Fathom Holdings 2025 Q2 Earnings Deeper Losses Despite 36% Revenue Surge

Fathom Holdings reported its fiscal 2025 Q2 earnings on August 12, 2025, revealing a notable revenue increase but a widening net loss. The company's financial performance showed mixed signals, with continued losses despite growth in core segments.

Fathom Holdings reported a 36.1% year-over-year increase in total revenue, reaching $121.42 million in Q2 2025 compared to $89.21 million in Q2 2024. The Real Estate Brokerage segment remained the dominant contributor, posting $115.98 million, while the Mortgage segment added $3.32 million. The Technology segment contributed $1.05 million, and Corporate and other services added $1.52 million. A small intersegment adjustment of -$450,000 brought the total to $121.42 million. Despite the strong revenue growth, the earnings picture was stark: the company's losses widened to $0.13 per share from $0.07 per share, and net loss increased to $-3.59 million from $-1.29 million, marking a 177.6% deterioration in net losses year-over-year.

The stock price of Fathom Holdings experienced a positive response in the short term, with a 3.60% gain in the latest trading day, a 20.00% surge over the week, and a 16.13% rise month-to-date. However, the performance of a strategy based on buying shares post-earnings following a revenue increase was disappointing. The negative Sharpe ratio, significant maximum drawdown, and negative CAGR over three years indicated poor risk-adjusted returns and volatility, suggesting the strategy is not viable for investors seeking long-term growth.

The stock price of Fathom Holdings climbed 3.60% during the latest trading day, surged 20.00% over the most recent full trading week, and surged 16.13% month-to-date. Despite this positive near-term price action, the broader performance of a strategy based on buying the stock following a revenue raise and holding for 30 days showed poor results. The negative Sharpe ratio indicated significant risk-adjusted losses, while the high maximum drawdown reflected substantial downside volatility. The negative compound annual growth rate over a three-year period further underscored the strategy's ineffectiveness and high risk for investors.

CEO Marco Fregenal highlighted the 36% revenue growth and 25% transaction increase in Q2 2025, emphasizing Fathom's return to adjusted EBITDA profitability. He credited the Elevate Agent Concierge program as a key driver of productivity and high-margin recurring revenue, with 70 agents enrolled and plans to expand to 300 by year-end. Fregenal underscored Fathom's agent-first model, including Fathom Max, Fathom Share, and Elevate, as scalable and diverse offerings. The CEO also noted expansion in the Arizona market through Sovereign Realty and My Home Group, positioning Fathom for national replication. Fregenal expressed optimism about a real estate market shift toward balance and a modest recovery, driven by Fathom's strategic focus on agent satisfaction, cost control, and margin expansion through ancillary services.

Fathom Holdings expects sustained revenue growth and positive adjusted EBITDA for the remainder of 2025, alongside continued expansion in agent and transaction counts. The company anticipates Elevate to generate 10,000 leads per month by December, with transactions expected to yield 4x gross profit and 5x adjusted EBITDA compared to standard brokers. Fregenal also foresees growth in mortgage and title services as Elevate agents increase and expects several key partnerships and product launches, including Elevate 4 teams, to enhance the platform. Fathom plans to maintain low churn, leverage its agent-centric model to outpace the broader market, and capitalize on a potential shift in interest rates and housing dynamics through disciplined execution and strategic investments.

Additional News
Nigeria’s fuel consumption declined significantly in June 2025, with total fuel evacuation dropping to 1.44 billion litres. Political tensions also emerged in Oyo State, where cattle breeders threatened to halt livestock sales due to anti-grazing laws. Meanwhile, political stakeholders in Kano signed a peace accord ahead of by-elections, and the Lagos State government announced a two-day traffic diversion in Ikoyi. Other notable developments included a Federal Government move to appoint KWAM 1 as an aviation security ambassador and a reported withdrawal of a criminal complaint against an Ibom Air passenger.