Fathom Holdings, Inc.’s Second Quarter 2023 Results Shows Agent Growth and Resilience

August 10, 2023
9:45 am

We are excited to unveil the impressive second-quarter 2023 results for Fathom Holdings, Inc., a testament to our commitment to growth, adaptability, and thriving within the dynamic residential real estate industry. Here’s an overview of the achievements highlighting our progress and determination during this period.

Financial Milestones

In the second quarter ending June 30, 2023, Fathom Holdings reported a total revenue of $100.1 million. Despite challenges, our dedication to progress shines through as we achieved an Adjusted EBITDA of $458,000 during this period. These results underscore our strategy’s effectiveness and focus on enhancing our financial performance and operational efficiency.

Expanding Agent Network

One of the cornerstones of our success is our real estate agent network, which grew by an impressive 14.3% to approximately 10,930 agent licenses by June 30, 2023. This growth, compared to an industry decline of 1.5% (according to the National Association of REALTORS), reaffirms our appeal as a platform that empowers agents to excel and flourish.

Navigating Transactions with Resilience

Despite market fluctuations, Fathom Holdings completed approximately 11,010 real estate transactions in the second quarter of 2023. While this represents a 16.7% decrease from the previous year, it’s important to note that the overall market experienced an 18.6% decline (according to the National Association of REALTORS and the Census Bureau). Our ability to navigate challenges with resilience showcases our adaptability.

Strategic Expansion and Leadership

During the second quarter, Fathom Holdings expanded its presence in various states, demonstrating our commitment to reaching new markets and broadening our footprint. Additionally, we welcomed Steve Murray, a highly experienced real estate industry executive, to our board of directors. This addition reinforces our dedication to bringing top-tier talent into our leadership team.

Commitment to Growth

Fathom CEO Joshua Harley expressed his satisfaction with the company’s achievements: “We’ve made significant progress this year in advancing our growth strategy while continuing to adapt and thrive in the rapidly evolving residential real estate industry. During the second quarter, we achieved our goal of Adjusted EBITDA breakeven. We are proud of the tremendous progress we made in reducing our cash burn from over $5 million in Q4 of 2022 to less than $1 million in Q2 of 2023. We continue to be committed to maintaining positive Adjusted EBITDA going forward and ultimately achieving positive cash flow, although the latter may not be reached in Q3. We anticipate continued cash investments to fuel the growth of our mortgage division, agent recruiting, and potential acquisitions.”

A Strong Path Forward

As Fathom President and CFO Marco Fregenal emphasized, “Our balance sheet remains strong, and now that we have achieved breakeven Adjusted EBITDA, we can start to show the operating leverage in our businesses going forward. During the second quarter, we continued to see the benefits from the cost-reduction measures we’ve implemented and improved performance across all of our divisions, which we believe positions us for profitable growth ahead.”

At Fathom Holdings, we remain dedicated to advancing our growth strategy, empowering our agents, and driving innovation. Our second-quarter results underscore our commitment to excellence and resilience, positioning us for a thriving future in the ever-evolving real estate landscape.