# EDGAR Filing Document

**Accession Number:** 0001753162
**File Stem:** 0001628280-26-022016
**Filing Date:** 2026-3
**Character Count:** 30877
**Document Hash:** d184867470a6cb2fe10d8b29d7c50890
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-26-022016.hdr.sgml**: 20260330

**ACCESSION NUMBER**: 0001628280-26-022016

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20260330

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260330

**DATE AS OF CHANGE**: 20260330

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Fathom Holdings Inc.
- **CENTRAL INDEX KEY:** 0001753162
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE AGENTS & MANAGERS (FOR OTHERS) [6531]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 821518164
- **STATE OF INCORPORATION:** NC
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-39412
- **FILM NUMBER:** 26813144

**BUSINESS ADDRESS:**
- **STREET 1:** 2000 REGENCY PARKWAY DRIVE
- **STREET 2:** SUITE 300
- **CITY:** CARY
- **STATE:** NC
- **ZIP:** 27518
- **BUSINESS PHONE:** 8884556040

**MAIL ADDRESS:**
- **STREET 1:** 2000 REGENCY PARKWAY DRIVE
- **STREET 2:** SUITE 300
- **CITY:** CARY
- **STATE:** NC
- **ZIP:** 27518

?xml version='1.0' encoding='ASCII'? fthm-20260330

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

_______________________________________________

**FORM 8-K**

_______________________________________________

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of**

**the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported) March 30, 2026**

_______________________________________________

**FATHOM HOLDINGS INC.**

**(Exact name of registrant as specified in its charter)**

_______________________________________________

---

| | | |
|:---|:---|:---|
| | **North Carolina** | |
| | **(State or other jurisdiction of incorporation)** | |
| **001-39412** | | **82-1518164** |
| **(Commission File Number)** | | **(IRS Employer Identification No.)** |

---

**2000 Regency Parkway Drive, Suite 300, Cary, North Carolina 27518**

**(Address of principal executive offices) (Zip Code)**

**Registrant's telephone number, including area code 888-455-6040**

_______________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

□ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

□ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

□ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

□ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each Class Trading Symbol(s) Name of each exchange on which registered <br> <u>Common Stock, No Par Value</u> <u>FTHM</u> <u>Nasdaq Capital Market</u>

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

**Item 2.02&nbsp;&nbsp;&nbsp;&nbsp;<u>Results of Operations and Financial Condition.</u>**

On March 30, 2026, Fathom Holdings Inc. issued a press release announcing its financial results for the year and quarter ended December 31, 2025. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein in its entirety by reference.

The information in this Item 2.02 (including Exhibit 99.1) shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

**Item 9.01&nbsp;&nbsp;&nbsp;&nbsp;<u>Financial Statements and Exhibits.</u>**

(d)Exhibits.

---

| | |
|:---|:---|
| **Exhibit<br>No.** | **Exhibit Description** |
| <u>[99.1](fthm-20251231xexx991.htm)</u> | <u>[Press Release, dated](fthm-20251231xexx991.htm)[Ma](fthm-20251231xexx991.htm)[rch](fthm-20251231xexx991.htm)[30](fthm-20251231xexx991.htm)[, 202](fthm-20251231xexx991.htm)[6](fthm-20251231xexx991.htm)[.](fthm-20251231xexx991.htm)</u> |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

------

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | |
|:---|:---|
| | **FATHOM HOLDINGS INC.** |
| Date: March 30, 2026 | /s/ Marco Fregenal |
| | Marco Fregenal |
| | President and Chief Executive Officer<br>(Principal Executive Officer, Principal Financial Officer, and Principal Accounting Officer) |

---

## Exhibit 99.1

**Exhibit 99.1**

![image_0.jpg](image_0.jpg)

**Fathom Holdings Reports Fourth Quarter and Full Year 2025 Results**

*– Fathom delivered 25% Revenue Growth in 2025, driven by 15% Transaction Growth –*

**CARY, NC, March 30, 2026** – **Fathom Holdings Inc.** (Nasdaq: FTHM) ("Fathom" or the "Company"), a national, technology-driven, end-to-end real estate services platform integrating residential brokerage, mortgage, title, and SaaS offerings for brokerages and agents, today reported financial results for the fourth quarter and full year ended December 31, 2025.

"During 2025, we continued executing our strategy and strengthening the foundation of the Fathom platform, generating $420 million in revenue, representing 25% year-over-year growth, while total transactions increased nearly 15%," **said Marco Fregenal, President and Chief Executive Officer of Fathom Holdings.** "These results reflect the resilience of our technology-first platform, with continued growth across our agent network and higher-margin mortgage and title businesses, even as transaction activity remained pressured in line with broader industry trends. As we move through 2026, our focus remains on driving margin expansion, increasing revenue per transaction, and continuing to scale our higher-margin ancillary services. With a stronger, more diversified platform in place, we believe Fathom is well positioned to benefit as transaction volumes recover, enabling us to drive stronger growth, improved profitability, and greater operating leverage over time."

**Fourth Quarter 2025 Financial Highlights – March Update**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fathom's total revenue decreased 1.2% to $90.6 million for the fourth quarter of 2025, down from $91.7 million in the fourth quarter of 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Brokerage revenue decreased by 3.2% to $84.9 million for the fourth quarter of 2025, down from $87.7 million in the fourth quarter of 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mortgage revenue increased 70.0% to $3.4 million for the fourth quarter of 2025, up from $2.0 million in the fourth quarter of 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Title revenue increased 38.5% to $1.8 million for the fourth quarter of 2025, up from $1.3 million in the fourth quarter of 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Gross profit increased 6.0% to $7.1 million for the fourth quarter of 2025, up from $6.7 million in the fourth quarter of 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In March 2026, Fathom received $2.0 million in gross proceeds from Bed Bath & Beyond, Inc. in a loan maturing in April 2027.

**Fourth Quarter 2025 Operational Highlights – March Update**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fathom's real estate agent network declined 1.2% to approximately 14,135 agent licenses at December 31, 2025, down from approximately 14,300 agent licenses at December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fathom's real estate transactions declined 14.2% to approximately 8,501 in the fourth quarter of 2025, down from approximately 9,903 transactions in the fourth quarter of 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fathom Holdings launches Real Results lead program, a new initiative designed to shorten sales cycles and provide agents with qualified, vetted leads.

------

![image_0.jpg](image_0.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fathom Holdings announces strategic partnership with ByOwner to expand access to the significant for-sale-by-owner (FSBO) market opportunity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fathom Holdings enters strategic partnership with Move Concierge to enhance customer experience and expand service offerings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fathom Holdings completed the divestiture of its location technology business in November 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fathom Realty appoints Lori Muller as President, strengthening leadership to support continued growth and operational execution.

**Fourth Quarter 2025 Financial Results**

Real estate transactions decreased approximately 14.2% year-over year to 8,501 in the fourth quarter of 2025, primarily reflecting continued softness in the residential real estate market and affordability constraints, which reduced overall transaction activity.

Total revenue for the fourth quarter of 2025 declined 1.2% year-over-year to $90.6 million, compared to $91.7 million in the fourth quarter of 2024. The decline was primarily attributable to a decrease in real estate transactions.

Segment revenue for the 2025 fourth quarter, compared with the 2024 fourth quarter was as follows:

---

| | | |
|:---|:---|:---|
| | **Revenue** | **Revenue** |
| | **Three Months Ended<br>December 31,** | **Three Months Ended<br>December 31,** |
| **(Revenue $ in millions)** | **2025** | **2024** |
|  | **UNAUDITED** | **UNAUDITED** |
| Real Estate Brokerage | $84.9 | $87.7 |
| Mortgage | 3.4 | 2.0 |
| Title | 1.8 | 1.3 |
| Corporate and other services (a) | 0.5 | 0.7 |
| Total revenue | $90.6 | $91.7 |

---

(a)Transactions between segments are eliminated in consolidation. Such amounts are eliminated through the Corporate and other services line.

GAAP net loss for the fourth quarter of 2025 was $6.7 million, or $0.21 per share, compared to a net loss of $6.2 million, or $0.29 per share, in the fourth quarter of 2024. The year-over-year increase in net loss was primarily driven by the recognition of a $0.9 million loss on the sale of a business in 2025 and a lower income tax benefit of $0.02 million in the current period compared to $1.1 million in the prior year period.

Adjusted EBITDA\*, a non-GAAP measure, was negative $2.6 million for the fourth quarter of 2025, compared to negative $2.9 million in the fourth quarter of 2024. The year-over-year improvement was primarily driven by reductions in operating expenses, including lower marketing and general and administrative expenses.

**Full Year 2025 Financial Results**

Real estate transactions increased approximately 14.6% year-over-year to 42,405 transactions for the full year 2025. The increase in real estate transactions was primarily due to the addition of My Home Group in November 2024.

Total revenue for the full year 2025 increased 25.4% to $420.5 million, compared to $335.2 million in 2024. The increase was primarily driven by a 26.8% rise in brokerage revenue, largely attributable to the addition of My Home Group in November 2024.

------

![image_0.jpg](image_0.jpg)

Segment revenue for the full year 2025, compared with the full year 2024, was as follows:

---

| | | |
|:---|:---|:---|
| | **Revenue** | **Revenue** |
| | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** |
| **(Revenue $ in millions)** | **2025** | **2024** |
|  | **UNAUDITED** |  |
| Real Estate Brokerage | $399.0 | $314.7 |
| Mortgage | 12.8 | 10.9 |
| Title | 6.2 | 4.5 |
| Corporate and other services (a) | 2.5 | 5.1 |
| Total revenue | $420.5 | $335.2 |

---

(a)Transactions between segments are eliminated in consolidation. Such amounts are eliminated through the Corporate and other services line.

GAAP net loss for the full year 2025 was $20.3 million, or $0.72 per share, compared to a net loss of $21.6 million, or $1.07 per share, in 2024. The year-over-year improvement was primarily driven by higher revenue during 2025. This improvement was partially offset by the recognition of a $0.9 million loss on the sale of a business in 2025, compared to a $3.0 million gain on the sale of an operating segment in the prior-year period, which favorably impacted 2024 results.

Adjusted EBITDA\* loss, a non-GAAP measure, was $4.0 million for the full year 2025, compared with an Adjusted EBITDA\* loss of approximately $5.7 million for the full year 2024, representing an improvement of approximately 29.8% year-over-year. The year-over-year improvement was primarily driven by reductions in operating expenses, including lower marketing and general and administrative expenses, partially offset by an increase of $0.7 million in technology and development expenses.

*\*Fathom provides Adjusted EBITDA, a non-GAAP financial measure, because it offers additional information for monitoring the Company's cash flow performance. A table providing a reconciliation of Adjusted EBITDA to its most comparable GAAP measure, as well as an explanation of, and important disclosures about, this non-GAAP measure, is included in the tables at the end of this press release.*

**Guidance/Long-Term Targets**

The Company has elected to withhold guidance for the first quarter ending March 31, 2026. The Company is continuing to implement various programs to drive margin expansion. Management plans to release 2026 guidance, incorporating these initiatives in its second quarter 2026 earnings release.

**Conference Call**

Fathom management will hold a conference call today (March 30, 2026) at 5:00 p.m. Eastern time (2:00 p.m. Pacific time) to discuss these financial results.

**U.S. dial-in:** 1-877-425-9470

**International dial-in:** 1-201-389-0878

Please call the conference telephone number five minutes prior to the start time. An operator will register your name and organization.

A live audio webcast of the conference call will be available in listen-only mode simultaneously and available via the investor relations section of the Company's website at <u>www.FathomInc.com</u>.

------

![image_0.jpg](image_0.jpg)

A telephone replay of the call will be available through April 13, 2026.

**U.S. replay dial-in:** 1-844-512-2921

**International replay dial-in:** 1-412-317-6671

**Replay Access Code:** 13755327

**About Fathom Holdings Inc.**

Fathom Holdings Inc. is a national, technology-driven, real estate services platform integrating residential brokerage, mortgage, title, and SaaS offerings to brokerages and agents by leveraging its proprietary cloud-based software, intelliAgent. The Company's brands include Fathom Realty, Encompass Lending, intelliAgent, Real Results, Verus Title, and Cornerstone. For more information, visit <u>www.FathomInc.com</u>.

**Cautionary Note Concerning Forward-Looking Statements**

This press release contains "forward-looking statements" that involve risks and uncertainties which we expect will or may occur in the future and may impact our business, financial condition and results of operations. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including: risks associated with general economic conditions, including rising interest rates; its ability to generate positive operational cash flow; risks associated with the Company's ability to continue achieving significant growth; its ability to continue its growth trajectory while achieving profitability over time; risks related to ongoing and future litigation; and other risks as set forth in the Risk Factors section of the Company's most recent Form 10-K as filed with the SEC and supplemented from time to time in other Company filings made with the SEC. Copies of Fathom's Form 10-K and other SEC filings are available on the SEC's website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

**Investor Contact:**

Matt Glover and Clay Liolios

Gateway Group, Inc.

949-574-3860

FTHM@gateway-grp.com

------

![image_0.jpg](image_0.jpg)

**FATHOM HOLDINGS INC.**

**CONDENSED CONSOLIDATED BALANCE SHEET**

**(UNAUDITED)**

(in thousands, except share data)

---

| | | |
|:---|:---|:---|
| | **December 31,<br>2025** | **December 31,<br>2024** |
| **ASSETS** | | |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $5773 | $7127 |
| &nbsp;&nbsp;&nbsp;Restricted cash | 144 | 263 |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 3718 | 3147 |
| &nbsp;&nbsp;&nbsp;Other receivable-current | 3000 | 4000 |
| &nbsp;&nbsp;&nbsp;Mortgage loans held for sale, at fair value | 15479 | 4772 |
| &nbsp;&nbsp;&nbsp;Prepaid and other current assets | 7806 | 5647 |
| Total current assets | 35920 | 24956 |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 1606 | 1854 |
| &nbsp;&nbsp;&nbsp;Lease right of use assets | 4180 | 3781 |
| &nbsp;&nbsp;&nbsp;Intangible assets, net | 18576 | 20234 |
| &nbsp;&nbsp;&nbsp;Goodwill | 17668 | 21498 |
| &nbsp;&nbsp;&nbsp;Other receivable-long-term |  | 3000 |
| &nbsp;&nbsp;&nbsp;Other assets | 94 | 74 |
| Total assets | $78044 | $75397 |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $5649 | $4305 |
| &nbsp;&nbsp;&nbsp;Accrued and other current liabilities | 5973 | 4894 |
| &nbsp;&nbsp;&nbsp;Warehouse lines of credit | 15106 | 4556 |
| &nbsp;&nbsp;&nbsp;Lease liability - current portion | 1663 | 1237 |
| &nbsp;&nbsp;&nbsp;Long-term debt - current portion | 5506 | 4389 |
| Total current liabilities | 33897 | 19381 |
| &nbsp;&nbsp;&nbsp;Lease liability, net of current portion | 3296 | 3522 |
| &nbsp;&nbsp;&nbsp;Long-term debt, net of current portion | 80 | 5087 |
| &nbsp;&nbsp;&nbsp;Other long-term liabilities | 3332 | 2726 |
| Total liabilities | 40605 | 30716 |
| &nbsp;&nbsp;&nbsp;Commitments and contingencies (Note 18) |  |  |
| Shareholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;Common stock (no par value, shares authorized, 100,000,000; shares issued and outstanding, 32,716,641 and 22,732,716 as of December 31, 2025 and 2024, respectively) |  |  |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 150909 | 137844 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (113470) | (93163) |
| &nbsp;&nbsp;&nbsp;Total shareholders' equity | 37439 | 44681 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and shareholders' equity | $78044 | $75397 |

---

The accompanying notes are an integral part of the condensed consolidated financial statements.

------

![image_0.jpg](image_0.jpg)

**FATHOM HOLDINGS INC.**

**CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS**

**(UNAUDITED)**

(in thousands, except share data)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2025** | **2024** | **2025** | **2024** |
| Revenue | $90606 | $91741 | $420477 | $335184 |
| Commission and service costs | 83466 | 85094 | 386281 | 306913 |
| General and administrative | 8176 | 8432 | 33058 | 33573 |
| Marketing | 1404 | 1899 | 5157 | 5796 |
| Technology and development | 1709 | 1789 | 7303 | 6635 |
| Litigation contingency | 16 | 55 | 2027 | 3491 |
| Depreciation and amortization | 572 | 520 | 2230 | 2239 |
| Loss from operations | (4737) | (6048) | (15579) | (23463) |
| Other expense (income), net |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Loss (gain) on sale of business | 922 |  | 922 | (2958) |
| &nbsp;&nbsp;&nbsp;Interest expense, net | 119 | 219 | 594 | 537 |
| &nbsp;&nbsp;&nbsp;Other nonoperating expense, net | 951 | 984 | 3127 | 1557 |
| Other (income) expense, net | 1992 | 1203 | 4643 | (864) |
| Loss before income taxes | (6729) | (7251) | (20222) | (22599) |
| Income tax expense (benefit) | (18) | (1050) | 85 | (1022) |
| Net loss | $(6712) | $(6201) | $(20307) | $(21577) |
| Net loss per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | $(0.21) | $(0.29) | $(0.72) | $(1.07) |
| &nbsp;&nbsp;&nbsp;Diluted | $(0.21) | $(0.29) | $(0.72) | $(1.07) |
| Weighted average common shares outstanding: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | 32207886 | 21588886 | 28196335 | 20244255 |
| &nbsp;&nbsp;&nbsp;Diluted | 32207886 | 21588886 | 28196335 | 20244255 |

---

The accompanying notes are an integral part of the condensed consolidated financial statements.

------

![image_0.jpg](image_0.jpg)

**FATHOM HOLDINGS INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(UNAUDITED)**

(in thousands)

---

| | | |
|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2025** | **2024** |
| **CASH FLOWS FROM OPERATING ACTIVITIES:** |  |  |
| Net loss | $(20307) | $(21577) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 5847 | 5423 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss (gain) on sale of business | 922 | (2958) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash lease expense | 1423 | 2067 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred financing costs amortization | 29 | 100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of mortgages | (7086) | (5942) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 3704 | 8839 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 3 | (1107) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (614) | 113 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid and other current assets | (1516) | (1872) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | (20) | (16) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 1344 | 1053 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued and other current liabilities | 978 | 2067 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | (1622) | (2268) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other long-term liabilities |  | 1618 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage loans held for sale originations | (248081) | (233979) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale and principal payments on mortgage loans held for sale | 244460 | 243751 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (20536) | (4688) |
| **CASH FLOWS FROM INVESTING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;Purchase of property and equipment | (121) | (51) |
| &nbsp;&nbsp;&nbsp;Purchase of intangible assets | (2773) | (3192) |
| &nbsp;&nbsp;&nbsp;Proceeds from sale of business | 7070 | 7435 |
| &nbsp;&nbsp;&nbsp;Other investing activities |  | (130) |
| &nbsp;&nbsp;&nbsp;Amounts paid for business and asset acquisitions, net of cash acquired | (155) | (760) |
| &nbsp;&nbsp;&nbsp;Net cash provided by investing activities | 4021 | 3302 |
| **CASH FLOWS FROM FINANCING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;Principal payments on debt | (4570) | (602) |
| &nbsp;&nbsp;&nbsp;Proceeds from debt |  | 5674 |
| &nbsp;&nbsp;&nbsp;Borrowings from warehouse lines of credit | 246893 | 233269 |
| &nbsp;&nbsp;&nbsp;Repayment on warehouse lines of credit | (236343) | (237067) |
| &nbsp;&nbsp;&nbsp;Deferred acquisition consideration payments | (64) |  |
| &nbsp;&nbsp;&nbsp;Proceeds from other financing activities |  | 20 |
| &nbsp;&nbsp;&nbsp;Proceeds from the issuance of common stock in connection with a public offering | 9513 |  |
| &nbsp;&nbsp;&nbsp;Payment of offering cost in connection with issuance of common stock in connection with public offering | (387) | (58) |
| &nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 15042 | 1236 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net decrease in cash, cash equivalents, and restricted cash | (1473) | (150) |
| Cash, cash equivalents, and restricted cash at beginning of period | 7390 | 7540 |
| Cash, cash equivalents, and restricted cash at end of period | $5917 | $7390 |
| *Supplemental disclosure of cash and non-cash transactions:* |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid for interest | $608 | $299 |
| &nbsp;&nbsp;&nbsp;Income taxes paid | 68 | 2 |
| &nbsp;&nbsp;&nbsp;Right of use assets obtained in exchange for new lease liabilities | 1822 | 2031 |
| &nbsp;&nbsp;&nbsp;Intangible assets acquired upon sale of business | 4031 |  |
| &nbsp;&nbsp;&nbsp;Issuance of common stock for purchase of business | 300 | 2110 |
| *Reconciliation of cash and restricted cash:* |  |  |
| Cash and cash equivalents | $5773 | $7127 |
| &nbsp;&nbsp;&nbsp;Restricted cash | 144 | 263 |
| &nbsp;&nbsp;&nbsp;Total cash, cash equivalents, and restricted cash shown in statement of cash flows | $5917 | $7390 |

---

The accompanying notes are an integral part of the condensed consolidated financial statements.

------

![image_0.jpg](image_0.jpg)

**RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES**

**(UNAUDITED)**

(in thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended <br>December 31,** | **Three Months Ended <br>December 31,** | **Year Ended <br>December 31,** | **Year Ended <br>December 31,** |
| | **2025** | **2024** | **2025** | **2024** |
| Loss before income tax | $(6729) | $(7251) | $(20222) | $(22599) |
| Loss (gain) on sale of business | 922 |  | 922 | (2958) |
| Stock based compensation | 691 | 1721 | 3704 | 8839 |
| Depreciation and amortization | 1467 | 1374 | 5847 | 5423 |
| Litigation contingency | 16 | 55 | 2027 | 3491 |
| Other expense, net | 1070 | 1202 | 3721 | 2094 |
| Adjusted EBITDA | $(2563) | $(2899) | $(4001) | $(5710) |

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**Note about Non-GAAP Financial Measures**

To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use Adjusted EBITDA, a non-GAAP financial measure, to understand and evaluate our core operating performance. This non-GAAP financial measure, which may be different than similarly titled measures used by other companies, is presented to enhance investors' overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

We define the non-GAAP financial measure of Adjusted EBITDA as net income (loss), excluding other expense, income tax benefit, depreciation and amortization, stock-based compensation expense, loss (gain) on sale of business benefit, and transaction-related cost.

We believe that Adjusted EBITDA provides useful information about our financial performance, enhances the overall understanding of our past performance and future prospects, and allows for greater transparency with respect to a key metric used by our management for financial and operational decision-making. We believe that Adjusted EBITDA helps identify underlying trends in our business that otherwise could be masked by the effect of the expenses that we exclude in Adjusted EBITDA. In particular, we believe the exclusion of stock-based compensation expense related to restricted stock awards and stock options and transaction-related costs associated with our acquisition activity provides a useful supplemental measure in evaluating the performance of our operations and provides better transparency into our results of operations. Adjusted EBITDA also excludes other income and expense, net, which primarily includes nonrecurring items, such as gain on debt extinguishment, loss (gain) on sale of business, severance costs, and non-cash items representing reserves on certain agent fee collection, if applicable.

We are presenting Adjusted EBITDA to assist investors in seeing our financial performance through the eyes of management, and because we believe this measure provides an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry.

Adjusted EBITDA should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. There are limitations related to the use of Adjusted EBITDA compared to net income (loss), the closest comparable GAAP measure. Some of these limitations include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA excludes stock-based compensation expense related to restricted stock awards, restricted stock unit awards, and stock options, which have been, and will continue to be for the foreseeable future, significant recurring expenses in our business and an important part of our compensation strategy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA excludes transaction-related costs primarily consisting of professional fees and any other costs incurred directly related to acquisition activity, which is an ongoing part of our growth strategy and therefore likely to occur;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA excludes certain recurring, non-cash charges such as depreciation and amortization of property and equipment and capitalized software costs, however, the assets being depreciated and amortized may have to be replaced in the future;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA excludes the loss (gain) on the sale of the business, as this item is non-recurring and not indicative of the company's core operating performance; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA excludes litigation expenses, including expenses related to the NAR Settlement, which could continue to be significant recurring expenses in our business until any final settlements have been approved by a court.

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