📊 FTHM Key Takeaways
Is Fathom Holdings Inc. (FTHM) a Good Investment?
Fathom Holdings shows strong revenue growth of 25.4% but is fundamentally unprofitable with negative operating cash flow, extremely low gross margins of 3.7%, and deteriorating financial health. The company is burning cash despite scale, with a current ratio below 1.0 and just $4.4M in reserves against ongoing losses, indicating unsustainable growth dynamics.
Revenue growth of 25.4% and improved diluted EPS indicate stronger operating activity, but the growth remains low quality because it produces only a 3.7% gross margin and substantial operating and net losses. Near-breakeven free cash flow and low leverage provide some resilience, yet weak liquidity, limited cash, and deeply negative returns on equity and assets leave the fundamentals fragile.
Fathom Holdings Inc. Key Strengths (FTHM)
- Strong revenue growth of 25.4% YoY demonstrates market traction and scaling
- Low leverage with debt-to-equity of 0.07x and manageable long-term debt of $2.1M provides financial flexibility
- Modest diluted EPS improvement of 32.7% YoY suggests some operational progress despite negative absolute earnings
- Revenue increased 25.4% year over year
- Diluted EPS improved 32.7% year over year
- Low long-term debt and a 0.07x debt-to-equity ratio
FTHM Stock Risks: Fathom Holdings Inc. Investment Risks
- Critically low gross margin of 3.7% indicates severe cost structure or pricing power issues inherent to business model
- Negative operating cash flow of -$99K and free cash flow of -$136K despite $86.4M revenue reveals unprofitable growth model
- Current ratio of 0.91x signals liquidity stress with current liabilities exceeding current assets; limited $4.4M cash against consistent losses
- Operating margin of -8.8% and net margin of -9.5% show the company loses money on every dollar of revenue with no clear path to profitability
- Extremely thin 3.7% gross margin limits the path to sustainable profitability
- Negative operating income, net income, ROE, and ROA demonstrate continued value destruction
- Current ratio below 1.0x and only $4.38 million of cash create liquidity risk
Key Metrics to Watch
- Gross margin expansion toward industry-competitive levels (should target 15-25%+ for sustainability)
- Operating cash flow turning positive and achieving operating profitability (currently -$7.6M operating income)
- Current ratio improvement above 1.0 and cash burn reduction to preserve liquidity runway
- Gross margin and operating margin progression
- Operating cash flow and cash balance
Fathom Holdings Inc. (FTHM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
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 |
|---|---|---|---|
| Q1 2026 | $86.4M | -$5.6M | $-0.24 |
| 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 |
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 (C) and ChatGPT (C) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FTHM's key strengths?
Claude: Strong revenue growth of 25.4% YoY demonstrates market traction and scaling. Low leverage with debt-to-equity of 0.07x and manageable long-term debt of $2.1M provides financial flexibility. ChatGPT: Revenue increased 25.4% year over year. Diluted EPS improved 32.7% year over year.
What are the risks of investing in FTHM?
Claude: Critically low gross margin of 3.7% indicates severe cost structure or pricing power issues inherent to business model. Negative operating cash flow of -$99K and free cash flow of -$136K despite $86.4M revenue reveals unprofitable growth model. ChatGPT: Extremely thin 3.7% gross margin limits the path to sustainable profitability. Negative operating income, net income, ROE, and ROA demonstrate continued value destruction.
What is FTHM's revenue and growth?
Fathom Holdings Inc. reported revenue of $86.4M.
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 $-0.25.
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 August 2026, Fathom Holdings Inc. has a C grade with 80% 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 -27.7% (sector avg: 8%), net margin of -9.5% (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 $-99.0K, with capital expenditures of $37.0K. FCF margin is -0.2%.
How does FTHM compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin -9.5% (avg: 20%), ROE -27.7% (avg: 8%), current ratio 0.91 (avg: 1.5).