Tue, Nov 12, 2:25 PM (238 days ago)
Fathom Holdings Inc. (FTHM) reported a net loss of $8.1 million for Q3 2024, an increase from $5.5 million in Q3 2023, reflecting a 10% decline in total revenue to $83.7 million, primarily due to an 11% drop in gross commission income. This decline was attributed to a decrease in transaction volume amid high home prices and uncertain mortgage rates. Operating expenses also decreased by 7% year-over-year, largely due to lower commission costs, offset by litigation contingencies related to ongoing antitrust settlements. Cash and cash equivalents rose to $13.1 million as of September 30, 2024, bolstered by the sale of Dagley Insurance Agency. The company anticipates sufficient liquidity for the next year, driven by increased agent fees and operational cash flows. However, ongoing litigation and market uncertainties pose risks to future performance. Fathom's strategic initiatives, including new commission plans and acquisitions, aim to enhance growth and profitability amidst these challenges.