Quarterly ResultJul 16, 2026, 04:14 PM
Fathom Holdings Q1 Net Loss $8.2M; Faces Debt Default
AI Summary
Fathom Holdings Inc. reported a widened net loss of $8.2 million for Q1 2026, compared to $5.6 million in Q1 2025, with revenue decreasing to $86.4 million from $93.1 million. The company disclosed a default on its $5.0 million convertible notes due to a late 10-Q filing, resulting in an increased interest rate of 18% during the default period, though a waiver was obtained until October 1, 2026. To address liquidity concerns and substantial doubt about its ability to continue as a going concern, Fathom secured a $3.0 million subordinated secured promissory note from Bed Bath & Beyond, Inc.
Key Highlights
- Net loss widened to $8.2 million in Q1 2026 from $5.6 million in Q1 2025.
- Revenue decreased to $86.4 million in Q1 2026 from $93.1 million in Q1 2025.
- Basic net loss per share increased to $(0.25) in Q1 2026 from $(0.24) in Q1 2025.
- Defaulted on $5.0 million convertible notes due to late 10-Q filing, triggering an 18% interest rate.
- Secured a $3.0 million subordinated secured promissory note from Bed Bath & Beyond, Inc.
- Cash and cash equivalents decreased to $4.4 million as of March 31, 2026, from $5.8 million.
- Total shareholders' equity decreased to $29.7 million from $37.4 million since Dec 31, 2025.
- Obtained waiver for non-compliance with debt covenants on one warehouse line of credit.
Price Impact
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