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Fathom Holdings Reports Second Quarter 2025 Results

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Fathom Holdings (NASDAQ:FTHM) reported strong Q2 2025 financial results, with total revenue increasing 36.1% to $121.4 million compared to $89.2 million in Q2 2024. The company's real estate agent network grew 22.6% to 14,981 agents, while transactions increased 25.4% to 12,710.

Key highlights include brokerage revenue growth of 39.6% to $116.0 million, title revenue surge of 88% to $1.5 million, and a return to adjusted EBITDA profitability at $0.03 million. The company successfully implemented its first intelliAgent platform licensing agreement with Sovereign Realty Partners and expanded its Elevate concierge program to over 70 agents.

However, FTHM reported a GAAP net loss of $3.6 million ($0.13 per share) compared to a $1.3 million loss in Q2 2024. The company repaid its $3.5 million convertible note and received $3.0 million from its previously sold insurance business.

Fathom Holdings (NASDAQ:FTHM) ha registrato solidi risultati nel secondo trimestre 2025: i ricavi totali sono aumentati del 36,1% a $121,4 milioni rispetto a $89,2 milioni nel Q2 2024. La rete di agenti immobiliari è cresciuta del 22,6% arrivando a 14.981 agenti, mentre le transazioni sono salite del 25,4% a 12.710.

Tra i punti salienti si segnalano la crescita dei ricavi da brokeraggio del 39,6% a $116,0 milioni, l'impennata dei ricavi da title del 88% a $1,5 milioni e il ritorno alla redditività su base adjusted EBITDA pari a $0.03 million. L'azienda ha inoltre siglato il primo accordo di licenza per la piattaforma intelliAgent con Sovereign Realty Partners e ha esteso il programma concierge Elevate a oltre 70 agenti.

Tuttavia, FTHM ha riportato una perdita GAAP netta di $3,6 milioni ($0,13 per azione) rispetto a una perdita di $1,3 milioni nel Q2 2024. La società ha rimborsato la nota convertibile da $3,5 milioni e ha incassato $3,0 milioni derivanti dalla precedente cessione del suo ramo assicurativo.

Fathom Holdings (NASDAQ:FTHM) presentó sólidos resultados en el segundo trimestre de 2025: los ingresos totales aumentaron un 36,1% hasta $121,4 millones frente a $89,2 millones en el Q2 de 2024. La red de agentes inmobiliarios creció un 22,6% hasta 14.981 agentes, y las transacciones se incrementaron un 25,4% hasta 12.710.

Entre los aspectos destacados figuran el crecimiento de ingresos por corretaje del 39,6% hasta $116,0 millones, el fuerte repunte de ingresos de title del 88% hasta $1,5 millones y el retorno a la rentabilidad en adjusted EBITDA de $0.03 million. La compañía cerró su primer acuerdo de licencia de la plataforma intelliAgent con Sovereign Realty Partners y amplió su programa concierge Elevate a más de 70 agentes.

No obstante, FTHM registró una pérdida neta GAAP de $3,6 millones ($0,13 por acción) frente a una pérdida de $1,3 millones en el Q2 de 2024. La empresa pagó su nota convertible de $3,5 millones y recibió $3,0 millones procedentes de la anterior venta de su negocio de seguros.

Fathom Holdings (NASDAQ:FTHM)는 2025년 2분기에 견조한 실적을 발표했습니다. 총수익은 Q2 2024의 $89.2 million에서 36.1% 증가한 $121.4 million을 기록했습니다. 부동산 중개인 네트워크는 22.6% 증가한 14,981명, 거래 건수는 25.4% 증가한 12,710건을 기록했습니다.

주요 내용으로는 중개 수익이 39.6% 증가한 $116.0 million, 타이틀 수익이 88% 급증한 $1.5 million, 그리고 조정 EBITDA가 $0.03 million으로 흑자 전환한 점이 포함됩니다. 회사는 Sovereign Realty Partners와 첫 intelliAgent 플랫폼 라이선스 계약을 체결했으며 Elevate 컨시어지 프로그램을 70명 이상으로 확장했습니다.

다만 FTHM은 Q2 2024의 $1.3 million 손실과 비교해 $3.6 million의 GAAP 순손실($0.13 주당)을 보고했습니다. 회사는 $3.5 million 규모의 전환사채를 상환했고, 이전에 매각한 보험 사업으로부터 $3.0 million을 수령했습니다.

Fathom Holdings (NASDAQ:FTHM) a publié de solides résultats pour le deuxième trimestre 2025 : le chiffre d'affaires total a augmenté de 36,1% à $121,4 millions contre $89,2 millions au T2 2024. Le réseau d'agents immobiliers a progressé de 22,6% pour atteindre 14 981 agents, tandis que les transactions ont augmenté de 25,4% à 12 710.

Parmi les points marquants, on note une hausse du chiffre d'affaires de courtage de 39,6% à $116,0 millions, une forte augmentation des revenus title de 88% à $1,5 million et le retour à la rentabilité de l'EBITDA ajusté à $0.03 million. L'entreprise a signé son premier accord de licence de la plateforme intelliAgent avec Sovereign Realty Partners et a étendu son programme concierge Elevate à plus de 70 agents.

Toutefois, FTHM a enregistré une perte nette GAAP de $3,6 millions (soit $0,13 par action) contre une perte de $1,3 million au T2 2024. La société a remboursé sa dette convertible de $3,5 millions et reçu $3,0 millions issus de la cession antérieure de son activité d'assurance.

Fathom Holdings (NASDAQ:FTHM) meldete solide Ergebnisse für das zweite Quartal 2025: Der Gesamtumsatz stieg gegenüber Q2 2024 von $89,2 Millionen um 36,1% auf $121,4 Millionen. Das Maklernetz wuchs um 22,6% auf 14.981 Agenten, die Transaktionen nahmen um 25,4% auf 12.710 zu.

Zu den Highlights zählen ein Brokerage-Umsatzwachstum von 39,6% auf $116,0 Millionen, ein Anstieg der Title-Erlöse um 88% auf $1,5 Millionen sowie die Rückkehr zur Adjusted-EBITDA-Rentabilität in Höhe von $0.03 million. Das Unternehmen schloss die erste Lizenzvereinbarung für die intelliAgent-Plattform mit Sovereign Realty Partners ab und baute das Elevate-Concierge-Programm auf über 70 Agenten aus.

Dennoch wies FTHM einen GAAP-Nettoverlust von $3,6 Millionen (entsprechend $0,13 je Aktie) aus gegenüber einem Verlust von $1,3 Millionen im Q2 2024. Das Unternehmen tilgte seine $3,5 Millionen Wandelanleihe und erhielt $3,0 Millionen aus dem zuvor veräußerten Versicherungsgeschäft.

Positive
  • None.
Negative
  • GAAP net loss increased to $3.6 million from $1.3 million year-over-year
  • Mortgage revenue declined 10.8% to $3.3 million
  • Company withheld Q3 2025 guidance
  • Adjusted EBITDA declined to $0.03 million from $0.2 million in Q2 2024

Insights

Fathom's 36% revenue growth and return to adjusted EBITDA profitability show operational progress despite persistent sector challenges.

Fathom's Q2 results reveal a 36.1% revenue jump to $121.4 million, primarily driven by their 25.4% transaction growth to 12,710 deals and 22.6% agent network expansion to 14,981 licenses. The November 2024 acquisition of My Home Group appears to be a significant growth catalyst. While impressive on the surface, these metrics deserve deeper scrutiny.

The company's return to adjusted EBITDA profitability ($0.03 million vs. $0.2 million in Q2 2024) marks a pivotal milestone after four consecutive quarters of losses. However, this barely-positive figure doesn't yet demonstrate robust profitability, and the widening GAAP net loss ($3.6 million vs. $1.3 million year-over-year) signals ongoing challenges beneath the headline growth.

The business segment performance reveals important dynamics: brokerage revenue surged 39.6% to $116.0 million, and title revenue showed remarkable 88% growth to $1.5 million. However, mortgage revenue declined 10.8%, highlighting uneven performance across divisions. The gross profit increase of 24.7% to $9.4 million demonstrates improving margin mechanics, though not keeping pace with revenue growth.

Strategically, Fathom is diversifying beyond traditional brokerage through its Elevate concierge program and intelliAgent platform licensing. With 70 agents already onboarded to Elevate and expansion goals of 300+ by year-end, these initiatives could drive higher agent productivity and create more predictable revenue streams. The first licensing agreement with Sovereign Realty Partners represents a potential scalable growth vector with higher margins than the core brokerage business.

The full repayment of the $3.5 million convertible note strengthens the balance sheet and reduces interest expenses going forward. The $3.0 million received from last year's insurance business divestiture further bolsters liquidity, supporting Fathom's strategic flexibility during a transitional period.

Fathom achieved 36% year-over-year revenue growth, driven by 25% transaction growth –

CARY, N.C., Aug. 12, 2025 /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 second quarter and first six months ended June 30, 2025, which included delivering 36% year-over-year revenue growth, a 23% increase in agent count, 25% transaction growth, and a return to adjusted EBITDA profitability.

"The second quarter of 2025 marked a strong step forward for Fathom, driven by the strength of our platform and our ability to recruit, retain, and support our agents in a dynamic housing market," said Marco Fregenal, CEO of Fathom Holdings. "While 2025 continues to present challenges for the industry, we are beginning to see the clear benefits of our diversified growth strategy. Verus Title delivered a record-breaking month in June, and our Elevate concierge program is driving measurable gains in agent productivity and engagement."

The Elevate program has already onboarded over 70 agents, averaging eight closings per year, and is on track to add another 100 agents within the next 60 days. Fathom's goal is to scale the program to more than 300 onboarded agents by year-end, each averaging at least eight annual closings, helping agents grow their businesses through enhanced productivity and support.

In August, Fathom successfully implemented its first intelliAgent platform and Elevate program licensing agreement with Sovereign Realty Partners, which will operate under the Fathom Elite brand. This milestone marks the beginning of a broader platform expansion strategy designed to help independent brokerages leverage intelliAgent's proprietary technology and services to improve profitability and agent satisfaction.

Strategic acquisitions, agent walkovers, and the licensing of the intelliAgent platform are expanding Fathom's market footprint while unlocking new cross-selling opportunities across mortgage, title, technology, and additional agent services.

"Looking ahead, Fathom is committed to scaling both topline revenue and gross profit, creating a clear trajectory toward sustained adjusted EBITDA profitability," added Fregenal. "With a growing agent network, expanding ancillary services, new intelliAgent licensing partnerships, and disciplined operational execution, we believe the future is bright for Fathom. We are well-positioned to capture market opportunities, drive long-term growth, and deliver meaningful value to our shareholders."

Second Quarter 2025 Financial Highlights – August Update

  • Fathom's total revenue increased 36.1% to $121.4 million for the second quarter of 2025, up from $89.2 million in the second quarter of 2024.
  • Brokerage revenue increased by 39.6% to $116.0 million for the second quarter of 2025, up from $83.1 million in the second quarter of 2024.
  • Mortgage revenue decreased 10.8% to $3.3 million for the second quarter of 2025, down from $3.7 million in the second quarter of 2024.
  • Title revenue increased 88% to $1.5 million for the second quarter of 2025, up from $0.8 million in the second quarter of 2024.
  • Gross profit, excluding the impact of the divested insurance business, increased 24.7% to $9.4 million for the second quarter of 2025, up from $7.5 million in the second quarter of 2024.
  • On April 7, 2025, the Company repaid its $3.5 million convertible note in full.
  • Fathom received $3.0 million during the second quarter of 2025 related to the sale of its insurance business, which was completed in May 2024.

Second Quarter 2025 Operational Highlights – August Update

  • Fathom's real estate agent network grew 22.6% to approximately 14,981 agent licenses at June 30, 2025, up from approximately 12,224 agent licenses at June 30, 2024.
  • Fathom's real estate transactions grew 25.4% to approximately 12,710 in the second quarter of 2025, up from approximately 10,137 transactions in the second quarter of 2024.
  • Successfully onboarded 70 agents to our Elevate program.
  • Began licensing of our proprietary intelliAgent software platform to Sovereign Realty Partners.

Second Quarter 2025 Financial Results

Real estate transactions increased approximately 25.4% year-over-year to 12,710 in the second quarter of 2025, primarily driven by the addition of My Home Group in November 2024.

Total revenue for the second quarter of 2025 increased 36.1% year-over-year to $121.4 million, compared to $89.2 million in the second quarter of 2024. The growth was primarily attributable to the addition of My Home Group in November 2024.

Segment revenue for the 2025 second quarter, compared with the 2024 second quarter was as follows:


Revenue


Three months ended
June 30,


(Revenue $ in millions)

2025


2024



   UNAUDITED


Real Estate Brokerage

$              116.0


$                83.1


Mortgage

3.3


3.7


Technology

1.1


1.1


Corporate and other services (a)

1.0


1.3


Total revenue

$              121.4


$                89.2




(a)

Transactions between segments are eliminated in consolidation. Such amounts are eliminated through the Corporate and other services line.

GAAP net loss for the second quarter of 2025 was $3.6 million, or $0.13 per share, compared to a net loss of $1.3 million, or $0.07 per share, in the second quarter of 2024. The year-over-year increase in net loss was primarily attributable to the gain recognized from the sale of the Company's insurance business in May 2024, which favorably impacted the prior year's results.

Adjusted EBITDA*, a non-GAAP measure, for the second quarter of 2025 totaled $0.03 million, compared to $0.2 million in the second quarter of 2024. The second quarter of 2025 marked the Company's first positive Adjusted EBITDA* quarter since the second quarter of 2024. Fathom is committed to remaining Adjusted EBITDA* positive moving forward.

First Six Months of 2025 Financial Results

Real estate transactions increased approximately 28.5% year-over-year to 22,425 transactions in the first half of 2025. The increase in real estate transactions was primarily due to the addition of My Home Group in November 2024.

Total revenue for the first six months of 2025 increased 34.4% to $214.6 million, compared to $159.7 million in the same period of 2024. The increase was primarily driven by a 38.0% rise in brokerage revenue, largely attributable to the addition of My Home Group in November 2024. This growth was partially offset by a 13% decline in Fathom's other service revenue, primarily due to the absence of insurance revenue following the sale of the Company's insurance business in May 2024.

Segment revenue for the 2025 first six months, compared with the 2024 first six months, was as follows:


Revenue


Six months ended
June 30,


(Revenue $ in millions)

2025


2024



   UNAUDITED


Real Estate Brokerage

$              204.9


$              148.5


Mortgage

5.9


5.9


Technology

2.1


2.2


Corporate and other services (a)

1.7


3.1


Total revenue

$              214.6


$              159.7




(a)

Transactions between segments are eliminated in consolidation. Such amounts are eliminated through the Corporate and other services line.

GAAP net loss for the first six months of 2025 was $9.2 million, or $0.36 per share, compared to a net loss of $7.2 million, or $0.37 per share, for the same period in 2024. The increase in net loss was primarily due to the gain recognized from the sale of the Company's insurance business in May 2024, which benefited the prior year's results.

Adjusted EBITDA* loss, a non-GAAP measure, was $1.4 million in the first six months of 2025, compared with an Adjusted EBITDA* loss of approximately $1.3 million for the first six months of 2024. The Adjusted EBITDA* loss for the first six months of 2025 was primarily attributable to the lower total contribution of our ancillary businesses.

*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 third quarter ending September 30, 2025. Management plans to reassess and potentially reinstate guidance expectations in the fourth quarter of 2025.

Conference Call

Fathom management will hold a conference call today (August 12, 2025) at 5:00 p.m. Eastern time (2:00 p.m. Pacific time) to discuss these financial results.

U.S. dial-in: 1-877-425-9470
International dial-in: 1-201-389-0878
Conference ID: 13755327

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 FathomInc.com.

A telephone replay of the call will be available through August 26, 2025.

U.S. replay dial-in: 1-844-512-2921
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, LiveBy, 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
(in thousands, except share data)


June 30,
2025


December 31,
2024

ASSETS

(Unaudited)



Current assets:




Cash and cash equivalents

$                             4,879


$                             7,127

Restricted cash

242


263

Accounts receivable

6,076


3,147

Other receivable - current

3,000


4,000

Mortgage loans held for sale, at fair value

12,978


4,772

Prepaid and other current assets

6,771


5,647

Total current assets

33,946


24,956

Property and equipment, net

1,724


1,854

Lease right of use assets

4,293


3,781

Intangible assets, net

18,906


20,234

Goodwill

21,498


21,498

Other receivable - long-term


3,000

Other assets

79


74

Total assets

$                          80,446


$                          75,397

LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Accounts payable

$                             8,781


$                             4,305

Accrued and other current liabilities

4,924


4,894

Warehouse lines of credit

12,628


4,556

Lease liability - current portion

1,510


1,237

Long-term debt - current portion

428


4,389

Total current liabilities

28,271


19,381

Lease liability, net of current portion

3,663


3,522

Long-term debt, net of current portion

5,084


5,087

Other long-term liabilities

2,728


2,726

Total liabilities

39,746


30,716

Commitments and contingencies (Note 18)




Stockholders' equity:




Common stock (no par value)


Additional paid-in capital

143,101


137,844

Accumulated deficit

(102,401)


(93,163)

Total stockholders' equity

40,700


44,681

Total liabilities and stockholders' equity

$                          80,446


$                          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 June 30,


Six Months Ended June 30,


2025


2024


2025


2024









Revenue

$           121,423


$             89,207


$           214,558


$           159,710

Commission and service costs

112,025


81,072


197,071


144,709

General and administrative

7,975


8,331


16,624


17,327

Marketing

1,404


1,332


2,774


2,534

Technology and development

1,839


1,555


3,776


3,148

Litigation contingency

6



10


Depreciation and amortization

553


546


1,107


1,274

Loss from operations

(2,379)


(3,629)


(6,804)


(9,282)









Other expense (income), net








Gain on sale of business


(2,958)



(2,958)

Interest expense, net

207


109


363


214

Other nonoperating expense

944


520


1,993


672

Other expense, net

1,151


(2,329)


2,356


(2,072)

Loss before income taxes

(3,530)


(1,300)


(9,160)


(7,210)

Income tax expense

62


(6)


78


11

Net loss

$              (3,592)


$              (1,294)


$              (9,238)


$              (7,221)









Net loss per share:








Basic

$                (0.13)


$                (0.07)


$                (0.36)


$                (0.37)

Diluted

$                (0.13)


$                (0.07)


$                (0.36)


$                (0.37)

Weighted average common shares outstanding:








Basic

27,487,816


19,763,055


25,459,131


19,470,764

Diluted

27,487,816


19,763,055


25,459,131


19,470,764


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)


Six Months Ended June 30,



2025


2024


CASH FLOWS FROM OPERATING ACTIVITIES:





Net loss

$               (9,238)


$               (7,221)


Adjustments to reconcile net loss to net cash used in operating activities:





Depreciation and amortization

2,897


2,799


Gain on sale of business


(2,958)


Non-cash lease expense

700


920


Deferred financing cost amortization

29



Gain on sale of mortgages

(3,161)


(3,153)


Stock-based compensation

2,450


5,151


Deferred income taxes

3


(37)


Change in operating assets and liabilities:





Accounts receivable

(2,928)


(658)


Prepaid and other current assets

(1,124)


(1,222)


Other assets

(5)


10


Accounts payable

4,476


1,642


Accrued and other current liabilities

73


308


Operating lease liabilities

(798)


(1,005)


Mortgage loans held for sale originations

(120,024)


(131,460)


Proceeds from sale and principal payments on mortgage loans held for sale

114,979


132,843


Net cash used in operating activities

(11,671)


(4,041)







CASH FLOWS FROM INVESTING ACTIVITIES:





Purchase of property and equipment

(54)


(12)


Purchase of intangible assets

(1,385)


(1,193)


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

2,441


6,100







CASH FLOWS FROM FINANCING ACTIVITIES:





Principal payments on debt

(3,993)


(295)


Deferred acquisition consideration payments

(33)


(225)


Borrowings from warehouse lines of credit

120,987


127,913


Repayment on warehouse lines of credit

(112,916)


(126,184)


Proceeds from the issuance of common stock in connection with a public offering

3,043



Payment of offering cost in connection with issuance of common stock in connection with public
offering

(126)


(28)


Net cash provided by financing activities

6,962


1,181


Net increase (decrease) in cash, cash equivalents, and restricted cash

(2,268)


3,240


Cash, cash equivalents, and restricted cash at beginning of period

7,389


7,540


Cash, cash equivalents, and restricted cash at end of period

$                5,121


$               10,780


Supplemental disclosure of cash and non-cash transactions:





Cash paid for interest

$                     90


$                   199







Right of use assets obtained in exchange for new lease liabilities

$                1,213


$                1,572


Reconciliation of cash and restricted cash:





Cash and cash equivalents

$                4,879


$               10,439


Restricted cash

242


341


Total cash, cash equivalents, and restricted cash shown in statement of cash flows

$                5,121


$               10,780



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 June 30,


Six Months Ended June 30,


2025


2024


2025


2024

Loss before income tax

$              (3,530)


$              (1,300)


$              (9,160)


$              (7,210)

Gain on sale of business

-


(2,958)


-


(2,958)

Stock based compensation

945


2,499


2,450


5,151

Depreciation and amortization

1,458


1,319


2,897


2,799

Litigation contingency

6


-


10


-

Other expense, net

1,151


629


2,356


886

Adjusted EBITDA

$                     29


$                   189


$              (1,447)


$              (1,332)

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 NAR related litigation 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.

FAQ

What were Fathom Holdings (FTHM) key financial results for Q2 2025?

Fathom reported total revenue of $121.4 million (up 36.1%), with brokerage revenue of $116.0 million (up 39.6%). However, the company posted a net loss of $3.6 million ($0.13 per share).

How many real estate agents does Fathom Holdings have as of Q2 2025?

Fathom's real estate agent network grew 22.6% to 14,981 agent licenses as of June 30, 2025, compared to 12,224 agent licenses in the previous year.

What is Fathom's Elevate program and how is it performing?

The Elevate concierge program has onboarded over 70 agents averaging eight closings per year. Fathom aims to scale to 300 agents by year-end, focusing on enhancing agent productivity and support.

How did Fathom's mortgage and title segments perform in Q2 2025?

Title revenue increased 88% to $1.5 million, while mortgage revenue decreased 10.8% to $3.3 million compared to Q2 2024.

What strategic initiatives has FTHM implemented in Q2 2025?

Fathom implemented its first intelliAgent platform licensing agreement with Sovereign Realty Partners, expanded the Elevate program, and continued focus on strategic acquisitions and agent walkovers.
Fathom Holdings Inc

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37.16M
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11.93%
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Real Estate Services
Real Estate Agents & Managers (for Others)
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United States
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