70.0% to$3.4 million $2.0 million - Title revenue increased
38.5% to$1.8 million $1.3 million - Gross profit increased
6.0% to$7.1 million $6.7 million - In March 2026, Fathom received
$2.0 million
Fourth Quarter 2025 Operational Highlights – March Update
- Fathom's real estate agent network declined
1.2% to approximately 14,135 agent licenses at December 31, 2025, down from approximately 14,300 agent licenses at December 31, 2024. - Fathom's real estate transactions declined
14.2% to approximately 8,501 in the fourth quarter of 2025, down from approximately 9,903 transactions in the fourth quarter of 2024. - Fathom Holdings launches Real Results lead program, a new initiative designed to shorten sales cycles and provide agents with qualified, vetted leads.
- Fathom Holdings announces strategic partnership with ByOwner to expand access to the significant for-sale-by-owner (FSBO) market opportunity.
- Fathom Holdings enters strategic partnership with Move Concierge to enhance customer experience and expand service offerings.
- Fathom Holdings completed the divestiture of its location technology business in November 2025.
- Fathom Realty appoints Lori Muller as President, strengthening leadership to support continued growth and operational execution.
Fourth Quarter 2025 Financial Results
Real estate transactions decreased approximately
Total revenue for the fourth quarter of 2025 declined
Segment revenue for the 2025 fourth quarter, compared with the 2024 fourth quarter was as follows:
Revenue | ||||
Three Months Ended | ||||
(Revenue $ in millions) | 2025 | 2024 | ||
UNAUDITED | ||||
Real Estate Brokerage | $ 84.9 | $ 87.7 | ||
Mortgage | 3.4 | 2.0 | ||
Title | 1.8 | 1.3 | ||
Corporate and other services (a) | 0.5 | 0.7 | ||
Total revenue | $ 90.6 | $ 91.7 | ||
(a) | Transactions between segments are eliminated in consolidation. Such amounts are eliminated through the Corporate and other services line. |
GAAP net loss for the fourth quarter of 2025 was
Adjusted EBITDA*, a non-GAAP measure, was negative
Full Year 2025 Financial Results
Real estate transactions increased approximately
Total revenue for the full year 2025 increased
Segment revenue for the full year 2025, compared with the full year 2024, was as follows:
Revenue | ||||
Year Ended | ||||
(Revenue $ in millions) | 2025 | 2024 | ||
UNAUDITED | ||||
Real Estate Brokerage | $ 399.0 | $ 314.7 | ||
Mortgage | 12.8 | 10.9 | ||
Title | 6.2 | 4.5 | ||
Corporate and other services (a) | 2.5 | 5.1 | ||
Total revenue | $ 420.5 | $ 335.2 | ||
(a) | Transactions between segments are eliminated in consolidation. Such amounts are eliminated through the Corporate and other services line. |
GAAP net loss for the full year 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 first quarter ending March 31, 2026. The Company is continuing to implement various programs to drive margin expansion. Management plans to release 2026 guidance, incorporating these initiatives in its second quarter 2026 earnings release.
Conference Call
Fathom management will hold a conference call today (March 30, 2026) at 5:00 p.m. Eastern time (2:00 p.m. Pacific time) to discuss these financial results.
International dial-in: 1-201-389-0878
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 April 13, 2026.
International replay dial-in: 1-412-317-6671
Replay Access Code: 13755327
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, Real Results, Verus Title, and Cornerstone. For more information, visit www.FathomInc.com.
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:
Matt Glover and Clay Liolios
Gateway Group, Inc.
949-574-3860
FTHM@gateway-grp.com
FATHOM HOLDINGS INC. CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED) (in thousands, except share data) | |||
December 31, | December 31, | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 5,773 | $ 7,127 | |
Restricted cash | 144 | 263 | |
Accounts receivable | 3,718 | 3,147 | |
Other receivable-current | 3,000 | 4,000 | |
Mortgage loans held for sale, at fair value | 15,479 | 4,772 | |
Prepaid and other current assets | 7,806 | 5,647 | |
Total current assets | 35,920 | 24,956 | |
Property and equipment, net | 1,606 | 1,854 | |
Lease right of use assets | 4,180 | 3,781 | |
Intangible assets, net | 18,576 | 20,234 | |
Goodwill | 17,668 | 21,498 | |
Other receivable-long-term | — | 3,000 | |
Other assets | 94 | 74 | |
Total assets | $ 78,044 | $ 75,397 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 5,649 | $ 4,305 | |
Accrued and other current liabilities | 5,973 | 4,894 | |
Warehouse lines of credit | 15,106 | 4,556 | |
Lease liability - current portion | 1,663 | 1,237 | |
Long-term debt - current portion | 5,506 | 4,389 | |
Total current liabilities | 33,897 | 19,381 | |
Lease liability, net of current portion | 3,296 | 3,522 | |
Long-term debt, net of current portion | 80 | 5,087 | |
Other long-term liabilities | 3,332 | 2,726 | |
Total liabilities | 40,605 | 30,716 | |
Commitments and contingencies (Note 18) | |||
Shareholders' equity: | |||
Common stock (no par value, shares authorized, 100,000,000; shares | — | — | |
Additional paid-in capital | 150,909 | 137,844 | |
Accumulated deficit | (113,470) | (93,163) | |
Total shareholders' equity | 37,439 | 44,681 | |
Total liabilities and shareholders' equity | $ 78,044 | $ 75,397 | |
The accompanying notes are an integral part of the condensed consolidated financial statements. |
FATHOM HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED) (in thousands, except share data) | |||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Revenue | $ 90,606 | $ 91,741 | $ 420,477 | $ 335,184 | |||
Commission and service costs | 83,466 | 85,094 | 386,281 | 306,913 | |||
General and administrative | 8,176 | 8,432 | 33,058 | 33,573 | |||
Marketing | 1,404 | 1,899 | 5,157 | 5,796 | |||
Technology and development | 1,709 | 1,789 | 7,303 | 6,635 | |||
Litigation contingency | 16 | 55 | 2,027 | 3,491 | |||
Depreciation and amortization | 572 | 520 | 2,230 | 2,239 | |||
Loss from operations | (4,737) | (6,048) | (15,579) | (23,463) | |||
Other expense (income), net | |||||||
Loss (gain) on sale of business | 922 | — | 922 | (2,958) | |||
Interest expense, net | 119 | 219 | 594 | 537 | |||
Other nonoperating expense, net | 951 | 984 | 3,127 | 1,557 | |||
Other (income) expense, net | 1,992 | 1,203 | 4,643 | (864) | |||
Loss before income taxes | (6,729) | (7,251) | (20,222) | (22,599) | |||
Income tax expense (benefit) | (18) | (1,050) | 85 | (1,022) | |||
Net loss | $ (6,712) | $ (6,201) | $ (20,307) | $ (21,577) | |||
Net loss per share: | |||||||
Basic | $ (0.21) | $ (0.29) | $ (0.72) | $ (1.07) | |||
Diluted | $ (0.21) | $ (0.29) | $ (0.72) | $ (1.07) | |||
Weighted average common shares outstanding: | |||||||
Basic | 32,207,886 | 21,588,886 | 28,196,335 | 20,244,255 | |||
Diluted | 32,207,886 | 21,588,886 | 28,196,335 | 20,244,255 | |||
The accompanying notes are an integral part of the condensed consolidated financial statements. |
FATHOM HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands) | |||
Year Ended December 31, | |||
2025 | 2024 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | $ (20,307) | $ (21,577) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 5,847 | 5,423 | |
Loss (gain) on sale of business | 922 | (2,958) | |
Non-cash lease expense | 1,423 | 2,067 | |
Deferred financing costs amortization | 29 | 100 | |
Gain on sale of mortgages | (7,086) | (5,942) | |
Stock-based compensation | 3,704 | 8,839 | |
Deferred income taxes | 3 | (1,107) | |
Change in operating assets and liabilities: | |||
Accounts receivable | (614) | 113 | |
Prepaid and other current assets | (1,516) | (1,872) | |
Other assets | (20) | (16) | |
Accounts payable | 1,344 | 1,053 | |
Accrued and other current liabilities | 978 | 2,067 | |
Operating lease liabilities | (1,622) | (2,268) | |
Other long-term liabilities | — | 1,618 | |
Mortgage loans held for sale originations | (248,081) | (233,979) | |
Proceeds from sale and principal payments on mortgage loans held for sale | 244,460 | 243,751 | |
Net cash used in operating activities | (20,536) | (4,688) | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of property and equipment | (121) | (51) | |
Purchase of intangible assets | (2,773) | (3,192) | |
Proceeds from sale of business | 7,070 | 7,435 | |
Other investing activities | — | (130) | |
Amounts paid for business and asset acquisitions, net of cash acquired | (155) | (760) | |
Net cash provided by investing activities | 4,021 | 3,302 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Principal payments on debt | (4,570) | (602) | |
Proceeds from debt | — | 5,674 | |
Borrowings from warehouse lines of credit | 246,893 | 233,269 | |
Repayment on warehouse lines of credit | (236,343) | (237,067) | |
Deferred acquisition consideration payments | (64) | — | |
Proceeds from other financing activities | — | 20 | |
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 offering | (387) | (58) | |
Net cash provided by financing activities | 15,042 | 1,236 | |
Net decrease in cash, cash equivalents, and restricted cash | (1,473) | (150) | |
Cash, cash equivalents, and restricted cash at beginning of period | 7,390 | 7,540 | |
Cash, cash equivalents, and restricted cash at end of period | $ 5,917 | $ 7,390 | |
Supplemental disclosure of cash and non-cash transactions: | |||
Cash paid for interest | $ 608 | $ 299 | |
Income taxes paid | 68 | 2 | |
Right of use assets obtained in exchange for new lease liabilities | 1,822 | 2,031 | |
Intangible assets acquired upon sale of business | 4,031 | — | |
Issuance of common stock for purchase of business | 300 | 2,110 | |
Reconciliation of cash and restricted cash: | |||
Cash and cash equivalents | $ 5,773 | $ 7,127 | |
Restricted cash | 144 | 263 | |
Total cash, cash equivalents, and restricted cash shown in statement of cash flows | $ 5,917 | $ 7,390 | |
The accompanying notes are an integral part of the condensed consolidated financial statements. |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED) (in thousands) | |||||||
Three Months Ended | Year Ended | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Loss before income tax | $ (6,729) | $ (7,251) | $ (20,222) | $ (22,599) | |||
Loss (gain) on sale of business | 922 | — | 922 | (2,958) | |||
Stock based compensation | 691 | 1,721 | 3,704 | 8,839 | |||
Depreciation and amortization | 1,467 | 1,374 | 5,847 | 5,423 | |||
Litigation contingency | 16 | 55 | 2,027 | 3,491 | |||
Other expense, net | 1,070 | 1,202 | 3,721 | 2,094 | |||
Adjusted EBITDA | $ (2,563) | $ (2,899) | $ (4,001) | $ (5,710) | |||
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, stock-based compensation expense, loss (gain) on sale of business benefit, 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 stock-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, loss (gain) on sale of business, severance costs, and non-cash items representing reserves on certain agent fee collection, if applicable.
We are presenting 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 limitations related to the use of Adjusted EBITDA compared to net income (loss), the closest comparable GAAP measure. Some of these limitations include:
- Adjusted EBITDA excludes stock-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 loss (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 expenses, including expenses related to the NAR Settlement, which could continue to be significant recurring expenses in our business until any final settlements have been approved by a court.
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SOURCE Fathom Holdings Inc.
FAQ
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