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      Fathom Digital Gains with Stock Split for NYSE Compliance

      By Wasim Omar

      Published on

      September 29, 2023

      11:35 AM UTC

      Fathom Digital Gains with Stock Split for NYSE Compliance

      Fathom Digital Manufacturing Corp (FATH) experienced a significant double-digit premarket surge, reaching a peak of $0.38, attributed to recent developments. The company operates as an on-demand digital manufacturing platform in North America, specializing in plastic and metal additive technologies, CNC machining, injection molding, tooling, sheet metal fabrication, as well as design and engineering services.

      FATH Executes 1-for-20 Reverse Stock Split

      Fathom Digital Manufacturing Corp. (NYSE: FATH) has effectively implemented a 1-for-20 reverse stock split, converting its $0.0001 per share common stock. Commencing yesterday on September 28, 2023, the Company’s Class A common stock now trades on the NYSE in a split-adjusted manner, under the symbol “FATH” and a new CUSIP number: 31189Y202.

      This action consolidates every 20 common stock shares into one, notably reducing the count from 70.1 million to about 3.5 million. Fractional shares will be sold, and the proceeds fairly distributed to affected shareholders. The reverse stock split maintains equity percentages while adjusting warrants and stock-based awards. Registered stockholders require no action, and those holding Class A common stock via intermediaries will see automatic adjustments.

      The primary goal is to meet the NYSE’s $1.00 average closing price requirement and reduce authorized common stock shares proportionately while preserving par value, enabling it to compete with other US stocks.

      Financial Updates

      In the second quarter of 2023 Fathom Digital Manufacturing Corp (NYSE;FATH) experienced a decrease in revenue by 17.9% amounting to $34.5 million compared to the period in 2022. This decline can be attributed primarily to lower production levels in their precision sheet metal product line, influenced by a macroeconomic environment.

      In the first half of 2023 their revenue totaled $69.5 million down from $82.5 million in the first half of 2022. As for profit in the quarter of 2023 it stood at $10.5 million, which accounted for 30.6% of their revenue. A decrease from the previous years second quarter figure of $15.5 million (37% of revenue).

      Surprisingly there was a loss of $(7.3) million during Q2 2023 compared to an income of $34.3 million in Q2 2022. Lastly adjusted EBITDA, for Q2 2023 amounted to $4.8 million as opposed to $9 million recorded during Q2 2022.


      Fathom Digital Manufacturing Corp has embarked on a strategic path to address recent challenges, most notably executing a 1-for-20 reverse stock split. This move, aimed at bolstering stock value and complying with NYSE requirements, reflects the company’s commitment to long-term sustainability.

      Despite recent revenue setbacks, FATH remains dedicated to its mission as a leading digital manufacturing platform in North America. As they navigate the ever-evolving landscape, shareholders and industry observers await the company’s next moves with keen interest.

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