Fathom Holdings Inc.
$1.28
-0.0750 (-5.56%)
Company Overview Listen to Overview
Fathom Holdings Inc. (Nasdaq: FTHM) is a technology-driven real estate services platform revolutionizing the traditional brokerage model. Through its innovative flat-fee commission structure, proprietary technology, and integrated offerings—spanning residential brokerage, mortgage, title, and SaaS—Fathom enables agents to maximize their earnings while delivering superior scalability and efficiency. With operations across 43 states and a rapidly growing network of over 14,500 agents, Fathom is well-positioned to capitalize on an improving housing market and expand its disruptive, high-margin approach to real estate services.
Value Proposition Listen to Value Proposition
Fathom Holdings offers a compelling investment opportunity as a transformative leader in the real estate services industry. By integrating residential brokerage, mortgage, title, and SaaS offerings within a proprietary technology platform, Fathom delivers unmatched scalability and cost efficiency. Its innovative flat-fee commission model empowers agents to retain more of their earnings, driving industry-leading agent growth and retention rates—nearly double the national average. This agent-centric approach reduces overhead and accelerates market expansion, creating a competitive edge over traditional brokerages burdened by legacy models and high costs.
The company’s ownership of its technology and ancillary services further enhances profitability by minimizing operational expenses and maximizing revenue per transaction. Fathom’s ability to achieve EBITDA breakeven at just 45,000 transactions annually, compared to 100,000 for peers, underscores its operational efficiency and financial resilience.
Fathom's recent acquisition of My Home Group further solidifies its national presence, adding significant revenue and expanding its agent network. The integration is projected to contribute over $110 million in revenue in 2025. Additionally, Fathom is leveraging its proprietary technology platform, intelliAgent, to increase operational efficiency across all service lines, resulting in a unique, end-to-end real estate experience that is highly attractive to both agents and clients. Furthermore, the company’s new Bitcoin treasury strategy introduces a modern financial dimension, enabling Fathom to leverage digital currency both as a treasury asset and a future payment option.
Positioned for sustained growth, Fathom benefits from positive macroeconomic trends, including a projected rebound in home sales driven by stabilizing interest rates. With plans to expand its agent network to all 50 states and Canada and a robust pipeline of acquisition targets, Fathom is primed to capture market share and unlock long-term value. By combining disruptive innovation with operational excellence, Fathom Holdings is not just redefining real estate—it’s delivering meaningful value to agents, clients, and shareholders alike.
Industry-Best Commission Splits
Investor Presentation
Investment Highlights Listen to Investment Highlights
Disruptive Business Model Driving Agent Growth
- Industry-leading flat-fee commission model allows agents to retain more of their earnings
- Agent retention rates are nearly double the national average, with agent count growing by 23% year-over-year to 14,500 as of December 31, 2024
- Scalable, low-overhead virtual model enables rapid market expansion, outperforming traditional brick-and-mortar brokerages
Proprietary Technology Enhancing Scalability and Efficiency
- Fully owned and developed intelliAgent platform powers all operational aspects, minimizing costs and maximizing margins
- Technology-driven integration of residential brokerage, mortgage, title, and SaaS offerings delivers a better real estate experience
- EBITDA breakeven achievable at just 45,000 transactions annually, significantly lower than peers requiring over 100,000
Strategic Acquisitions Expanding Revenue Base
- Successful integration of My Home Group adds $110 million in projected 2025 revenue and strengthens Fathom’s national presence
- Pipeline of over 100 acquisition targets, representing more than 200,000 agents and 400,000 transactions annually, offers substantial growth opportunities
Robust Financial and Operational Growth
- Fourth quarter 2024 revenue increased 21%-24% year-over-year, with gross profit rising 28%-30%
- Operating efficiency drives industry-low transaction costs of $264 versus $1,200-$1,800 for most traditional brokerages
- Ancillary services, including mortgage and title, boost profitability, with gross profit potential of $6,302 per transaction when fully utilized
Innovative Bitcoin Strategy Aligning with Digital Economy
- Treasury strategy diversifies holdings by allocating up to 50% of excess cash to Bitcoin
- Future plans to enable Bitcoin as a payment option for agents and clients align with Fathom’s commitment to innovation and efficiency
- Positions Fathom as a pioneer in integrating digital currency into real estate transactions
Positive Market Trends Supporting Long-Term Growth
- Interest rates expected to stabilize around 6% and a forecasted 9% increase in home sales in 2025 position Fathom to capitalize on an improving housing market
- Unique model and integrated services allow for greater market share capture amid rising demand
Buy & Strong Buy Ratings with Median Price Target of $3.38 per Share
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Fathom Holdings (FTHM) is a client of RedChip Companies, Inc. FTHM agreed to pay RedChip Companies, Inc. a $9,000 monthly cash fee, beginning January 2025, and 75,000 shares of Rule 144 stock for 12 months of investor awareness services. RedChip intends to and will, if possible, sell all of its shares immediately upon removal of the restriction, and you may be buying as RedChip is selling.
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