Fathom Holdings Q2 2025: Navigating Contradictions in Agent Onboarding and Acquisition Strategies

Elevate agent onboarding pipeline, agent onboarding timeline and external marketing, agent recruitment and retention strategies, My Home Group acquisition payment structure are the key contradictions discussed in Fathom Holdings Inc.'s latest 2025Q2 earnings call.



Revenue, Agent, and Transaction Growth:
- Fathom Holdings Inc. reported revenue of $121.4 million for Q2 2025, up 36.1% year-over-year.
- The company also experienced a 25% increase in transactions and a 23% rise in agent count.
- This growth was driven by the acquisition of My Home Group, the success of the Elevate program, and competitive commission structures.

Elevate Program Success:
- Fathom's Elevate Agent Concierge program has been successful, with 8 transactions per agent on average and over 1,700 leads generated in July.
- Elevate transactions generate 4x the gross profit and 5x the adjusted EBITDA of standard broker transactions.
- The program's success is due to its productivity enhancement, agent satisfaction, and high-margin recurring revenue for Fathom.

Ancillary Services Expansion:
- Verus Title, an ancillary service, saw a 90% increase in revenue to $1.5 million in Q2 2025.
- The growth in this segment was driven by strong organic growth from increased order volumes, enhanced agent relationships, and process efficiency improvements.

Profitability and EBITDA:
- Fathom returned to adjusted EBITDA profitability in Q2 2025 with a non-GAAP adjusted EBITDA of $29,000.
- The company achieved this by improving operating leverage and a higher proportion of revenue converting to earnings.
- Cost management initiatives and strategic investments in technology and marketing also contributed to this milestone.

Real Estate Market Outlook:
- Fathom anticipates a modest recovery in transaction volume due to increased inventory, easing affordability pressures, and potential lower mortgage rates.
- The company is positioned to outpace the broader market, supported by its agent-centric model and strategic initiatives.
- This outlook is driven by the company's competitive pricing, strong agent satisfaction, and integrated platform services.