Fathom Holdings (NASDAQ: FTHM) grows 2025 revenue 25% but stays unprofitable

Rhea-AI Filing Summary

Fathom Holdings Inc. reported fourth quarter and full year 2025 results, highlighting strong top-line growth but continued losses. Full year revenue rose to $420.5 million, up 25.4% from 2024, driven mainly by a 26.8% increase in brokerage revenue after the My Home Group addition.

Fourth quarter 2025 revenue was $90.6 million, down 1.2% year over year as real estate transactions fell about 14.2% amid a soft housing market. Despite this, gross profit for the quarter increased and higher-margin mortgage and title revenue grew sharply. The company recorded a full year net loss of $20.3 million (improved from a $21.6 million loss in 2024), and Adjusted EBITDA loss narrowed to $4.0 million from $5.7 million as operating expenses declined.

Management emphasized its focus on margin expansion, increasing revenue per transaction, and scaling mortgage and title services. Fathom withheld guidance for the first quarter of 2026 and plans to provide 2026 guidance with its second quarter 2026 earnings release.

Insights

Equity research analyst

Strong 2025 revenue growth, but business remains loss-making.

Fathom Holdings delivered robust top-line expansion in 2025, with revenue up 25.4% to $420.5 million, helped by the November 2024 My Home Group acquisition. Higher-margin mortgage and title segments grew, while corporate and other services declined.

Profitability is still a challenge. Full year GAAP net loss was $20.3 million, only modestly better than 2024, and Adjusted EBITDA remained negative at $4.0 million. Operating cash flow swung to a $20.5 million outflow, and shareholders’ equity fell from $44.7 million to $37.4 million.

Management is prioritizing margin expansion, cost control, and scaling ancillary services, and has withheld Q1 2026 guidance while it implements these programs. Subsequent filings with 2026 guidance and updates on transaction volumes and agent count will be important for assessing progress toward sustained profitability.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Full year 2025 revenue: $420.5 million Q4 2025 revenue: $90.6 million Full year 2025 net loss: $20.3 million +5 more

8 metrics

Full year 2025 revenue $420.5 million Up 25.4% vs 2024

Q4 2025 revenue $90.6 million Down 1.2% vs Q4 2024

Full year 2025 net loss $20.3 million Improved from $21.6 million loss in 2024

Full year 2025 Adjusted EBITDA -$4.0 million Improved from -$5.7 million in 2024

Q4 2025 net loss per share $0.21 Basic and diluted loss per share

Total assets at 12/31/2025 $78.0 million Versus $75.4 million at 12/31/2024

Shareholders’ equity at 12/31/2025 $37.4 million Down from $44.7 million a year earlier

Real estate transactions 2025 42,405 transactions Up approximately 14.6% year over year

Key Terms

Adjusted EBITDA, litigation contingency, mortgage loans held for sale, warehouse lines of credit, +2 more

6 terms

Adjusted EBITDA financial

"Adjusted EBITDA*, a non-GAAP measure, was negative $2.6 million for the fourth quarter of 2025"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

litigation contingency financial

"Litigation contingency | 16 | ... | 2,027 | ... | 3,491"

mortgage loans held for sale financial

"Mortgage loans held for sale, at fair value | 15,479 | ... | 4,772"

Mortgage loans held for sale are home loans a lender has originated but plans to sell to another investor or institution instead of keeping on its books, recorded as inventory awaiting sale—like goods on a store shelf waiting for a buyer. For investors, the amount and valuation of these loans signal a lender’s recent lending activity, near-term cash flow and revenue opportunities, and exposure to changes in interest rates or housing demand that can affect profitability.

warehouse lines of credit financial

"Warehouse lines of credit | 15,106 | ... | 4,556"

A warehouse line of credit is a short-term revolving loan that a lender or dealer uses to temporarily fund assets—such as mortgages, loans, or inventory—until those assets are sold, packaged, or otherwise converted to long-term funding. Think of it as a bridge loan or an overdraft that helps keep business flowing; investors watch these lines because their size, cost, and availability signal whether a company can maintain growth, manage cash needs, and withstand market disruptions.

stock-based compensation financial

"Stock-based compensation | 3,704 | ... | 8,839"

Stock-based compensation is when a company pays employees, directors or consultants with shares or the right to buy shares instead of or in addition to cash. It matters to investors because issuing stock or options spreads ownership thinner (like cutting a pie into more slices), which can reduce each existing share’s claim on profits and can also change reported earnings; investors watch it to assess true cost of running the business and how management is incentivized.

NAR Settlement financial

"litigation expenses, including expenses related to the NAR Settlement, which could continue to be significant"

Earnings Snapshot

Q4 2025 Revenue: $90.6 million · Guidance included

Q4 and FY 2025

Q4 2025 Revenue $90.6 million -1.2% YoY

Full Year 2025 Revenue $420.5 million +25.4% YoY

Full Year 2025 Net Loss $20.3 million Improved from $21.6 million loss in 2024

Full Year 2025 Adjusted EBITDA -$4.0 million Improved from -$5.7 million in 2024

Guidance

The company withheld guidance for Q1 2026 and plans to release 2026 guidance with its second quarter 2026 earnings release.

Understanding 8-K Material Events →

0001753162FALSE00017531622026-03-302026-03-30

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________________________________

FORM 8-K

_______________________________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) March 30, 2026

_______________________________________________

FATHOM HOLDINGS INC.

(Exact name of registrant as specified in its charter)

_______________________________________________

			North Carolina
			(State or other jurisdiction of incorporation)
001-39412						82-1518164
(Commission File Number)						(IRS Employer Identification No.)

2000 Regency Parkway Drive, Suite 300, Cary, North Carolina 27518

(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code 888-455-6040

_______________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each Class			Trading Symbol(s)			Name of each exchange on which registered
Common Stock, No Par Value			FTHM			Nasdaq Capital Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02    Results of Operations and Financial Condition.

On March 30, 2026, Fathom Holdings Inc. issued a press release announcing its financial results for the year and quarter ended December 31, 2025. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein in its entirety by reference.

The information in this Item 2.02 (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01    Financial Statements and Exhibits.

(d)Exhibits.

Exhibit No.						Exhibit Description
99.1						Press Release, dated March 30, 2026.
104						Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			FATHOM HOLDINGS INC.
Date: March 30, 2026			/s/ Marco Fregenal
			Marco Fregenal
			President and Chief Executive Officer (Principal Executive Officer, Principal Financial Officer, and Principal Accounting Officer)

Exhibit 99.1

Fathom Holdings Reports Fourth Quarter and Full Year 2025 Results

– Fathom delivered 25% Revenue Growth in 2025, driven by 15% Transaction Growth –

CARY, NC, March 30, 2026 – 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 $420 million in revenue, representing 25% year-over-year growth, while total transactions increased nearly 15%,” said Marco Fregenal, President and Chief Executive Officer of Fathom Holdings. “These results reflect the resilience of our technology-first platform, with continued growth across our agent network and higher-margin mortgage and title businesses, even as transaction activity remained pressured in line with broader industry trends. As we move through 2026, our focus remains on driving margin expansion, increasing revenue per transaction, and continuing to scale our higher-margin ancillary services. With a stronger, more diversified platform in place, we believe Fathom is well positioned to benefit as transaction volumes recover, enabling us to drive stronger growth, improved profitability, and greater operating leverage over time.”

Fourth Quarter 2025 Financial Highlights – March Update

•Fathom’s total revenue decreased 1.2% to $90.6 million for the fourth quarter of 2025, down from $91.7 million in the fourth quarter of 2024.

•Brokerage revenue decreased by 3.2% to $84.9 million for the fourth quarter of 2025, down from $87.7 million in the fourth quarter of 2024.

•Mortgage revenue increased 70.0% to $3.4 million for the fourth quarter of 2025, up from $2.0 million in the fourth quarter of 2024.

•Title revenue increased 38.5% to $1.8 million for the fourth quarter of 2025, up from $1.3 million in the fourth quarter of 2024.

•Gross profit increased 6.0% to $7.1 million for the fourth quarter of 2025, up from $6.7 million in the fourth quarter of 2024.

•In March 2026, Fathom received $2.0 million in gross proceeds from Bed Bath & Beyond, Inc. in a loan maturing in April 2027.

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 14.2% year-over year to 8,501 in the fourth quarter of 2025, primarily reflecting continued softness in the residential real estate market and affordability constraints, which reduced overall transaction activity.

Total revenue for the fourth quarter of 2025 declined 1.2% year-over-year to $90.6 million, compared to $91.7 million in the fourth quarter of 2024. The decline was primarily attributable to a decrease in real estate transactions.

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

			Revenue
			Three Months Ended December 31,
(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 $6.7 million, or $0.21 per share, compared to a net loss of $6.2 million, or $0.29 per share, in the fourth quarter of 2024. The year-over-year increase in net loss was primarily driven by the recognition of a $0.9 million loss on the sale of a business in 2025 and a lower income tax benefit of $0.02 million in the current period compared to $1.1 million in the prior year period.

Adjusted EBITDA*, a non-GAAP measure, was negative $2.6 million for the fourth quarter of 2025, compared to negative $2.9 million in the fourth quarter of 2024. The year-over-year improvement was primarily driven by reductions in operating expenses, including lower marketing and general and administrative expenses.

Full Year 2025 Financial Results

Real estate transactions increased approximately 14.6% year-over-year to 42,405 transactions for the full year 2025. The increase in real estate transactions was primarily due to the addition of My Home Group in November 2024.

Total revenue for the full year 2025 increased 25.4% to $420.5 million, compared to $335.2 million in 2024. The increase was primarily driven by a 26.8% rise in brokerage revenue, largely attributable to the addition of My Home Group in November 2024.

Segment revenue for the full year 2025, compared with the full year 2024, was as follows:

			Revenue
			Year Ended December 31,
(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 $20.3 million, or $0.72 per share, compared to a net loss of $21.6 million, or $1.07 per share, in 2024. The year-over-year improvement was primarily driven by higher revenue during 2025. This improvement was partially offset by the recognition of a $0.9 million loss on the sale of a business in 2025, compared to a $3.0 million gain on the sale of an operating segment in the prior-year period, which favorably impacted 2024 results.

Adjusted EBITDA* loss, a non-GAAP measure, was $4.0 million for the full year 2025, compared with an Adjusted EBITDA* loss of approximately $5.7 million for the full year 2024, representing an improvement of approximately 29.8% year-over-year. The year-over-year improvement was primarily driven by reductions in operating expenses, including lower marketing and general and administrative expenses, partially offset by an increase of $0.7 million in technology and development expenses.

*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.

U.S. dial-in: 1-877-425-9470

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.

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, 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, 2025						December 31, 2024
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 issued and outstanding, 32,716,641 and 22,732,716 as of December 31, 2025 and 2024, respectively)			—						—
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 December 31,												Year Ended December 31,
			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.

FAQ

How did Fathom Holdings (FTHM) perform financially in full year 2025?

Fathom Holdings grew full year 2025 revenue to $420.5 million, up 25.4% from 2024. Growth was driven mainly by a 26.8% increase in real estate brokerage revenue following the My Home Group acquisition, along with gains in mortgage and title operations.

What were Fathom Holdings’ Q4 2025 revenue and profitability results?

In Q4 2025, Fathom generated $90.6 million in revenue, down 1.2% year over year. GAAP net loss for the quarter was $6.7 million, or $0.21 per share, compared with a $6.2 million loss, or $0.29 per share, in Q4 2024.

Did Fathom Holdings improve its Adjusted EBITDA in 2025?

Yes. Fathom’s Adjusted EBITDA loss improved to $4.0 million in 2025 from a $5.7 million loss in 2024. Management attributes this improvement mainly to reduced operating expenses, particularly lower marketing and general and administrative spending, despite higher technology and development costs.

What were Fathom Holdings’ key operational trends in Q4 2025?

Real estate transactions fell about 14.2% year over year to approximately 8,501 in Q4 2025, and the agent network declined 1.2% to roughly 14,135 licenses. However, mortgage revenue grew 70% and title revenue rose 38.5%, reflecting traction in higher-margin ancillary services.

What guidance did Fathom Holdings provide for 2026?

Fathom chose to withhold guidance for the first quarter ending March 31, 2026. Management plans to release 2026 guidance in its second quarter 2026 earnings release, after further implementing programs aimed at margin expansion and scaling higher-margin ancillary services.

How did Fathom Holdings’ balance sheet change by December 31, 2025?

Total assets increased to $78.0 million, while total liabilities rose to $40.6 million by December 31, 2025. Shareholders’ equity decreased from $44.7 million to $37.4 million, reflecting the 2025 net loss despite additional paid-in capital and a larger share count.

What non-GAAP measure does Fathom Holdings emphasize and why?

Fathom emphasizes Adjusted EBITDA as a non-GAAP metric to evaluate core operating performance. It adjusts net loss for items like depreciation, amortization, stock-based compensation, losses or gains on business sales, litigation contingency, other expense, and income taxes to highlight underlying operating trends.

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