Fathom Holdings faces Nasdaq delisting over share price

Published 18/04/2025, 21:04
Fathom Holdings faces Nasdaq delisting over share price

CARY, NC – Fathom Holdings Inc ., a real estate brokerage firm, has been notified by the Nasdaq Stock Market LLC of its non-compliance with the exchange’s minimum bid price requirement, the company disclosed in a recent SEC filing. The notice, dated Monday, April 14, 2025, indicated that the company’s common stock had closed below the required $1.00 minimum bid price for 30 consecutive business days. The stock, currently trading at $0.76, has experienced significant pressure, falling over 70% in the past six months. According to InvestingPro analysis, the company’s shares are currently trading below their Fair Value, despite challenging market conditions.

The firm, which operates under the ticker (NASDAQ:FTHM), has been given a period of 180 days, until October 13, 2025, to meet Nasdaq’s bid price condition. To regain compliance, the company’s common stock must maintain a closing bid price of at least $1.00 per share for at least ten consecutive business days. With a market capitalization of just $20.66 million and trading near its 52-week low of $0.65, the company faces significant challenges. InvestingPro subscribers have access to 18 additional key insights about FTHM’s financial health and market position.

Fathom Holdings may be granted an additional 180-day period to achieve compliance if it meets all other listing requirements and provides a plan to address the bid price deficiency, which could include a reverse stock split.

Failure to meet the bid price requirement by the stipulated deadline could lead to delisting from the Nasdaq Capital Market. However, the company would have the opportunity to appeal such a decision before a Nasdaq hearings panel.

The current listing status of Fathom Holdings’ common stock remains unaffected, continuing to trade under the symbol "FTHM." In response to the notice, the company is exploring various options to regain compliance with Nasdaq’s listing standards. Fathom Holdings has stated there is no certainty that it will be able to regain or maintain compliance with the listing requirements.

This development is based on the latest SEC filing by Fathom Holdings and does not impact the immediate trading of its common stock on the Nasdaq Capital Market. The company’s next earnings report is scheduled for May 8, 2025, which could be crucial for its stock price trajectory. Investors seeking deeper insights can access comprehensive analysis and Fair Value estimates through InvestingPro’s detailed research report, part of its coverage of over 1,400 US stocks.

In other recent news, Fathom Holdings reported its financial results for the fourth quarter of 2024, highlighting a wider-than-expected loss per share but exceeding revenue expectations. The company posted an EPS of -$0.29, missing the forecasted -$0.14, while revenue reached $91.7 million, surpassing expectations of $81.99 million. Despite the earnings miss, the revenue growth was driven by an increase in real estate transactions and a 21% rise in agent count to 14,300 licenses. Fathom Holdings aims to achieve EBITDA profitability by the second quarter of 2025, focusing on acquisitions and cost management. In related developments, D A Davidson provided insights into the online real estate sector, observing a 0.6% year-over-year growth in total agent count, marking the first increase in five quarters. The firm maintains a neutral stance on the U.S. brokerage space but suggests that digital and cloud-based real estate companies could benefit from favorable mortgage conditions. This cautious optimism reflects the importance of mortgage rates in the real estate market and their potential impact on brokerage performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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