Good afternoon, and welcome to Fathom Holdings Third Quarter 2024 Conference Call. Joining us today are the company's CEO, Marco Fregenal; and CFO, Joanne Zach. Before I turn the call over to management, I want to remind listeners that today's call may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to numerous conditions, many of which are beyond the company's control, including those outlined in the Risk Factors section of the company's Form 10-K for the year ended December 31, 2023, and other company filings made with the SEC, copies of which are available on the SEC's website at www.sec.gov. As a result of those forward-looking statements, actual results could differ materially. Fathom undertakes no obligation to update any forward-looking statements after today's call, except as required by law. Please also note that during this call, we will discuss adjusted EBITDA, a non-GAAP financial measure as defined by SEC Regulation G. A reconciliation of this non-GAAP financial measure to the most directly comparable GAAP measure is included in today's press release, which is now posted on Fathom's website. With that, I'll turn the call over to Fathom's President and CEO, Marco Fregenal. Sir, you may proceed.

Thank you, operator. Good afternoon, everyone, and welcome to Fathom Holdings Third Quarter 2024 Conference Call. Before diving into our results and new developments, I want to express my deepest gratitude to the Fathom family. You have shown unwavering commitment and resilience in a year filled with considerable challenges, marked by fluctuating mortgage rates, shifts in buyer behavior, economic pressures, lawsuits, and new rules that have changed the industry. Your exceptional efforts have propelled us forward, building a strong foundation that positions us for even greater success in 2025. Our team's adaptability and innovative spirit have set us apart despite a lower housing market shaped by persistent affordability issues, tighter lending standards, and a highly competitive landscape. We haven't simply weathered these conditions; we have leveraged them as opportunities to refine our strategy, seek new growth avenues, and evaluate our standards. Your dedication to executing critical initiatives and maintaining high levels of service has been the cornerstone of our progress. Together, we have not only adapted to market changes, but we have positioned Fathom to capture growth and conditions improve, setting the stage for sustained long-term success. Before we review our third quarter results, let's discuss the significant development of the acquisition of My Home Group. As discussed in prior quarters, one of our goals was to return agent growth to 25% plus annually. My Home Group is a top Arizona-based broker ranked 27th in the nation by transaction volume. This acquisition marks a significant step in expanding our national footprint and strengthening our presence in Arizona's rapidly growing real estate market. With over 2,200 agents joining from My Home Group, the Fathom family has grown to approximately 14,500 agents nationwide, completing over 12,000 transactions annually. My Home Group has built a strong reputation in Phoenix and surrounding markets. Given their established and highly respected local brand and reputation, we have retained the My Home Group name. The founders, Jereme Kleven and Mark Hutchins, will continue to lead their talented team. Founded in 2005, My Home Group has consistently been recognized for growth in innovation, appearing on the Inc. 5000 list of the fastest-growing companies for seven consecutive years. They have a fast, collaborative, growth-oriented culture that aligns closely with Fathom's values, empowering agents to expand their networks, strengthen their brands, and advance their careers. For competitive reasons, we will not discuss what we paid for the acquisition, but I will share that the cash portion of the purchase price had a minimal impact on our balance sheet. Arizona's strong economy, high quality of life, and population growth make it one of the fastest-growing housing markets in the U.S., presenting exceptional potential for this acquisition. This move will also enable cross-selling opportunities for Fathom's mortgage and title services, enhancing transaction experiences for My Home Group's clients, which we believe will drive additional revenue across our service platforms. Together, we believe we'll build on our Southwest expansion, develop a robust network of agents, and work towards sustainable nationwide growth. Many reasons led Jereme and Mark to join the Fathom family, such as our shared values, revenue share capabilities, technology, and the opportunity to integrate ancillary services into their operations. Going forward, we believe this acquisition will add approximately $100 million in annual revenues in 2025 and significant EBITDA for our company. Strategic acquisitions like My Home Group, which expand our geographic footprint and provide cross-selling opportunities, will continue to play an essential role in our company's growth. Our objective is to integrate partners who will see substantial transaction and revenue growth as they join Fathom's platform while adding positive EBITDA. Total revenue for the third quarter was $83.7 million, a decrease of about 10% from $93.5 million in Q3 of 2023. While comparing the quarter without revenue from Dagley Insurance Agency, the decrease in revenue was about 9%. Adjusted EBITDA, a non-GAAP measure for the third quarter of 2024, totaled a loss of $1.4 million compared to a loss of $250,000 in the third quarter of 2023. Fathom completed approximately 9,331 transactions in the third quarter, a decrease of approximately 9.5% compared to third quarter 2023. Fathom's real estate agent network grew by 9.3% to approximately 2,383 agent licenses as of September 30, 2024, from approximately 11,333 on September 30, 2023. Of course, after the quarter, we added an additional 2,200 agents from My Home Group, bringing Fathom's total agent base to over 14,500. During Q3, we made a strategic decision to invest in sales and marketing to promote our new commission plans, Fathom Max and Fathom Share, which we introduced in Q2 of 2024. Second, we invested in additional employee talent to help with the acquisition of My Home Group. Finally, the swing in interest rates during the last month of the quarter significantly negatively impacted our real estate transactions and mortgage profitability. Our transaction volume has improved through October, and we have closed a similar number of transactions in October of this year compared to October of 2023, due to the improved quality of our recruiting agents this year. Moreover, adding My Home Group should significantly increase real estate transactions in Q4, increasing revenue and EBITDA starting in Q1 of 2025. This past quarter, Fathom Realty opened operations in New York, with plans to expand into all 50 states by the end of 2025. Fathom Realty is now in 43 states and Washington, D.C. With renewed energy and focus, our agent growth moving forward will be enhanced by a stronger balance sheet and even more attractive commission plans and revenue share. We're excited about how this could positively impact our revenue and EBITDA growth in 2025. I would like to turn to our ancillary businesses, which offer significant cross-selling opportunities for our agents and drive incremental growth and margin expansion for Fathom. Our mortgage division, Encompass Lending, maintained a strong growth trajectory in the third quarter of 2024, with revenues rising by 52% year-over-year from $1.9 million in Q3 of last year to $2.9 million this year. This growth reflects the impact of our strategic initiatives implemented over recent quarters and reinforces the division's contribution to our overall performance. In Q3, mortgage file starts rose by approximately 6% compared to last year's period, demonstrating the strong momentum within our mortgage division and fueling our optimism for sustained growth in the coming quarters. In the third quarter, adjusted EBITDA was a loss of $319,000 as compared to a loss of $219,000 in the same quarter last year. Looking ahead into 2025, we see our mortgage business increasing as we leverage growth in transactions from the My Home Group acquisition. Now let's turn to our Title division, which saw notable growth in the third quarter. Verus Title generated $1.5 million in revenue compared to $834,000 in Q3 of last year, representing a 71% increase in revenue, reflecting steady momentum in this critical segment and reinforcing our ongoing investments in ancillary services. Adjusted EBITDA for this quarter was a loss of $93,000 compared to a loss of $23,000 in the same period last year. We continue to make investments and changes in Verus Title to prepare the company for anticipated growth in 2025, adding seasoned industry leaders, Monica Schroeder as President; and Penelope Vockel as Chief Operating Officer of Verus Title, further reinforcing our commitment to Verus Title's growth. Monica brings over 20 years of experience, including leadership in scaling a national title agency. Her expertise in technology and client-focused solutions aligns perfectly with our mission for Verus Title. We are confident her leadership will drive new levels of operational excellence and expansion. Penelope, as Verus Title's COO, has played an instrumental role in our growth across the Northeast, Midwest, and the D.C. Metro region, with a strong legal background and over a decade of industry experience, bringing a strategic perspective that has already proven invaluable. Together, Monica and Penelope are well-positioned to lead Verus toward its next phase of growth, fostering innovation and advancing our service standards. The success we're seeing in our Title division demonstrates that Fathom's integrated real estate services platform not only enhances the experience for agents and clients but also expands and diversifies our revenue streams. By offering a cohesive suite of services, we create multiple touch points to engage clients and reinforce agent satisfaction, strengthening our entire ecosystem. We are confident that Verus Title's performance in Q3, coupled with our expanded leadership and market reach, points to this division's potential. As we refine operations and continue growing, our strategy of building a fully integrated full-service real estate platform is proving its value. Our business segment, supported by a strong leadership team, contributes meaningfully to Fathom's financial health and growth trajectory. We've achieved exemplified long-term opportunities to retain our service offerings while building sustained value for agents, clients, and shareholders. At the beginning of 2024, we outlined several key objectives, including strengthening our balance sheet. We strengthened our balance sheet in May by selling Dagley Insurance Agency, adding $8 million of cash immediately and another $7 million over the next 24 months as proceeds from the sale. In September, we completed a $5 million private placement of convertible notes with an existing shareholder and our Board Chairman, enabling us to fast track target acquisitions and agent walkovers. This capital injection reflects strong shareholder confidence in our vision, our low fee model, and reimagined revenue share program. We ended Q3 with $13.4 million in cash, and given that our acquisition of My Home Group did not significantly impact our balance sheet, we feel very confident in our cash position going forward. In August, we launched our two new revenue share commission plans, Fathom Max and Fathom Share. These two plans were designed to boost agent recruitment and retention while fostering sustainable growth and long-term profitability. The Fathom Max plan offers an industry-low $465 transaction fee with a $9,000 annual cap. The Fathom Share plan offers a highly competitive traditional commission split of only 12% with a $12,000 cap. Both plans offer revenue share for our agents, with the Fathom Share plan's revenue share opportunity being twice as lucrative as Fathom's Max plan. This model aligns well with a high commission approach and adds a compelling income structure for agents seeking flexible and increased earnings potential. Since the launch, feedback from both turning perspective agents has been overwhelmingly positive. Although it has been less than three months since we launched the new plans, we have seen 95% of new agents joining the Fathom Max plan and 5% joining the Fathom Share plan. However, we've seen significant interest in the Share plan from top agents and team leaders who have historically been slower to transition due to open transactions with their current brokerage. We believe we will see increased participation in the Share plan as we move into 2025. One of the many aspects that make our commission model attractive is the flexibility for agents to choose between the two plans and the ability to change plans once per year as their business changes. In other brokerages, if an agent wants a better split, they must leave the company for a lower-price competitor. Our new revenue share commission plan addresses this issue, which we believe will help us improve agent retention going forward. As discussed earlier, the revenue share program was attributable to the My Home Group acquisition. I have personally spent the last few days with the My Home team agents, and they are excited about the revenue share opportunities. They look forward to helping us grow in the Arizona market and across the country by referring other agents from their professional networks. I'm most excited to share that Fathom Realty recently achieved the highest satisfaction rating among the top 40 real estate companies in the U.S. according to a recent career data survey, with an impressive 4.7 rating on Glassdoor, highlighting the real estate industry's sentiment. This accomplishment reflects our commitment to fostering a supportive and empowering environment for agents and employees. I am grateful to Fathom Realty COO, Samantha Giuggio, her team, and our managing brokers, whose dedication to agent success has made a positive impact company-wide. This recognition is a testament to our agent-first business model, which includes industry-leading compensation plans like Fathom Max and Fathom Share, unparalleled training, innovative technology, and a collaborative culture that equips our agents to succeed and deliver exceptional client service. By investing in agent satisfaction and professional growth, we're creating a win-win environment where agent success directly contributes to Fathom's success, helping us build a brand that stands out in the industry. I'd like to take a moment to discuss an important recent development for Fathom Realty and our ongoing focus on transparency and integrity in our business operations. In September, Fathom reached a nationwide settlement related to the Burnett v. National Association of Realtors et al. Although we believe this settlement amount is immaterial in GAAP terms, we felt it was important to disclose this information to ensure transparency with our investors and stakeholders. As part of this settlement, Fathom Realty will contribute $500,000 to a settlement fund and another $500,000 by October 1, 2025, with a final payment of $1.950 million by October 1, 2026. We're confident in our ability to make this payment without impacting ongoing operations or our financial health. Our decision to settle reflects our commitment to our agents and their clients. Fathom Realty has been built on the principle of delivering the highest level of support to our agents, and we see the settlement as the most responsible path forward. It will enable our agents to focus fully on their clients without the distraction of prolonging litigation. To be clear, this settlement is not an admission of liability or acknowledgment of any claims against us. We maintain that Fathom did not participate in any conspiracy to inflate commissions, and given our flat fee model, we had no incentive to do so. Resolving this matter now allows us to avoid ongoing legal costs and the time demands on the executive team, freeing us to continue growing our business and supporting our agents' success. As always, our focus remains on delivering excellent service to our agents, clients, and customers. We're moving forward with an even stronger dedication to empower our agents, ensuring that they have the resources to excel. Before we turn to the financials, I want to recognize and congratulate Joanne Zach on her well-deserved promotion to Chief Financial Officer. Joanne has been a vital part of the Fathom team since joining as Senior Vice President of Finance in 2021. Her impact on our financial strategy has been nothing short of exceptional. With over 25 years of experience in finance, spanning public and private sectors and industries ranging from life sciences to manufacturing, Joanne brings a wealth of knowledge and leadership that aligns perfectly with our vision for Fathom's growth. Having worked closely with Joanne over the past three years, I have seen her dedication, strategic insight, and commitment to advancing Fathom's goals firsthand. Her contributions have not only enhanced our financial efficiency but also positioned us to better navigate an ever-evolving market. As we move forward, I'm confident that Joanne's leadership as CFO will strengthen our financial framework and drive continued success. Joanne, thank you for your hard work and partnership; I could not be more thrilled to see you in this new role. With that, I'll turn the call to Joanne.

Thank you, Marco, for the kind words and the confidence you have placed in me. I'm truly honored and dedicated to take on this role at Fathom. Working alongside Marco and the incredibly talented and committed Fathom team, I look forward to building on the solid foundation we've created together to date. As we enhance our financial strategies and leverage our technology, I'm excited to drive Fathom's growth, innovation, and value creation for our clients, agents, partners, employees, and shareholders. Today, I'll walk you through our financial performance this quarter, highlighting the key drivers that continue to propel us forward and share updates on the strategic priorities that are setting the stage for our future success. With that, let's dive into our financial results. Third quarter total revenue was $83.7 million, a 10% decline year-over-year compared to $93.5 million for last year's third quarter. The decrease in total revenue was primarily due to an 11% decrease in brokerage revenue and the absence of revenue from our insurance business, which we sold on May 3, 2024. Offsetting the decline in total revenue was a $1.6 million or 44% increase in revenue from our ancillary businesses, as well as the positive impact from our newly implemented high-value property fee. Despite the decrease in total revenue, our total gross profit percentage for the 2024 third quarter, excluding our sold insurance business, increased to 9% from 7% for the 2023 third quarter. Technology and development expenses were approximately $2 million for the 2024 third quarter compared to $1.7 million for the third quarter of 2023. The approximate $0.3 million increase was primarily due to our continued investment in our technology platforms, including the build-out for our new revenue share program. General and administrative expenses totaled $8.7 million for the 2024 third quarter compared to $9.8 million for the third quarter of 2023. The decrease was primarily due to the absence of costs attributable to the sale of our insurance segment business effective May 3, 2024. Marketing activity expense stayed consistent at approximately $0.8 million for both the third quarter of 2024 and the third quarter of 2023. GAAP net loss for the third quarter of 2024 totaled $8.1 million or a loss of $0.40 per share compared to a loss of $5.5 million or a loss of $0.34 per share for the third quarter of 2023. The increase in net loss was primarily due to recognizing the $3.5 million NAR settlement contingency and related legal fee expense. Adjusted EBITDA loss, a non-GAAP measure for the third quarter of 2024, totaled a loss of $1.4 million compared to a loss of $0.3 million in the third quarter of 2023. The decline in adjusted EBITDA is primarily due to a decrease in brokerage revenue and increased costs related to growing our ancillary businesses. Now I'll spend time reviewing our business segment results in more detail. Revenue for the Real Estate division was approximately $78.6 million in the third quarter compared to $88.2 million for the same period last year, which represents an 11% decline primarily attributable to a 9% decrease in transaction volume. There were 9,331 real estate transactions during the three months ended September 30, 2024, compared to 10,303 transactions during the three months ended September 30, 2023. Real estate transactions decreased due to the continuation of higher home prices and uncertainty surrounding mortgage interest rates. Fathom is resolved to address this decline and return to meaningful growth by continuing its strategic recruiting efforts, powered by its newly announced revenue share models and a service commitment to its agents. Gross profit margin for our Real Estate division improved to 5.7% from 5.1% for the third quarter of 2024 compared to the third quarter of 2023. The increase in margin was largely due to increasing our agents' annual fee from $600 to $700 and implementing our new high-value property fee commencing January 1, 2024. Adjusted EBITDA income in the Real Estate division was approximately $0.8 million in Q3 of 2024, a decrease of $0.8 million compared to adjusted EBITDA of $1.6 million in Q3 of 2023. This was largely due to the decrease in transactions in 2024 and the commencement of internal charges from our Technologies division to Fathom Realty for transaction management and CRM services provided. We are very excited about the significant improvement made in our mortgage business's revenue. Revenue grew to $2.9 million in Q3 2024 compared to $1.9 million in Q3 of 2023. This revenue growth was essentially driven by our strategic increase in our loan officer base. Mortgage adjusted EBITDA loss for Q3 2024 of $0.3 million was relatively consistent with Q3 of 2023 due to our strategic investments and planned future growth. Verus Title had revenues of $1.4 million for the third quarter of 2024 compared to $0.8 million for the third quarter of 2023, an increase of 71%. The increase in revenue was driven by organic growth and walkovers. Verus Title's adjusted EBITDA for the 2024 third quarter was a loss of $0.1 million versus close to breakeven for Q3 2023. This is again due to our strategic investments and planned future growth. Verus Title heads into Q4 still in growth mode. With the acquisition of My Home Group, Verus expects Q4 to start recording revenues from transactions in Arizona. Verus has also recently expanded operations into Oregon and its planned expansion includes the rest of the West, including Utah, Nevada, and Colorado. Moving to our Technology segment, third-party revenues remained relatively constant at $0.8 million in Q3 of 2024. We are continuously building enhancements to our technology platform to better serve our agents and drive revenues. LiveBy has made significant strides in product development and customer engagement. The company launched a new version of its website, showcasing its commitment to improving user experience and increasing inbound leads. We continue to focus on our balance sheet given the dynamic real estate market conditions. In September 2024, the company issued senior security convertible promissory notes in the aggregate principal amount of $5 million to an existing shareholder who owns more than 5% of Fathom's common stock, and to the Chairman of the company's Board of Directors. We ended the quarter with a cash position of approximately $13.4 million, which combined with the $0.7 million in cash to be received over the next 24 months from our sale of DIA, strongly positions us for implementing our growth strategy. Regarding our financial outlook, in light of the uncertainty of interest rates and the yet-to-be-determined impact on future revenues and adjusted EBITDA from our recently completed and planned acquisitions, along with our new revenue model offerings, the company has elected to withhold guidance for the fourth quarter ending December 31, 2024. Management plans to reassess and potentially reinstate guidance expectations in the first quarter of 2025, allowing time to evaluate the performance of these new models and the impact of our acquisition. With that, I will turn the call back over to Marco for closing remarks.

Thank you, Joanne. Looking forward, our focus remains squarely on increasing revenue, agent count, and transactions by over 25% annually. We believe we can accomplish this by attracting top-tier agents, teams, and brokerages to a stronger-than-ever value proposition with our new agent commission plan. Tailored to the current market dynamics, these plans aren't just about reshaping Fathom; they are poised to impact the entire industry. At Fathom, we have worked hard to create a premier destination for agents, and our Fathom Max and Fathom Share plans exemplify that commitment. These offerings allow agents to maximize their earnings, combining an industry-leading flat fee commission structure with an innovative revenue share program. Our vision is clear: establish Fathom Realty as a leading brand in every market we serve, reaching 50 states by 2025, with our new plan as a critical driver of this expansion. Execution is essential to achieving this vision. Our industry-leading commission structure and revenue share program are sources of competitive advantage and remain at the core of our growth strategy, equipping us to drive profitability. We provide a powerful value proposition for agents and clients with our scalable and asset-light model, proprietary technology platform, and integrated mortgage, title, and SaaS services. These advantages, along with our experienced management team and strategic insight, position us well for sustained growth in the real estate industry. I'd like to express my gratitude to the entire Fathom team. Your dedication and hard work, particularly around implementing our transformative plans, are essential to our growing success. Together, we're not just adapting to change; we're driving it with a clear strategy, commitment to innovation, and unwavering agent-focused approach. We are positioned to lead the real estate industry into a new era of growth and profitability. Over the past months, I've doubled down on bringing in and promoting the right people. As Jim Collins wrote in his excellent book, 'Good to Great', building a resilient, high-performing organization starts with getting the right people on the bus. With the recent promotions of Joanne and Penelope, and additions like John, Monica, Mark, and Jereme, our new agents, I believe we have a strong team that can lead during our anticipated growth in 2025 and beyond. We remain committed to prudent financial management, strategic investments in growth, and operational excellence. Our ability to execute on multiple fronts—growing our agent base, enhancing profit margins, and managing cash flow—is a testament to the strength of our business model. As we move forward, we are laser-focused on driving results with our new commission model and integrating the My Home Group team into the Fathom family, along with future team and brokerage acquisitions as we are currently in discussions with. With planned investments in these areas, we anticipate modest transaction growth in Q4 and, given the positive impact of My Home Group and other future transactions, we anticipate 25% agent growth in 2025, which we believe should lead to adjusted EBITDA profitability in 2025. We're confident that these initiatives, backed by the resilience and commitment of our team, will deliver long-term value to our shareholders. Operator, we are ready to take questions.

Our first question comes from Darren Aftahi.

This is Dillon on for Darren. First, to start, on the My Home Group acquisition, could you give us some more color? Did you approach them? Did they approach you? And then, what else do you see that's out there on that front? It seems like that organization specifically skews a bit higher than your existing agent base in terms of productivity. Do you think there are other options out there? How are you thinking about sort of your walkover approach or first acquisition?

Dillon, thank you for your question. We were introduced to the My Home Group by Remo, which is a real estate mergers and acquisition company that we've been working with. We were introduced about six or seven months ago. Initially, the conversation was just to get to know each other; after continuing that discussion, it became clear that it would make sense for us to merge. I described many of the reasons why they felt compelled to do that. They are a great organization; they have a higher productivity in terms of transactions per agent. We feel blessed to work with them now. Since we launched the revenue share program, we have seen an increase in the number of companies approaching us. So yes, we are definitely seeing an increase in the number of companies. We are, as I discussed in my earnings call, in other discussions with other companies, and that's why we are confident that we'll be able to grow agent count by 25% going forward, given these discussions and the high interest from brokerages and teams, both in terms of walkovers and acquisitions.

Great. And as a follow-up, I know you're working on your recruiting efforts. Can you talk about a little bit what's working and what you're doing differently than before? Is there anything you think you can do on the educational front or technology side that can help your existing agents continue to be productive despite some of the market trends?

Absolutely. So yes, we certainly have seen an increase in agents interested in learning about our revenue share model. Our revenue share model is unique because we have two different plans, right? Unlike most companies with revenue share models that have just one plan, a traditional split, we have a program that has both—a flat fee and a traditional split. A lot of agents are interested in learning, and we are spending a lot of time educating prospective agents on that. In terms of helping our agents grow their business, we are working on several programs that we will announce in the next 60 to 90 days. We have the Fathom Summit next week, and some of those will be announced then. All these programs are designed to help our agents increase their business. They include branding and marketing programs, and we certainly look forward to implementing these in the next 90 days. We believe they would be incredibly helpful. I will also point out, as I did in our earnings call, that when we look at October's numbers, our October transactions compared to last year are pretty much on par. The efforts we began implementing in Q1 of this year to focus on higher-producing agents are beginning to pay off. As we look into Q4, we believe we will see an increased number of transactions per agent because of the quality of the agents we've brought on this year. So I think we've turned the tide in terms of agent productivity. We're about to announce some specific programs to do that, and the addition of My Home Group will also contribute to an increased number of transactions in Q4 and beyond into next year.

Our next question comes from Raj Sharma with B. Riley.

I just wanted to understand, congratulations on the acquisition. The addition of these agents, you just briefly touched upon, Marco, can you talk about how much was paid? Was it cash? And how are ongoing compensation incentives structured for the agents coming on?

Sure. For competitive reasons, given that we are in negotiations with several other companies, we certainly don't want to disclose the payment details. However, I will share that the cash component was minimal in terms of the total purchase price. Both Jereme and Mark believe in the future of the combined companies; thus, the majority of the purchase price was in stock and it will be paid over a couple of years. Both parties feel very good about the transaction. We are engaged in several conversations with other companies since we announced our revenue share and have seen a significant number of small brokers, large brokerages, and teams approaching us. This is critical for us to return to 25% agent growth on an annual basis. We're confident we can achieve this.

That's very helpful. Is it fair to assume that the 25% growth in agents you are anticipating starts pretty soon, and that the payment for the growth in agents would be similar—minimal cash and mostly stock?

We feel that way. When you enter negotiations, everything is a little different. However, we certainly want to bring in companies whose owners believe in the long-term value this will bring. Therefore, a significantly higher percentage in stock is advantageous to both parties. Regarding the anticipated 25% growth from the acquisition of My Home Group, we're already pretty close to that kind of growth this year. As we look forward into 2025, I think starting in Q1, you're going to see an increase in agent count as well. We feel fairly confident that this 25% agent growth will continue as we enter into Q1 and beyond.

Got it. And then, Marco, you mentioned that this would add an incremental $100 million in revenues starting in 2025. This is $100 million from My Home?

That's correct. When you look at the total number of transactions and revenue per transaction, this acquisition would generate roughly $100 million in revenue for 2025.

And spread in a similar cadence to the existing business or through the year?

That's correct.

Also, the assumptions you're using for the $100 million are sort of similar agents—transactions for agents, and commission per transaction, or basically, will it be higher?

No. My Home Group has a higher productivity. They have successfully achieved higher transactions per agent. That's incredibly attractive. Their transactions are also a bit higher as the Arizona market is a hot market. The average transaction there is slightly higher than ours because we're a national company with agents in various markets where the transactions are lower on average. So, focusing on the Arizona market, they have a higher transaction price and higher productivity, both of which will significantly positively impact the overall performance of Fathom.

Got it. Lastly, Marco, is it too early to comment on or speculate on the impact of the cuts today, the earlier cut on your transactions?

Sure. The 25 basis point cut that was done today is probably a little too early to assess. We know what happened after the 50 basis point cut a couple of months ago, and the 10-year note went up significantly. I think most people did not anticipate rates going up so much higher. Given that, I would reserve judgment on the impact of the 25 basis points. I believe we have to see how the 10-year behaves coming out of that. There are many moving parts, including the new administration's effect on inflation. We will assume rates will remain where they are and focus on growing transactions, revenue, and consequently EBITDA. We're concentrating on growing our business by 25% or more per year, and the rest will take care of itself. Our goal is to focus on areas we can control, which is ensuring our team is focused on growing the business and restoring our annual growth back to 25% or more. As we continue that, it should positively impact profitability. That's our primary focus.

Thank you for your questions. With that, we will conclude today's question-and-answer session. I'd like to turn the call over to Mr. Fregenal for closing remarks. Sir, please proceed.

Thank you, everyone, for joining us today. We appreciate everybody's focus. I certainly want to thank the entire team for all their hard work and continued commitment. As always, I'm available for calls, and I hope everyone has a great rest of the week and weekend. Thank you all.

Ladies and gentlemen, with that, we'll conclude today's conference call. Thank you for joining. You may now disconnect your lines. Have a pleasant evening.