The parent company of Fathom Realty, the tech-focused, full-service brokerage under its corporate umbrella, yesterday reported 25% revenue growth for the full year 2025 to $420.5 million, driven by 15% transaction growth, but missed Q4 2025 earnings expectations.
The company reported a $6.7 million loss in Q4 and a full-year 2025 net loss of $20.3 million. Despite the Q4 miss, 2025 showed improved, reduced losses compared to 2024 due to increased revenue and cost controls.
“As we move through 2026, our focus remains on driving margin expansion, increasing revenue per transaction and continuing to scale our higher-margin ancillary services, President and CEO Marco Fregenal said in a statement. “With a stronger, more diversified platform in place, we believe Fathom is well positioned to benefit as transaction volumes recover, enabling us to drive stronger growth, improved profitability and greater operating leverage over time.”
The company’s stock fell sharply in aftermarket trading, already down around 40% this month. The company went public during the pandemic boom market in 2020, and like many other big national brokerages, has faced significant challenges as interest rates have risen and sales remain low.
Fregenal said that “(t)hese results reflect the resilience of our technology-first platform, with continued growth across our agent network and higher-margin mortgage and title businesses, even as transaction activity remained pressured in line with broader industry trends.”
The company sought to focus on some specific initiatives, including lead generation through the recent partnership with a FSBO platform (byowner.com) and the acquisition of START Real Estate, a Colorado-based brokerage that focuses on first-time buyers. Both deals were announced late last year.
“We’re also seeing encouraging traction with Fathom Business Services, our coaching program,” Fregenal told investors.
On the other hand, Fregenal acknowledged that 35% of agents at Fathom never closed a transaction, part of the reason the company has shifted some fees from annual transaction fees to a “monthly structure” with a new program called “Edge.”
That program also skews from the company’s 100% commission model, taking a 7% cut of commission with a $9,000 cap. That allows the company to “participate more directly in the upside of the market,” Fregenal said.
All new agents will be part of the Edge program (launching April 1), according to Fregenal, while existing agents can stay in their current plan.
Fregenal also claimed that the company’s programs and pivots are designed to “deliver meaningfully stronger results” regardless of a market recovery, even as he sees strength in the “long-term fundamentals” of the housing market.
“Regardless of when transaction volumes recover, Fathom is well-positioned, and more importantly, we are entering the next phase of the business,” he said.
