Fathom Holdings Reports Decline in Revenue and Increased Net Loss for Q2 2026

Fathom Holdings Inc. reported a decline in financial performance for the second quarter of 2026, with total revenue of $114.6 million, down 6% from $121.4 million in the same period last year. The company's gross commission income decreased by 8% to $107.0 million, primarily due to a 15% drop in transaction volume, which fell to 10,808 transactions from 12,710. The average revenue per transaction, however, increased by 8.5% to $9,897, attributed to higher transaction volumes from the Fathom Elevate plan. The company also experienced a net loss of $6.2 million for the quarter, compared to a loss of $3.6 million in the prior year.

In the first half of 2026, Fathom's total revenue was $201.0 million, a decrease of 6.3% from $214.6 million in the same period of 2025. The decline in gross commission income was again a significant factor, dropping 8.1% to $188.3 million. Other service revenue, however, saw a 30.9% increase to $12.7 million, driven by growth in title service transactions and the mortgage business. The company's operating expenses also decreased by 3.8% to $213.0 million, with notable increases in general and administrative expenses, which rose by 20.1% to $20.0 million.

Fathom Holdings has made strategic changes to its leadership, appointing Lori Muller as President of Fathom Realty and Stephanie Verderose as Vice President of Growth in early 2026. The company also expanded its agent base by acquiring EXIT Homestead Realty Professionals, adding over 50 agents in New Jersey. Additionally, Fathom entered into a merger agreement with Bed Bath & Beyond, which is expected to enhance its operational capabilities and financial support.

As of June 30, 2026, Fathom reported current assets of $34.7 million, a decrease from $35.9 million at the end of 2025, while current liabilities increased significantly to $44.8 million from $33.9 million. This resulted in a negative working capital of $10.2 million. The company had cash and cash equivalents of approximately $4.5 million, down from $5.8 million at the end of the previous year. Fathom's management expressed confidence in its ability to meet operational requirements for the next twelve months, supported by financial commitments from Bed Bath & Beyond.

Looking ahead, Fathom Holdings anticipates continued challenges due to economic conditions affecting the housing market, including rising interest rates and reduced consumer confidence. The company is focused on leveraging its technology-driven business model to attract and retain agents while navigating the evolving landscape of real estate brokerage.