Fathom Holdings Reports 36% Revenue Growth to $121.4 Million in Latest Quarter

Fathom Holdings Inc. reported significant financial performance in its latest 10-Q filing for the quarter ending June 30, 2025, with total revenue reaching $121.4 million, a 36% increase from $89.2 million in the same period last year. The growth was primarily driven by a 40% rise in gross commission income, which amounted to $116.0 million, attributed to a 25.4% increase in transaction volume, totaling 12,710 real estate transactions. The average revenue per transaction also saw an increase of 11.3%, reaching $9,125, largely due to higher transaction values at the recently acquired My Home Group.

In terms of profitability, Fathom reported a net loss of $3.6 million for the quarter, compared to a loss of $1.3 million in the prior year. The increase in losses was influenced by a rise in commission and service costs, which surged by 38% to $112.0 million, reflecting the higher agent commissions associated with increased transaction volumes. General and administrative expenses decreased slightly by 4% to $8.0 million, while technology and development costs rose by 18% to $1.8 million, reflecting ongoing investments in proprietary software.

Fathom's operational metrics indicate a growing customer base, with approximately 14,981 agent licenses as of June 30, 2025, representing a 22.6% increase from 12,224 licenses a year earlier. The company also launched a new concierge-level service program called "Elevate" aimed at enhancing agent productivity and transaction efficiency. This initiative is expected to improve agent retention and profitability per transaction, further strengthening Fathom's competitive position in the market.

The company’s balance sheet showed total assets of $80.4 million, up from $75.4 million at the end of 2024, while total liabilities increased to $39.7 million from $30.7 million. Cash and cash equivalents decreased to $4.9 million from $7.1 million, reflecting ongoing operational expenditures and investments. Fathom anticipates that its existing cash reserves, along with expected cash flows from operations and the sale of its insurance business, will be sufficient to meet its operational needs for at least the next twelve months.

Looking ahead, Fathom Holdings remains focused on strategic growth through acquisitions and enhancing its technology offerings. The company is closely monitoring market conditions, including interest rates and economic factors that could impact the housing market. Despite the challenges posed by ongoing litigation in the real estate sector, Fathom's management believes that its business model, which allows agents to negotiate their own commissions, positions the company favorably in a changing regulatory environment.