Fathom HoldingsFTHM -8.94%59 Gross Margin % is 7.88% as of Dec. 2025, which is 4% below its 10-year median of 8.17. GuruFocus rates FTHM with a GF Score™ of 59/100 and a GF Value™ of $1.61 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 1,644 Real Estate companies, Fathom Holdings ranks worse than 90.21% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Fathom Holdings had a gross margin of 7.88% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Fathom Holdings Gross Margin % Related Terms
Fathom Holdings Gross Margin % Historical Data
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The historical data trend for Fathom Holdings's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FTHM vs OMH, MDRR, ABCP: Gross Margin % Comparison
For the Real Estate Services subindustry, Fathom Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Fathom Holdings Gross Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Fathom Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Fathom Holdings's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Fathom Holdings (FTHM) has a Gross Margin % of 7.88% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Fathom Holdings and its competitors. This is near median its historical median of 8.17. Over the past decade, Fathom Holdings' Gross Margin % has ranged from 5.00 to 9.86. According to the industry distribution chart, Fathom Holdings ranks #1483 out of 1644 companies in the Real Estate industry, placing it in the top 90.2%.
Is Fathom Holdings' Gross Margin % too high?
Fathom Holdings' current Gross Margin % of 7.88% is near median its 10-year median of 8.17. Over the past 10 years, this metric has ranged from a low of 5.00 to a high of 9.86. The Real Estate industry median Gross Margin % is 36.96. Fathom Holdings' value of 7.88% is 78.7% below this industry median. Based on the distribution chart, Fathom Holdings ranks #1483 out of 1644 companies in the Real Estate industry, which is in the bottom quartile relative to peers. Overall, Fathom Holdings has a GF Score™ of 59/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Fathom Holdings' Gross Margin % compare to OMH and MDRR?
According to the Real Estate industry distribution chart, Fathom Holdings ranks #1483 out of 1644 companies for Gross Margin %. This places Fathom Holdings in the lower half of its industry. The industry median Gross Margin % is 36.96. Fathom Holdings' value of 7.88% is 78.7% below this benchmark. Historically, Fathom Holdings' own Gross Margin % has ranged from 5.00 to 9.86 over the past decade. While the company's 10-year median is 8.17 vs. the industry median of 36.96, Fathom Holdings has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Real Estate company?
The median Gross Margin % among Real Estate companies is 36.96, based on 1,644 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Fathom Holdings's current Gross Margin % of 7.88% is 78.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Fathom Holdings and its competitors. For the Real Estate industry, the median Gross Margin % is 36.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fathom Holdings's current Gross Margin % is 7.88%, which is near median its own 10-year median of 8.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fathom Holdings stock overvalued right now?
Based on GuruFocus' analysis, Fathom Holdings (FTHM) is currently considered Possible Value Trap. The stock's GF Value™ is $1.61, compared to a current price of $1.08 — trading 32.9% below its estimated fair value. The current Gross Margin % is 7.88%, which is near median its 10-year median of 8.17 and 78.7% below the Real Estate industry median of 36.96. Fathom Holdings' overall GF Score™ is 59/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Fathom Holdings (FTHM), the current Gross Margin % is 7.88% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Fathom Holdings (FTHM) Overvalued in 2026?
Based on GuruFocus' analysis, Fathom Holdings stock appears to be undervalued.
The current stock price of $1.08 is trading 32.9% below its estimated GF Value™ of $1.61.
GuruFocus considers Fathom Holdings to be Possible Value Trap.
Key valuation signals for FTHM:
Gross Margin %: 7.88% (near median its 10-year median of 8.17)
GF Value™: $1.61 vs. price of $1.08 (32.9% below fair value)
Industry Position: 78.7% below the Real Estate median (#1483 of 1644)
No single metric tells the full story. See the FTHM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fathom Holdings Inc is a national, technology-driven, real estate services platform integrating residential brokerage, mortgage, title, and Software as a Service (SaaS) offerings to brokerages and agents by leveraging intelliAgent , proprietary cloud-based software. The Company's three operating and reportable segments: Real Estate Brokerage, Mortgage, and Title. The majority of revenue is from Real Estate Brokerage, which provides real estate brokerage services.
59GF Score
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