Fathom | 10-Q: FY2025 Q3 Revenue Beats Estimate at USD 115.31 M

Revenue: As of FY2025 Q3, the actual value is USD 115.31 M, beating the estimate of USD 102.12 M.

EPS: As of FY2025 Q3, the actual value is USD -0.15, missing the estimate of USD -0.14.

EBIT: As of FY2025 Q3, the actual value is USD -3.926 M.

Real Estate Brokerage Segment

• Revenue: $314.1 million for the nine months ended September 30, 2025, compared to $227.1 million for the same period in 2024, representing a 38.3% increase.
• Commissions: $300.3 million for the nine months ended September 30, 2025, compared to $215.6 million for the same period in 2024.
• Adjusted EBITDA: $5.2 million for the nine months ended September 30, 2025, compared to $3.2 million for the same period in 2024.

Mortgage Segment

• Revenue: $9.4 million for the nine months ended September 30, 2025, compared to $8.9 million for the same period in 2024.
• Commissions: $2.6 million for the nine months ended September 30, 2025, compared to $2.7 million for the same period in 2024.
• Adjusted EBITDA: -$0.3 million for the nine months ended September 30, 2025, compared to -$0.8 million for the same period in 2024.

Technology Segment

• Revenue: $2.1 million for the nine months ended September 30, 2025, compared to $2.3 million for the same period in 2024.
• Adjusted EBITDA: $0.8 million for the nine months ended September 30, 2025, compared to $0.3 million for the same period in 2024.

Cash Flow

• Net Cash Used in Operating Activities: -$8.6 million for the nine months ended September 30, 2025, compared to -$4.4 million for the same period in 2024.
• Net Cash Provided by Investing Activities: $1.7 million for the nine months ended September 30, 2025, compared to $5.1 million for the same period in 2024.
• Net Cash Provided by Financing Activities: $9.4 million for the nine months ended September 30, 2025, compared to $5.2 million for the same period in 2024.

Future Outlook and Strategy

• Core Business Focus: The company plans to continue expanding its business organically and through acquisitions, with a focus on increasing attach rates across its businesses from internal referrals and reducing certain expenses.
• Non-Core Business: The company completed the sale of its Dagley Insurance Agency operations in May 2024, which was not classified as discontinued operations as it did not materially affect the company’s operations.