Real estate tech platform Fathom Holdings Inc. announced Thursday its pricing of a 3 million share public offering at $2 per share, expecting to raise $5.4 million in net proceeds.
The company granted underwriting Roth Capital Partners a 45-day option to purchase up to an additional 450,000 shares at the same price and terms, with the offering expected to close Sept. 22.
Fathom operates as a national online real estate service platform that offers a one-stop shop for the industry, including residential brokerage, mortgage, title insurance and software-as-a-service (SaaS) offerings through its proprietary cloud-based software called intelliAgent.
The capital raise comes on the heels of a strong second quarter earnings report, with total revenue up 36.1% over the same period a year ago to $121.4 million and a return to adjusted EBITDA profitability, according to Fathom’s latest earnings report. The firm also saw agent count growth of 23% and transactions up 25% over last year.
Fathom’s fundraising effort comes as the industry continues to grapple with the fallout from the National Association of Realtors®’ (NAR) landmark antitrust lawsuit settlement. NAR instituted new policy changes prohibiting offers of agent compensation on the Multiple Listing Service (MLS) and requiring written agreements before buyers and agents can tour homes.
These changes are prompting firms like Fathom to innovate, offering attractive commission structures that could upend traditional brokerage commission models. Many expected commission rates to fall significantly. However, RISMedia surveys have found that the picture is much more complicated, with commissions rebounding from an initial dip after the new policies were implemented.
In November 2024, Fathom acquired My Home Group, a real estate agency with over 2,200 agents, expanding its presence in Arizona and Washington. The company also began licensing its proprietary intelliAgent software platform to Sovereign Realty Partners.Â
Founded in 2010 and headquartered in Cary, North Carolina, Fathom operates across 43 states with a business model emphasizing flat-fee commission structures and integrated technology solutions. The company went public and trades on Nasdaq under the ticker FTHM.
As part of the NAR settlement, Fathom agreed to pay $500,000 into a settlement fund upon court approval, plus $500,000 by Oct. 1, 2025, and $1.95 million by Oct. 1, 2026.
The latest equity raise follows previous 2025 fundraising efforts, including a $2.7 million registered direct offering in March and $5 million in senior secured convertible promissory notes issued in September 2024.
