Fathom Holdings Reports Revenue Decline and Net Loss for Fiscal Year 2024

Fathom Holdings Inc. reported a decline in financial performance for the fiscal year ending December 31, 2024, with total revenue of $335.2 million, down 2.9% from $345.2 million in 2023. The decrease in revenue was primarily driven by a 3.3% drop in gross commission income, which fell to $314.7 million from $325.4 million, attributed to a decrease in transaction volume amid high housing prices and elevated interest rates. The company recorded a net loss of approximately $21.6 million, compared to a loss of $24.0 million in the previous year, indicating a slight improvement in profitability despite ongoing challenges.

In terms of operational metrics, Fathom's agent licenses grew by 21% to approximately 14,300 as of December 31, 2024, up from about 11,795 the previous year. The company also expanded its geographic footprint, now operating in 43 states and the District of Columbia. The average revenue per transaction increased by 2.1% to $8,712, reflecting a focus on higher-value transactions. However, the overall transaction volume decreased by 3.0%, with approximately 37,000 transactions completed in 2024 compared to 38,139 in 2023.

Strategically, Fathom made significant moves, including the acquisition of My Home Group (MHG) on November 1, 2024, which added over 2,200 agents to its network and enhanced its presence in Arizona and Washington. The company also launched new commission plans, Fathom Max and Fathom Share, aimed at improving agent recruitment and retention by offering flexible compensation structures. Additionally, Fathom sold its insurance agency, Dagley Insurance Agency, in May 2024, which is expected to streamline operations and focus on core real estate services.

The company’s operational expenses decreased by 2.7% to $358.6 million, with notable reductions in general and administrative costs and marketing expenses. However, litigation contingency expenses rose significantly due to the ongoing legal settlements related to antitrust claims against the National Association of Realtors (NAR). Fathom has accrued $2.95 million in liabilities related to these settlements, which could impact future financial results.

Looking ahead, Fathom Holdings anticipates challenges due to ongoing economic conditions, including high interest rates and inflation, which have historically affected the housing market. The company aims to achieve positive Adjusted EBITDA in 2025 by leveraging its low-cost, high-engagement business model and focusing on agent support and technology enhancements. The outlook remains cautious, with management emphasizing the need to adapt to market fluctuations while pursuing growth opportunities in both existing and new markets.