In a Q3 earnings call Nov. 11, Fathom Holdings, which includes Fathom Realty, the tech-focused, full-service brokerage under its corporate umbrella, reported 38% year-over-year revenue growth, a 24% increase in agent count and 23% transaction growth.
“In the third quarter, we continued to build on the momentum achieved in the first half of the year,” said Fathom CEO Marco Fregenal. “We also executed on several strategic growth initiatives during the quarter and October. Verus Title expanded into Arizona and Alabama, and we strengthened our team through strategic hires and partnerships, including our collaboration with Real Results. In addition, we continued to pursue inorganic opportunities.”
On the call, Fregenal also addressed recent industry consolidation, claiming the trend favors Fathom and predicting that “small brokerages will explore opportunities to merge with or partner with larger firms.”
He also pointed to Fathom’s turnover rate, at 1% a month, and a net increase of 24% in agent count as reasons the company remains optimistic despite market conditions. A “strategic partnership” with FSBO listing company ByOwner announced this month also represents a significant opportunity, Fregenal said, claiming that around 20% of FSBO listings “eventually convert to full-service representation.”
“Through this partnership, ByOwner will refer motivated sellers and buyers to the Fathom network of agents and lenders, expanding our reach and creating additional valuable growth channels,” he said.
Another niche Fathom is seeking to fill is first-time buyers, specifically through the acquisition of Colorado-based START Real Estate, which focuses on down payment assistance and support for inexperienced buyers. Fathom is planning on integrating that company’s “proprietary technology” with its own platform.
“We are going to basically replicate that across the country,” Fregenal said, lauding the co-founder of START, Randy Bell, who “really created a process in which really holds the hand of a first-time buyer.”
Fathom’s stock price rose 15.5% in aftermarket trading as investors reacted positively to the revenue beat and strategic initiatives.
Q3 Highlights
- Fathom’s total revenue increased 37.7% to $115.3 million for the third quarter of 2025, up from $83.7 million in the third quarter of 2024.
- Brokerage revenue increased by 39% to $109.2 million for the third quarter of 2025, up from $78.6 million in the third quarter of 2024.
- Mortgage revenue increased 20.7% to $3.5 million for the third quarter of 2025, up from $2.9 million in the third quarter of 2024.
- Title revenue increased 28.6% to $1.8 million for the third quarter of 2025, up from $1.4 million in the third quarter of 2024.
- Gross profit increased 39.1% to $9.6 million for the third quarter of 2025, up from $6.9 million in the third quarter of 2024.
- Fathom completed a $6.9 million common stock offering in September 2025, issuing 3.45 million shares at $2.00 per share and receiving $6.5 million in net proceeds.
