📊 FTHM Key Takeaways
Is Fathom Holdings Inc. (FTHM) a Good Investment?
Fathom Holdings exhibits a fundamentally broken business model with catastrophic profitability metrics despite 25.4% revenue growth, indicating growth achieved through unsustainable means. The company is burning $20.5M in operating cash annually against only $5.8M in cash reserves, creating an unsustainable 3-month runway, while a 0.8% gross margin suggests severe operational or competitive dysfunction that growth alone cannot overcome.
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.
Fathom Holdings Inc. Key Strengths (FTHM)
- Strong revenue growth at 25.4% year-over-year demonstrates market expansion
- Conservative leverage with debt-to-equity ratio of 0.15x reduces financial risk
- Positive stockholders' equity of $37.4M 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
- Catastrophic operating cash flow of -$20.5M annually creates imminent solvency crisis with only 3 months of liquidity at current burn rate
- Critically low 0.8% gross margin indicates fundamental business model dysfunction or severe competitive pressure that blocks profitability regardless of scale
- Revenue growth failing to translate to profitability (-4.8% net margin with -$20.3M losses) demonstrates unsustainable growth strategy
- Tight liquidity with current ratio of 1.06x and minimal cash reserves leaves no margin for error
- Negative returns on equity (-54.2%) and assets (-26.0%) indicate value destruction
- 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
- Gross margin trend and path to sustainable profitability above 5%
- Monthly operating cash burn and time to cash depletion
- Working capital management and ability to maintain current liquidity ratio above 1.2x
- 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 Grade of C from Claude (D) and ChatGPT (C) with 84% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FTHM's key strengths?
Claude: Strong revenue growth at 25.4% year-over-year demonstrates market expansion. Conservative leverage with debt-to-equity ratio of 0.15x reduces financial risk. 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: Catastrophic operating cash flow of -$20.5M annually creates imminent solvency crisis with only 3 months of liquidity at current burn rate. Critically low 0.8% gross margin indicates fundamental business model dysfunction or severe competitive pressure that blocks profitability regardless of scale. 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 $420.5M.
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 $-0.72.
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 grade reflects both perspectives for balanced insights.
What is FTHM's fundamental grade?
Based on our AI fundamental analysis in June 2026, Fathom Holdings Inc. has a C grade with 84% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is FTHM stock overvalued or undervalued?
Valuation metrics for FTHM: ROE of -54.2% (sector avg: 8%), net margin of -4.8% (sector avg: 20%). Compare these metrics with sector averages to assess valuation.
What is FTHM's AI grade for 2026?
Our dual AI analysis gives Fathom Holdings Inc. a combined C grade 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 $-20.5M, with capital expenditures of $121.0K. FCF margin is -4.9%.
How does FTHM compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin -4.8% (avg: 20%), ROE -54.2% (avg: 8%), current ratio 1.06 (avg: 1.5).