FTHM earnings analysis
What we found in FTHM's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Revenue declined to $86.401 million, down approximately 5.1% sequentially and 7.1% year over year, while operating margin deteriorated to negative 8.8% from negative 5.2% in the prior quarter and negative 4.8% a year earlier. EPS worsened to negative $0.25 from negative $0.21 sequentially and negative $0.24 year over year, although free cash flow improved to negative $0.136 million from negative $12 million. The key concern is liquidity: the Company disclosed defaults under its 2024 Notes, a waiver through October 1, 2026, and dependence on continued BBBY financial support. Previously reported internal-control weaknesses were remediated as of June 30, 2026.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue declined sequentially and year over year
- Second-quarter revenue was $86.401 million, down from $91 million in the prior quarter and $93 million in the prior-year quarter, representing sequential and year-over-year declines of approximately 5.1% and 7.1%, respectively.
- Free cash flow materially improved
- Free cash flow improved to approximately negative $0.136 million from negative $12 million in the prior quarter and negative $6 million in the prior-year quarter.
- Previously reported control weaknesses remediated
- Management concluded that the material weaknesses previously reported in the March 31, 2026 Form 10-Q were remediated as of June 30, 2026, following new executive leadership, stronger Board oversight, and additional authorization and review controls.
- Disclosure controls rated effective
- Disclosure controls and procedures were concluded to be effective at the reasonable assurance level as of June 30, 2026.
- Capital preservation remains the priority
- The Company has no current share-repurchase activity and stated that management has no plans to repurchase additional shares; $4.0 million remains available under the repurchase program.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Convertible-note default waiver has a deadline
- The Company experienced an Event of Default under its 2024 Notes after failing to timely file the March 31, 2026 Form 10-Q. Holders waived the defaults only through October 1, 2026, creating refinancing and liquidity risk if the waiver is not extended.
- Liquidity depends on BBBY support
- The Company states that it depends on committed financial support from BBBY to address substantial doubt about its ability to continue as a going concern. If the merger is not consummated or support is not sustained, the Company may lack sufficient liquidity to meet its obligations.
- Settlement and litigation obligations remain
- Fathom Realty is obligated to pay an additional $1.95 million under the NAR settlement on or before October 1, 2026. The Company also disclosed approximately $1.0 million of alleged TotalBrokerage claims for which no accrual had been recorded as of June 30, 2026.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.25
- Gross margin
- 100.0%
- Operating margin
- -8.8%
What they said about what is next.
The Form 10-Q does not provide quantitative revenue or EPS guidance. Management states that the BBBY merger and continued BBBY financial support are important to liquidity, but provides no numeric outlook.
The filing reads worse than the one before it.
What came before.
- 10-Q · July 16, 2026
- Fathom Holdings reported revenue of $86.4 million for Q1 2026, down 7.2% from $93.1 million in Q1 2025. EPS stood at -$0.24, marking a continued downward trend. The company highlights a focus on expanding its Real…
- 10-K · April 30, 2026
- Fathom Holdings' 10-K reveals a struggling financial performance with declining revenue and negative EPS, highlighting ongoing operational challenges. The company faces a Nasdaq compliance warning after its stock price…
- 10-K · March 30, 2026
- Fathom reported continued top-line growth and platform expansion in 2025 while remaining unprofitable and cash flow negative. Revenue increased ~25% year-over-year to approximately $420.0 million (2025 quarters: $93M,…
- 10-Q · November 12, 2024
- Fathom reported Q3 revenue of $83,733,000 (down from $93,524,000 a year ago) and GAAP diluted EPS of $(0.40), missing estimates. Operating loss widened to $7,761,000 (operating margin ~-9.3%), while cash increased to…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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