Grathom remains optimistic about agent compensation plan if losses are set up
Launched at the beginning of April, Fregenal said that he believes that the new program will result in better financial performance per transaction. About 120 agents have registered by an internal soft launch. Elevate includes help with marketing, lead generation, coaching and recruitment.
“I think we can see the gross profit margin grow by three to four times compared to our traditional gross profit margin, and it’s really because of the efficiency of our platform,” he said. “We want to be careful with growth. It is a complex program, and so we want to make sure that we shoot at all cylinders, but we think we can be around 100 new agents a month by the end of the year.”
Fathom does not seem to have any problems with attracting new agents. The brokerage reached 14,715 agents in the first quarter of 2025, an increase of 22.8% on an annual basis. That is the highest annual increase in the company since reaching 28% in the fourth quarter of 2022.
The additions help stimulate sales, which grew to $ 93.1 million from January to March, an annual profit of 32.1% and the highest total of fathom since the third quarter of 2023.
But the profits in agent count and turnover do not help the Bottom Line with fathom. The brokerage reached a net loss of $ 5.7 million in Q1 2025, roughly in line with the loss of $ 5.9 million during the 2024 opening quarter.
More with regard to the net loss for the operational cash flow of the company, $ 947,000 grew in the first quarter of 2024 to $ 5.7 million a year later.
The brokerage turnover of the company rose from $ 65.4 million in Q1 2024 to $ 88.9 million in Q1 2025, but the additional services of Fathom still include modest amounts.
The turnover of the mortgage department increased by $ 300,000 to $ 2.6 million, the technological income remained flat at $ 1.1 million and the title raised $ 1 million.
