Good afternoon, and welcome to Fathom Holdings Fourth Quarter and Full Year 2025 Conference Call. Joining us today are the company's CEO, Marco Fregenal; and Senior Vice President of Finance, Daniel Weinmann. [Operator Instructions] Please note this conference is being recorded. Before I turn it 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 year ended December 31, 2025, 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 statement after today's call, except as required by law. Please note that during this call, management will be discussing adjusted EBITDA, which is non-GAAP financial measure as defined by the 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 will turn the call over to Fathom's President and CEO, Marco Fregenal. Please go ahead, sir.

Good afternoon, everyone, and thank you for joining us today. Before Daniel walks us through the financial results, I want to take a few minutes to step back and talk about the progress we made during the fourth quarter and throughout 2025. This past several years have been challenging for the housing market. Higher interest rates and affordability constraints have significantly reduced transaction activity across the industry. Despite those headwinds, we continue to execute on our long-term strategy and strengthen the foundation of the Fathom platform. That progress is reflected in our results. For the full year 2025, we generated $420 million in revenue, representing a 25% year-over-year growth, and our total transactions increased nearly 15%, driven in part by the addition of My Home Group and the continued addition of strong agents to our network. For the full year 2025, gross profit increased 20.8% to $34.2 million compared to $28.3 million in 2024. And adjusted EBITDA improved by $1.7 million or a loss of $4 million compared to a loss of $5.7 million in 2024. Beyond the financials, we made meaningful strategic progress. We expanded our ancillary businesses, launch new programs and partnerships, strengthen our leadership team and sharpen our focus on the core Fathom ecosystem. It also merits noting that in our fourth quarter, transaction volumes continue to reflect broader market trends. In December, for example, the industry saw a significant number of contract cancellations in some markets, including Atlanta, Jacksonville, and San Antonio, cancellation rates exceeded 20%. Even in this environment, we are encouraged by the strengthening quality of our business. These conditions reinforce why we proactively restructure our economics to reduce reliance on transaction volume and build a more durable, diversified profit model across our platform, positioning us well for our long-term growth and meaningful acceleration…

Thank you, Marco. I'll begin reviewing our financial results for the fourth quarter and full year 2025 and then provide a breakdown of performance across our business segments, starting with revenue. Fourth quarter revenue totaled $90.6 million, a 1.2% decrease year-over-year compared to $91.7 million in the prior year period. The modest decline was primarily driven by a 3.2% decrease in brokerage revenue, reflecting softer real estate transaction activity during the quarter. This was partially offset by strong performance in our ancillary businesses, which grew an average of 54.2% year-over-year, driven by increased attach rates and continued expansions of our mortgage and title operations. For the full year 2025, total revenue increased 25.4% to $420.5 million compared to $335.2 million in 2024. The growth was primarily driven by the addition of My Home Group in November 2024 as well as continued momentum in our ancillary businesses, which increased an average of 27.6% year-over-year. This reflects our ongoing focus on driving higher attach rates across our integrated platform and expanding revenue per transaction. Gross profit for the fourth quarter of 2025 increased to $7.1 million compared to $6.7 million in the fourth quarter of 2024. The increase was primarily driven by stronger contributions from higher-margin ancillary businesses, including mortgage and title. The continued expansion of our Elevate program also contributed to improved revenue per transaction and stronger unit economics. Gross profit margin for the fourth quarter of 2025 increased to 8.1% compared to 7.2% in the fourth quarter of 2024. The improvement was primarily driven by a more favorable revenue mix with greater contribution from higher-margin ancillary services as well as improved operating efficiency. For the full year 2025, gross profit increased 20.8% to $34.2 million compared to $28.3 million in 2024. The increase was primarily driven by growth in mortgage…

Thank you, Daniel. Before we open the call for questions, I want to spend a few minutes talking about how we see the opportunity ahead as we move to 2026. What I want to emphasize is that the structural changes we have made to our business are designed to deliver meaningfully stronger results regardless of what the broader housing market does. We are not counting on a market recovery to drive our improvement. The pricing and fee changes I described a few minutes ago are already going into effect, and they fundamentally improve our unit economics at any level of transaction volume. At the same time, the long-term fundamentals for housing demand in the U.S. remain very strong. Regardless of when transaction volumes recover, Fathom is well positioned. And more importantly, we are entering the next phase of the business, which we believe will be very positive. Over the past several years, we have invested in building a scalable platform, expanding our agent network and developing our technology and building our ancillary services across mortgage, title and lead generation. During 2025, we took important steps to improve the economics of the model, including changes to our commission structure, the introduction of recurring fees and the continued expansion of higher-margin services. As a result, we believe our business today is stronger, more efficient and more diversified than it has been in the past. So even without a market recovery, we expect to deliver better margins and greater operating leverage. And if the housing market does begin to normalize or improve, which we believe they will, over time, that becomes more meaningful additional upside. And that brings me back to our four priorities we outlined earlier, which will guide our execution in 2026. We are focused on pursuing margin expansion, seeking to…

[Operator Instructions] Our first question is from Tom Hayes with ROTH Capital Partners.

Marco, I guess a couple of things. And again, I appreciate all the details. Really two things. One on the Elevate program, could you just reiterate what you said as far as your target to bring on new Elevate partners in '26?

Sure. So Elevate, think of Elevate as a platform, right? And there'll be different kinds of agents to use Elevate in different ways. So you have our regular starting program those Elevate, then we created the START program that leverages some of it, the functionality and the benefits into lead generation that Elevate offer. So Elevate, it will evolve into 2 or 3 different kinds of offerings under the Elevate platform. Our goal by the end of the year is to have about 1,000 agents on Elevate. And I think combined right now, we're about 260, 275. We think that by the end of the year, will be at around 1,000 agents on the entire Elevate platform, which, again, is going to consist of agents on just the basic Elevate program on START, Elevate and a couple of other versions of Elevate that will create over the year.

Okay. I appreciate that. And then on the new Edge program, just wondering what some of the feedback from the agents has been. That went into effect Jan 1, and can you just remind me that should be a margin contributor for the START, correct?

Yes. So actually that went live -- it's going to go live on April 1 this week. We'll be working on it for several months. I think a lot of our agents like the program in a sense that it compares this team incredibly well against other companies that charging 20% and 30%. Again, keep in mind that our current base is grandfathered, so they can continue to stay on our previous plans, whether it was Fathom Max or Fathom Share. They don't have to move to Fathom Edge. Having said that, we already heard from a variety of agents saying they want to move to Fathom Edge for a variety of reasons in terms of the cap and some of the benefits of Fathom Edge. So I think there'll be a percentage of our regular agents that move to Fathom Edge, but all new agents starting on April 1 will go into Fathom Edge. And again, over time, as we have regular attrition in the business, right, the percentage of Fathom Edge agents will continue to grow and be a bigger percentage of the total agent base. But the new program, Fathom Edge starts on April 1 as well as the $250 brokerage fee.

I appreciate that. And maybe just lastly, I know you and I spoke about it last time, but certainly, the agents are key to the Fathom story. But I was just wondering about your strategic partner with ByOwner because I think certainly, the for-sale ByOwner is a significant market piece as well. So just maybe any updates on that partnership as well.

Yes, absolutely. So our goal is to leverage a significant percent of individuals who want to sell their house by themselves. Actually, at some point, do hire a real estate agent and the number is over 90%, right? So our partnership with ByOwner is really focused on that, right? It's how do we introduce the agent network to those sellers who want to take advantage of really working with an agent and getting the benefits of everything an agent can do that, right? And so our partnership is really focused on that. Our partnership is not focused -- they have another partner that handles -- when a seller wants to sell the house by themselves, again, the focus of our partnership is that. And we already are in the beginning of the partnership. We already are connected with them. We're already getting leads from them. They are about to announce several partnerships that will be announced soon, which will be the real estate partner for them. And so the ByOwner platform is going to be a meaningful platform for us as we get into Q2 and beyond this year. And the positive thing about that relationship is that's focused on listings, right? And so we're going to get a lot of listings from that relationship. I think I mentioned this before that they currently get about 500,000 visitors a month, right? And so they have a significant audience, and we're certainly going to be able to help ByOwner and our agents monetize and help those clients who want to get the benefit of the full service or agent.

There are no further questions at this time. I would like to turn the conference back over to Marco for closing remarks.

Well, I just want to thank everybody for joining us today. I know this is a long call, but there was a lot to update about our business and some of the key initiatives that we are already implementing for 2026. We look forward to a great year. We're very excited about the changes that we're implementing to our business that we believe are going to have meaningful results to our profitability and our growth for 2026. I want to thank everybody for joining us and look forward to talking to you soon. Have a great week.

Thank you. This will conclude today's conference. You may disconnect at this time and thank you for your participation.