GICS Sector : Real Estate
Fathom Holdings Inc.provides cloud-based real estate brokerage services in the South, Atlantic, Southwest, and Western parts of the United States.It operates through three segments: Real Estate Brokerage, Mortgage, and Technology.
Fathom Holdings reported a robust third quarter, with total revenue reaching $115.3 million, representing a 37.7% year-over-year increase, significantly surpassing analyst expectations. The company's gross profit stood at $9.6 million, a 39.1% increase year-over-year, while adjusted EBITDA came in at $6,000, marking an improvement of $7.4 million compared to the same period in 2024. The actual EPS was $-0.13, slightly below the estimated $-0.1. The revenue growth was driven by a 39% increase in the brokerage segment, a rise in revenue and adjusted EBITDA in the mortgage segment, a 28.6% increase in revenue in the title business, and an increase in revenue and adjusted EBITDA in the technology business.
Publication Date: Nov -25
The brokerage segment showed significant growth, driven by the addition of My Home Group and organic growth. The mortgage segment reported an increase in revenue and adjusted EBITDA, driven by higher funded loan volume and improved operating leverage. The title business, Verus Title, delivered 28.6% revenue growth, although profitability declined due to higher operating expenses. The technology segment posted an 18% increase in revenue and an improvement in adjusted EBITDA, driven by the addition of a new third-party licensing revenue stream.
Fathom continued to invest in growth initiatives, including the Elevate program, a concierge-level growth program designed to help agents increase productivity and earnings. The company also launched several new initiatives, such as the acquisition of START Real Estate, a firm dedicated to serving first-time homebuyers, and the expansion of the Real Results team, a lead generation and qualification program. Looking ahead to 2026, Fathom expects to drive further margin expansion and achieve operational cash flow breakeven by the second quarter of 2026, driven by diversified revenue streams, expanded flagship programs, and disciplined execution.
With a P/S Ratio of 0.1 and an EV/EBITDA of -3.22, the market appears to have tempered expectations for Fathom's growth. Analysts estimate revenue growth at 14.7% for the next year, which seems achievable given the company's historical performance and growth initiatives. However, the negative ROE of -53.65% and ROIC of -33.98% highlight the challenges Fathom still faces in achieving profitability. As the company continues to invest in growth initiatives and expand its offerings, investors will be watching closely to see if Fathom can achieve its goals and drive long-term value creation.
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Dec -02
Fathom Holdings Divests LiveBy Assets to Move Concierge
Dec -01
Comparing Fathom (NASDAQ:FTHM) and Richtech Robotics (NASDAQ:RR)
Nov -22
Fathom Announces Strategic Partnership with Move Concierge
Nov -14
Fathom Realty Broker Operations Named One of the Top 50 Operations Teams by OnCon
Nov -13
Fathom Holdings Inc. (FTHM) Q3 2025 Earnings Call Transcript
Nov -12
Fathom Holdings (FTHM) Reports Q3 Loss, Tops Revenue Estimates
Nov -11
Fathom Holdings Reports Third Quarter 2025 Results
Nov -11
Fathom Holdings Inc.'s 10% growth in Real Estate Brokerage is driven by increasing demand for online real estate services, expansion into new markets, and strategic acquisitions. Additionally, the company's technology-enabled platform and agent-centric model have improved operational efficiency, reduced costs, and enhanced customer experience, leading to increased market share and revenue growth.
Fathom Holdings Inc.'s Corporate and Other Services segment growth of 8% is driven by increasing demand for real estate services, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on technology integration and process efficiencies has improved operational scalability, enabling it to capitalize on market opportunities and drive revenue growth.
Fathom Holdings Inc.'s 15% mortgage growth is driven by increasing demand for real estate technology, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digital mortgage origination, competitive pricing, and exceptional customer service contribute to its rapid growth.
Fathom Holdings Inc.'s 18% growth in Technology is driven by increasing adoption of its cloud-based real estate transaction management platform, rising demand for digital solutions in the real estate industry, and strategic partnerships expanding its market reach.
A comprehensive real estate transaction management platform that streamlines the entire transaction process from lead to close.
A cloud-based comparative market analysis (CMA) tool that provides real-time market data and analytics to help agents create accurate and compelling CMAs.
A cloud-based multiple listing service (MLS) platform that provides real-time access to MLS data, listing management, and collaboration tools.
A customer relationship management (CRM) platform designed specifically for real estate professionals to manage leads, contacts, and transactions.
A real estate search platform that provides consumers with a personalized home search experience and real-time market data.
The threat of substitutes for Fathom Holdings Inc. is moderate due to the presence of alternative real estate platforms and traditional brokerage models.
The bargaining power of customers is low for Fathom Holdings Inc. as the company's technology-driven platform provides a unique value proposition, making it difficult for customers to negotiate prices.
The bargaining power of suppliers is moderate for Fathom Holdings Inc. as the company relies on a network of real estate agents and brokers, who may have some negotiating power.
The threat of new entrants is high for Fathom Holdings Inc. as the real estate technology space is rapidly evolving, and new companies may enter the market with innovative solutions.
The intensity of rivalry is high for Fathom Holdings Inc. as the company operates in a competitive real estate technology market, with several established players and new entrants vying for market share.
| Value | |
|---|---|
| Debt Weight | 19.92% |
| Debt Cost | 3.95% |
| Equity Weight | 80.08% |
| Equity Cost | 13.98% |
| WACC | 11.98% |
| Leverage | 24.88% |
Value: 7.5
Growth: 4.0
Quality: 5.1
Yield: 0.0
Momentum: 5.0
Volatility: 3.7
1-Year Total Return ->
Value: 2.0
Growth: 4.7
Quality: 3.4
Yield: 0.0
Momentum: 9.5
Volatility: 5.7
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Value: 8.1
Growth: 1.8
Quality: 2.9
Yield: 0.0
Momentum: 9.5
Volatility: 1.3
1-Year Total Return ->
Value: 8.6
Growth: 3.9
Quality: 3.1
Yield: 0.0
Momentum: 7.5
Volatility: 0.0
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Value: 7.4
Growth: 4.9
Quality: 4.8
Yield: 0.0
Momentum: 2.5
Volatility: 0.3
1-Year Total Return ->
Value: 9.4
Growth: 3.1
Quality: 3.4
Yield: 0.0
Momentum: 1.5
Volatility: 0.0
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