Fathom Holdings (FTHM) AI Stock Analysis

• Market Cap: $42.11M
• Dividend Yield: N/A
• Average Volume (3M): 136.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.87
• Revenue Growth: 32.78%
• EPS Growth: 36.50%
• Country: US
• Employees: 270
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -0.15
• Shares Outstanding: 32,390,960
• 10 Day Avg. Volume: 77,603
• 30 Day Avg. Volume: 136,408
• 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: 1.49
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 2.64
• Enterprise Value/Ebitda: -4.39
• 1Y Price Target: $2.50
• Price Target Upside: 113.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $1.50 ▲(28.21% Upside)

The score is held down primarily by weak financial quality—continued losses and negative operating/free cash flow—despite manageable leverage. Offsetting this, the latest earnings call was directionally encouraging with strong growth and improved adjusted EBITDA, and technicals are modestly supportive, while valuation remains challenged due to negative earnings and no dividend.

Positive Factors

Revenue & EBITDA Improvement

Material revenue and profit-line improvements indicate the platform is beginning to scale: higher gross profit and a swing to positive adjusted EBITDA suggest operating leverage from agent growth and ancillary services, supporting sustained reinvestment in tech and market expansion over months.

Agent Network Expansion

Rapid, low-churn agent growth strengthens competitive moat: a larger, sticky agent network enhances referral volume, spreads fixed tech and support costs, and increases cross-sell potential for mortgage/title/insurance, enabling durable transaction-share gains as markets normalize.

Strategic Divestiture to Focus Core

Selling non-core LiveBy assets while keeping platform access monetizes an asset and sharpens strategic focus on brokerage and ancillaries; the cash inflow and data-sharing deal improve financial flexibility and preserve agent tooling without owning a peripheral business long-term.

Negative Factors

Ongoing GAAP Losses

Continued GAAP losses mean equity erosion and constrain internally funded growth. Until sustained positive net income is achieved, management may need external capital for expansion, which can dilute shareholders or increase leverage, affecting long-term financial stability.

Negative Operating & Free Cash Flow

Negative operating and free cash flows show earnings aren't converting to cash, limiting capacity to invest in technology, marketing, or acquisitions organically. Persistent cash deficits increase reliance on financing and raise risk if housing volumes decline.

Title Segment Drag & Litigation

Profitability issues in title and a material litigation charge highlight operational and legal risks in key ancillary services. Underperforming verticals and potential legal costs can compress per-transaction economics and slow the firm's strategy of capturing more revenue per home sale.

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 is experiencing revenue growth but faces significant profitability and cash flow challenges. The balance sheet remains stable with manageable leverage, but negative returns on equity highlight ongoing financial struggles. The company needs to address its profitability and cash flow issues to improve its financial health.

Income Statement

Fathom Holdings has shown some revenue growth in the TTM period, with an 8.1% increase. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin is relatively low at 6.1%, indicating challenges in cost management. Overall, the income statement reflects a company facing profitability issues despite revenue growth.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.57, indicating manageable leverage. However, the return on equity is negative, reflecting ongoing losses. The equity ratio is not explicitly calculated, but the company maintains a reasonable level of equity relative to its assets. The balance sheet suggests a stable financial structure but highlights profitability challenges.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows, with a significant decline 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 cash flow is closely tied to net income, albeit negative. Overall, the cash flow statement indicates liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	421.61M	335.18M	345.23M	412.96M	330.23M	176.78M
Gross Profit	23.83M	28.27M	28.29M	32.47M	29.72M	10.44M
EBITDA	-14.33M	-16.64M	-17.64M	-23.63M	-13.36M	-1.10M
Net Income	-19.83M	-21.58M	-23.98M	-27.63M	-12.49M	-1.34M
Balance Sheet
Total Assets	83.24M	75.40M	79.26M	80.19M	104.93M	35.22M
Cash, Cash Equivalents and Short-Term Investments	9.76M	7.13M	7.40M	8.32M	37.83M	28.58M
Total Debt	5.59M	18.79M	17.57M	11.12M	14.99M	980.80K
Total Liabilities	39.86M	30.72M	24.02M	18.17M	24.78M	5.57M
Stockholders Equity	43.38M	44.68M	55.23M	62.02M	80.15M	29.65M
Cash Flow
Free Cash Flow	-10.06M	-7.93M	-12.40M	-10.64M	-15.18M	-1.96M
Operating Cash Flow	-8.95M	-4.69M	-10.57M	-6.58M	-11.70M	-1.21M
Investing Cash Flow	-80.00K	3.30M	-1.87M	-7.10M	-14.56M	-909.75K
Financing Cash Flow	5.52M	1.24M	11.60M	-15.86M	34.62M	31.11M

Fathom Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.17
• 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 1.17 is above the 20-day moving average (MA) of 1.09, below the 50-day MA of 1.18, and below the 200-day MA of 1.32, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 60.98 is Neutral, neither overbought nor oversold. The STOCH value of 73.87 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
RMAX	68 Neutral	$249.84M	12.48	2.87%	―	-6.06%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
FRPH	60 Neutral	$448.26M	96.38	1.09%	―	2.69%	-39.40%
REAX	58 Neutral	$818.29M	-73.35	-25.27%	―	65.60%	69.72%
DOUG	58 Neutral	$219.38M	-3.53	-41.11%	―	6.62%	30.94%
FTHM	51 Neutral	$42.11M	-1.61	-43.75%	―	32.78%	36.50%
STHO	48 Neutral	$104.30M	-0.74	-42.01%	―	-3.22%	-280.23%

Fathom Holdings Corporate Events

Fathom Holdings Divests LiveBy Assets to Move Concierge

On December 1, 2025, Fathom Holdings Inc. announced the divestiture of its LiveBy assets to Move Concierge for $3 million, with an additional $300,000 expected annually from data-sharing arrangements. This transaction is aimed at supporting Fathom’s growth initiatives and strengthening its financial position. The deal allows Fathom to retain access to the LiveBy platform for five years and expands Move Concierge’s services to Fathom’s agents, enhancing the client experience and potentially improving retention and customer satisfaction.

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.