FTHM

• Third quarter marked 37.7% year - over - year revenue growth, nearly doubling analysts' expectations, and achieved adjusted EBITDA profitability.
• Agent base grew 24% year - over - year to over 15,300 licensed agents, with lowest turnover in recent years.
• Ancillary businesses: Mortgage company Encompass Lending had 20.7% revenue increase and adjusted EBITDA of about $160,000; Varus Title had 28.6% revenue growth; technology segment had 18% increase. Ancillary business transactions generate gross profits 7 - 10 times higher than real estate transactions.
• Fourth quarter growth accelerating: file starts for mortgage and title businesses up over 60% compared to same period last year. Veracito's expansion into new markets, IntelliAgent licensing agreement with Sovereign Partners.
• Elevate program: over 165 agents onboarded, with 45 agents in the pipeline. Delivers tremendous value to agents and improves Fathom's retention, productivity, and profitability.
• New growth initiatives: Acquisition of Start Real Estate, expanding Real Results team, strategic partnership with Buy Owner.

• Anticipate capitalizing on housing market recovery trends in 2026.
• Continue diversifying revenue streams with higher margin products and services.
• Expand flagship programs like Elevate and Start.
• Strengthen attach rates across mortgage and title.
• License technology platform to small brokerages and teams to scale efficiently and profitably.
• Expect to achieve operational cash flow breakeven by second quarter of 2026.

For the third quarter of 2025, total revenue was 115.3 million, a 37.7% increase year over year. Brokerage segment revenue was 109.2 million, an increase of 39% year over year. Mortgage segment revenue was 3.5 million, up from 2.9 million in the prior year period. Varus title revenue was 1.8 million, an increase of 28.6% compared to the same period in 2024. Technology business third - party revenue was 829,000 for the third quarter of 2025, compared to 785,000 for the same period in 2024. Adjusted EBITDA for brokerage segment increased by 100% to 1.6 million for the third quarter of 2025. Mortgage segment adjusted EBITDA was 161,000 for the third quarter of 2025 compared to a loss of 319,000 in the same period of 2024. Varus Title adjusted EBITDA was a loss of 191,000 for the third quarter of 2025 compared to a loss of 92,000 in the same period of 2024. Technology business adjusted EBITDA was 488,000 for the third quarter of 2025, compared to 152,000 in the same period of 2024.

• Prolonged government shutdown could have a negative effect on the real estate industry in Q4.
• Market consolidation creates uncertainty within the broker's landscape.

Q: Hey, thanks for taking my question. To start on IntelliAgent licensing, you talked about 18,000 brokerages you identified, I think. Could you sort of go into a bit more detail on your go - to - market strategy on that? How many are you potentially in talks with or have approached you?

A: Yeah, sure. Thank you, Dale, for your question. Yeah, there are approximately about 18,000 brokers between 25 and 500 agents. And we already, our go - to - market strategy really starts, you know, we already built several different relationships across the industry over the last four or five years. We probably have relationships with a few hundred small brokers already. Also through our partnership with Livebuy. Livebuy has approximately another 200 brokerages as customers. So when you combine all of this, you're looking at 300 or 400 small brokers that we have our relationship with. We'll begin with those and then we'll continue marketing to all 18,000 and demonstrating our value proposition to them as we have done for my home group and sovereign partners as well. So, and we'll begin that. We already have begin that in terms of discussions, but that will accelerate in Q1 of next year.

Q: Just as a follow - up, could you comment on attach rates this quarter? And then with Start Real Estate, they seem to have quite high attach rates. What do you think is the possibility of, obviously you're trying to expand that, but keep the attach rates where they're at on that business as you take it into more states and just scale?

A: yeah so stark is really a very interesting business um randy the owner really created uh a process in which really holds the hand of a of a first - time buyer you know for people who never bought a home buying your first home is a rather complex process my son just bought his my younger son just bought his first home and even told me that i can't even measure how complex this is so it is a complex process And Randy has created a really hands - on operational process that does that. His attached rate is over 70%. He currently is in Colorado. We already are expanding into three other states. And we believe that we'll be able to expand to every state in the country. We do anticipate attached rates to continue to be that high. And we've seen that because he already started in Utah and he's already seen that attached rate because really it's a byproduct of the process that he created. And so we're basically going to replicate that across the country. And that's really his special soft to run this program. So to answer your question, we do anticipate significantly growing the program, and we do anticipate to have attach rates over 70%. Having said that, we continue to improve the attachment rate for ELG across the country as well. And about 50% of the ELG business coming from Fathom. And as ELG continues to grow, we continue to see that. And same thing with the VAERS title. So, you know, I think the combination of what we have done with ELG and VAERS combined with Start Realty, I think overall we'll see attachment rates continue to grow next year and beyond.