Fathom Holdings Inc. achieved some definite growth in business in Q1 2025, with executives pointing to the launch of the new Elevate program as a strong indicator of current—and future—successes.
Fathom reported a total revenue of $93.1 million in Q1 2025 in its recent earnings call, up from $91.7 million in Q4 2024 and a 32% year-over-year revenue increase from $70.5 million in Q1 2024.
Executives made a point to note both on the call and in the release that this quarter’s results beat analyst expectations by 12%. The company’s stock was up sharply, around 14% in early trading.
Looking at different revenue segments, Fathom saw mostly year-over-year growth across the board. Brokerage revenue was reported at $88.9 million, up from $87.7 million last quarter and an increase of 35.9% year-over-year from $65.4 million in Q1 2024. Mortgage revenue clocked in at $2.6 million, up from $2 million last quarter and up 13% from $2.3 million in the same period last year. Title revenue was $1 million, down from $1.3 million last quarter but up 43% from $0.7 million in Q1 2024.
In terms of agent and transaction counts, Fathom again saw significant year-over-year increases, even if quarter-over-quarter was mixed. Agent count rose to 14,715 agents from 14,300 in Q4 and 11,986 last year. Transactions were at 9,715, down from 9,903 last quarter but up from 7,703 last year.
The big focus of Fathom’s earnings call was its new Elevate program, a “concierge-level initiative designed to significantly enhance agent productivity, transaction efficiency and overall profitability,” as stated in a release. To break this down, Elevate is a suite of services for facets of the job such as marketing, lead generation and conversion, transaction support, coaching, recruiting assistance and customer service.
There is an extra 20% commission split (on top of the standard transaction fee) when joining the program, which Fathom stated is “competitive” compared to many other brokerages with similar fees but less support offerings. CEO Marco Fregenal said that the company’s goal with Elevate is “to bridge the gap that so many agents experience” in terms of services they receive for the commission splits they pay.
Fregenal also noted that since the “soft launch” a month ago, Fathom has seen “over 120 agents sign up for the program.”
“We want to be careful about the growth. It is a complex program, and so we want to make sure that we are firing all cylinders. But we think that by the end of the year, we can be at about 100 new agents a month,” he continued.
When discussing with investors how the Elevate program can increase profitability, Fregenal said that “because we’re charging 20% and because of the efficiencies of IntelliAgent, we are going to see a higher gross profit margin per transaction.”
“I think we can see gross profit margins grow by three to four times compared to our traditional gross profit margin,” he continued. “And it’s really because of the efficiency of our platform and what we can deliver.”
Fregenal also told investors that conversations with other brokerages about joining the Fathom team have accelerated since the launch of Elevate. In addition, he noted that different brokerages and technology partners have expressed interest in licensing Elevate.
“There has been a significant interest from a lot of different companies on what Elevate is,” he said. “And we’re looking forward to continuing to expand the program, not only into other companies, but into other types of agents (meaning teams and so on).”
Fregenal concluded by reiterating the company’s main focus, the “three core drivers of long-term profitability.”
“First, expanding revenue through strategic growth. Second, enhancing gross margins through agent programs such as Elevate and ancillary services. And third, continued cost discipline across all areas of the business,” he said.
