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Fathom Holdings Inc. (FTHM-6.21%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in gross commission income to $78,563,000 from $88,247,000 in the same quarter the previous year. This decrease is attributed to a reduction in transaction volume due to higher home prices and mortgage interest rate uncertainty.
Other service revenue decreased slightly to $5,170,000 from $5,277,000, reflecting a $1.6 million increase in revenue from mortgage and title businesses, offset by the absence of revenue from the sold insurance business.
Commission and other agent-related costs decreased to $74,187,000 from $83,770,000, aligning with the decrease in transaction volume.
Operations and support expenses increased to $2,293,000 from $1,886,000, driven by higher revenues in the mortgage and title segments.
Technology and development expenses rose to $2,044,000 from $1,760,000, reflecting ongoing investment in the intelliAgent platform and LiveBy business.
General and administrative expenses decreased to $8,660,000 from $9,793,000, primarily due to lower stock compensation expenses and the absence of costs from the sold insurance business.
A litigation contingency expense of $3,099,000 was recorded due to an accrued settlement related to claims against the National Association of Realtors.
Marketing expenses were stable at $767,000 compared to $796,000, with increased third-party marketing services offset by decreased employee marketing costs.
Depreciation and amortization expenses decreased to $444,000 from $891,000, largely due to the absence of amortization related to the sold insurance business.
Net loss for the quarter was $8,121,000, compared to $5,496,000 in the previous year. The increase in loss is attributed to the litigation contingency expense and decreased revenue.
The company reported cash and cash equivalents of $13,426,000 as of September 30, 2024, an increase from $7,540,000 at the end of December 2023, due to proceeds from the sale of the insurance business and convertible note issuance.
Fathom Holdings continues to focus on expanding its real estate brokerage and ancillary businesses, as evidenced by its acquisition of My Home Group, which adds over 2,200 agents.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Fathom Holdings Inc. quarterly 10-Q report dated November 12, 2024. To report an error, please email earnings@qz.com.