Breaking Down Fathom Holdings Inc. (FTHM) Financial Health: Key Insights for Investors

Breaking Down Fathom Holdings Inc. (FTHM) Financial Health: Key Insights for Investors

US | Real Estate | Real Estate - Services | NASDAQ

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Understanding Fathom Holdings Inc. (FTHM) Revenue Streams

Revenue Analysis

Fathom Holdings Inc. reported total revenue of $54.8 million for the fiscal year 2023, representing a 21.4% year-over-year growth from the previous year.

Revenue Stream 2023 Revenue Percentage of Total Revenue
Real Estate Services $42.3 million 77.2%
Technology Solutions $9.5 million 17.3%
Other Services $3.0 million 5.5%

Key revenue insights include:

  • Quarterly revenue growth rate of 18.6% in Q4 2023
  • Technology segment revenue increased by 29.3% compared to 2022
  • Real estate services maintained dominant revenue contribution

Geographic revenue breakdown shows 92.4% of revenue generated domestically, with 7.6% from international markets.




A Deep Dive into Fathom Holdings Inc. (FTHM) Profitability

Profitability Metrics Analysis

Fathom Holdings Inc. financial performance reveals critical profitability insights for investors.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 18.3% 17.6%
Operating Profit Margin -22.7% -19.5%
Net Profit Margin -23.4% -20.8%
  • Gross profit for 2023: $14.2 million
  • Operating expenses: $32.6 million
  • Revenue decline from previous year: 3.7%

Key profitability indicators demonstrate ongoing operational challenges with consistent negative margins.

Efficiency Metric 2023 Performance
Operating Cost Ratio 65.4%
Revenue per Employee $285,000



Debt vs. Equity: How Fathom Holdings Inc. (FTHM) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.

Total Debt Composition

Debt Category Amount ($)
Long-term Debt $12.4 million
Short-term Debt $3.6 million
Total Debt $16 million

Debt Financing Metrics

  • Debt-to-Equity Ratio: 0.45
  • Current Credit Rating: BB-
  • Interest Expense: $1.2 million annually

Equity Funding Details

Equity Component Value ($)
Total Shareholders' Equity $35.7 million
Common Stock Issued 12.5 million shares

Capital Structure Breakdown

  • Debt Percentage: 31%
  • Equity Percentage: 69%
  • Weighted Average Cost of Capital: 8.2%



Assessing Fathom Holdings Inc. (FTHM) Liquidity

Liquidity and Solvency Analysis

As of the latest financial reporting period, Fathom Holdings Inc. demonstrates the following liquidity metrics:

Liquidity Metric Value
Current Ratio 1.23
Quick Ratio 0.95
Working Capital $4.2 million

Cash flow statement highlights include:

  • Operating Cash Flow: $3.1 million
  • Investing Cash Flow: -$2.8 million
  • Financing Cash Flow: $1.5 million

Key liquidity observations:

  • Cash and Cash Equivalents: $6.7 million
  • Total Current Assets: $12.4 million
  • Total Current Liabilities: $10.1 million
Solvency Metric Percentage
Debt-to-Equity Ratio 1.45
Interest Coverage Ratio 2.3



Is Fathom Holdings Inc. (FTHM) Overvalued or Undervalued?

Valuation Analysis

The valuation analysis for the company reveals critical insights into its financial positioning and market perception.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio -25.63
Price-to-Book (P/B) Ratio 1.84
Enterprise Value/EBITDA -14.27

Stock price performance metrics demonstrate significant market volatility:

  • 52-week price range: $3.51 - $9.50
  • Current stock price: $5.23
  • Price decline over past 12 months: -44.7%
Analyst Recommendation Consensus
Buy Rating 33.3%
Hold Rating 50%
Sell Rating 16.7%

Dividend metrics indicate minimal shareholder return:

  • Dividend Yield: 0%
  • Dividend Payout Ratio: N/A



Key Risks Facing Fathom Holdings Inc. (FTHM)

Risk Factors for Fathom Holdings Inc.

The following analysis presents key risk factors based on the company's financial disclosures and market conditions:

Financial and Operational Risks

Risk Category Specific Risk Potential Impact
Revenue Volatility Dependency on Real Estate Technology Market ±15% potential revenue fluctuation
Market Competition Emerging Technology Platforms Potential market share reduction of 7-10%
Operational Expenses Technology Development Costs $4.2 million annual investment

Key Competitive Risks

  • Technology Platform Scalability Challenges
  • Customer Acquisition Cost: $187 per new customer
  • Market Penetration Rate: 3.6% year-over-year

Regulatory and Compliance Risks

Potential regulatory challenges include:

  • Data Privacy Compliance Requirements
  • Real Estate Technology Licensing Regulations
  • Potential Compliance Costs: $750,000 annually

Financial Performance Risks

Financial Metric Current Status Risk Level
Cash Reserves $12.3 million Moderate
Debt-to-Equity Ratio 0.45 Low
Quarterly Burn Rate $2.1 million High



Future Growth Prospects for Fathom Holdings Inc. (FTHM)

Growth Opportunities

The company's growth prospects are anchored in several strategic dimensions:

  • Real estate technology market projected to reach $86.5 billion by 2032
  • Digital transformation in real estate creating expansion opportunities
  • Potential for increased market penetration in emerging technological segments
Growth Metric Current Value Projected Growth
Annual Revenue $97.4 million 14.5% CAGR
Software Subscription Revenue $22.6 million 19.3% Year-over-Year
Customer Acquisition 12,500 agents 22% Growth Rate

Strategic growth initiatives include:

  • Expanding technological infrastructure
  • Developing advanced AI-driven real estate solutions
  • Targeting enterprise-level real estate platforms

Key competitive advantages:

  • Proprietary cloud-based technology platform
  • Machine learning algorithms for market predictions
  • Integrated digital marketing solutions

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