Fathom Realty(FTHM) - 2025 Q1 - Quarterly Results

First Quarter 2025 Performance Overview 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] - 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][4] - The company's goal is to ramp up the Elevate program to enroll 100 new agents per month by Q4 2025[4] First Quarter 2025 Financial Results 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 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 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] Operational and Corporate Highlights 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] Financial Statements 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 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 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 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 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][29] 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 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] Conference Call Information 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] - A telephone replay of the call is available through May 27, 2025, with replay passcode 52105[15]