Fathom Holdings (FTHM) AI Stock Analysis

• Market Cap: $41.15M
• Dividend Yield: N/A
• Average Volume (3M): 670.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.83
• Revenue Growth: 19.16%
• EPS Growth: 12.99%
• Country: US
• Employees: 270
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -0.13
• Shares Outstanding: 31,415,628
• 10 Day Avg. Volume: 314,731
• 30 Day Avg. Volume: 670,495
• PEG Ratio: 0.05
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.09
• P/FCF Ratio: -3.91
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 0.13
• Enterprise Value/Gross Profit: 2.20
• Enterprise Value/Ebitda: -2.85
• 1Y Price Target: $2.50
• Price Target Upside: 100.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $1.50 ▲(20.00% Upside)

Fathom Holdings' overall score is primarily impacted by its challenging financial performance, with ongoing profitability and cash flow issues. The technical analysis indicates bearish momentum, and valuation metrics are weak due to negative earnings. Despite these challenges, the earnings call provided some optimism with strong revenue growth and strategic expansions, contributing positively to the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market expansion and product adoption, enhancing Fathom's competitive position in the real estate sector.

Agent and Transaction Growth

Growth in agent count and transactions underscores Fathom's effective expansion strategy, which is crucial for sustaining long-term business growth and market presence.

Return to Adjusted EBITDA Profitability

Achieving adjusted EBITDA profitability demonstrates operational efficiency and scalability, indicating a robust business model capable of generating sustainable profits.

Negative Factors

Net Loss Increase

The increase in net loss highlights ongoing profitability challenges, which could strain financial resources and impact the company's ability to invest in growth initiatives.

Cash Flow Challenges

Persistent cash flow issues may hinder Fathom's liquidity and limit its capacity to fund operations and strategic investments, affecting long-term financial health.

Decline in Ancillary Business Revenue

The decline in ancillary revenue suggests potential weaknesses in diversifying income streams, which could affect overall revenue stability and growth potential.

Fathom Holdings Business Overview & Revenue Model

Company Description

Fathom Holdings Inc. provides cloud-based real estate brokerage services in the South, Atlantic, Southwest, and Western parts of the United States. It operates through three segments: Real Estate Brokerage, Mortgage, and Technology. The Real Estate Brokerage segment provides real estate brokerage services. The Mortgage segment offers residential loan origination and underwriting services. The Technology segment provides Software as a Service solutions and data mining for third party customers to develop its intelliAgent platform for use by the company's real estate agents. The company operates a real estate services platform that integrates residential brokerage, mortgage, title, and insurance services, as well as supporting software called intelliAgent. It offers access to various properties for sale or lease through its FathomRealty.com website to buyers, sellers, landlords, and tenants. Its intelliAgent real estate technology platform provides a suite of brokerage and agent level tools, technology, business processes, business intelligence and reporting, training, customer relationship management, social media marketing and other marketing, and marketing repository services, as well as marketplace for add-on services and third-party technology. The company's brands include Fathom Realty, Dagley Insurance, Encompass Lending, intelliAgent, LiveBy, Real Results, Verus Title, and Cornerstone. Fathom Holdings Inc. was founded in 2010 and is headquartered in Cary, North Carolina.

How the Company Makes Money

Fathom Holdings generates revenue primarily through commission splits from real estate transactions facilitated by its network of agents. The company employs a unique model that allows agents to retain a significant portion of their commissions while paying a monthly fee to Fathom. This fee structure attracts agents looking for a more favorable commission model compared to traditional brokerages. Additionally, Fathom may earn revenue through ancillary services, such as mortgage lending, title services, and insurance referrals. Strategic partnerships with technology providers and financial institutions also contribute to its earnings by enhancing the service offerings available to agents and clients.

Fathom Holdings Financial Statement Overview

Summary

Fathom Holdings shows revenue growth but struggles with profitability and cash flow. The balance sheet is stable with low leverage, but negative ROE and cash flow issues are concerning.

Income Statement

Fathom Holdings has shown a mixed performance in its income statement. The company has experienced a positive revenue growth rate of 9% in the TTM, indicating some recovery from previous declines. However, profitability remains a concern with negative net profit margins and EBIT margins, reflecting ongoing operational challenges. The gross profit margin has also decreased over time, suggesting pressure on cost management.

Balance Sheet

The balance sheet of Fathom Holdings presents a moderate risk profile. The debt-to-equity ratio is relatively low at 0.14 in the TTM, indicating conservative leverage. However, the return on equity is negative, highlighting inefficiencies in generating returns for shareholders. The equity ratio is stable, suggesting a balanced asset structure, but the negative ROE remains a significant concern.

Cash Flow

Cash flow analysis reveals challenges for Fathom Holdings. The company has negative operating cash flow, which is concerning for liquidity. Although there is a notable improvement in free cash flow growth, the operating cash flow to net income ratio is negative, indicating cash flow issues. The free cash flow to net income ratio is close to 1, suggesting that free cash flow is almost equivalent to net income, but overall cash flow management needs improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	390.03M	335.18M	345.23M	412.96M	330.23M	176.78M
Gross Profit	23.81M	28.27M	28.29M	27.17M	21.50M	10.42M
EBITDA	-18.34M	-16.64M	-17.31M	-21.43M	-13.36M	-1.12M
Net Income	-23.59M	-21.58M	-23.98M	-27.63M	-12.49M	-1.34M
Balance Sheet
Total Assets	80.45M	75.40M	79.26M	80.19M	104.93M	35.22M
Cash, Cash Equivalents and Short-Term Investments	5.12M	7.13M	7.40M	8.32M	37.83M	28.58M
Total Debt	23.31M	18.79M	17.57M	11.12M	14.99M	980.80K
Total Liabilities	39.75M	30.72M	24.02M	18.17M	24.78M	5.57M
Stockholders Equity	40.70M	44.68M	55.23M	62.02M	80.15M	29.65M
Cash Flow
Free Cash Flow	-12.25M	-7.93M	-12.40M	-10.64M	-15.18M	-1.96M
Operating Cash Flow	-12.32M	-4.69M	-10.57M	-6.58M	-11.70M	-1.21M
Investing Cash Flow	-357.00K	3.30M	-1.87M	-7.10M	-14.56M	-909.75K
Financing Cash Flow	7.02M	1.24M	11.60M	-15.86M	34.62M	31.11M

Fathom Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FTHM, the sentiment is Negative. The current price of 1.25 is below the 20-day moving average (MA) of 1.55, below the 50-day MA of 1.86, and below the 200-day MA of 1.31, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 34.46 is Neutral, neither overbought nor oversold. The STOCH value of 7.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FTHM.

Fathom Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REAX	70 Outperform	$755.40M	―	-25.27%	―	65.60%	69.72%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
RMAX	64 Neutral	$251.14M	12.54	2.87%	―	-6.06%	―
FRPH	58 Neutral	$437.60M	95.80	1.09%	―	2.69%	-39.47%
DOUG	51 Neutral	$218.49M	―	-41.11%	―	6.62%	30.94%
FTHM	47 Neutral	$41.15M	-1.24	-50.22%	―	19.16%	12.99%
STHO	39 Underperform	$96.75M	-1.68	-18.83%	―	-13.95%	37.24%

Fathom Holdings Corporate Events

Fathom Holdings Completes $5.4 Million Stock Offering

On September 19, 2025, Fathom Holdings Inc. announced an underwriting agreement with Roth Capital Partners to sell 3,000,000 shares of its common stock at $2.00 per share, with an option for the underwriter to purchase an additional 450,000 shares. The offering closed on September 22, 2025, resulting in approximately $5.4 million in net proceeds for the company. The funds are intended for general corporate purposes, and the event marks a significant financial move for Fathom Holdings, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (FTHM) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Fathom Holdings stock, see the FTHM Stock Forecast page.

Fathom Holdings Shareholders Approve Stock Incentive Plan Amendment

At the 2025 Annual Meeting of Shareholders, Fathom Holdings Inc. shareholders approved an amendment to the 2019 Omnibus Stock Incentive Plan, increasing the share reserve by 1,300,000 shares. The board had initially approved this amendment on June 28, 2025, pending shareholder approval. Additionally, the meeting saw the election of six board members for a one-year term and the ratification of Deloitte & Touche LLP as the independent registered public accounting firm for the year ending December 31, 2025.

The most recent analyst rating on (FTHM) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Fathom Holdings stock, see the FTHM Stock Forecast page.

Fathom Holdings Inc: Earnings Call Highlights Growth and Challenges

Fathom Holdings Inc’s recent earnings call painted a mixed picture, with a strong emphasis on growth and strategic success, yet acknowledging some financial challenges. The company reported impressive revenue and transaction growth, alongside a return to adjusted EBITDA profitability, which highlights robust operational performance. However, the call also addressed concerns such as a decreased gross profit margin, increased net loss, and declines in specific business segments.

Fathom Holdings Reports Strong Q2 2025 Growth

Fathom Holdings Inc. is a technology-driven real estate services platform that integrates residential brokerage, mortgage, title, and SaaS offerings for brokerages and agents, leveraging its proprietary cloud-based software, intelliAgent. The company operates in the real estate sector and is known for its comprehensive service offerings and innovative technology solutions.