Fathom Holdings Inc. Q3 FY2025 earnings call

• Accomplishments: Third quarter marked 37.7% y-o-y revenue growth, adjusted EBITDA profitability, agent base grew 24% y-o-y to over 15,300, gross profit increased by over $2.7 million to over $9.6 million (+38.5% y-o-y).
• Ancillary Businesses: Mortgage (Encompass Lending) revenue up 20.7%, adjusted EBITDA ~$160,000; Title (Verus Title) revenue up 28.6%; Technology up 18%. Ancillary transactions have 7-10x higher gross profit than real estate.
• Elevate Program: Over 165 agents onboarded, 45 in pipeline; 20% commission split, 5x higher gross profit on transactions.
• Acquisitions/Initiatives: Acquisition of START Real Estate (serving first-time homebuyers, ~70% mortgage attach rate, expanding to over 15 states); Real Results team rolled out company-wide; partnership with ByOwner for for-sale ByOwner market.
• Technology Investments: Verus Title expanded to Arizona and Alabama; intelliAgent licensing agreement with Sovereign Partners.

Brokerage: Revenue was $109.2 million in Q3 2025, a 39% increase y-o-y. Ended the quarter with 15,371 agent licenses, up 24.1% y-o-y. Gross profit margin was 6%, consistent with prior year. Adjusted EBITDA for Brokerage was $1.6 million, a 100% increase y-o-y. Mortgage: Revenue was $3.5 million in Q3 2025, up from $2.9 million y-o-y. Adjusted EBITDA was $161,000 in Q3 2025, compared to a loss of $319,000 y-o-y. Title (Verus Title): Revenue was $1.8 million in Q3 2025, a 28.6% increase y-o-y. Adjusted EBITDA was a loss of $191,000 in Q3 2025, compared to a loss of $92,000 y-o-y. Technology: Third-party revenue was $829,000 in Q3 2025, an increase from $785,000 y-o-y. Adjusted EBITDA was $488,000 in Q3 2025, compared to $152,000 y-o-y.

• Residential real estate market showing recovery signs, narrowing spread between 10-year treasury yield and 30-year mortgage rate, potential Fed rate cuts, modest home price declines.
• Anticipate programs like Elevate, START to gain momentum in 2026.
• Aim to achieve operational cash flow breakeven by Q2 2026.

• Prolonged government shutdown could negatively impact Q4 real estate industry.
• Uncertainty in brokerage landscape due to recent larger acquisitions.

Q: Detail on intelliAgent licensing go-to-market strategy.

A: Approximately 18,000 small brokerages identified, starting with existing relationships, accelerating in Q1 2026.

Q: Attach rates, especially with START.

A: START has ~70% attach rate, expanding to other states, anticipate maintain high attach rates as process is replicated.