Fathom Holdings Reports 32% Revenue Growth to $93.1 Million, Net Loss Improves

Fathom Holdings Inc. reported significant financial performance improvements in its latest 10-Q filing for the quarter ended March 31, 2025. The company generated total revenue of $93.1 million, a 32% increase from $70.5 million in the same period last year. This growth was primarily driven by a 36% rise in gross commission income, which reached $88.9 million, attributed to a 26.1% increase in transaction volume, totaling 9,715 real estate transactions. The average revenue per transaction also increased by 7.8% to $9,148, reflecting higher transaction values, particularly from the recently acquired My Home Group.

Despite the revenue growth, Fathom Holdings reported a net loss of $5.6 million for the quarter, slightly improved from a net loss of $5.9 million in the prior year. The company’s operating expenses rose to $97.6 million, up 28% from $76.2 million, largely due to increased commission and service costs, which were in line with the revenue growth. General and administrative expenses decreased by 4%, while technology and development expenses increased by 22%, reflecting ongoing investments in proprietary software and technology enhancements.

Strategically, Fathom Holdings has made notable developments, including the launch of a new concierge-level service program called "Elevate," aimed at enhancing agent productivity and transaction efficiency. The company also completed a public offering in March 2025, raising approximately $2.7 million after expenses. Additionally, Fathom's agent count grew to approximately 14,715 as of March 31, 2025, representing a 22.8% increase from the previous year, indicating successful recruitment efforts and market expansion.

Operationally, Fathom Holdings continues to navigate challenges, including rising interest rates and ongoing litigation risks related to antitrust claims in the real estate industry. The company has set aside $1.0 million in current liabilities and $1.95 million in long-term liabilities for a settlement related to claims against the National Association of Realtors. Looking ahead, Fathom Holdings anticipates that its existing cash reserves, along with expected cash flows from operations, will be sufficient to meet its operational needs for at least the next twelve months. The company remains focused on leveraging its technology-driven model to enhance agent retention and profitability while expanding its market presence.