Fathom Holdings Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing a decline in revenue and an increase in net losses compared to the previous fiscal period. Total revenue for Q3 2024 was $83.7 million, down 10% from $93.5 million in Q3 2023. Gross commission income also fell by 11% to $78.6 million, influenced by a 9% decrease in transaction volume, with 9,331 real estate transactions recorded in Q3 2024 compared to 10,303 in the same quarter of 2023. The average revenue per transaction decreased by 2% to $8,420.

For the nine months ended September 30, 2024, total revenue was $243.4 million, a decrease of 10% from $271.2 million in the same period in 2023. Gross commission income for this period also declined by 11% to $227.1 million. The company attributed these declines to high mortgage interest rates affecting transaction volumes.

Operating expenses for Q3 2024 totaled $91.5 million, down 7% from $98.9 million in Q3 2023. The decrease was primarily due to lower commission and agent-related costs, which fell by 11% to $74.2 million. However, litigation contingency expenses increased significantly, reflecting the company's settlement related to claims in Burnett v. The National Association of Realtors, which totaled $2.95 million.

Fathom Holdings reported a net loss of $8.1 million for Q3 2024, compared to a net loss of $5.5 million in Q3 2023. For the nine-month period, the net loss was $15.3 million, slightly improved from a loss of $15.5 million in the same period last year. The net loss per share for Q3 2024 was $(0.40), compared to $(0.34) in Q3 2023.

The company’s cash and cash equivalents increased to $13.1 million as of September 30, 2024, up from $7.4 million at the end of 2023. This increase was bolstered by proceeds from the sale of Dagley Insurance Agency, which generated approximately $7.8 million in cash at closing. Additionally, Fathom Holdings issued senior secured convertible promissory notes totaling $5 million in September 2024, resulting in net proceeds of $4.9 million.

Strategically, Fathom Holdings announced the acquisition of My Home Group, a brokerage with over 2,200 agents, enhancing its presence in Arizona and Washington. The company also implemented an increase in agent fees starting January 2024 and launched new commission plans to improve agent recruitment and retention. As of September 30, 2024, Fathom had approximately 12,383 agent licenses, reflecting a 9% year-over-year growth.