#1FATHOM Company Presentation NASDAQ FTHM Fathom is a national, technology-driven, real estate services platform integrating residential brokerage, mortgage, title, insurance, and SaaS offerings to brokerages. and agents by leveraging proprietary cloud-based software UPDATED December 2023#2Disclaimer Fathom Holdings, Inc. Forward Looking Statements This presentation contains forward-looking statements about Fathom Holdings Inc. based on management's current expectations, which are subject to known and unknown uncertainties and risks. Our actual results could differ materially from those discussed due to a number of factors, including uncertainty as to our future revenue and profitability, management of growth, interest rates, the real estate market, our ability to raise additional equity and debt financing on favorable terms, competition, general economic and real estate industry uncertainties such as those caused by ongoing anti-trust litigation, and other risk factors set forth from time to time in our SEC filings. We are providing this information as of the date of this presentation and do not undertake any obligation to update any forward-looking statements contained in this presentation as a result of new information, future events or otherwise. Non-GAAP Measures This presentation contains certain supplemental financial measures that are not calculated pursuant to U.S. generally accepted accounting principles ("GAAP"). These non-GAAP measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. For a reconciliation of our non-GAAP measures see the bottom of slide 12, and for important disclosures see slide 18. Fathom Holdings | Company Presentation F 2#3Who is Fathom? The Future of Real Estate DAGLEY INSURANCE FATHOM intelliAgent AFATHOM FATHOM REALTY JENNIFER SMITH REALTOR® 987-654-3210 mim fathomrealty.com SOLD 欧 LiveBy Fathom Holdings is a fast-growing residential real estate brokerage that offers real estate agents the opportunity to keep more of their hard-earned commission dollars through a differentiated commission model. Our unique, low-cost, and disruptive model has allowed Fathom to attract high quality agents and enjoy agent retention rates approximately twice the national average. In addition, our wholly owned mortgage, title, and insurance businesses allow Fathom to generate significantly more revenue and profit per transaction. Further, Fathom licenses its technology platform to other agents and brokerages through a subscription offering, further increasing long-term revenue potential. Industry-best commission model In-house technology platform creating a barrier to entry Highly scalable and asset-light for faster path to profitability Upside on mortgage, title, insurance, and SAAS 10th largest brokerage in the U.S. All the tech, training, and support of our peers, minus the high fees verus ENCOMPASS LENDING GROUP -TITLE- REALTY Fathom Holdings | Company Presentation 3#4National Coverage Expansion Plans to All 50 States and Canada 37 Fathom Holdings | Company Presentation FATHOM REALTY 47 DAGLEY INSURANCE 41 ENCOMPASS LENDING GROUP 28 F ✓ verus -TITLE- 4#5Solid Performance Compared to Overall Market $450 $400 $350 $300 $250 $200 $150 $100 $50 -15.9% REVENUE GROWTH 3Q 2023 $93.5M revenue Compared to -25% for industry REVENUE (in millions) $413 $109 יון $177 $330 12,000 10,000 8,000 13% AGENT GROWTH 3Q 2023 11,333 agents Compared to -1.6% for industry AGENTS 6,000 5,471 4,006 4,000 2,000 8,100 50,000 10,370 45,000 40,000 35,000 30,000 -14.7% TRANSACTION GROWTH F 3Q 2023 10,303 transactions Compared to over -20% for industry 25,000 20,000 17,866 15,000 10,000 5,000 TRANSACTIONS 26,440 44,707 39,262 50 $0 0 0 2019 2020 2021 2022 2019 2020 2021 2022 2019 2020 2021 2022 Fathom Holdings | Company Presentation 5#6Industry Best Commission Split - Revised for 2024 Fathom Holdings, Inc. F $700 Annual Subscription Fee Collected on First Sale of Each Anniversary Year $550 Transaction Fee per Sale $150/Sale After 15 sales Resets on Anniversary Agents earn more income. Highly attractive to agents. Half of Industry Average 5% of Agent's Commission on Average Fathom Holdings | Company Presentation FATHOM REALTY $431,000 Sale Price x 2.7% Commission % $11,637 Total Commission VS - $550 Flat-fee to Fathom $11,087 Total to Agent TRADITIONAL BROKERAGE $431,000 Sale Price x 2.7% Commission % $11,637 Total Commission $3,491 Split to Broker (30%) $8,145 Total to Agent $2,942* MORE INCOME ON JUST ONE SALE *based on median sales price and common agent commission in U.S. at the time chart created 6#7Agent Referral Program Fathom Realty Thousands of Fathom agents acting as recruiters LEVEL 1 STOCK GRANTS $250 stock grants for referred agents 2-year vesting Fathom Holdings | Company Presentation LEVEL 2 CAP FOR LIFE 50% Referrals AGENT GROWTH 50% Recruiting LEVEL 3 FREE FOR LIFE Refer 4 agents* who join Fathom Become Capped for life CAP Refer 4 additional agents* (8 total) Become Free for life FREE Only pay the lower capped fee per sale, forever No more fees of any kind 4 LIFE LIFE *Referred agents must close at least two sales per year to qualify toward an agent's 4 or 8 referrals. 7#8Low Agent Acquisition Cost Data as of 3Q 2023 $1,000 3Q23 Cost to Acquire 1 Agent Annual Fee on 1st Sale Quick Break-even 21X LTV to CAC + $700 Transaction Fee per Sale + $550 Gross Profit on 1st Sale = $1,250 50% Referrals AGENT GROWTH 50% Cost to Acquire Agent - $1,000 Recruiting Fathom Holdings | Company Presentation Break-even *NOTE: Agent acquisition costs are allocated between marketing and G&A in P/L First Sale 欧 80#9Low Agent Turnover Data as of 3Q 2023 78% 1% 3% 6% Turnover by Agent Productivity 12% Lower turnover with our model Fathom 1.8% per month VS Industry 3%+ per month F exce 90% of the agents who leave sell 4 homes or less ■20+ 10-19 5-9 2-4 0-1 Only 4.3% of agents who leave sell 10 homes or more Fathom Holdings | Company Presentation 9#10intelliAgent Fathom's Proprietary Software Transactions >5309 Regatta de Blanc Livingston NC 11223 Ready To Submit Doc Review Submitted CDA Review Closed Funding File Summary e Review 8 Snapshot B Terminate Submitted: 11/16/2021 Closing Docs:- You've done what you need to do for now. Once all of your documents are approved you'll move to CDA review. Property Property Photo × Remove Documents 屋 Dates 92 Ques Conta Replace Photo MLS Code (Optional Street Address 5309 Regatta de Blanc City Livingston Contract Price $749,999.00 Houston, TX FM 1,293 Properties 423 Properties 2/2 Transaction Details Agent Grady Ligon Market Test Texas Category Residential Apl/Suite (Optional) Type Sale Side Buyer State Zip (Optional) NC-North Carolina 11223 Client Andrew Summers Final Sale Pries [email protected] $ 742,000.00 (111) 222-3333 256 Sir Philip For Sale $379,950 4 Beds 13 Baths 3,064 sqft Save Shave Las Vegas, NV 89110 Bedrooms Bathrooms Ling area L 4.0 3.0 3,064 sqft Schedule a Tour We are here to answer any questions Name Enter your name Vea but Lotstee Price per SF $ 1973 0.16 Acres $117 Phane Ma-ber Raleigh, NC Key Features 294 Properties Enter your phone number... Stories Courey MLS number 18 B 1 Clark 2199583 Email Address Fathom Holdings | Company Presentation 欧 Streamline and automate operations O Faster expansion into new markets Eliminate external tech costs O Reduce costs per agent with growth O Improve attach rates for core businesses ➤ Increase revenue per transaction and agent 10 10#11Hypothetical Revenue Model Fathom Holdings, Inc. Expected $40M+ in Adjusted EBITDA at 100,000 sales, assuming a 10% attach rate Revenue Breakdown per Business Line (excludes SaaS) Fathom Holdings | Company Presentation GROSS REVENUE GROSS PROFIT F REAL ESTATE LEAD GEN MORTGAGE TITLE INSURANCE $9,000 $9,000 $10,000 $2,000 $450 $550 $4,500 $8,000 $1,200 $400 GROSS PROFIT MARGIN 6.1% 50.0% 80.0% 60.0% 88.9% OPERATING PROFIT $250 $1,500 $2,500 $650 *$300 OPERATING PROFIT MARGIN 2.8% 16.7% 25.0% 32.5% 67.0% *Beginning on the second year after renewal NOTE 1: Hypothetical numbers based on a $300,000 real estate sale price NOTE 2: These are forward-looking statements subject to numerous risks and uncertainties, including those detailed under "risk factors" in our form 10-K and other SEC filings. See important disclosures regarding non-GAAP metrics on pages 2 and 20 11#12Consolidated Statements of Operation Fathom Holdings, Inc. 2018 Audited 2019 Audited 2020 2021 Audited Audited 2022 Audited Q1 2023 Reviewed Q2 2023 Reviewed Q3 2023 Reviewed Gross commission income Other service revenue Total Revenue $77,306 $111,206 $77,306 $111,206 $176,631 153 $176,784 $314,373 15,857 $330,230 $390,615 22,349 $412,964 $73,170 4,371 $77,541 $94.633 5,456 $100,089 $88,247 5,277 $93,524 Commission & other agent-related costs Operations and support $73,437 $105,257 $166,344 $300,509 $372,246 $69,172 $88,892 $83,770 21 5,470 8,249 1,614 1,904 1,886 Technology and development (incl. D&A) General and administrative 5,108 9,539 372 10,316 3,911 7,715 1,290 1,624 1,760 32,733 43,217 9,601 10,159 9,793 Marketing 255 Depreciation and amortization 23 341 60 970 1,895 5,218 715 927 796 36 1,817 3,096 Total Operating Expenses $78,823 $115,197 $178,059 $346,335 $439,741 695 $83,087 820 $104,326 891 $98,896 (in 000's) Income (loss) from operations ($1,517) Other expenses (income), net Loss before income taxes Income tax expense (benefit) Net Loss 119 (1,636) 27 ($1,663) ($3,991) 110 (4,101) (8) ($4,093) ($1,275) ($16,105) 74 (367) (1,349) (15,738) (8) (3,247) ($1,341) ($12,491) ($26,777) 903 (27,680) (54) ($27,626) ($5,546) 143 (5,689) 12 ($5,701) ($4,237) 83 ($5,372) 106 (4,320) 25 (5,478) 18 ($4,345) ($5,496) Other expenses (income), net 119 110 74 (367) 903 143 83 106 Income tax expense (benefit) 27 (8) (8) (3,247) (54) 12 25 18 Depreciation and amortization 23 60 166 2,748 5,346 1,357 1,510 1,599 Other non-cash and transaction-related cost 1,187 73 200 Stock compensation expense 253 1,630 728 4,011 9,131 2,820 3,185 3,320 Adjusted EBITDA ($1,241) ($2,301) ($381) ($8,159) ($12,227) ($1,369) $458 $(253) Fathom Holdings | Company Presentation 12#13Immediate Initiatives as Chief Executive Officer Fathom Holdings, Inc. 1. 2. 3. Marco Fregenal CEO 4. Fathom Holdings | Company Presentation 5. Cut costs by up to $1.2M per quarter to ensure Cash Flow Positive in 2Q24 Raised agent fees for 2024 to increase EBITDA by approximately $3.1M in 2024 Raised capital in December 2023 to fortify balance sheet, safeguard against possible market volatility, and position Fathom for growth opportunities Implemented strategy to increase agent growth by an additional 50% or greater Improve Fathom's tech offering to further drive operations, agent productivity, and agent recruitment F 13#14Growth Initiatives for Founder & Chief Evangelist Fathom Holdings, Inc. 1. 2. 3. Josh Harley Founder Fathom Holdings | Company Presentation F Implement an aggressive walk-over strategy to increase agent growth through small brokerages Engage current Fathom agents to improve agent referrals, agent retention, and attach rate for mortgage, title, and insurance Remain the face of Fathom to the industry, speaking at industry events, and engaging the media to promote Fathom 14#15Meet The Executives Fathom Holdings, Inc. Josh Harley Marco Fregenal Samantha Giuggio Founder CEO | CFO Realty COO Scott Loftin CTO Joanne Zach Sr. VP of Finance F Past Chair & CEO of Fathom U.S. Marine Corps Veteran Past CEO of Everdrive Past President of Fathom Past COO of PageNet Brazil Past Co-founder How Stuff Works Past SVP of Fathom Realty Past Regional VP of Fathom Realty Past CIO of PageNet Brazil Past CTO How Stuff Works CPA, Corporate Finance Leader 25 years public and private industry Past - Auditor, Arthur Andersen Fathom Holdings | Company Presentation 15#16Meet The Board Members Fathom Holdings, Inc. Scott Flanders Board Chair David Hood Jennifer Venable Steve Murray Audit Chair Nom & Gov Chair Board Member F Ravila Gupta Board Member Glenn Sampson Board Member Past Chief Executive Officer of eHealth, Inc. Past Audit partner at Ernst & Young; Past Vice President, Finance at Quintiles Americas VP and General Counsel at Capitol Broadcasting Co.; Past Commercial Counsel and Senior Partner Manager of Red Hat Chief Executive Officer and Founder of REAL Trends President and Chief Executive Officer of Bagchi Group Held various senior level positions at Exxon Mobil; Original private investor in FTHM Fathom Holdings | Company Presentation 16#17FATHOM APPENDIX#18Disclaimer Fathom Holdings, Inc. Note About Non-GAAP Financial Measures To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), the Company uses Adjusted EBITDA, a non-GAAP financial measure, to understand and evaluate its 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 the Company's financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Fathom defines Adjusted EBITDA as net loss, excluding other (income) expense, net, income tax expense, depreciation and amortization, and share-based compensation expense. Fathom believes that Adjusted EBITDA provides useful information about the Company's 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 management for financial and operational decision-making. The Company believes that Adjusted EBITDA helps identify underlying trends in its business that otherwise could be masked by the effect of the expenses excluded in Adjusted EBITDA. In particular, Fathom believes the exclusion of share-based compensation expense related to restricted stock and restricted stock unit awards provides a useful supplemental measure in evaluating the performance of its operations and provides better transparency into its results of operations. Adjusted EBITDA is being presented to assist investors in seeing the Company's financial performance through the eyes of management, and because it believes this measure provides an additional tool for investors to use in comparing Fathom's core financial performance over multiple periods with other companies in its industry. Adjusted EBITDA should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. There are a number of limitations related to the use of Adjusted EBITDA compared to net loss, the closest comparable GAAP measure, including: Adjusted EBITDA excludes share-based compensation expense related to restricted stock and restricted stock unit awards, which have been, and will continue to be for the foreseeable future, significant recurring expenses in the Company's business and an important part of its compensation strategy; and Adjusted EBITDA excludes certain recurring, non-cash charges such as depreciation and amortization of property and equipment and acquired and internally developed intangible assets, although these are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future. Fathom Holdings | Company Presentation F 18#19Industry Lawsuits - Risk and Potential Benefit Fathom Holdings, Inc. F What Anti-trust commission lawsuits claiming conspiracy and collusion to keep agent commissions artificially high. Every brokerage and real estate association could eventually be named in copycat lawsuits. Did Fathom Conspire? NO! Risk Benefit *POTENTIAL Fathom named in copycat lawsuit in Texas. Initial cost to defend against lawsuit and possible damages if found guilty. Fathom's flat fee commission model could counter the argument that Fathom benefited from a perceived conspiracy. Long term industry ramifications could be a further compression on agent commissions. This could lead agents to look for a lower cost brokerage to recoup lost commission income. Fathom could be a beneficiary of lawsuits. FATHOM LISTINGS 68% were below 2.5% 47% were below 2% 19% were below 1% Only 24% were 2.5-3% AGENTS Fathom Holdings | Company Presentation 19#20Awards & Recognition Fathom Holdings, Inc. THE REALTRENDS FIVE HUNDRED # 6 # 10 LARGEST INDEPENDENT LARGEST OVERALL TOP 100 PLACES TO WORK The Dallas Morning News 2017 #3 2018 #1 2019 #2 2020 #2 2021 #3 2022 #4 Inc. Inc. Inc. Inc. Inc. Inc. 500 500 500 500 5000 5000 2014 2015 2016 2017 2018 2019 INC.500/5000 6 YEARS IN A ROW REALTRENDS GC2022 GAMECHANGERS SP200 Most Powerful Leaders In Real Estate Josh Harley glassdoor 4.7 Recommend 98% Approve 2023 Josh Harley 93% a Friend SP200 Fathom Realty CEO, #75 of CEO Fathom Holdings | Company Presentation F 20#21Agents Win Business Not Brands Over 96% of clients chose an agent based on their abilities, relationships, or marketing Only 1% of clients chose an agent due to what brokerage they were with Fathom Holdings | Company Presentation 19% 1% 1% 4% 4% 20% 6% Why Clients Chose Their Agent 欧 6% 8% Agent's Brokerage 1% Agent's Pro Designations 1% Agent's Volunteerism 1% Agent Accessibility 4% Other 4% Agent is Caring 6% Agent Timely Responses 6% ■Agent's Knowledge of Area 8% Agent is Friend/Family 13% ■Agent Reputation 17% 13% 17% Agent's Experience 19% Agent is Honest 20% 21#22Relationships Win Business Not Offices Over 95% of buyers found their agent through that agent's relationships and marketing Only 1% of buyers found their agent due to agent being at an office Fathom Holdings | Company Presentation 47% 1% 92%2% 3% 3% 4% 5% 13% 7% 5% 7% 欧 How Clients Find a Real Estate Agent Walked Into or Called Office 1% Mobile App 1% Social Media 2% Company Relocation 2% Contacted by Agent 3% Other 3% Visited Agent's Open House 4% Saw For Sale Sign 5% Referred by Other Agent 5% ■Website Registration 7% ■■Online Property Inquiry 7% Used Agent Previously 13% ■Referred by Friend/Family 47% 22