Fathom Holdings Inc. has released its financial results for the fourth quarter and full year ending December 31, 2024. Despite ongoing headwinds in the residential real estate sector, the company achieved a robust 24% year-over-year revenue increase, demonstrating resilience and strategic growth.

Financial Performance

Fathom’s total revenue for Q4 2024 grew by approximately 24%, reaching $91.7 million compared to $74.1 million in Q4 2023. The company’s core business segments showed significant progress:

Gross profit rose by 25% to $6.7 million from $5.3 million in Q4 2023, with the core business gross profit increasing by an impressive 59%, reaching $6.6 million from $4.2 million. However, the quarter reflected some financial challenges due to an unexpected rise in interest rates and other market challenges.

Operational Highlights

Fathom Realty continued to expand its market presence in Q4 2024:

– Transaction Growth: Real estate transactions increased by 22%, totaling 9,903 transactions compared to 8,114 in Q4 2023.

– Agent Network Expansion: The number of real estate agent licenses grew by 21%, reaching approximately 14,300 agents by year-end, up from 11,795 the previous year.

Strategic Initiatives and Business Developments

Fathom Realty took several strategic steps in 2024 to enhance revenue streams, improve profitability, and solidify its market position:

– Fee Adjustments: Effective January 1, 2024, the agent’s annual fee increased from $600 to $700. Additionally, a ‘High-Value Property Fee’ was introduced for sales above $600,000, adding $200 for properties between $600,000 and $999,999 and an extra $250 for every $500,000 above $1,000,000.

– Verus Title Elite Launch: In April 2024, Fathom Realty launched Verus Title Elite, a joint venture to increase revenue and market penetration in Texas.

– New Agent Commission Plans: In August 2024, Fathom Max and Fathom Share were introduced, innovative commission structures designed to boost recruitment, retention, and profitability.

– Legal Settlement: Fathom Realty reached a nationwide settlement in Burnett v. The National Association of Realtors, committing to a $2.95 million settlement fund, with payments scheduled through 2026.

– Acquisition of My Home Group: On November 1, 2024, Fathom acquired My Home Group (MHG), adding over 2,200 agents to its network and strengthening its presence in Arizona and Washington.

Outlook for 2025

Looking ahead, Fathom anticipates continued challenges in the real estate market but remains optimistic about its trajectory. “Our goal is to return to our historical 25% annual revenue growth, supported by higher gross profit from ancillary services, targeted recruitment, and ongoing innovation,” Fregenal stated. “We remain committed to building a best-in-class, technology-driven platform that empowers agents, streamlines transactions, and delivers long-term shareholder value.”

With its solid financial foundation and strategic initiatives, Fathom Holdings Inc. is well-positioned to navigate market fluctuations and continue its growth momentum in the years ahead.
Read the full press release HERE.