How are energy investors positioned?
Fathom Holdings Inc. (FTHM) stock has hit a distressing milestone, touching a 52-week low of $1.1 amidst a challenging market environment. According to InvestingPro data, the company’s market capitalization has shrunk to just $26 million, with three analysts recently revising their earnings forecasts downward. This latest price level reflects a significant downturn for the company, which has seen its stock value erode by over 60% in the past year. Investors have been grappling with a series of headwinds that have battered the stock, including weak gross profit margins of 9% and negative EBITDA of -$19.3 million. The 1-year change data paints a grim picture, with Fathom Holdings Inc. experiencing a -60.07% decline, underscoring the hurdles the company faces as it strives to navigate through the current economic landscape and regain its footing in the market. Discover 16 additional key insights about FTHM with InvestingPro’s comprehensive research report, including detailed valuation analysis and future growth prospects.
In other recent news, Fathom Holdings Inc. has announced plans to incorporate Bitcoin into its treasury management program. The company’s board has approved the allocation of up to 50% of its excess cash towards Bitcoin purchases, with an immediate plan to invest up to $500,000 in Bitcoin or related funds. This move is part of Fathom’s strategy to diversify its treasury beyond U.S. dollars and potentially use Bitcoin for real estate transactions. Additionally, Fathom Holdings has completed the integration of My Home Group, which is expected to contribute over $110 million in revenue for the full year of 2025.
Despite rising mortgage rates, Fathom estimates a 21% to 24% increase in fourth-quarter 2024 revenues compared to the previous year, along with an anticipated gross profit increase of 28% to 30%. The company also reported a 23% rise in agent count, reaching approximately 14,500 by the end of 2024, and a 16.5% increase in brokerage transaction count for the fourth quarter. Fathom aims to leverage this growth to achieve positive Adjusted EBITDA for 2025. The company’s financial results are currently estimates and have not been audited by Deloitte & Touche LLP. Further details on Fathom’s Bitcoin strategy will be disclosed in a forthcoming report to the U.S. Securities and Exchange Commission.
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