Who Owns Fathom Realty Company?

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Who Really Controls Fathom Realty?

Understanding the ownership structure of any company is crucial, but especially so in the dynamic real estate market. Fathom Realty, a prominent real estate brokerage, has undergone significant changes since its inception. From its roots as a startup to its current status as a publicly traded company, the question of who owns Fathom Realty is central to grasping its strategic direction and future prospects.

This exploration into Fathom Realty SWOT Analysis will uncover the key players in Fathom Holdings' ownership, from the initial founder, Josh Harley, to the current shareholders. We'll examine the evolution of this real estate company's ownership, exploring the impact of its IPO and the influence of its leadership team. By understanding the forces shaping Fathom Realty's ownership, we gain valuable insights into its business model and its position within the competitive real estate brokerage landscape.

The real estate brokerage, Fathom Realty, was established in 2010. The founder, Joshua Harley, envisioned a cloud-based, flat-fee brokerage to empower agents. His aim was to provide agents with better commission splits, technology, and training to build their own brands.

The company was initially incorporated in North Carolina on May 5, 2017, under the name 'Fathom Ventures, Inc.'. This was later changed to Fathom Holdings Inc. in September 2018. This shift reflected the company's evolution and strategic direction within the real estate market.

While specific details of the initial equity split among founders and early investors are not publicly available, it's known that Joshua Harley remained the largest shareholder even after stepping down as CEO and Chairman in November 2023. The company's focus on an agent-centric model, with a high commission split, has been a key factor in its growth and appeal to real estate professionals.

Founder and Vision

Joshua Harley, a former U.S. Marine Corps hand-to-hand combat instructor, founded Fathom Realty. His vision was to create a brokerage that empowered agents. This was achieved through a cloud-based platform and attractive commission structures.

Incorporation and Name Change

Fathom Realty was incorporated in North Carolina on May 5, 2017, as Fathom Ventures, Inc. The company later changed its name to Fathom Holdings Inc. in September 2018. These changes mark key stages in the company's development.

Ownership Structure

Specific details about the initial equity split are not fully public. However, Josh Harley remained the largest shareholder. The agent-centric model was a core part of the company's operational strategy from the start.

Agent-Centric Approach

The company's focus on agents was evident from its early days. This approach, including high commission splits, helped attract agents. This strategy has been a key driver of Fathom Realty's growth within the real estate brokerage sector.

Leadership Transition

In November 2023, Josh Harley stepped down as CEO and Chairman. Despite this change, he remained the largest shareholder. This transition reflects the company's evolving leadership structure.

Operational Strategy

Fathom Realty's early operational structure was designed to support agents. The cloud-based platform and attractive commission splits were central. This strategy helped in attracting and retaining agents.

Key Takeaways on Fathom Realty Ownership

Understanding the ownership structure of Fathom Realty, including its founder, is key. The company's agent-centric model and the vision of its founder have shaped its trajectory. For more insights, consider reading about the Marketing Strategy of Fathom Realty.

• Joshua Harley's vision was to empower agents with better commission splits and technology.
• Fathom Realty's incorporation and name change reflect its growth and strategic direction.
• The agent-centric model has been a core factor in attracting agents and driving growth.
• Josh Harley remained the largest shareholder even after stepping down as CEO and Chairman in November 2023.

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The evolution of Fathom Realty's ownership began with its initial public offering (IPO) on July 31, 2020, when it became a publicly traded company under the ticker symbol 'FTHM' on the Nasdaq Capital Market. The IPO involved offering 3.43 million shares of common stock at $10 each, with the goal of raising $34 million. As of June 11, 2025, the company's market capitalization is approximately $35.8 million, with 27.8 million shares outstanding. These initial steps set the stage for ongoing shifts in ownership structure, influenced by various strategic decisions and market dynamics.

Several key events and strategic activities have influenced Fathom Realty's ownership landscape. In September 2024, the company issued senior secured convertible promissory notes worth $5 million to an existing shareholder holding over 5% of the common stock, as well as to the chairman of the Board of Directors. Furthermore, insider ownership was reported at 41.53%, and institutional ownership stood at 14.6% as of November 4, 2024. Founder Joshua Harley, who transitioned from CEO to 'Founder and Chief Evangelist' in November 2023, remains a significant shareholder. These changes in ownership are designed to support the company's strategic goals, particularly agent growth and the expansion of its ancillary businesses.

As of April 29, 2025, the aggregate market value of Fathom's common stock held by non-affiliates was approximately $22,281,129 as of June 28, 2024. Understanding the ownership structure is crucial for investors and stakeholders. For more information on the competitive environment, consider reading about the Competitors Landscape of Fathom Realty.

Ownership Insights

Fathom Realty's ownership structure has evolved since its IPO. Key stakeholders include the founder, institutional investors, and other shareholders. Strategic decisions, such as the issuance of convertible notes, have also influenced the ownership landscape.

• Publicly traded on Nasdaq.
• Founder Joshua Harley remains a key shareholder.
• Institutional ownership plays a role.
• Strategic financial activities impact ownership.

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As of April 15, 2025, the Board of Directors of Fathom Holdings Inc. includes various members. The board composition reflects diverse interests, although specific affiliations with major shareholders are not always explicitly detailed. Scott Flanders serves as the Chair of the Board, appointed in November 2023, succeeding founder Joshua Harley. Marco Fregenal, who became CEO in November 2023, has been on the board since 2019.

The leadership transition in late 2023 saw significant changes. The appointment of Flanders as Chair and Fregenal as CEO marked a shift in the company's leadership structure. The board's composition and the roles of its members are crucial for guiding the strategic direction of the real estate company. Understanding who owns Fathom Realty and the influence of the board is vital for investors and stakeholders.

The voting structure for Fathom Holdings Inc. is generally one-share-one-vote for its common stock. As of June 21, 2024, there were 20,943,004 shares of common stock outstanding. Shareholders of record as of June 21, 2024, were entitled to vote at the Annual Meeting of Shareholders held on August 19, 2024. Joshua Harley, the founder, remains the largest shareholder. This ownership stake gives him considerable influence, even without a direct board seat. In March 2025, a registered direct offering saw investors, including board members, purchase 4,338,003 shares of common stock for approximately $3 million, aligning board member interests with the company’s equity. For more insights into the target market of this real estate brokerage, you can read about it here: Target Market of Fathom Realty.

Key Takeaways on Fathom Realty Ownership

Fathom Realty's board includes members with diverse roles and backgrounds, guiding the company's strategy.

• The voting structure is one-share-one-vote, with a significant shareholder influence.
• Recent stock offerings have further aligned board member interests with the company.
• The company's leadership transition in late 2023 saw key changes in roles.
• Understanding the ownership structure is crucial for investors and stakeholders.

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Over the past few years, Fathom Realty, operating as Fathom Holdings Inc., has seen significant changes in its ownership and strategic direction. In November 2023, Joshua Harley, the founder and CEO, transitioned to a new role as 'Founder and Chief Evangelist,' focusing on agent growth. Marco Fregenal, previously President and CFO, stepped into the CEO position, while Scott Flanders, an independent director, became the Board Chair. Fregenal continued to serve as CFO while a replacement was sought.

In terms of capital and ownership, the company did not repurchase any equity during the three months ending March 31, 2025, or for the entire year ending December 31, 2024. Approximately $4.0 million remained available under a share repurchase authorization. In March 2025, Fathom Realty issued and sold shares of its common stock to investors, including board members, through a registered direct offering, generating about $3 million in gross proceeds. Furthermore, in September 2024, the company issued $5 million in senior secured convertible promissory notes to an existing shareholder (holding over 5%) and the Board Chairman. To learn more about the company's business model, check out this article: Revenue Streams & Business Model of Fathom Realty.

Fathom Realty's strategy includes acquisitions, such as the My Home Group purchase in November 2024, which added over 2,200 agents and approximately 12,000 annual transactions. This expanded the agent network to 14,500 nationwide. The company also sold Dagley Insurance Agency in May 2024 for $15 million in cash. The company's focus on attracting and retaining agents, with initiatives like the flat-fee commission model and new commission plans (Fathom Max and Fathom Share), indicates a strong emphasis on agent growth within the competitive real estate brokerage market.

Who Owns Fathom Realty?

Fathom Realty is a publicly traded company, Fathom Holdings Inc., with ownership distributed among institutional investors, board members, and other shareholders.

CEO and Leadership

Marco Fregenal is the current CEO, with Scott Flanders serving as Board Chair. Joshua Harley, the founder, now focuses on agent growth.

Recent Financial Activities

The company issued shares in March 2025 and senior secured convertible promissory notes in September 2024. No equity repurchases were made in 2024 or early 2025.

Agent Network Expansion

The agent network grew to approximately 14,715 agent licenses by March 31, 2025, reflecting a 22.8% increase from the previous year.

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