Shares in Fathom Holdings Inc. rebounded Tuesday, a day after the company raised $5.4 million in a public offering of three million shares.
Investors in the Cary, North Carolina-based parent company of Fathom Realty saw their shares take a beating on Friday when Fathom announced that it was pricing the offering at $2 per share.
Shares in Fathom, which hit 2025 high of $3.37 on Sept. 17, were changing hands for as little as $1.85 on Friday.
But Fathom’s share price bounced back Tuesday, peaking at $2.29 — a gain of nearly 20 percent from Monday’s close of $1.92.
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The company will use the proceeds to “continue to invest in sales and marketing initiatives, pursue strategic opportunities that enhance our platform and support ongoing operations,” Fathom CEO Marco Fregenal said in a statement. “Ultimately, these efforts are aimed at creating a healthier, more resilient company that we believe can drive sustained profitability and long-term shareholder value.”
The manager of the offering, Roth Capital Partners, has a 45-day option to purchase up to 450,000 additional shares for $900,000.
Marco Fregenal
“We view this capital raise as an important step in strengthening our financial foundation while giving us additional flexibility to accelerate our growth strategy,” Fregenal said.
Fathom raised $2.9 million in a March offering of 4.34 million shares at 68 to 72 cents per share, which allowed it to pay off a $3.5 million convertible note in April.
An end-to-end real estate services platform that integrates residential brokerage, mortgage, title and cloud-based “software-as-a-service” (SaaS) offerings for brokerages and agents, Fathom Holdings is the parent company of Encompass Lending Group, Cornerstone First Financial, and Verus Title. The company also offers its intelliAgent software platform to other real estate brokerages.
Fathom Realty’s flat-fee and revenue-sharing commission models have helped the company more than triple its agent count since 2019. At 14,981 as of June 30, Fathom’s agent count was up 23 percent from a year ago.
While second quarter 2025 transaction volume and revenue were also up dramatically from a year ago, Fathom Holdings racked up $9.2 million in losses during the first half of the year.
Fathom Holdings did achieve Q2 profitability of $29,000 by one metric: adjusted earnings before interest, taxes, depreciation and amortization (EBITDA).
“Fathom is committed to remaining adjusted EBITDA positive moving forward,” the company said in a second quarter earnings announcement.
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