Fathom Sees Growth Amidst Headwinds: CEO Marco Fregenal Shares Vision for Long-Term Success
In a conference call on March 30th, Fathom's President and CEO, Marco Fregenal, outlined the company's progress in Q4 2025 amidst challenging market conditions.
Despite higher interest rates and affordability constraints significantly reducing transaction activity across the industry, Fathom continued to execute on its long-term strategy. The company reported a 25% year-over-year revenue growth for the full year 2025, reaching $420 million. Total transactions also increased nearly 15%, driven in part by the addition of My Home Group and strong agents joining the network.
Fregenal emphasized that the progress made during Q4 reflects the company's efforts to strengthen its platform. Gross profit rose 20.8% to $34.2 million, compared to $28.3 million in 2024, while adjusted EBITDA improved by $1.7 million to a loss of $4 million, compared to a loss of $5.7 million in 2024.
The CEO highlighted several strategic milestones achieved during Q4, including the expansion of ancillary businesses, launch of new programs and partnerships, strengthening of the leadership team, and sharpening focus on the core Fathom ecosystem.
Market conditions, however, remained challenging. Transaction volumes in December reflected broader trends, with cancellation rates exceeding 20% in some markets. Nevertheless, Fregenal expressed encouragement regarding the strengthening quality of the company's business, citing a restructured economics model reducing reliance on transaction volume and building a more durable profit model.
Fregenal outlined four key areas central to the company's vision: margin expansion, agent experience, customer experience, and AI-driven technology. He highlighted the growth of Elevate, the concierge-level offering, which added over 100 agents in Q4 2025 and START, the first-time buyer concierge program, launched through an acquisition.
The CEO stated that these programs are expected to represent at least 10% of total transaction volume by year-end and increase to over 15% by the end of 2027. With gross profit margins ranging from 20% to 50%, Fregenal expressed confidence in their potential positive impact on overall margins.
Additionally, Fathom's mortgage business delivered strong performance, with revenues increasing 70% in Q4 2025 compared to Q4 2024 while maintaining gross profit margins of approximately 35%. The title business also performed well, growing 38% in Q4 and contributing to gross profit margins of approximately 58%.
