Company Performance - Fathom Holdings reported a quarterly loss of $0.18 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.13, but an improvement from a loss of $0.31 per share a year ago, indicating a year-over-year improvement in loss figures [1] - The company posted revenues of $93.14 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 12.16% and showing a significant increase from $70.5 million in the same quarter last year [2] - Over the last four quarters, Fathom Holdings has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Fathom Holdings shares have declined approximately 39.9% since the beginning of the year, contrasting with the S&P 500's decline of only 0.6% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.04 on revenues of $117.18 million, and for the current fiscal year, it is -$0.38 on revenues of $424.23 million [7] Industry Outlook - The Technology Services industry, to which Fathom Holdings belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Total revenue increased by 32.1% to $93.1 million compared to $70.5 million in the same period last year, exceeding analyst expectations by approximately 12% [6][17] - Brokerage revenue rose nearly 36% to $88.9 million from $65.4 million last year, with gross profit improving to $8.1 million, a 13% year-over-year increase [6][7][8] - GAAP net loss for Q1 2025 was $5.6 million or $0.24 per share, compared to a loss of $5.9 million or $0.31 per share in Q1 2024, reflecting cost-saving efforts [19] Business Line Data and Key Metrics Changes - The brokerage business closed approximately 9,715 real estate transactions, a 26.1% increase from 7,703 transactions in Q1 2024 [20] - Mortgage revenue increased by 13% to $2.6 million from $2.3 million in Q1 2024, while title business revenue rose 43% to $1 million from $700,000 [14][23] - Adjusted EBITDA for the real estate division improved to approximately $1.6 million in Q1 2025, up from $800,000 in Q1 2024 [21] Market Data and Key Metrics Changes - Housing inventory increased by 16% in California, 20% in Utah, 28% in Colorado, and 18% in Georgia, indicating a shift towards a more balanced market [13] - Average home prices dropped year-over-year by 2.4% in Florida, 4% in Colorado, 8% in Kansas, and 5% in Illinois, reflecting market adjustments [14] Company Strategy and Development Direction - The company is focused on three core drivers for long-term profitability: expanding revenue through strategic growth, enhancing gross margins via agent programs like Elevate, and maintaining cost discipline [25][27] - The Elevate program aims to enhance agent productivity and profitability, with over 120 agents signing up shortly after its soft launch [9][10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism despite ongoing economic headwinds, stating that the company is well-positioned to benefit from improvements in market activity [4][14] - The company expects to achieve adjusted EBITDA profitability in Q2 2025, marking a significant milestone [5][27] Other Important Information - The company ended the quarter with a cash position of $8 million, including $2.7 million in net proceeds from a public offering [24] - Cost-cutting initiatives are projected to reduce expenses by approximately $750,000 per quarter going forward [5] Q&A Session Summary Question: Can you elaborate on how Elevate enhances profitability on gross profit and adjusted EBITDA per transaction? - Management indicated that the Elevate program is expected to increase gross profit margins by three to four times compared to traditional programs due to the efficiency of the platform [31][34] Question: Have discussions with similar-sized agent teams accelerated post-launch of Elevate? - Management confirmed increased conversations with various brokerages and technology partners since the launch of Elevate, indicating potential partnerships and licensing opportunities [36][37]

Financial Data and Key Metrics Changes - Total revenue increased by 32.1% to $93.1 million compared to $70.5 million in the same period last year, exceeding analyst expectations by approximately 12% [7][17] - Brokerage revenue rose nearly 36% to $88.9 million from $65.4 million year-over-year [8][17] - Gross profit improved to $8.1 million, a 13% increase year-over-year, with a 34% growth excluding divested Daggle Insurance [8][17] - GAAP net loss for Q1 2025 was $5.6 million or $0.24 per share, compared to a loss of $5.9 million or $0.31 per share in Q1 2024 [20] Business Line Data and Key Metrics Changes - The brokerage business closed approximately 9,715 transactions, a 26.1% increase from 7,703 transactions in Q1 2024 [21] - The Real Estate Division's revenue was approximately $88.9 million, a 36% increase attributed to the addition of My Home Group [22] - Mortgage revenue increased by 13% to $2.6 million from $2.3 million year-over-year [15][24] - Cyto revenue increased by 43% to $1 million from $700,000 in Q1 2024 [16][24] Market Data and Key Metrics Changes - Housing inventory rose by 16% in California, 20% in Utah, 28% in Colorado, and 18% in Georgia, indicating a shift towards a more balanced market [14] - Average home prices dropped year-over-year by 2.4% in Florida, 4% in Colorado, 8% in Kansas, and 5% in Illinois [15] Company Strategy and Development Direction - The company is focused on three core drivers for long-term profitability: expanding revenue through strategic growth, enhancing gross margins through agent programs like Elevate, and maintaining cost discipline [26] - The Elevate program aims to enhance agent productivity and drive long-term profitability, with over 120 agents signing up shortly after its soft launch [9][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism despite ongoing economic headwinds, stating that the results reflect discipline and execution [6] - The company expects to achieve adjusted EBITDA profitability in Q2 2025, marking a significant milestone [7][26] - Management remains cautious about broader market volatility but is encouraged by current momentum [27] Other Important Information - The company has reduced expenses by approximately $750,000 per quarter going forward [6] - The cash position at the end of the quarter was $8 million, including $2.7 million in net proceeds from a public offering [25] Q&A Session Summary Question: Can you elaborate on how Elevate enhances profitability? - Management indicated that Elevate's structure allows for a higher gross profit margin per transaction, potentially growing by three to four times compared to traditional programs [32][33] Question: Have discussions with similar-sized agent teams accelerated post-Elevate launch? - Management confirmed increased conversations with various brokerages and technology partners since the Elevate launch, indicating potential partnerships and licensing opportunities [36][38]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the quarterly period ended March 31, 2025 o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from______to______ Commission File Number 001-39412 FATHOM HOLDINGS INC. (Exact name of Registrant as specified in its Charter) North Carolina 82-1518164 (Stat ...

[First Quarter 2025 Performance Overview](index=1&type=section&id=First%20Quarter%202025%20Performance%20Overview) Fathom Holdings reported strong Q1 2025 results with 32% revenue growth, expanded agent network, and launched 'Elevate' program, targeting positive Q2 EBITDA Q1 2025 Key Performance Indicators (YoY Growth) | Metric | Growth Rate (YoY) | | :--- | :--- | | Revenue | 32% | | Agent Network | 22% | | Closed Transactions | 26% | - The company expects to be **EBITDA positive** in the second quarter of 2025[3](index=3&type=chunk) - Successfully launched the **'Elevate' program**, a concierge-level initiative offering services like marketing, lead generation, transaction support, and coaching to enhance agent productivity and company profitability[3](index=3&type=chunk)[4](index=4&type=chunk) - The company's goal is to ramp up the Elevate program to enroll **100 new agents per month by Q4 2025**[4](index=4&type=chunk) [First Quarter 2025 Financial Results](index=3&type=section&id=First%20Quarter%202025%20Financial%20Results) Fathom's Q1 2025 revenue grew 32.1% to $93.1 million, with a narrowed GAAP net loss and stable Adjusted EBITDA loss [Revenue Analysis](index=3&type=section&id=Revenue%20Analysis) Q1 2025 total revenue increased 32.1% to $93.1 million, primarily driven by 35.9% growth in Real Estate Brokerage Revenue by Segment (in millions) | Segment | Q1 2025 Revenue | Q1 2024 Revenue | YoY Growth | | :--- | :--- | :--- | :--- | | Real Estate Brokerage | $88.9 | $65.4 | +35.9% | | Mortgage | $2.6 | $2.3 | +13.0% | | Technology | $1.1 | $1.1 | 0.0% | | **Total Revenue** | **$93.1** | **$70.5** | **+32.1%** | [Profitability and Expense Analysis](index=3&type=section&id=Profitability%20and%20Expense%20Analysis) Q1 2025 gross profit rose 13% to $8.1 million, with GAAP net loss improving to $5.6 million and stable Adjusted EBITDA loss Q1 2025 Profitability Metrics (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Gross Profit | $8.1 million | $7.2 million | | GAAP Net Loss | ($5.6 million) | ($5.9 million) | | GAAP EPS (Diluted) | ($0.24) | ($0.31) | | Adjusted EBITDA Loss | ($1.5 million) | ($1.5 million) | - General and Administrative (G&A) expense **decreased to 9.3% of revenue** in Q1 2025 from 12.8% in Q1 2024, reflecting a continued focus on reducing expenses[9](index=9&type=chunk) [Operational and Corporate Highlights](index=3&type=section&id=Operational%20and%20Corporate%20Highlights) Fathom's agent network grew 22.8% to 14,715 agents, with transactions up 26%, and the company raised $2.7 million in cash Q1 2025 Operational Metrics | Metric | Q1 2025 | Q1 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Real Estate Agent Licenses | ~14,715 | ~11,986 | +22.8% | | Real Estate Transactions | ~9,715 | ~7,703 | +26.0% | - In March 2025, the company raised approximately **$2.7 million in cash proceeds** from a registered direct offering of its common stock[8](index=8&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) Q1 2025 financial statements show a net loss of $5.6 million, total assets of $81.0 million, and $5.7 million net cash used in operations [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 statements of operations show $93.1 million revenue, $4.4 million operating loss, and a narrowed net loss of $5.6 million Q1 2025 Statement of Operations Highlights (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $93,135 | $70,503 | | Loss from operations | $(4,424) | $(5,653) | | Net loss | $(5,646) | $(5,927) | | Net loss per share (Basic & Diluted) | $(0.24) | $(0.31) | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, Fathom's balance sheet shows total assets of $81.0 million, with liabilities at $37.6 million and equity at $43.4 million Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $7,976 | $7,127 | | Total current assets | $30,774 | $24,956 | | Total assets | $81,017 | $75,397 | | Total current liabilities | $25,971 | $19,381 | | Total liabilities | $37,602 | $30,716 | | Total stockholders' equity | $43,415 | $44,681 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 net cash used in operations was $5.7 million, with $7.3 million provided by financing activities, ending with $8.2 million cash Q1 2025 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(5,733) | $(947) | | Net cash used in investing activities | $(815) | $(535) | | Net cash provided by (used in) financing activities | $7,329 | $(96) | | **Net increase (decrease) in cash** | **$782** | **$(1,578)** | | **Cash at end of period** | **$8,171** | **$5,962** | [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) Fathom uses Adjusted EBITDA, a non-GAAP measure, to assess core operating performance, reporting a Q1 2025 loss of $1.47 million - The company uses **Adjusted EBITDA** to enhance understanding of financial performance, believing it helps identify underlying business trends by excluding certain expenses like stock-based compensation, transaction-related costs, and litigation contingencies[27](index=27&type=chunk)[29](index=29&type=chunk) Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA (in thousands) | | Three Months Ended March 31, | | :--- | :--- | :--- | | | **2025** | **2024** | | **Net loss** | **$(5,646)** | **$(5,927)** | | Stock based compensation | $1,506 | $2,652 | | Depreciation and amortization | $1,440 | $1,480 | | Litigation contingency | $4 | $— | | Other expense, net | $1,205 | $257 | | Income tax expense | $17 | $17 | | **Adjusted EBITDA** | **$(1,474)** | **$(1,521)** | [Guidance/Long-Term Targets](index=4&type=section&id=Guidance%2FLong-Term%20Targets) Fathom has temporarily suspended 2025 financial guidance to allow its Strategy Committee to forecast business, considering the 'Elevate' program's impact - The Company has elected to **temporarily suspend guidance** while it works with its newly formed Strategy Committee to forecast 2025, citing the initial success of the Elevate program[12](index=12&type=chunk) [Conference Call Information](index=4&type=section&id=Conference%20Call%20Information) Fathom Holdings scheduled a conference call for May 13, 2025, at 5:00 p.m. ET to discuss Q1 results, with replay available until May 27 - A conference call to discuss financial results was scheduled for **May 13, 2025, at 5:00 p.m. Eastern time**[13](index=13&type=chunk) - A telephone **replay of the call is available through May 27, 2025**, with replay passcode 52105[15](index=15&type=chunk)

Core Viewpoint - Fathom Nickel Inc. has amended its upsized financing plan, which is expected to close on April 21, 2025, with the aim of raising gross proceeds of approximately $1.5 million through the issuance of units priced at $0.03 each [1][2][9]. Financing Details - The Amended Upsized Financing will consist of up to 27,470,958 Units under the LIFE exemption for gross proceeds of up to $824,128.74 and an additional 22,529,042 Units under other exemptions for gross proceeds of $675,871.26 [2]. - Each Unit will include one common share and one transferable common share purchase warrant, with the warrants exercisable at $0.05 for a period of 36 months [1][2]. Strategic Investment - Crescat Capital LLC has agreed to invest up to 33% in the Amended Upsized Financing, indicating strong interest from strategic investors [2]. Regulatory Compliance - The financing will be conducted under exemptions from prospectus requirements as per NI 45-106, and a new Amended Upsized Offering Document has been posted on SEDAR+ and the company's website [3][4]. Company Overview - Fathom Nickel Inc. is focused on exploring magmatic nickel sulphide deposits to support the electric vehicle market and secure North American critical minerals [7]. - The company holds three exploration projects in Saskatchewan, including the Albert Lake Project, Gochager Lake Project, and Friesen Lake Project, which have historical production and resource estimates [8].

Fathom Nickel Announces Upsizing of Previously Announced Private Placement to $1.5 Million, Including Strategic Participation by Crescat Capital LLCApril 10, 2025 7:50 AM EDT | Source: Fathom Nickel Inc.Calgary, Alberta--(Newsfile Corp. - April 10, 2025) -  Fathom Nickel Inc. (CSE: FNI) (FSE: 6Q5) (OTCQB: FNICF) (the "Company" or "Fathom") is pleased to announce that, based on strong demand for its previously announced non-brokered private placement financing (announced March 3, 2025), the Com ...

Core Insights - Fathom Holdings has introduced the Elevate program aimed at enhancing agent productivity and profitability while providing comprehensive support services [2][4] - The program is designed to increase the number of transactions for participating agents and significantly boost gross profit and EBITDA per Elevate closing [1][2] - Elevate offers a competitive 20% commission split, which is lower than many competitors, while providing extensive marketing and operational support [2][4] Company Strategy - Elevate is part of Fathom's strategy to create a more efficient, profitable, and technology-enabled real estate platform [4] - The program is expected to improve agent retention and drive higher transaction volume and revenue for the company [2][5] - Fathom is focused on rolling out Elevate nationally and monitoring agent adoption and production results closely [5] Services Offered - Elevate includes dedicated marketing support, lead generation, transaction management, skills development, recruiting assistance, and priority access to resources [7] - The program aims to empower agents by handling marketing, lead generation, and transaction logistics, allowing them to focus on client relationships [4][7] Company Overview - Fathom Holdings Inc. operates as a technology-driven real estate services platform, integrating various services including residential brokerage, mortgage, title, and insurance [8] - The company leverages its proprietary cloud-based software, intelliAgent, to enhance its service offerings [8]

Acquisition and Growth - Fathom Holdings Inc. acquired My Home Group, increasing its presence in Arizona and Washington with over 2,200 agents [266]. - Fathom's real estate agent licenses grew by 21% to approximately 14,300 at December 31, 2024, up from approximately 11,795 at December 31, 2023 [285]. Financial Performance - For the year ended December 31, 2024, total revenue decreased by approximately $10.0 million or 2.9% to $335.2 million compared to $345.2 million in 2023, primarily due to a decrease in transaction volume caused by historically high house prices [307]. - Gross commission income for 2024 was $314.7 million, a decrease of $10.7 million or 3.3% from 2023, with transaction volume down 3.0% to approximately 37,000 transactions [307]. - Other service revenue increased by approximately $0.6 million or 3.1% to $20.4 million in 2024, driven by growth in mortgage loans and title service transactions [308]. - Total operating expenses decreased by approximately $9.8 million or 2.7% to $358.6 million in 2024, with significant reductions in commission and service costs, general and administrative expenses, and marketing expenses [309]. - General and administrative expenses decreased by approximately $2.5 million or 6.9% to $33.6 million in 2024, primarily due to the elimination of costs related to the insurance business sold in May 2024 [312]. - Adjusted EBITDA for 2024 is $(5,710) thousand, compared to $(4,111) thousand in 2023, indicating a decline in operational performance [333]. - Net loss for 2024 is $(21,577) thousand, slightly improved from $(23,981) thousand in 2023 [333]. - Stock-based compensation decreased to $8,839 thousand in 2024 from $12,994 thousand in 2023, reflecting a reduction in equity-related expenses [333]. - Depreciation and amortization expenses were $5,423 thousand in 2024, down from $5,947 thousand in 2023, indicating a slight decrease in asset-related costs [333]. - Other net expenses rose to $2,094 thousand in 2024 from $580 thousand in 2023, highlighting increased operational costs [333]. Market Trends - Existing home sales declined by 6.2% in 2023 and an additional 0.7% in 2024, marking the lowest market levels since 1995 [272]. - The average sales price for existing homes in December 2024 was $404,400, a 6% increase from $382,600 in December 2023 [276]. - The company anticipates a 9% increase in existing home sales transactions in 2025, projecting sales to rise from 4.06 million to 4.5 million [276]. Operational Efficiency - Fathom's efficient operating model, driven by a cloud-based approach, supports lower fixed costs and positions the company for growth despite market challenges [273]. - Net cash used in operating activities for 2024 was $4.7 million, a significant improvement from $10.6 million used in 2023, indicating better operational efficiency [324]. Legal and Compliance - The NAR settlement involved a payment of $418 million over four years, resolving claims against the company related to antitrust violations [282]. - Litigation contingency expenses increased to $3,491 thousand in 2024, with no such expenses reported in 2023, suggesting potential ongoing legal challenges [333]. Financial Position - As of December 31, 2024, the company had current assets of $25.0 million, an increase of 7.6% from $23.2 million in 2023, while current liabilities increased by 18.5% to $19.4 million [317]. - The company raised approximately $2.7 million in net proceeds from a registered direct offering of common stock in March 2025, enhancing its liquidity position [317]. Reporting and Transparency - The company continues to exclude significant recurring expenses from Adjusted EBITDA, which may mask underlying performance trends [332]. - The company is committed to transparency in financial reporting by providing Adjusted EBITDA as a supplemental measure for investors [330]. - Goodwill is subject to annual impairment testing, with management believing that the estimated fair value of reporting units exceeds their carrying values [338]. - The company is classified as an emerging growth company and a small reporting company, allowing for reduced reporting requirements under the JOBS Act [346].

Core Insights - Fathom Holdings, Inc. has appointed Adam Rothstein, a technology industry expert, to its Board of Directors, where he will serve on multiple committees including the Audit Committee and the newly formed Strategy Committee [1][3] - Rothstein brings over 25 years of investment experience and has held board positions in various technology and media companies, enhancing Fathom's strategic vision and growth initiatives [2][3] Company Overview - Fathom Holdings, Inc. is a technology-driven real estate services platform that integrates residential brokerage, mortgage, title, and SaaS offerings, utilizing its proprietary cloud-based software, intelliAgent [4] - The company's brands include Fathom Realty, Encompass Lending, intelliAgent, LiveBy, Real Results, and Verus Title, indicating a diverse service offering within the real estate sector [4]