FTHM (Fathom Holdings) Operating Margin %: -5.21% (As of Dec. 2025)


FTHM Fathom Holdings Inc FTHM
59 GF Score
Price $1.08
GF Value $1.61
Valuation Possible Value Trap
! 6 Warning Signs
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What is Fathom Holdings Operating Margin %?

Fathom Holdings FTHM -8.94% 59 Operating Margin % is -5.21% as of Dec. 2025. 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 1,745 Real Estate companies, Fathom Holdings ranks worse than 76.91% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Fathom Holdings's Operating Income for the three months ended in Dec. 2025 was $-4.7 Mil. Fathom Holdings's Revenue for the three months ended in Dec. 2025 was $90.6 Mil. Therefore, Fathom Holdings's Operating Margin % for the quarter that ended in Dec. 2025 was -5.21%.

Warning Sign:

Fathom Holdings Inc operating margin has been in a 5-year decline. The average rate of decline per year is -26.1%.

The historical rank and industry rank for Fathom Holdings's Operating Margin % or its related term are showing as below:

FTHM' s Operating Margin % Range Over the Past 10 Years
Min: -6.74   Med: -4.24   Max: -0.72
Current: -3.22


FTHM's Operating Margin % is ranked worse than
76.91% of 1745 companies
in the Real Estate industry
Industry Median: 13.21 vs FTHM: -3.22

Fathom Holdings's 5-Year Average Operating Margin % Growth Rate was -26.10% per year.

Fathom Holdings's Operating Income for the three months ended in Dec. 2025 was $-4.7 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was $-13.6 Mil.

Warning Sign:

Fathom Holdings Inc has never been profitable in the past 3 years. It lost money every year.


Fathom Holdings  (NAS:FTHM) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Fathom Holdings Operating Margin % Related Terms


Fathom Holdings Operating Margin % Historical Data

* Premium members only.

The historical data trend for Fathom Holdings's Operating 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.

Fathom Holdings Operating Margin % Chart

Fathom Holdings Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Margin %
Get a 7-Day Free Trial -4.88 -6.48 -6.74 -5.96 -3.22

Fathom Holdings Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -6.57 -4.75 -1.95 -1.77 -5.21

FTHM vs OMH, MDRR, ABCP: Operating Margin % Comparison

For the Real Estate Services subindustry, Fathom Holdings's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Real Estate Industry

For the Real Estate industry and Real Estate sector, Fathom Holdings's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Fathom Holdings's Operating Margin % falls into.


FTHM
59GF Score
Fathom Holdings Inc FTHM
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Fathom Holdings Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Fathom Holdings's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=-13.552 / 420.477
=-3.22 %

Fathom Holdings's Operating Margin % for the quarter that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2025 ) / Revenue (Q: Dec. 2025 )
=-4.722 / 90.606
=-5.21 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of -5.21% mean?
Fathom Holdings (FTHM) has a Operating Margin % of -5.21% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Fathom Holdings and its competitors. According to the industry distribution chart, Fathom Holdings ranks #1342 out of 1745 companies in the Real Estate industry, placing it in the top 76.9%.
Is Fathom Holdings' Operating Margin % too high?
Fathom Holdings' current Operating Margin % is -5.21%. Based on the distribution chart, Fathom Holdings ranks #1342 out of 1745 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' Operating Margin % compare to OMH and MDRR?
According to the Real Estate industry distribution chart, Fathom Holdings ranks #1342 out of 1745 companies for Operating Margin %. This places Fathom Holdings in the lower half of its industry. The industry median Operating Margin % is 13.21. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Real Estate company?
The median Operating Margin % among Real Estate companies is 13.21, based on 1,745 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Fathom Holdings and its competitors. For the Real Estate industry, the median Operating Margin % is 13.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fathom Holdings's current Operating Margin % is -5.21%. 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 Operating Margin % is -5.21%. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Fathom Holdings (FTHM), the current Operating Margin % is -5.21% 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:

  • Operating Margin %: -5.21%
  • GF Value™: $1.61 vs. price of $1.08 (32.9% below fair value)
  • GF Score™: 59/100 with 6 warning signs

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 Business Description

Address 2000 Regency Parkway Drive, Suite 300, Cary, NC, USA, 27518
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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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$1.08
Price
$1.61
GF Value