Fathom (FTHM) The Gateway Conference 2025 summary

Business performance and growth

• Achieved 36% year-over-year revenue growth in Q2, with 25% growth in transactions and 23% agent growth despite a challenging real estate market.

• Expanded through both organic growth and acquisitions, including the My Home Group deal adding 2,200 agents.

• Adjusted EBITDA turned positive in Q2, with expectations to maintain this in Q3.

• Mortgage and title businesses grew 65% and 89% respectively from January to June.

• Projecting 35%+ annual growth and aiming for 100,000 agents via direct and SaaS channels.

Technology and platform strategy

• Invested $20 million in proprietary technology, positioning as a tech company with 40 developers.

• Platform functions as an ERP for real estate, supporting agents and soon consumers via a new portal.

• Licensing technology to other brokerages is set to become a major revenue stream starting next year.

• Technology enables transaction costs under $270, far below industry averages.

• Platform includes CRM, transaction management, neighborhood data, and lead generation tools.

Differentiated business model and services

• Operates a virtual, office-free model with flat-fee commissions, offering higher agent earnings.

• Launched Elevate, a concierge service handling non-sales tasks for agents, charging a 20% fee and yielding over 4x gross profit.

• Revenue share and SaaS-like annual fees provide additional income streams.

• Programs target specific audiences, including first-time buyers and the growing Latino market.

• Agent turnover is less than 1.5% monthly, half the industry average, attributed to culture and support.