Fathom Holdings Inc. (FTHM) AI Stock Analysis

Fathom Holdings Inc., based in Cary, North Carolina, offers cloud-based real estate brokerage services across the South, Atlantic, Southwest, and Western regions of the United States. The company is organized into three operating segments: Real Estate Brokerage, Mortgage, and Technology. The Real Estate Brokerage segment serves residential buyers, sellers, landlords, and tenants. The Mortgage segment provides loan origination and underwriting. Its Technology segment develops and deploys Software as a Service solutions, centered on the intelliAgent platform for agent customer relationship management, business intelligence, and marketing. The company also operates under brands including Dagley Insurance, Encompass Lending, LiveBy, and Verus Title.

Revenue increased from $330.2M in FY2021 to $420.5M in FY2025, reflecting a 5-year revenue CAGR of 18.9%. Annual top-line growth varied, moving from 86.8% in FY2021 to declines of 16.4% in FY2023 and 2.9% in FY2024, followed by a 25.4% increase in FY2025. Gross margin was 8.1% in FY2025, compared to 9.0% in FY2021. The company has remained unprofitable throughout this period, posting an operating margin of -3.2% and net income of -$20.3M in FY2025. In the latest quarter ended June 30, 2026, quarterly revenue fell 5.6% year-over-year, while trailing twelve-month revenue stood at $406.9M with an operating margin of -3.6% and EPS of -$0.80.

As of June 30, 2026, Fathom Holdings held $21.8M in cash and short-term investments against $29.6M in total debt, resulting in net debt of $7.8M. The company reported a current ratio of 0.77 and a debt-to-equity ratio of 1.24 on shareholders' equity of $23.9M. Operating cash flow in FY2025 was -$20.5M, and free cash flow was -$20.7M. Capital expenditures for FY2025 were $121,000, while the company raised $300,000 via share issuance. Over a 5-year span, its share count expanded by 119.6%.

FTHM traded at a forward P/E of 46.5x as of October 16, 2026, which is higher than the 23.5x median of its US-listed Real Estate peers. Its price-to-sales was 0.0x versus the peer median of 3.7x, and its price-to-book stood at 0.8x. Enterprise value was $43.4M, with an EV-to-revenue ratio of 0.1x. Over the past year, FTHM returned -89.4%, trailing the S&P 500 (SPY) return of 16.8%. Over five years, the stock dropped 99.2% compared to an 83.0% gain for SPY.

Analysts maintain a mean price target of $2.50 for FTHM, compared to its last close of $0.19 on October 16, 2026. For the current fiscal year ending December 31, 2026, the consensus EPS estimate is -$0.13, representing an estimated earnings improvement of 77.9%. Revenue estimates for the current and next fiscal year are listed at $0. Over the last 4 quarters, the company recorded 0 EPS beats. The next earnings date is November 10, 2026.

This page is an AI-written research summary of Fathom Holdings Inc. (FTHM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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