Fathom Holdings (FTHM) AI Stock Analysis

• Market Cap: $24.48M
• Dividend Yield: N/A
• Average Volume (3M): 40.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• Revenue Growth: -2.91%
• EPS Growth: 27.80%
• Country: US
• Employees: 270
• Sector: Real Estate
• Sector Strength: 81
• Industry: Real Estate - Services
• EPS (TTM): -0.21
• Shares Outstanding: 27,196,999
• 10 Day Avg. Volume: 18,896
• 30 Day Avg. Volume: 40,337
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.82
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 0.13
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $1.50
• Price Target Upside: 76.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Fathom Holdings' stock score reflects a company with potential but facing significant financial and operational challenges. Improvements in gross profit margins and strategic acquisitions are positive, but persistent losses, negative cash flows, and a challenging valuation weigh heavily. Recent corporate governance changes could support long-term growth, but short-term performance remains uncertain.

Positive Factors

Agent Growth Potential

Acquisition of MyHomeGroup added ~2.2K highly productive agents, enhancing the potential for future growth.

Ancillary Services

Ancillaries grew ~42% year-over-year on 9% fewer transactions, indicating that investments in those services are proving beneficial.

Negative Factors

Financial Performance

3Q results fell short of expectations with continued housing pressure and marginally slower agent growth.

Transaction Decline

Transactions fell 9.4% year-over-year, with faster declines than the industry, impacting overall performance.

Fathom Holdings Business Overview & Revenue Model

Company Description

Fathom Holdings (FTHM) is a technology-driven real estate brokerage company that operates primarily in the United States. The company focuses on providing real estate services through its proprietary cloud-based platform, which enhances the efficiency and productivity of real estate agents. Fathom Holdings offers a range of services including residential real estate sales, brokerage services, and support for real estate agents through innovative technology solutions.

How the Company Makes Money

Fathom Holdings generates revenue primarily through real estate transaction fees. The company employs a commission-based model where it earns income by taking a percentage of the commission from real estate transactions completed by its agents. In addition, Fathom Holdings charges its agents a flat fee per transaction, which contributes to its revenue streams. The company also benefits from its technology platform, which allows for scalable operations with reduced overhead costs, thus enhancing profitability. Its earnings are further supported by strategic partnerships and expansion into new markets, enabling access to a larger client base and increased transaction volume.

Fathom Holdings Financial Statement Overview

Summary

Fathom Holdings shows potential with improved gross profit margins, but persistent losses and negative cash flows indicate ongoing financial challenges. The balance sheet reflects moderate leverage and a stable asset base, but declining equity is a concern. The company needs to focus on improving profitability and cash flow generation to enhance financial stability.

Income Statement

Fathom Holdings has struggled to achieve consistent revenue growth, with a notable decline in revenue year-over-year. The gross profit margin has improved significantly, indicating better cost control. However, the company remains unprofitable with negative net and EBIT margins, reflecting challenges in achieving operational efficiency.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio, indicating manageable leverage. However, the decline in stockholders' equity and total assets over the years is concerning. The equity ratio remains healthy, suggesting a stable asset base relative to equity.

Cash Flow

Fathom Holdings faces challenges with negative operating and free cash flows, reflecting ongoing difficulties in generating cash from operations. The free cash flow to net income ratio is negative, highlighting cash flow constraints. However, there has been an improvement in operating cash flow relative to net income, suggesting slight operational enhancements.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
335.18M	345.23M	412.96M	330.23M	176.78M
	Gross Profit
335.18M	37.13M	40.72M	29.72M	10.42M
	EBIT
-23.46M	-23.25M	-26.78M	-16.11M	-1.28M
	EBITDA
-19.82M	-17.31M	-21.43M	-13.36M	-1.12M
	Net Income Common Stockholders
-21.58M	-23.98M	-27.63M	-12.49M	-1.34M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.13M	7.40M	8.32M	37.83M	28.58M
	Total Assets
75.40M	79.26M	80.19M	104.93M	35.22M
	Total Debt
9.15M	17.57M	11.12M	14.99M	980.80K
	Net Debt
2.02M	10.17M	2.80M	-22.84M	-27.60M
	Total Liabilities
30.72M	24.02M	18.17M	24.78M	5.57M
	Stockholders Equity
44.68M	55.23M	62.02M	80.15M	29.65M
Cash Flow		Free Cash Flow
-5.20M	-12.40M	-10.64M	-15.18M	-1.96M
	Operating Cash Flow
-5.15M	-10.57M	-6.58M	-11.70M	-1.21M
	Investing Cash Flow
3.76M	-1.87M	-7.10M	-14.56M	-909.75K
	Financing Cash Flow
1.24M	11.60M	-15.86M	34.62M	31.11M

Fathom Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.85
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FTHM, the sentiment is Positive. The current price of 0.85 is above the 20-day moving average (MA) of 0.79, above the 50-day MA of 0.83, and below the 200-day MA of 1.76, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 53.20 is Neutral, neither overbought nor oversold. The STOCH value of 63.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$862.92M	―	-52.95%	―	83.50%	8.45%
EXPI	67 Neutral	$1.32B	―	-6.44%	2.63%	6.69%	-137.52%
Sector *	60 Neutral	$2.80B	11.09	0.20%	8508.36%	6.13%	-16.84%
DOUG	60 Neutral	$161.50M	―	-23.11%	―	11.24%	38.70%
RDFN	54 Neutral	$1.16B	―	199.35%	―	5.11%	-29.67%
FTHM	50 Neutral	$24.48M	―	-43.12%	―	-2.91%	27.80%
OPEN	45 Neutral	$542.74M	―	-47.67%	―	2.36%	-23.60%

Fathom Holdings Corporate Events

Fathom Holdings Expands Board, Appoints New Director

On March 17, 2025, Fathom Holdings Inc. announced the expansion of its board of directors from six to seven members and appointed Adam Rothstein as the new non-employee director. Rothstein, a venture investor with extensive experience in technology, media, and medical technology, will serve on several committees, including the newly formed Strategy and Innovation Committee. His appointment is expected to enhance Fathom’s strategic vision and drive long-term growth, benefiting agents, clients, and shareholders.