Strong sales growth in the middle of the challenges

• Total turnover: USD 93.1 million, an increase of 32.1% compared to the previous year.

• Brokerage income: 88.9 million US dollars, 36% compared to the previous year.

• Gross profit: 8.1 million US dollars, an increase of 13% compared to the previous year.

• Agentan number: Approx. 14,750, 22.8% compared to the first quarter of 2024.

• Real estate transactions: 9,715, an increase of 26.1% compared to the first quarter of 2024.

• Mortgage income: 2.6 million US dollars, an increase of 13% compared to the first quarter of 2024.

• Title turnover: 1 million US dollars, an increase of 43% compared to the first quarter of 2024.

• Gaap -Netto -Trocht: $ 5.6 million or $ 0.24 per share compared with a loss of $ 5.9 million or $ 0.31 per share in the first quarter of 2024.

• Intended EBITDA loss: 1.5 million US dollars, unchanged compared to the first quarter of 2024.

• Cash position: 8 million US dollars at the end of the quarter.

Appearance date: May 13, 2025

For the complete protocol of the earnings call, see the full profit call transcription.

• Fathom Holdings Inc (Nasdaq: FTHM) recorded an increase in total sales of 32.1% for the first quarter of 2025 and achieved $ 93.1 million, which exceeded the expectations of the analysts by 12%.

• The brokerage turnover rose by almost 36% to $ 88.9 million, which is due to an increased transaction volume and the number of agents.

• The company successfully reduced expenditure by around 750,000 per quarter and contributed to a more efficient and scalable business model.

• The new Elevate program, which was developed to increase the productivity and profitability of the agents, has already attracted over 120 agents since its soft start.

• Fathom Holdings Inc (Nasdaq: FTHM) expects adjusted EBITDA redematability in the second quarter of 2025, which represents a significant milestone for its financial performance.

• Despite the growth of sales, Fathom Holdings Inc (Nasdaq: FTHM) recorded a GAAP Netto -Lustoverlust of $ 5.6 million for the first quarter of 2025, although this was an improvement compared to the loss of the previous year.

• The company's technology segment recorded a decline in third -party income and fell from USD 800,000 in the first quarter of 2024 to $ 600,000 in the first quarter of 2025.

• The mortgage business reported an adjusted EBITDA loss of $ 400,000, although this was an improvement compared to the loss of the previous year.

• Verus Title, part of Fathom's ownership business, reported an adjusted EBITDA loss of $ 400,000 for the first quarter of 2025, which was lost in the previous year.

• The company is facing current economic headwinds, including increased mortgage interests and global economic uncertainty that could affect future performance.

Q: Can you go into more detail on how the Elevate program increases profitability both for gross gain and for adjusted EBITDA per transaction compared to conventional programs? What is the onboarding pipeline for agents in a hurry? A: Marco Fregenal, CEO, said that the distribution of a 20% commission increases the fees and due to the efficiency of the Intelliagent platform, you can expect gross profit margins to grow by 3x to 4x compared to traditional margins. The program had a soft start four weeks ago, with 120 agents already registered. They want to have around 100 new agents per month on board by the end of the year, with the complexity of the program a careful growth approach.