Fathom Holdings falls 5.5% as wider-than-expected loss overshadows revenue beat

Published 12/08/2025, 21:32
 Fathom Holdings falls 5.5% as wider-than-expected loss overshadows revenue beat

CARY, N.C. - Fathom Holdings Inc . (NASDAQ:FTHM) shares tumbled 5.5% after the real estate services platform reported a wider-than-expected loss for the second quarter, despite posting stronger-than-anticipated revenue.

The company reported a second-quarter loss of $0.13 per share, significantly missing analyst expectations of a $0.04 per share loss. The disappointing bottom line overshadowed Fathom’s revenue performance, which came in at $121.4 million, exceeding the consensus estimate of $117.3 million and representing a 36.1% increase YoY.

Fathom’s transaction volume grew 25.4% YoY to 12,710 transactions, while its agent network expanded 22.6% to approximately 14,981 agent licenses. The company’s brokerage revenue jumped 39.6% to $116 million, and title revenue surged 88% to $1.5 million, though mortgage revenue declined 10.8% to $3.3 million.

"The second quarter of 2025 marked a strong step forward for Fathom, driven by the strength of our platform and our ability to recruit, retain, and support our agents in a dynamic housing market," said Marco Fregenal, CEO of Fathom Holdings.

The company achieved adjusted EBITDA profitability of $0.03 million in the quarter, marking its first positive adjusted EBITDA quarter since Q2 2024. Management expressed commitment to maintaining adjusted EBITDA profitability moving forward.

Fathom has withheld guidance for the third quarter ending September 30, 2025, but plans to potentially reinstate guidance expectations in the fourth quarter of 2025.

The company’s Elevate program has already onboarded over 70 agents and is on track to add another 100 agents within the next 60 days, with a goal of scaling to more than 300 onboarded agents by year-end.

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