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Fathom Realty’s parent company trimmed its first quarter net loss to $5.6 million as growing agent and transaction count helped boost revenue by 32 percent from a year ago, to $93.1 million.
But the 5 percent decrease in Fathom Holdings Inc.’s net loss was “primarily due to a reduction in agent recruiting commissions,” the company said in reporting earnings Tuesday.
Fathom Realty’s agent network grew by 23 percent in the first three months of the year, to 14,715, and transactions were up 26 percent from a year ago, to 9,715.
Company executives said they expect to be profitable in Q2 by one metric — adjusted earnings before interest, taxes, depreciation and amortization (EBITDA).
“Although we expect 2025 to remain challenging for the real estate industry, we expect Fathom’s positive momentum to continue,” Fathom CEO Marco Fregenal said in a statement. “We are, in fact, currently expecting to be EBITDA positive in Q2 of 2025.”
Fathom’s adjusted EBITDA loss of $1.47 million in the first quarter was a slight improvement from $1.52 million a year ago.
Shares in Fathom Holdings, which in the last 12 months have traded for as little as 65 cents and as much as $3.37, gained 9 percent Tuesday before earnings were released, to 96 cents.
Fregenal said Fathom’s mission remains building “a best-in-class, technology-driven platform that empowers agents, streamlines transactions and delivers long-term value for our shareholders.”
Last month Fathom announced the Elevate program — an addition to Fathom Realty’s existing commission plans, offering a higher level of brokerage services in exchange for what the company considers to be a low split.
Fathom Realty, whose flat-fee and revenue-sharing commission models have helped the company grow its agent count, now offers agents the option of paying a 20 percent commission split in exchange for “concierge-level services,” including dedicated marketing support and lead generation.
Fregenal said the goal is to “ramp up the program to 100 new agents per month by Q4 of 2025.”
The Elevate program is off to such a strong start that Fathom “has elected to temporarily suspend guidance while it works with its newly formed strategy committee of the board of directors” to forecast 2025.
“We believe Elevate will enhance agent growth by helping agents increase their business as they become more productive,” Fregenal said. “More importantly, we anticipate the program will significantly enhance long-term profitability by increasing gross profit per transaction.”
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