Revenue Growth - La Rosa Holdings Corp. reported a 119% year-over-year increase in total revenue to $69.4 million for the fiscal year 2024, surpassing initial revenue guidance by approximately $4.4 million[1][6]. - Revenue for the fourth quarter of 2024 increased 55% year-over-year to $17.7 million[1][4]. - Residential real estate services revenue rose by $36.6 million to $57.0 million, representing a 179% increase for the year ended December 31, 2024[1][9]. - Revenue for 2024 reached $69,448,786, a significant increase of 119% compared to $31,759,404 in 2023[20]. Profitability and Loss - Gross profit for the year 2024 increased 110% year-over-year to $6.0 million, driven by strategic acquisitions and growth in the agent network, which now exceeds 2,500 agents[1][4]. - The net loss for 2024 was $15.9 million, or $(0.79) per share, compared to a net loss of $9.3 million, or $(1.27) per share, in 2023[1][9]. - Net loss attributable to common stockholders was $(15,923,607) for 2024, compared to $(9,290,951) in 2023, indicating a 71% increase in losses[20]. - Loss per share of common stock attributable to common stockholders was $(0.79), an improvement from $(1.27) in the prior year[20]. - Operating loss for 2024 was $(11,197,142), compared to $(7,092,363) in 2023, indicating a worsening operational performance[20]. Expenses and Costs - Selling, general and administrative costs for 2024 were approximately $11.6 million, compared to $4.8 million in 2023[1][9]. - Total operating expenses rose to $17,150,421, compared to $9,933,531 in the previous year, marking a 73% increase[20]. - Interest expense increased to $(403,397) from $(140,382), highlighting rising financing costs[20]. - The company recorded a loss on extinguishment of debt amounting to $(777,558), which was not present in the previous year[20]. Strategic Initiatives - The company is on track to close an acquisition of a real estate brokerage firm that generated $19 million in revenue in 2023, expected to add approximately 945 agents[1][5]. - La Rosa Holdings aims for profitability in 2025 by expanding into new markets and acquiring additional brokerage firms[1][7]. - The company has initiated international expansion with an area developer in Spain, unlocking new revenue opportunities[1][5]. - La Rosa Holdings maintains a revenue forecast of $100 million for 2025[1][5]. Financial Metrics - Gross profit improved to $5,953,279, up from $2,841,168, reflecting a gross margin increase[20]. - Weighted average shares used in computing net loss per share increased to 20,222,347 from 7,293,033, reflecting a significant dilution[20]. - The change in fair value of derivative liability resulted in a loss of $(1,338,506), contrasting with a gain of $138,985 in 2023[20].

Core Insights - La Rosa Holdings Corp. reported a total revenue increase of 34% year-over-year to $17.5 million for Q1 2025, compared to $13.1 million in Q1 2024 [3][4][5] - Gross profit rose by 32% to $1.5 million in Q1 2025, up from $1.2 million in the same quarter of the previous year [3][5] - The company experienced a significant net loss of $95.9 million in Q1 2025, compared to a net loss of $4.8 million in Q1 2024, primarily due to non-cash and one-time items [8][19] Financial Performance - Residential real estate services revenue increased by 39% to $14.3 million in Q1 2025, up from $10.2 million in Q1 2024 [4][5] - Property management revenue grew by 17% to approximately $3.0 million, while commercial brokerage revenue nearly doubled to approximately $57,000 [5] - Total operating expenses for Q1 2025 were $6.2 million, compared to $5.7 million in Q1 2024, resulting in a loss from operations of $4.7 million [6][18] Business Strategy - The company has focused on organic growth, expanding its agent network to over 2,800 agents nationwide without pursuing acquisitions [3] - La Rosa's business model includes flexible compensation options for agents, such as a revenue-sharing model and a 100% commission option [9][10] - The company is advancing its national and international expansion strategy, recently starting operations in Europe, beginning with Spain [11]

Company Operations and Growth - As of March 31, 2025, the company has 2,769 licensed real estate brokers and sales associates across its corporate and franchised offices[149]. - The company operates 26 corporate real estate brokerage offices and branches in Florida, California, Texas, Georgia, North Carolina, and Puerto Rico[148]. - The company completed its IPO on October 12, 2023, and has since acquired majority ownership of several franchisees, including La Rosa Realty North Florida LLC and La Rosa Realty Georgia LLC[156]. - The company plans to acquire additional franchisees and entities throughout 2025, actively searching for potential acquisition targets[158]. - The company has opened its first office in North Carolina, La Rosa Realty NC LLC, in December 2024, and formed LR Luxury, LLC, in January 2025[157]. - The company increased its agent count by 12.8%, from 2,454 at March 31, 2024, to 2,769 at March 31, 2025[177]. - The company’s business model is built on three pillars: Family, Passion, and Growth, which it believes will continue to attract high-performing realtors[155]. Financial Performance - Total revenue for the three months ended March 31, 2025, was $17,514,394, representing a 34% increase compared to $13,088,899 for the same period in 2024[192]. - Revenue from Real Estate Brokerage Services (Residential) increased by approximately $4.0 million, or 39%, driven by acquisitions completed in fiscal year 2024[193]. - Property Management revenue increased by approximately $432,000, or 172%, due to an increase in properties under management and a management fee price increase[196]. - Gross profit for the three months ended March 31, 2025, was $1,537,668, a 32% increase from $1,161,997 in the same period in 2024[197]. - Selling, general and administrative expenses increased by approximately $1.7 million, or 68%, primarily due to increases in professional fees and payroll[205]. - The company incurred stock-based compensation of approximately $1.9 million, mainly due to option grants to the CEO and consultants[206]. - Other expense, net increased by approximately $91.0 million, primarily due to a loss on issuance of a senior secured convertible note for $128.8 million[207]. - As of March 31, 2025, the company had a cash balance of $4.9 million and negative working capital of $94.0 million[208]. - Net cash used in operating activities for the year ended March 31, 2025, was $(3,493,029), compared to $(538,305) in 2024[214]. - For the three months ended March 31, 2025, the company experienced a net loss of $2.3 million, excluding stock-based compensation and other adjustments[215]. - Operating activities consumed $3.5 million in cash, primarily due to the net loss and changes in operating assets and liabilities[215]. - Financing activities provided net cash of $4.8 million, including net proceeds from an S-3 of $2.9 million and debt issuance of $2.9 million[217]. - Payments totaling $1.8 million were made towards notes payable, post-acquisition consideration, and advances on future receipts[217]. Compliance and Regulatory Issues - The company received a notice from Nasdaq on October 10, 2024, regarding non-compliance with the minimum bid price requirement, with a compliance period until April 8, 2025[159]. - The company is evaluating options to regain compliance with Nasdaq Listing Rule 5250(c)(1) after failing to timely file its Quarterly Report for the fiscal quarter ended March 31, 2025[162]. - The company has adopted new cybersecurity disclosure rules, requiring transparency in its cybersecurity risk management practices[186]. - The company is subject to various data protection regulations, and non-compliance could result in legal and financial penalties[188]. Market Conditions - The federal funds rate was reduced to 433 basis points in April 2025, impacting mortgage rates and housing demand[183]. - Existing-home sales fell 5.9% month-over-month to a seasonally adjusted rate of 4.02 million in March 2025, with a year-over-year decline of 2.4%[183]. - The company faces potential adverse effects on its financial condition due to recent legal challenges regarding real estate agent commissions, including a $418 million settlement by NAR[184]. Shareholder Actions - The company approved a new Share Repurchase Program, authorizing the purchase of up to $500,000 of its outstanding shares by December 31, 2025[174]. - The company issued 7,446,442 shares of common stock under an ATM Agreement for net proceeds of $2,919,192 during Q1 2025[176]. - The company plans to increase the number of authorized shares of common stock to 2 billion (2,000,000,000) shares[172]. - As of April 16, 2025, Joseph La Rosa no longer holds more than 50% of the voting power, resulting in the company no longer being classified as a "controlled company"[173]. Future Outlook - The company plans to continue expanding through acquisitions to achieve future profitability and will require additional capital to fund operations[213]. - The company is classified as a smaller reporting company and is electing scaled disclosure reporting obligations[218].

Core Viewpoint - La Rosa Holdings Corp. has received a delinquency notification from Nasdaq due to the failure to timely file its Quarterly Report on Form 10-Q for the period ended March 31, 2025, which is a violation of Nasdaq Listing Rule 5250(c)(1) [1][3] Group 1: Compliance and Regulatory Actions - The notification does not have an immediate effect on the listing of the Company's securities on Nasdaq [2] - The Company must submit a plan to regain compliance by July 21, 2025, and if accepted, may receive an extension of up to 180 days to comply [3] - The Company intends to take necessary steps to regain compliance and expects to file the required report within the 60-day period granted by Nasdaq [4] Group 2: Company Overview and Business Model - La Rosa Holdings Corp. is a real estate and PropTech company that provides agents with flexible compensation options, including a revenue-sharing model or a fee-based structure with 100% commission [5] - The Company offers both residential and commercial real estate brokerage services, along with technology-driven products and support for agents and franchise partners [6] - La Rosa operates 26 corporate-owned brokerage offices across several states and has recently begun expansion into Europe, starting with Spain [7]

Core Insights - La Rosa Holdings Corp. reported strong growth in Q1 2025, particularly in its Celebration office in Florida and BF Prime in Puerto Rico, indicating robust performance in a typically slower season [1][4] Group 1: Performance Metrics - The Celebration office expanded its agent base by 412 agents year-over-year, resulting in a 101% increase in transaction volume and an 86% increase in revenue to $3.4 million compared to $1.8 million in Q1 2024 [2] - BF Prime, acquired in August 2024, added 55 new agents and achieved a 900% increase in transaction volume year-over-year, with revenue rising to $98 thousand from $27 thousand in Q4 2024, marking a 268% increase [3] Group 2: Strategic Outlook - The CEO emphasized the significance of growth within the Latino community as a key driver of success in both Florida and Puerto Rico, and expressed optimism about future expansion into Spain [4] - The company aims to continue its expansion into key markets while equipping agents with innovative tools, anticipating ongoing organic growth and agent expansion as part of its national and international strategy [4] Group 3: Company Overview - La Rosa Holdings Corp. operates 26 corporate-owned brokerage offices across multiple states and has begun its expansion into Europe, starting with Spain [7] - The company offers a flexible compensation model for agents, including revenue-sharing and fee-based structures, supported by a proprietary technology platform [5][6]

Shares of La Rosa Holdings Corp. (LRHC) have declined 10.1% since reporting results for 2024. This compares with the S&P 500 index’s 0.2% growth over the same time frame. Over the past month, the stock has lost 37% compared with the S&P 500’s 8.4% decline.Revenue Growth Strong, Loss WidensLa Rosa reported 2024 revenues of $69.4 million, a 119% upsurge from $31.8 million in 2023, surpassing its initial guidance by $4.4 million. This surge was primarily driven by a 179% jump in residential real estate service ...

Core Insights - La Rosa Holdings Corp. reported a significant increase in revenue and gross profit for the year ended December 31, 2024, with total revenue reaching $69.4 million, a 119% increase year-over-year, and gross profit increasing by 110% to $6.0 million [1][3][8]. Financial Performance - Total revenue for 2024 was $69.4 million compared to $31.8 million in 2023, marking a 119% increase [7][8]. - Residential real estate services revenue surged by $36.6 million to $57.0 million, representing a 179% increase from $20.5 million in 2023 [7][8]. - Gross profit rose by approximately $3.1 million, or 110%, to $6.0 million for 2024 from $2.8 million in 2023 [8]. - The company reported a net loss of $15.9 million for 2024, compared to a net loss of $9.3 million in 2023, with a loss per share of $(0.79) [9][19]. Strategic Initiatives - The company is expanding internationally, starting with Spain, to unlock new revenue opportunities and enhance its global presence [4]. - La Rosa Holdings has engaged in strategic acquisitions, completing eight acquisitions in 2024, which contributed to revenue growth [3][7]. - The company aims to achieve profitability in 2025 by expanding into new markets, acquiring additional brokerage firms, and leveraging technology for operational efficiencies [5]. Operational Highlights - The agent network has grown to over 2,500 agents, supported by a scalable, agent-first brokerage model that offers flexible compensation options [3]. - The introduction of the LR Agent Advance program provides agents with upfront access to pending commissions, creating an additional recurring revenue stream for the company [4]. - Selling, general, and administrative costs for 2024 were approximately $11.6 million, up from $4.8 million in 2023 [7]. Future Outlook - The revenue forecast for 2025 remains at $100 million, indicating confidence in the company's growth strategy [4]. - The company has received a 180-day extension from Nasdaq to comply with the minimum bid price rule, allowing time to execute strategic initiatives [4].

Company Operations - As of March 31, 2025, the company has 2,769 licensed real estate brokers and sales associates across its corporate and franchised offices[29]. - The company operates 26 corporate real estate brokerage offices and 6 franchised offices in 7 states and Puerto Rico[28]. - The company has expanded its operations through 24 subsidiaries, focusing on residential real estate brokerage, coaching, franchising, and property management[62]. - The company operates in the U.S. residential real estate market, valued at $49.7 trillion at the end of 2024, reflecting a year-over-year gain of $2.5 trillion[64]. - As of March 31, 2025, the company provided property management services for approximately 650 properties across Florida, charging homeowners between 8% to 12% of the monthly rental[70]. - The company operates 26 corporate real estate brokerage offices and branches across Florida, California, Texas, Georgia, North Carolina, and Puerto Rico as of April 15, 2025[95]. - In January 2025, the company hired a leader for its commercial real estate division, expecting stronger growth in this segment in 2025 and beyond[71]. Financial Performance - The company incurred a net loss of $14,349,996 for the year ended December 31, 2024, compared to a net loss of $7,823,763 for the year ended December 31, 2023[134]. - The company recorded an impairment of $787,438 for the year ended December 31, 2024, related to goodwill and intangible assets[139]. - Brokerage revenue accounted for 82% of total revenue in 2024, up from 64% in 2023[97]. - Property management revenue decreased to 16% of total revenue in 2024, down from 31% in 2023[97]. - The company has not provided net positive cash flows for the year ended December 31, 2024, raising substantial doubt about its ability to continue as a going concern[134]. - The company plans to pay $418 million over approximately four years as part of a settlement related to broker commissions, effective mid-July 2024[119]. Acquisitions and Growth Strategy - The company completed its initial public offering (IPO) on October 12, 2023, and acquired majority ownership of several franchisees during the fiscal year ended December 31, 2023[35]. - In fiscal year 2024, the company acquired majority ownership of multiple entities, including La Rosa Realty Georgia LLC and La Rosa Realty California[38]. - The company plans to continue growing through acquisitions and is in discussions with several potential franchisees[37]. - The company is actively pursuing strategies to mitigate risks, focusing on expansion through acquisitions to achieve future profitability[136]. Technology and Innovation - The company launched its proprietary technology system, JAEME, in February 2023, aimed at enhancing agent efficiency and marketing[38]. - The company launched its proprietary technology system, JAEME, in October 2023, designed to support agents with personalized content to drive marketing and sales[88]. - The company charges agents a reasonable monthly fee for the use of its suite of technology tools, which includes cloud-based brokerage services and AI-integrated CRM software[90]. - The company aims to enhance agent efficiency and productivity by increasing the use of technology tools as the market slows[83]. Market Conditions - The residential real estate market is cyclical, with fluctuations influenced by mortgage interest rates and economic conditions[104]. - The company expects the housing market slowdown to persist throughout 2025 due to low home-buying affordability, which is near its lowest level in decades[152]. - The median existing-home sales price increased to $398,400 in February 2025, a 3.8% increase from February 2024[99]. - Total housing inventory at the end of February 2025 was 1.24 million units, up 5.1% from January and 17% from one year ago[99]. - Existing home sales in February 2025 were 4.26 million, a 4.2% increase from January but a 1.2% decrease from the prior year[99]. Competition and Industry Challenges - The company faces significant competition from over 360,000 residential real estate brokerage firms in the U.S.[101]. - The company competes against internet-based brokers emphasizing low prices and a do-it-yourself approach[107]. - The company faces intense competition for qualified agents and franchisees, which may hinder its growth strategies[160]. - The financial performance is directly affected by the operating results of franchisees and agents, over whom the company has no direct control[162]. - A prolonged depression in home sales could lead to a decrease in the number of earning agents, negatively impacting financial performance[152]. Regulatory and Compliance Issues - The residential real estate industry is highly regulated, requiring compliance with various federal, state, and local laws[113]. - The company is subject to various state real estate and brokerage licensing laws, which vary from state to state[122]. - The company must comply with various federal and state regulations governing real estate brokerage and franchising, which could impact operations if not adhered to[167]. - The company is subject to environmental laws and climate change risks, which could increase operational costs and liabilities, particularly in coastal areas[174]. Risks and Liabilities - The company is currently facing litigation risks, including a federal jury finding the NAR liable for $1.8 billion in damages related to antitrust violations[191]. - The company may be adversely affected by the Burnett Settlement, which involves a payment of $418 million over four years and changes to agent commission rules[192]. - The company is subject to risks associated with potential acquisitions, which may involve taking on debt and could disrupt business operations[194]. - Security breaches and operational failures could materially harm the company's reputation and financial condition[193]. - Cybersecurity incidents could disrupt business operations and result in the loss of critical information, adversely impacting reputation and customer trust[228]. Corporate Governance and Structure - The concentration of ownership by Mr. La Rosa, who controls approximately 50.5% of the voting power, may limit the influence of other investors on corporate decisions[181]. - The company is classified as a "controlled company," which allows it to qualify for exemptions from certain corporate governance requirements[180]. - The company has identified a material weakness in its internal controls over financial reporting, specifically a lack of segregation of duties, which may affect the reliability of its financial statements[219]. - The company has limited experience with the systems and controls necessary to operate as a public company, which may lead to difficulties in compliance and financial reporting[217]. Stock and Market Performance - As of April 7, 2025, the closing price of the company's Common Stock was $0.17, with a risk of delisting if the price falls to $0.10 or less for 10 consecutive trading days[201]. - The company has been granted an additional 180-day period until October 6, 2025, to regain compliance with Nasdaq's minimum bid price requirement[199]. - If the company fails to maintain compliance with Nasdaq's listing standards, it could face delisting, adversely impacting liquidity and market price[198]. - The market price for the company's Common Stock is expected to be highly volatile due to its small public float and minimal profits, leading to potential wide fluctuations in share price[203]. - The company is classified as an "emerging growth company," which may limit its attractiveness to investors and make capital raising more challenging[211].

Celebration, FL, April 14, 2025 (GLOBE NEWSWIRE) -- La Rosa Holdings Corp. (NASDAQ: LRHC) ("La Rosa" or the "Company"), a holding company for six agent-centric, technology-integrated, cloud-based, multi- service real estate segments, today announced that it had received written notification from the Listing Qualifications Department of the Nasdaq Stock Market LLC ("Nasdaq") that the Company is eligible for a 180- day extension to regain compliance with the $1.00 minimum bid price requirement under Nasdaq Li ...

Core Insights - La Rosa Holdings Corp. has launched LR Agent Advance LLC, a commission advancement program aimed at providing financial flexibility to its agents while enhancing the company's revenue model [1][2][3] Group 1: Company Overview - La Rosa Holdings Corp. is a real estate and PropTech company that offers flexible compensation options for agents, including a revenue-sharing model and a fee-based structure with 100% commission [4] - The company operates 26 corporate-owned brokerage offices across several states in the U.S. and has recently begun expanding into Europe, starting with Spain [6] Group 2: New Initiative - LR Agent Advance allows La Rosa agents to receive an advance on their pending real estate commissions, providing immediate access to funds for business expenses or personal needs [2] - In exchange for the advance, LR Agent Advance will retain 15% of the total commission from participating agents, creating a recurring revenue stream for La Rosa [2] Group 3: Strategic Goals - The CEO of La Rosa Holdings Corp. stated that the launch of LR Agent Advance is a significant development for both agents and the company, aiming to alleviate financial pressures faced by agents [3] - The initiative aligns with the company's ambitious financial goals, including a target to reach $100 million in revenue and achieve cash flow positivity by the end of 2025 [3]