Fathom (NASDAQ:FTHM) Issues Quarterly Earnings Results

Fathom (NASDAQ:FTHM) issued its earnings results on Monday. The company reported ($0.20) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.11) by ($0.09), FiscalAI reports. Fathom had a negative net margin of 4.70% and a negative return on equity of 45.99%. The business had revenue of $90.61 million during the quarter, compared to analyst estimates of $97.55 million.

Here are the key takeaways from Fathom’s conference call:

• Full‑year 2025 revenue was $420.5 million (+25% YoY), gross profit rose to $34.2 million (+20.8%), and Adjusted EBITDA improved to a loss of $4.0 million versus a $5.7 million loss in 2024.
• Management rolled out margin-focused changes — the new Edge plan (7% split, $75 monthly fee for new agents, $9,000 cap) and a new $250 transaction fee — and expects these plus higher‑margin Elevate/START programs and fast‑growing mortgage and title businesses to add meaningful incremental gross profit as they scale.
• Near‑term market weakness is a headwind — Q4 transactions fell 14.2% YoY, December cancellation rates were elevated (~16.3% nationally and >20% in some markets), Q4 revenue dipped slightly, and cash on hand was modest at $5.7 million (supplemented by a $2 million financing).
• The company is investing in AI/intelliAgent, a Q2 consumer portal, and a ByOwner partnership and aims to scale Elevate/START to ~1,000 agents and >20,000 monthly leads by year‑end; these initiatives could boost productivity and margins but are execution‑dependent.

Fathom Trading Down 15.5%

NASDAQ FTHM traded down $0.11 on Monday, hitting $0.60. The company’s stock had a trading volume of 367,580 shares, compared to its average volume of 152,588. The company’s 50-day moving average is $0.98 and its 200 day moving average is $1.30. The firm has a market cap of $19.43 million, a PE ratio of -0.74 and a beta of 1.76. Fathom has a 1-year low of $0.54 and a 1-year high of $3.37. The company has a quick ratio of 1.41, a current ratio of 1.41 and a debt-to-equity ratio of 0.20.

Analyst Ratings Changes

Several research firms recently weighed in on FTHM. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Fathom in a research note on Thursday, January 22nd. Roth Mkm assumed coverage on Fathom in a research note on Monday, December 29th. They set a “buy” rating and a $2.50 target price for the company. One analyst has rated the stock with a Strong Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat, Fathom has an average rating of “Moderate Buy” and an average price target of $2.50.

Institutional Investors Weigh In On Fathom

Institutional investors and hedge funds have recently made changes to their positions in the stock. Virtu Financial LLC bought a new position in shares of Fathom during the third quarter worth about $61,000. XTX Topco Ltd boosted its holdings in Fathom by 27.9% in the fourth quarter. XTX Topco Ltd now owns 63,748 shares of the company’s stock valued at $64,000 after acquiring an additional 13,911 shares during the last quarter. Geode Capital Management LLC increased its position in Fathom by 18.8% during the 4th quarter. Geode Capital Management LLC now owns 206,242 shares of the company’s stock valued at $208,000 after purchasing an additional 32,569 shares during the period. Veradace Capital Management LLC bought a new position in Fathom during the fourth quarter worth $459,000. Finally, Vanguard Group Inc. lifted its stake in shares of Fathom by 73.2% in the 3rd quarter. Vanguard Group Inc. now owns 784,003 shares of the company’s stock valued at $1,411,000 after purchasing an additional 331,316 shares during the period. Institutional investors and hedge funds own 55.49% of the company’s stock.

Fathom Company Profile

Fathom Holdings Inc provides a real estate services platform that integrates residential brokerage, mortgage, title, and insurance services in the United States. It operates through three segments: Real Estate Brokerage, Mortgage, and Technology. The Real Estate Brokerage segment provides real estate brokerage services. The Mortgage segment offers residential loan origination and underwriting services. The Technology segment provides Software as a Service solutions and data mining for third party customers.