Fathom Holdings (FTHM)
NASDAQ:FTHM
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Fathom Holdings
(NASDAQ:FTHM)
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Rating:44Neutral
Price Target:
$0.68
▼(-50.80% Downside)
Action:ReiteratedDate:04/02/26
The score is primarily held down by weak financial performance (ongoing losses, negative cash flow, and equity erosion) and bearish technicals (price below key moving averages with very weak momentum). The earnings call provides some offset via concrete margin-improvement actions and ancillary momentum, but valuation support is limited given ongoing unprofitability and no dividend.
Positive Factors
Ancillary business momentum
Growth in mortgage and title diversifies revenue away from cyclical brokerage commissions and has driven higher gross profit contribution. Sustained ancillary expansion can raise overall margin resilience, reduce sensitivity to transaction volume swings, and provide recurring fee and service streams that support durable profitability.
Negative Factors
Negative cash generation
Persistent operating and free cash flow deficits increase dependence on external financing and limit the firm's ability to invest organically or scale higher-margin initiatives. Continued cash burn constrains strategic options, raises refinancing risk, and makes execution of multi-year profitability plans more fragile.
Read all positive and negative factors
Positive Factors
Negative Factors
Ancillary business momentum
Growth in mortgage and title diversifies revenue away from cyclical brokerage commissions and has driven higher gross profit contribution. Sustained ancillary expansion can raise overall margin resilience, reduce sensitivity to transaction volume swings, and provide recurring fee and service streams that support durable profitability.
Read all positive factors
Fathom Holdings (FTHM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$22.95M
Dividend YieldN/A
Average Volume (3M)136.41K
Price to Earnings (P/E)―
Beta (1Y)1.91
Revenue Growth32.78%
EPS Growth36.50%
CountryUS
Employees270
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)-0.18
Shares Outstanding32,782,364
10 Day Avg. Volume77,603
30 Day Avg. Volume136,408
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)0.87
Price to Sales (P/S)0.08
P/FCF Ratio-1.57
Enterprise Value/Market Cap1.87
Enterprise Value/Revenue0.10
Enterprise Value/Gross Profit1.25
Enterprise Value/Ebitda-2.92
Forecast
1Y Price Target
$2.50Price Target Upside81.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.17
Revenue Forecast (FY)$490.07M
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 Estat...
How the Company Makes Money
Fathom Holdings primarily generates revenue from residential real estate transactions and related services. A core stream is real estate brokerage revenue earned when transactions close; this is generally tied to commissions on home sales facilita...
Fathom Holdings Earnings Call Summary
Earnings Call Date:Mar 30, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call conveyed meaningful progress: strong full-year revenue growth (+25.4%), higher gross profit (+20.8%), notable ancillary momentum (mortgage +70% Q4, title +38% Q4), and concrete margin-improving actions (Edge, $250 fee, monthly agent fees) that should lift unit economics even if transaction volumes remain muted. However, near-term headwinds are material: Q4 transaction declines (-14.2%), continued GAAP losses, low cash ($5.7M) requiring financing, elevated cancellation rates, and title scaling losses. On balance, management presented credible operational levers and early financial improvements that outweigh the short-term market weakness, but execution and liquidity remain key risks.Positive Updates
Full-Year Revenue Growth
Total revenue for FY2025 was $420.5M, an increase of 25.4% year-over-year from $335.2M in FY2024, driven primarily by the acquisition of My Home Group and growth in ancillary businesses.
Negative Updates
Quarterly Transaction and Revenue Softness
Q4 2025 real estate transactions declined 14.2% to ~8,501 transactions (Q4 2024: 9,903) and total Q4 revenue declined 1.2% to $90.6M (Q4 2024: $91.7M), reflecting soft residential transaction activity and elevated interest rates.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Revenue Growth
Total revenue for FY2025 was $420.5M, an increase of 25.4% year-over-year from $335.2M in FY2024, driven primarily by the acquisition of My Home Group and growth in ancillary businesses.
Read all positive updates
Company Guidance
Management guided that the company’s 2026 priority is margin expansion and durable profitability driven by structural changes, citing FY2025 results of $420.5M revenue (+25% YoY), ~42,405 transactions (+14.6%), $34.2M gross profit (+20.8%), and an adjusted EBITDA loss of $4.0M (improved $1.7M from a $5.7M loss in 2024); Q4 revenue was $90.6M (−1.2% YoY) with Q4 gross profit $7.1M and an 8.1% gross margin. Key operating targets and metrics: Elevate/START to represent ≥10% of transactions by year-end 2026 and >15% by end-2027, Elevate to reach ~1,000 agents by year-end (currently ~260–275 after adding 100+ agents), START in 5 states now and 10 by year-end, Elevate/START leads >4,000/month today with a goal of >20,000/month by year-end, HOMESTAR enrollment >600 with ~40% progressing toward homeownership, and mortgage file starts up >150% in Q1 2026. Financial levers include the Edge plan (new $75/month fee vs prior $700 annual → $900 annual, +28.6%), a 7% split with a $9,000 cap, a $250 transaction fee (which on 10,000 transactions would add $2.5M of gross profit), expected average pre-cap gross profit uplift of >$200 per transaction and a combined ~116% increase vs Fathom One on Edge pre-cap transactions; management has removed ~1,100 zero-close agents, ended Q4 with $5.7M cash and secured a $2M financing facility (3/18/2026), and highlighted strong ancillary momentum (Q4 mortgage revenue $3.4M, +70% YoY; title Q4 revenue $1.8M, +38.5%) as contributors to improved 2026 profitability even absent a market recovery.Fathom Holdings Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
52
Neutral
Cash Flow
26
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 420.48M | 335.18M | 345.23M | 412.96M | 330.23M |
| Gross Profit | 34.20M | 28.27M | 28.29M | 32.47M | 29.72M |
| EBITDA | -17.40M | -16.64M | -17.64M | -23.63M | -13.36M |
| Net Income | -20.31M | -21.58M | -23.98M | -27.63M | -12.49M |
Balance Sheet | |||||
| Total Assets | 78.04M | 75.40M | 79.26M | 80.19M | 104.93M |
| Cash, Cash Equivalents and Short-Term Investments | 5.77M | 7.13M | 7.40M | 8.32M | 37.83M |
| Total Debt | 25.65M | 18.79M | 17.57M | 11.12M | 14.99M |
| Total Liabilities | 40.60M | 30.72M | 24.02M | 18.17M | 24.78M |
| Stockholders Equity | 37.44M | 44.68M | 55.23M | 62.02M | 80.15M |
Cash Flow | |||||
| Free Cash Flow | -20.66M | -7.93M | -12.40M | -10.64M | -15.18M |
| Operating Cash Flow | -20.54M | -4.69M | -10.57M | -6.58M | -11.70M |
| Investing Cash Flow | 4.02M | 3.30M | -1.87M | -7.10M | -14.56M |
| Financing Cash Flow | 15.04M | 1.24M | 11.60M | -15.86M | 34.62M |
Fathom Holdings Technical Analysis
Negative
1.38
Price Trends
0.91
Negative
1.04
Negative
1.32
Negative
Market Momentum
-0.08
Positive
42.83
Neutral
37.57
Neutral
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 1.38 is above the 20-day moving average (MA) of 0.73, above the 50-day MA of 0.91, and above the 200-day MA of 1.32, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 42.83 is Neutral, neither overbought nor oversold. The STOCH value of 37.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FTHM.
Fathom Holdings Risk Analysis
Fathom Holdings disclosed 44 risk factors in its most recent earnings report. Fathom Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Fathom Holdings Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | $423.03M | 174.30 | 1.09% | ― | 2.69% | -39.40% | |
62 Neutral | $520.20M | -48.05 | -17.31% | ― | 65.60% | 69.72% | |
59 Neutral | $187.71M | 18.48 | 1.84% | ― | -6.06% | ― | |
48 Neutral | $141.15M | 13.94 | 10.23% | ― | 6.62% | 30.94% | |
47 Neutral | $96.47M | -1.37 | -22.96% | ― | -3.22% | -280.23% | |
44 Neutral | $22.95M | -1.60 | -46.07% | ― | 32.78% | 36.50% |
* Real Estate Sector Average
FTHM
Fathom Holdings
0.70
-0.07
-8.74%
FRPH
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-16.65%
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REAX
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2.45
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DOUG
Douglas Elliman Inc.
1.60
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4.58%
STHO
Star Holdings
7.98
1.49
22.96%
Fathom Holdings Corporate Events
Private Placements and Financing
Fathom Holdings Adds Subordinated Bridge Note Financing
Neutral
Mar 23, 2026
On March 18, 2026, Fathom Holdings Inc. entered into a $2 million subordinated secured bridge promissory note with Bed Bath Beyond, Inc., maturing on April 1, 2027 and bearing 9% payable-in-kind interest, with obligations guaranteed by its materi...
Business Operations and StrategyExecutive/Board Changes
Fathom Holdings Appoints Lori Muller as Fathom Realty President
Positive
Feb 12, 2026
On February 10, 2026, Fathom Holdings announced that veteran real estate executive Lori (Laura) Muller had been appointed President of Fathom Realty, effective February 9, 2026, succeeding outgoing president and company COO Samantha Giuggio. Mulle...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.