Fathom (FTHM) investor relations material

Business performance and growth

• Achieved 36% year-over-year revenue growth in Q2, with 25% transaction and 23% agent growth despite industry headwinds.

• Invested $20 million in technology, positioning as a technology-driven platform.

• Recent acquisition of My Home Group added 2,200 agents, contributing to scale and efficiency.

• Adjusted EBITDA turned positive in Q2, with expectations for continued profitability.

• Ancillary services like mortgage and title grew 65% and 89% respectively in the first half of the year.

Technology and platform strategy

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

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

• Plans to license technology to other brokerages, creating a new SaaS revenue stream starting next year.

• Platform includes customizable agent websites, CRM, transaction management, and neighborhood data.

• Licensing and tech-enabled services expected to become a significant business segment.

Market trends and industry outlook

• Home prices, not just interest rates, are the main factor affecting affordability; prices are starting to decline, especially on the West Coast.

• Predicts a 10% drop in home prices and a decrease in interest rates to 6.25% over the next year, improving affordability and transaction volume.

• Expects industry transactions to rise about 10% next year, with further growth by 2027.

• Company aims to capture a significant share as the market recovers, leveraging its technology and scale.