📊 FTHM Key Takeaways
Is Fathom Holdings Inc. (FTHM) a Good Investment?
Fathom Holdings is unprofitable with negative operating income of -$10.8M and deteriorating operational performance despite $329.9M in revenue, indicating severe operational challenges within the real estate market. The company is burning cash with -$8.7M free cash flow and negative net margins of -4.1%, raising concerns about sustainability. While the balance sheet shows moderate leverage (0.12x Debt/Equity) and adequate liquidity (1.41x current ratio), these defensive metrics cannot offset fundamental profitability collapse.
Fathom Holdings shows weak fundamental quality, with declining revenue, extremely thin gross margin, and ongoing operating and net losses that continue to pressure returns on equity and assets. The balance sheet is not heavily levered and liquidity is still adequate, but negative operating cash flow and negative free cash flow suggest the business has not yet translated scale into durable profitability. Until margins and cash generation improve meaningfully, the fundamentals remain unfavorable.
Why Buy Fathom Holdings Inc. Stock? FTHM Key Strengths
- Moderate leverage with Debt/Equity ratio of only 0.12x provides financial flexibility
- Adequate liquidity position with current ratio of 1.41x and $9.8M cash reserves
- Stockholders' equity of $43.4M provides some balance sheet cushion
- Low leverage with debt/equity of 0.12x reduces balance sheet risk
- Liquidity remains acceptable with a 1.41x current and quick ratio
- Capital expenditure needs are minimal, which limits fixed investment burden
FTHM Stock Risks: Fathom Holdings Inc. Investment Risks
- Severe unprofitability with -4.1% net margin and negative operating income, indicating core business is not generating profits at scale
- Negative free cash flow of -$8.7M means company is burning cash and likely requires external financing or equity dilution
- Revenue decline of -2.9% YoY combined with minimal gross margin of 1.0% demonstrates inability to achieve pricing power or cost control in competitive real estate market
- Consistently negative returns on equity (-31.3%) and assets (-16.3%) signal value destruction for shareholders
- Interest coverage ratio of -1548.7x indicates the company cannot service debt from operations
- Gross margin of 1.0% leaves almost no cushion against revenue pressure or cost inflation
- Operating losses and negative free cash flow indicate weak earnings quality and ongoing cash burn
- Negative ROE and ROA show the company is not generating acceptable returns on its capital base
Key Metrics to Watch
- Operating cash flow trend and path to positive free cash flow generation
- Gross margin expansion and operating margin improvement toward breakeven
- Revenue stabilization and return to growth in subsequent periods
- Operating cash flow and free cash flow trend
- Gross margin and operating margin improvement
Fathom Holdings Inc. (FTHM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Fathom Holdings Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
FTHM Profit Margin, ROE & Profitability Analysis
FTHM vs Real Estate Sector: How Fathom Holdings Inc. Compares
How Fathom Holdings Inc. compares to Real Estate sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Fathom Holdings Inc. Stock Overvalued? FTHM Valuation Analysis 2026
Based on fundamental analysis, Fathom Holdings Inc. has mixed fundamental signals relative to the Real Estate sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Fathom Holdings Inc. Balance Sheet: FTHM Debt, Cash & Liquidity
FTHM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Fathom Holdings Inc.'s revenue has grown significantly by 27% over the 5-year period, indicating strong business expansion. The most recent EPS of $-1.07 indicates the company is currently unprofitable.
FTHM Revenue Growth, EPS Growth & YoY Performance
FTHM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $83.7M | -$4.4M | $-0.15 |
| Q2 2025 | $89.2M | -$1.3M | $-0.07 |
| Q1 2025 | $70.5M | -$5.6M | $-0.24 |
| Q3 2024 | $83.7M | -$5.5M | $-0.34 |
| Q2 2024 | $89.2M | -$1.3M | $-0.07 |
| Q1 2024 | $70.5M | -$5.7M | $-0.31 |
| Q3 2023 | $93.5M | -$5.5M | $-0.34 |
| Q2 2023 | $100.1M | -$4.3M | $-0.27 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Fathom Holdings Inc. Dividends, Buybacks & Capital Allocation
FTHM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Fathom Holdings Inc. (CIK: 0001753162)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FTHM
What is the AI rating for FTHM?
Fathom Holdings Inc. (FTHM) has a Combined AI Rating of SELL from Claude (STRONG SELL) and ChatGPT (SELL) with 87% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FTHM's key strengths?
Claude: Moderate leverage with Debt/Equity ratio of only 0.12x provides financial flexibility. Adequate liquidity position with current ratio of 1.41x and $9.8M cash reserves. ChatGPT: Low leverage with debt/equity of 0.12x reduces balance sheet risk. Liquidity remains acceptable with a 1.41x current and quick ratio.
What are the risks of investing in FTHM?
Claude: Severe unprofitability with -4.1% net margin and negative operating income, indicating core business is not generating profits at scale. Negative free cash flow of -$8.7M means company is burning cash and likely requires external financing or equity dilution. ChatGPT: Gross margin of 1.0% leaves almost no cushion against revenue pressure or cost inflation. Operating losses and negative free cash flow indicate weak earnings quality and ongoing cash burn.
What is FTHM's revenue and growth?
Fathom Holdings Inc. reported revenue of $329.9M.
Does FTHM pay dividends?
Fathom Holdings Inc. does not currently pay dividends.
Where can I find FTHM SEC filings?
Official SEC filings for Fathom Holdings Inc. (CIK: 0001753162) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FTHM's EPS?
Fathom Holdings Inc. has a diluted EPS of $-0.51.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FTHM a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Fathom Holdings Inc. has a SELL rating with 87% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is FTHM stock overvalued or undervalued?
Valuation metrics for FTHM: ROE of -31.3% (sector avg: 8%), net margin of -4.1% (sector avg: 20%). Compare these metrics with sector averages to assess valuation.
Should I buy FTHM stock in 2026?
Our dual AI analysis gives Fathom Holdings Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FTHM's free cash flow?
Fathom Holdings Inc.'s operating cash flow is $-8.6M, with capital expenditures of $78.0K. FCF margin is -2.6%.
How does FTHM compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin -4.1% (avg: 20%), ROE -31.3% (avg: 8%), current ratio 1.41 (avg: 1.5).