Fathom Holdings (FTHM) AI Stock Analysis

• Market Cap: $40.49M
• Dividend Yield: N/A
• Average Volume (3M): 198.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.85
• 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: 188,139
• 30 Day Avg. Volume: 198,774
• 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: 1.55
• 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: 45 Neutral
• Price Target: $1.00 ▼(-14.53% Downside)

Fathom Holdings faces significant financial challenges, with ongoing profitability and cash flow issues being the most significant factors impacting the score. The technical analysis indicates a bearish trend, and the valuation suggests the stock is overvalued given its negative earnings. Despite positive revenue growth and strategic initiatives highlighted in the earnings call, these are not enough to offset the financial and valuation concerns.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market expansion and product adoption, enhancing long-term business prospects.

Strategic Partnerships

This partnership enhances service offerings, potentially increasing client satisfaction and agent retention, supporting sustainable growth.

Agent Base Expansion

A growing agent base strengthens market presence and revenue potential, indicating effective recruitment and retention strategies.

Negative Factors

Profitability Challenges

Ongoing net losses highlight operational inefficiencies, potentially hindering long-term financial stability and growth.

Cash Flow Issues

Negative cash flow can limit investment in growth initiatives and strain financial resources, impacting long-term sustainability.

Title Business Profitability

Losses in the title business suggest operational challenges, which could affect overall profitability and resource allocation.

Fathom Holdings Business Overview & Revenue Model

Company Description

Fathom Holdings (FTHM) is a technology-driven real estate brokerage firm that operates primarily in the residential real estate market. The company leverages innovative technology and a cloud-based platform to provide comprehensive services for real estate agents, homeowners, and buyers. Fathom aims to enhance the real estate transaction experience while reducing costs through its efficient, scalable business model. The firm's offerings include marketing services, transaction management systems, and agent support, catering to a network of real estate professionals across the United States.

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: Neutral
• Last Price: 1.17
• 50DMA: Negative
• 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 Neutral. The current price of 1.17 is below the 20-day moving average (MA) of 1.23, below the 50-day MA of 1.57, and below the 200-day MA of 1.30, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 45.80 is Neutral, neither overbought nor oversold. The STOCH value of 71.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$839.38M	―	-25.27%	―	65.60%	69.72%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
RMAX	64 Neutral	$273.00M	13.63	2.87%	―	-6.06%	―
FRPH	58 Neutral	$441.00M	94.82	1.09%	―	2.69%	-39.40%
DOUG	52 Neutral	$233.59M	―	-41.11%	―	6.62%	30.94%
FTHM	45 Neutral	$40.49M	―	-43.75%	―	32.78%	36.50%
STHO	39 Underperform	$96.75M	-1.68	-42.01%	―	-3.22%	-280.23%

Fathom Holdings Corporate Events

Fathom Holdings’ Earnings Call Highlights Growth Amid Challenges

Fathom Holdings Inc.’s recent earnings call painted a picture of robust growth tempered by certain challenges. The company showcased strong revenue growth and strategic expansion, particularly in its ancillary businesses and agent base. However, concerns were raised due to net losses and specific challenges in the title business and litigation expenses. Overall, the positive elements slightly outweigh the negative aspects, giving a cautiously optimistic outlook.

Fathom Holdings Reports Strong Q3 2025 Growth

Fathom Holdings Inc. is a technology-driven real estate services platform that integrates residential brokerage, mortgage, title, and SaaS offerings, leveraging its proprietary cloud-based software to support brokerages and agents across the United States.

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.