Core Viewpoint - Fathom Nickel Inc. has expanded the Gochager Lake Property by adding 10,519.43 hectares, bringing the total area to 34,409.34 hectares, while the planned summer field exploration has been delayed due to wildfires in Saskatchewan [2][4]. Company Update - Fathom Nickel is hosting a live update webinar for shareholders and stakeholders on June 11, 2025 [2]. - The company has expanded the Gochager Lake Property through direct staking with the Government of Saskatchewan [2]. Property Expansion Details - The expansion includes three contiguous mineral dispositions totaling 10,519.43 hectares [4]. - The Gochager Lake Property now consists of 39 contiguous mineral claims [4]. - The new staking covers known nickel-copper occurrences and gold occurrences, as well as potential extensions of the Borys Lake VMS-style trend [4]. Exploration Plans - The planned field exploration at Gochager Lake has been postponed due to wildfire conditions in the La Ronge area [4]. - Fathom intends to commence the field exploration later in the summer when conditions allow [4]. Geological Insights - The Gochager Lake Property hosts the historic Gochager Lake deposit, with a re-interpretation of a 2008 VTEM™ survey identifying a prospective structural corridor known as the "Gochager Trend" [5]. - The 2008 VTEM™ survey highlights complex conductors along the Gochager Trend [5]. - Fathom's analyses confirm that the mineralization at Mal Lake is analogous to the Gochager Lake deposit [5]. CEO Statement - The CEO of Fathom Nickel emphasized the potential of the Gochager Lake Property, highlighting not only nickel-copper-cobalt but also the importance of gold opportunities in Saskatchewan [6]. - The recent property expansion was motivated by an evolving understanding of the area and the potential for additional magmatic nickel sulphide deposits [6]. Additional Geological Data - The newly staked claims report multiple occurrences of anomalous Ni-Cu-Zn in bedrock and gold up to 2.68 g/t Au associated with shear-hosted quartz veins [7].

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Characteristics - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential, leading to potential losses for investors [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Fathom Holdings (FTHM) Analysis - Fathom Holdings (FTHM) has shown significant price movement, with a 52.4% increase over the past four weeks, indicating strong investor interest [4] - The stock has gained 41.2% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [5] - FTHM has a beta of 2.13, suggesting it moves 113% higher than the market in either direction, indicating fast-paced momentum [5] - The stock has a Momentum Score of B, suggesting it is an opportune time to invest [6] - FTHM has received a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [7] - The stock is trading at a low Price-to-Sales ratio of 0.10, indicating it is reasonably valued at present [7] Group 3: Investment Opportunities - FTHM is highlighted as a strong candidate for investment, with potential for further price appreciation [8] - There are additional stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting a broader opportunity for investors [8] - Zacks offers over 45 Premium Screens tailored to different investing styles, providing various strategies to identify winning stocks [9]

Core Viewpoint - Fathom Holdings (FTHM) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, indicating that revisions in earnings estimates can lead to significant price changes [4][6]. - For Fathom Holdings, the rising earnings estimates suggest an improvement in the company's underlying business, which is expected to positively influence its stock price [5]. Zacks Rating System - The Zacks Rank stock-rating system categorizes stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - The Zacks rating system maintains a balanced distribution of 'buy' and 'sell' ratings, ensuring that only the top 20% of stocks receive a 'Strong Buy' or 'Buy' rating, indicating superior earnings estimate revisions [9][10]. Earnings Estimate Revisions for Fathom Holdings - For the fiscal year ending December 2025, Fathom Holdings is projected to earn -$0.33 per share, reflecting a 69.2% change from the previous year's reported figure [8]. - Over the past three months, the Zacks Consensus Estimate for Fathom Holdings has increased by 7.8%, indicating a positive trend in earnings expectations [8].

Fathom Holdings (FTHM) Conference Call Summary Company Overview - Fathom is a real estate technology company providing a comprehensive solution for residential and commercial real estate, including brokerage, mortgage, title, and SaaS offerings [3][4] - The company operates in 43 states with plans to expand to five additional states in 2024 [4] Financial Performance - Q1 revenue grew by 32%, transactions increased by 26%, and agent growth was 22.8% [4][31] - Significant investment of approximately $20 million in proprietary software [4][22] - The acquisition of My Home Group in November 2024 added 2,200 agents and $100 million in revenue, expected to contribute $1.2 million in EBITDA in 2025 [4][28][29] Unique Business Model - Fathom's model differs from traditional brokerages by allowing agents to retain a larger portion of their commissions, charging a flat annual fee of $700 plus a transaction fee [11][12] - The company offers a concierge-level service and a virtual business model, which enhances agent support and efficiency [7][10] Technology and Efficiency - Fathom owns all its technology, which includes an ERP-like system for managing transactions and agent operations [18][19] - The direct cost per transaction is less than $270, significantly lower than competitors [19][26] - The Elevate program, launched recently, aims to provide agents with comprehensive support, potentially increasing gross profit per transaction by four times [14][15][26] Growth Strategy - Fathom aims to reach approximately 100,000 agents in the U.S., currently having around 15,000 [27] - The company anticipates organic growth to return to 15% and total growth (including acquisitions) to reach close to 30% [50][61] - The Elevate program is expected to generate approximately $1 million in EBITDA for every 100-120 agents [15][73] Ancillary Services - The mortgage business grew by 15% year-over-year, while the title business grew by 61% in Q1 [25][74] - Fathom aims for 50% of its ancillary business to come from non-Fathom agents, currently at over 60% [75] Market Position and Competition - Fathom is the tenth largest real estate company in the U.S. in a highly fragmented market with around 80,000 brokerages [9][60] - The company is not focused on competing directly with large mortgage companies like Rocket Mortgage, as it operates differently and relies on Fathom agents for business [54][55] Future Outlook - The company expects to achieve adjusted EBITDA positivity in Q2 2025, driven by cost reductions and growth in ancillary services [57][58] - Fathom plans to continue expanding its footprint and exploring acquisition opportunities in the fragmented real estate market [33][61] Management and Governance - The leadership team has extensive experience in real estate and technology, with a strong board of directors supporting growth initiatives [34][36] Additional Insights - Fathom divested from its insurance business to focus on higher growth opportunities, achieving a 32% growth rate in its core business [78] - The company has implemented AI solutions to enhance efficiency and reduce costs across various operations [51][52]

Core Insights - Fathom Holdings, Inc. is a technology-driven real estate services platform that integrates residential brokerage, mortgage, title, and SaaS offerings, inviting investors to a webinar on May 20, 2025 [1] - The company operates a flat-fee commission model and has a growing network of over 14,300 agents across 43 states, positioning itself to benefit from an improving housing market [2] Company Overview - Fathom Holdings leverages its proprietary cloud-based software, intelliAgent, to enhance operational efficiency and scalability [4] - The company has made strategic acquisitions, including the integration of My Home Group, which is expected to contribute to significant revenue growth in 2025 [2] Webinar Details - The upcoming webinar will feature Fathom's CEO, Marco Fregenal, and will include a live Q&A session for attendees [3]

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]

Company Growth and Performance - As of March 31, 2025, the company had approximately 14,715 agent licenses, representing a growth of approximately 22.8% compared to 11,986 licenses as of March 31, 2024[123] - The company raised approximately $2.7 million from a registered direct offering on March 10, 2025, after deducting offering expenses[114] - For the three months ended March 31, 2025, gross commission income increased by approximately $23.5 million, or 36%, compared to the same period in 2024, driven by a 26.1% increase in transaction volume[150] - Total revenue for the three months ended March 31, 2025, was $93.1 million, an increase of $22.6 million, or 32%, from $70.5 million in 2024[150] - The company recorded a net loss of $5.6 million for the three months ended March 31, 2025, compared to a net loss of $5.9 million in 2024[172] Revenue Streams and Expenses - The company’s revenue streams include commissions from real estate transactions, mortgage lending, title insurance, and SaaS revenues[130] - Total operating expenses for the three months ended March 31, 2025, increased by approximately $21.4 million, or 28%, totaling $97.6 million compared to $76.2 million in 2024[152] - The company anticipates an increase in general and administrative expenses in absolute dollars due to business growth and compliance requirements, but expects these expenses as a percentage of revenue to decrease over time[144] - Other service revenue decreased by approximately $0.9 million, or 17%, primarily due to the sale of the insurance business in May 2024[151] - Net cash used in operating activities for the three months ended March 31, 2025, was $(5.7) million, a significant increase of 505% compared to $(0.9) million in 2024[161] Technology and Development - The company launched "Elevate," a new service program aimed at enhancing agent productivity and improving transaction efficiency, which is expected to increase agent retention and profitability per transaction[115] - The company’s technology and development expenses include personnel costs for proprietary software development and maintenance, as well as related operational expenses[143] - The company’s technology and development expenses increased by approximately $0.3 million, or 22%, primarily due to ongoing investments in the intelliAgent platform and LiveBy business[155] Company Classification and Compliance - The company will remain an emerging growth company until December 31, 2025, unless it meets certain revenue or market value thresholds[178] - The company has total annual gross revenues of at least $1.07 billion or a market value exceeding $700 million to transition from emerging growth status[178] - As of March 31, 2025, the company is classified as a small reporting company (SRC) with a public float of less than $250 million or annual revenue below $100 million[179] - Being classified as an SRC allows the company to provide less extensive narrative disclosures, particularly regarding executive compensation[179] - The company is only required to provide audited financial statements for two fiscal years instead of three, as is the case for non-SRCs[179] - The company is not required to disclose quantitative and qualitative information about market risk due to its SRC status[180] Market and Industry Considerations - The company is monitoring ongoing antitrust litigation that could impact the real estate industry, but does not expect to change its compensation model adversely[120] - The company’s flat fee per real estate transaction model allows agents to negotiate their own commissions, which is expected to provide a competitive advantage amid industry changes[120]

[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)