MeritValue

Fathom Holdings Inc.

FTHMdata completeness 100%7 fiscal years on file
The thesis, from the filings

Fathom Holdings Inc. earns about -35% on invested capital, but has diluted owners by 98% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$330.2M1$413M2$345.2M3$335.2M4$420.5M4
Net income−$12.5M5−$27.6M6−$24M7−$21.6M8−$20.3M8
Operating cash flow−$11.7M9−$6.58M10−$10.6M11−$4.69M12−$20.5M12
Capital expenditure$877,00013$945,00014$22,00015$51,00016$121,00016
Free cash flow (derived)−$12.6M9−$7.53M10−$10.6M11−$4.74M12−$20.7M12
Total debt$1.95M17$1.39M17$4.3M18$17.4M19$11.1M19
Cash & equivalents$37.8M20$8.32M21$7.4M22$7.13M23$5.77M23
Diluted shares14.3M16.0M16.3M20.2M28.2M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$13.28
your share of equity
Profit it earned you last year
−$7.2
Free cash flow it threw off
−$7.33
Debt you’d be carrying
$3.93

10 shares is a claim on $13.28 of net worth that earned you −$7.2 and generated −$7.33 of cash last year, against $3.93 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-35% avg · 5y
FY21 -28%FY22 -40%FY23 -36%FY24 -33%FY25 -37%

It earned an average -35% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+98% shares · 5y

Share count is up 98% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 468% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001410578-23-000422 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001628280-24-011953 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001628280-25-015336 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2024-12-31 · accession 0001628280-26-022057 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 10-K · period ending 2021-12-31 · accession 0001410578-23-000422 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0001628280-24-011953 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0001628280-25-015336 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001628280-26-022057 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001410578-23-000422 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0001628280-24-011953 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0001628280-25-015336 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001628280-26-022057 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0001410578-23-000422 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2022-12-31 · accession 0001628280-24-011953 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2023-12-31 · accession 0001628280-25-015336 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2024-12-31 · accession 0001628280-26-022057 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2021-12-31 · accession 0001410578-23-000422 (LongTermDebtNoncurrent)
  18. 10-K · period ending 2023-12-31 · accession 0001628280-25-015336 (LongTermDebtCurrent)
  19. 10-K · period ending 2024-12-31 · accession 0001628280-26-022057 (LongTermDebtCurrent)
  20. 10-K · period ending 2021-12-31 · accession 0001410578-23-000422 (CashAndCashEquivalentsAtCarryingValue)
  21. 10-K · period ending 2022-12-31 · accession 0001628280-24-011953 (CashAndCashEquivalentsAtCarryingValue)
  22. 10-K · period ending 2023-12-31 · accession 0001628280-25-015336 (CashAndCashEquivalentsAtCarryingValue)
  23. 10-K · period ending 2024-12-31 · accession 0001628280-26-022057 (CashAndCashEquivalentsAtCarryingValue)