Fathom Holdings Sets Share Price at $2 to Raise $5.4 Million in Capital

Fathom Holdings Inc., a real estate technology platform, announced on Thursday that it has priced a public offering of 3 million shares at $2 per share, with plans to raise $5.4 million. Roth Capital Partners, the underwriter, has been granted a 45-day option to purchase an additional 450,000 shares at the same terms. The offering is set to close on September 22. Fathom operates as a national online real estate service platform that provides various services such as residential brokerage, mortgage, title insurance, and software-as-a-service (SaaS) offerings through its cloud-based software called intelliAgent.

The announcement of the capital raise follows a successful second-quarter earnings report for Fathom. The company reported a 36.1% increase in total revenue compared to the same period last year, reaching $121.4 million. This growth has led Fathom to return to adjusted EBITDA profitability, with agent count increasing by 23% and transactions growing by 25% year-over-year.

Despite challenges in the industry due to the National Association of Realtors® (NAR) antitrust lawsuit settlement, Fathom remains optimistic about its growth prospects. To adapt to industry changes, Fathom is innovating by offering attractive commission structures that could disrupt traditional brokerage models. Recent surveys have shown that commission rates have rebounded after an initial decline following the implementation of new policies by NAR.

In November 2024, Fathom expanded its operations by acquiring My Home Group, a real estate agency with over 2,200 agents. This acquisition has strengthened Fathom’s presence in Arizona and Washington. Additionally, the company has started licensing its intelliAgent software platform to Sovereign Realty Partners. Headquartered in Cary, North Carolina, Fathom was founded in 2010 and operates in 43 states. Its business model focuses on flat-fee commission structures and integrated technology solutions. Fathom became a publicly traded company on Nasdaq under the ticker symbol FTHM.

As part of the settlement with NAR, Fathom has agreed to make payments into a settlement fund upon court approval. The company will contribute $500,000 by October 1, 2025, and an additional $1.95 million by October 1, 2026. The recent equity raise is part of Fathom’s ongoing fundraising efforts, including previous offerings earlier in 2025, which included a registered direct offering in March and the issuance of $5 million in senior secured convertible promissory notes in September 2024.

Fathom’s momentum in capital-raising efforts despite market challenges reflects its dedication to growth and innovation in the real estate industry. With a focus on technology and customer-centric services, Fathom Holdings Inc. is positioning itself for continued success in the evolving real estate landscape.