{"id":825031,"date":"2025-03-12T16:47:25","date_gmt":"2025-03-12T20:47:25","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/fathom-holdings-reports-fourth-quarter-and-full-year-2024-results\/"},"modified":"2025-03-12T16:47:25","modified_gmt":"2025-03-12T20:47:25","slug":"fathom-holdings-reports-fourth-quarter-and-full-year-2024-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/fathom-holdings-reports-fourth-quarter-and-full-year-2024-results\/","title":{"rendered":"Fathom Holdings Reports Fourth Quarter and Full Year 2024 Results"},"content":{"rendered":"
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PR Newswire<\/p>\n<\/p><\/div>\n

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\n \u2013 <\/i>
\n Company increases revenue by 24% year over year\u00a0 \u2013<\/i>\n <\/p>\n

\n
\n CARY, N.C.<\/span>
\n <\/span>, March 12, 2025<\/span><\/span> \/PRNewswire\/ — Fathom Holdings Inc.\u00a0<\/b>(Nasdaq: FTHM) (“Fathom” or the “Company”),\u00a0a national, technology-driven, end-to-end real estate services platform\u00a0<\/u>integrating residential brokerage, mortgage, title, and SaaS offerings for brokerages and agents, today reported financial results for the fourth quarter and full year ended December\u00a031, 2024.<\/p>\n

\n

\n
\n \"Fathom
\n <\/a>\n <\/p>\n<\/p><\/div>\n

“While Fathom achieved a 24% year-over-year revenue increase and saw core business gross profit rise by an encouraging 59%, the fourth quarter reflected ongoing challenges in the residential real estate market,” said Marco Fregenal, CEO of Fathom Holdings. “Persistent headwinds, particularly the unexpected rise in interest rates in Q4 following the Fed rate reduction, along with one-time expenses of $1.3 million<\/span>, negatively impacted both net loss and Adjusted EBITDA loss.”<\/p>\n

“We expect 2025 to remain challenging for the real estate industry; however, we see meaningful improvement ahead and are encouraged about our prospects of reaching EBITDA positive in Q2 of 2025, driven by increased revenues from our acquisition of My Home Group and smaller brokerage walkovers, as well as anticipated cost reductions of over $2 million<\/span> on an annualized basis,” Fregenal continued. “We aim to return to our historical 25% annual revenue growth, supported by anticipated higher gross profit from ancillary services, targeted recruitment, and ongoing innovation across our brokerage model, mortgage offerings, and title services. Our mission remains steadfast: to build a best-in-class, technology-driven platform that empowers agents, streamlines transactions, and delivers long-term value for our shareholders. We are confident these efforts will foster ongoing success, even in a dynamic market environment.”<\/p>\n

\n Fourth Quarter 2024 Financial Results<\/b>\n <\/p>\n

Fathom’s total revenue grew approximately 24% for the fourth quarter of 2024 to $91.7 million<\/span>, from $74.1 million<\/span> for the fourth quarter of 2023.\u00a0 Brokerage revenue increased by 26.3% for the fourth quarter of 2024 to $87.7 million<\/span> from $69.4 million<\/span>. Mortgage revenue increased 11.1% to $2 million<\/span> from $1.1 million<\/span> in the fourth quarter of 2023.\u00a0 Title revenue increased 92% to $1.3 million<\/span> from $0.7 million<\/span>. Technology revenue increased by 38% to $1.1 million<\/span> from $0.8 million<\/span> in the fourth quarter of 2023.<\/p>\n

Gross profit for Q4 2024 increased by 25% to $6.7 million<\/span> from $5.3 million<\/span> in Q4 of 2023. Gross profit for core business without Dagley Insurance increased by 59% to $6.6 million<\/span> from $4.2 million<\/span> Q4 2023.<\/p>\n

Fathom real estate transactions in the 2024 fourth quarter increased by 22% to 9,903 transactions from 8,114 transactions for the 2023 fourth quarter.<\/p>\n

Fathom’s real estate agent network grew 21% to approximately 14,300 agent licenses at December 31, 2024<\/span>, up from approximately 11,795 agent licenses at December 31, 2023<\/span>.<\/p>\n

\n\n\n\n\n\n\n\n\n\n
\n \n <\/td>\n\n

\n
\n Three months ended<\/b>
\n
\n December 31,<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n
\n (Revenue $ in millions)<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 2024<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 2023<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n \n <\/td>\n\n

\n
\n UNAUDITED<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Real Estate Brokerage<\/span>\n <\/p>\n<\/td>\n

\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 87.7<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 69.4<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Mortgage<\/span>\n <\/p>\n<\/td>\n

\n

\n 2.0<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 1.8<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Technology<\/span>\n <\/p>\n<\/td>\n

\n

\n 1.1<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 0.8<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Corporate and other services (a)<\/span>\n <\/p>\n<\/td>\n

\n

\n 0.9<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 2.1<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Total revenue<\/span>\n <\/p>\n<\/td>\n

\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 91.7<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 74.1<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n<\/table><\/div>\n
\n\n\n\n
\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n (a)<\/span>\n <\/p>\n<\/td>\n

\n

\n Transactions between segments are eliminated in consolidation. Such amounts are\u00a0eliminated through the Corporate and other services line.<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n<\/table><\/div>\n

GAAP net loss for the 2024 fourth quarter was $6.2 million<\/span>, or $0.29<\/span> per share, compared with a loss of $8.4 million<\/span>, or $0.50<\/span> per share, for the 2023 fourth quarter.<\/p>\n

General and Administrative expense totaled $8.4 million<\/span> for the 2024 fourth quarter, or 9.2% of revenue, compared with $10.1 million<\/span> or 13.6% of revenue for the fourth quarter of 2023. This was primarily due to our continued focus on reducing expenses.<\/p>\n

Driven by many of the factors discussed above, Adjusted EBITDA loss, a non-GAAP measure, totaled $2.9 million<\/span> in the fourth quarter of 2024 compared with an Adjusted EBITDA loss of approximately $2.9 million<\/span> for the 2023 fourth quarter. Fathom is committed to achieving and remaining Adjusted EBITDA positive moving forward.<\/p>\n

\n Fathom provides Adjusted EBITDA, a non-GAAP financial measure, because it offers additional information for monitoring the Company’s cash flow performance. A table providing a reconciliation of Adjusted EBITDA to its most comparable GAAP measure, as well as an explanation of, and important disclosures about, this non-GAAP measure, is included in the tables at the end of this press release.<\/i>\n <\/p>\n

\n Full Year 2024 Financial Results<\/b>\n <\/p>\n

Fathom completed approximately 37,000 real estate transactions in full year 2024, a 2.2% decrease relative to the prior year.<\/p>\n

Total revenue for 2024 decreased by 3% to $335 million<\/span>, from $345 million<\/span> for 2023.\u00a0 Segment revenue for the 2024 full year, compared with the 2023 full year was as follows:<\/p>\n

\n\n\n\n\n\n\n\n\n\n
\n \n <\/td>\n\n

\n
\n Year Ended <\/b>
\n
\n December 31,<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n
\n (Revenue $ in millions)<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 2024<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 2023<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n \n <\/td>\n\n

\n
\n UNAUDITED<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Real Estate Brokerage<\/span>\n <\/p>\n<\/td>\n

\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 314.7<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 325.4<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Mortgage<\/span>\n <\/p>\n<\/td>\n

\n

\n 10.9<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 7.2<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Technology<\/span>\n <\/p>\n<\/td>\n

\n

\n 4.5<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 3.2<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Corporate and other services (a)<\/span>\n <\/p>\n<\/td>\n

\n

\n 5.1<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 9.4<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Total revenue<\/span>\n <\/p>\n<\/td>\n

\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 335.2<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 345.2<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n<\/table><\/div>\n
\n\n\n\n
\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n (a)<\/span>\n <\/p>\n<\/td>\n

\n

\n Transactions between segments are eliminated in consolidation. Such amounts are\u00a0eliminated through the Corporate and other services line.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

GAAP net loss for 2024 was $21.6 million<\/span>, or a loss of $1.07<\/span> per share, compared with a GAAP net loss of $24.0 million<\/span>, or a loss of $1.47<\/span> per share, for 2023. This was primarily due to the cost savings efforts.<\/p>\n

Adjusted EBITDA loss was $5.7 million<\/span> in 2024, versus an Adjusted EBITDA loss of $4.1 million<\/span> for 2023\u00a0due to 3% reduction in revenue.<\/p>\n

Cash and cash equivalents at December\u00a031, 2024 decreased to $7.1 million<\/span> from $7.4 million<\/span> at December\u00a031, 2023.<\/p>\n

\n 2024 Highlights<\/b>\n <\/p>\n