02. Fathom Holdings Inc. (NASDAQ:FTHM)
Upside Potential: 40%
Average Analyst Share Price Target: $1.50
Forward P/E Ratio: 13.38
Fathom Holdings Inc. (NASDAQ:FTHM) is quickly becoming one of the most compelling tech driven real estate stocks to watch, and buy. With a forward P/E ratio of 13.38 and a 40% upside potential based on the average analyst price target of $1.50 versus its current price of $1.07 as of June 18, this under the radar stock offers investors a strong growth story at a bargain.
Fathom Holdings Inc. (NASDAQ:FTHM) operates a fully integrated real estate platform that spans residential brokerage, mortgage, title, insurance, and tech services. Despite posting a wider than expected loss in Q1 2025 ($-0.24 EPS vs. -$0.13 expected), the company showed impressive operational momentum and set a clear path toward profitability. Total revenue surged 32% year over year to $93.1 million, outpacing expectations, with brokerage revenue alone jumping 36%.
The company closed over 9,700 transactions, a 26% increase compared to last year, while agent count climbed 23% to nearly 14,715. These figures reflect the growing appeal of Fathom’s low cost, tech enabled model. Notably, gross profit (excluding its divested insurance unit) grew 34%, and its real estate segment posted $1.6 million in adjusted EBITDA, doubling year over year thanks to cost discipline and increasing transaction volumes.
What sets Fathom Holdings Inc. (NASDAQ:FTHM) apart is "Elevate", its new high margin, agent focused platform designed to supercharge agent productivity and retention. Within weeks of launching, 120 top producing agents signed on, and the program is already generating significantly higher profitability per transaction. With plans to scale onboarding to 100 agents per month, Elevate could be a game changer, not just for Fathom, but for the broader real estate brokerage model.
Beyond its core brokerage engine, Fathom Holdings Inc. (NASDAQ:FTHM) is seeing growth in its mortgage and title segments, which posted revenue gains of 13% and 43%, respectively. These ancillary businesses are boosting margins and providing diversified, recurring revenue streams.
With rising housing inventory and a more balanced market emerging, Fathom Holdings Inc. (NASDAQ:FTHM) is positioned to benefit from even modest tailwinds. Its lean cost structure, tech forward strategy, and focus on scalable growth make it one of the most exciting plays among small cap real estate stocks today. For investors looking for strong upside potential backed by operational momentum, Fathom Holdings is a stock worth serious consideration.