La Rosa (LRHC)

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La Rosa Holdings Corp. Announces Authorization of Stock Buyback Program
Globenewswire· 2025-04-24 12:30
Core Viewpoint - La Rosa Holdings Corp. has announced a stock buyback program to repurchase up to $500,000 of its outstanding shares, reflecting confidence in its business model and long-term outlook [1][2]. Group 1: Financial Performance - The company reported a 119% increase in revenue to $69.4 million for fiscal 2024, with a 55% increase to $17.7 million in the fourth quarter alone [2]. - The decision to repurchase shares is influenced by ongoing assessments of capital needs, market conditions, and the stock price [1]. Group 2: Business Model and Strategy - La Rosa Holdings provides flexible compensation options for agents, including a revenue-sharing model and a fee-based structure with 100% commission [3]. - The company offers a range of services including residential and commercial real estate brokerage, franchising, education, coaching, and property management [4]. Group 3: Expansion and Operations - La Rosa operates 26 corporate-owned brokerage offices across several states and has begun expansion into Europe, starting with Spain [5]. - The company has six franchised offices and branches, along with three affiliated brokerage locations in the U.S. and Puerto Rico [5].
La Rosa Reports Wider Y/Y Net Loss & 119% Revenue Surge in 2024
ZACKS· 2025-04-21 15:20
Core Insights - La Rosa Holdings Corp. (LRHC) shares have declined 10.1% since reporting 2024 results, contrasting with a 0.2% growth in the S&P 500 index during the same period [1] - The company reported a significant revenue increase of 119% year-over-year, reaching $69.4 million in 2024, driven mainly by a 179% rise in residential real estate services revenues [2][3] Revenue and Profitability - Revenue from residential real estate services surged to $57 million from $20.5 million, while property management revenues increased by 15% to $11.1 million [2][3] - Despite revenue growth, the net loss widened to $15.9 million or $0.79 per share, compared to a loss of $9.3 million or $1.27 per share in 2023, due to higher general and administrative expenses and interest costs [3] Business Metrics - Gross profit increased by 110% to $6 million from $2.8 million, but operating expenses rose significantly to $17.2 million from $9.9 million, including a goodwill impairment of $787,438 [4] - The company added $9.8 million in revenues from eight acquisitions completed in 2024, alongside contributions from previous acquisitions [5] Management Strategy - The CEO emphasized the importance of the "agent-first brokerage model" in driving growth, which includes flexible compensation plans and technology integration [6] - La Rosa aims to scale operations through acquisitions and geographic expansion, with a revenue forecast of $100 million for 2025 [7] Influencing Factors - The revenue increase was primarily due to acquisitions and expanded services, but rising expenses, including stock-based compensation and interest expenses, contributed to the net loss [8] - Macroeconomic challenges, such as rising mortgage rates and limited home affordability, have impacted the broader housing market [9] Future Guidance - The company reaffirmed its $100 million revenue target for 2025 and expressed confidence in achieving profitability through increased agent productivity and operational efficiencies [10] - La Rosa received a 180-day extension from Nasdaq to regain compliance with the $1 minimum bid price rule, which is seen as supportive of its strategic initiatives [10] Recent Developments - In 2024, La Rosa expanded its geographic footprint by opening an office in North Carolina and acquiring majority or full ownership in 12 brokerage firms across several states [11] - The company launched the LR Agent Advance program to enhance agent retention and began accepting cryptocurrency payments from agents [11] - As of April 8, 2025, La Rosa had not regained compliance with Nasdaq's minimum bid rule but was granted an additional 180-day grace period [12]
La Rosa Holdings Corp. Strategic Collaboration with Lofty to Drive Agent Productivity and Introduce New Recurring Revenue Stream
Newsfilter· 2025-04-21 12:30
Core Insights - La Rosa Holdings Corp. has successfully implemented a strategic collaboration with Lofty, an AI-powered productivity platform aimed at enhancing agent performance and supporting national expansion [1][5] - The Lofty platform has been adopted by over 500 La Rosa agents since its launch in November 2024, indicating strong market demand and high user engagement [2] - The collaboration with Lofty introduces a new recurring revenue stream through agent subscriptions, contributing to revenue diversification [3][5] - La Rosa has also implemented Microsoft Dynamics 365 Business Central to modernize its finance and operational infrastructure, enhancing decision-making and reducing staffing needs [4][5] - The company is focusing on achieving profitability and positive cash flow, with Lofty's subscription model expected to contribute to net earnings [6] Company Overview - La Rosa Holdings Corp. operates in the real estate industry, providing agents with flexible compensation options and proprietary technology to enhance service delivery [7] - The company offers both residential and commercial real estate brokerage services, along with technology-driven products and support for agents and franchise partners [8] - La Rosa operates 26 corporate-owned brokerage offices across several states and has begun its expansion into Europe, starting with Spain [9]
La Rosa Holdings Corp. Reports 119% Year-Over-Year Increase in Revenue to $69.4 Million for Fiscal 2024; Surpassed Initial Revenue Guidance by Approximately $4.4 Million
Newsfilter· 2025-04-16 12:00
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].
La Rosa (LRHC) - 2024 Q4 - Annual Report
2025-04-15 21:25
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].
La Rosa Holdings Corp. Granted 180-Day Extension by Nasdaq to Regain Compliance with Minimum Bid Price Rule
Globenewswire· 2025-04-14 12:00
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 ...
La Rosa Holdings Corp. Launches LR Agent Advance, Delivering Commission Advances for its Real Estate Agents
Newsfilter· 2025-04-08 12:30
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]
La Rosa Holdings Corp. to Expand into Europe with the Engagement of Real Estate Veteran Joaquín Nuevo Alarcón as Area Developer for Spain
Globenewswire· 2025-02-25 13:30
Core Viewpoint - La Rosa Holdings Corp. is initiating its European expansion by entering the Spanish market, marking the first phase of a broader strategy to introduce its innovative real estate model internationally [1][4]. Group 1: Expansion Strategy - The company aims to establish a strong presence in Spain and plans to expand into other high-growth real estate markets across Europe [2]. - La Rosa will introduce franchise opportunities, brokerage offices, and technology-driven services to scale its operations internationally [2][4]. Group 2: Leadership and Expertise - Joaquín Nuevo Alarcón has been appointed as Area Developer for Spain, effective March 1, 2025, bringing decades of experience in the Spanish real estate market [3]. - Alarcón previously led a 500-agent team at eXp Realty in Spain, making him well-suited to implement La Rosa's agent-first business model [3]. Group 3: Business Model - La Rosa's scalable, agent-first brokerage model maximizes agent earnings through various structures, including a revenue share program and a 100% commission structure with a low annual fee [5][6]. - The company leverages its proprietary technology platform to empower agents and franchisees, enhancing overall profitability and service delivery [5][6]. Group 4: Market Potential - The Spanish real estate market is evolving, with increasing demand for innovative brokerage models that provide agents with greater financial control and career growth [4]. - The company believes that entering Spain will unlock new revenue streams and strengthen its brand presence in high-growth markets [4].
La Rosa Holdings Corp. Announces $4.96 Million Private Placement to Fund Future Potential Strategic Acquisitions, Reduce Debt, and Strengthen Balance Sheet
Newsfilter· 2025-02-06 13:30
Core Viewpoint - La Rosa Holdings Corp. announced a private placement to raise $4.96 million, aimed at reducing debt, funding acquisitions, and supporting general corporate purposes [1][2]. Group 1: Financial Strategy - The proceeds from the private placement will be utilized to pay down debt, fund future acquisitions, and for other general corporate purposes [2]. - CEO Joe La Rosa emphasized that this investment will enhance financial stability and support strategic acquisitions, thereby positioning the company for long-term growth [3]. Group 2: Business Model and Operations - La Rosa Holdings operates a technology-integrated, agent-centric model in the real estate sector, offering agents a choice between a revenue share model or an annual fee-based model with 100% agent commissions [4]. - The company provides a range of services including residential and commercial real estate brokerage, franchising, education, coaching, and property management, with a presence in multiple states and Puerto Rico [5]. Group 3: Growth and Expansion Plans - The company aims to achieve profitability through the acquisition of additional real estate brokerage firms, expanding its agent network, and entering new markets as part of its growth strategy for 2025 [3].
La Rosa Holdings Corp. Appoints Commercial Real Estate Veteran JM Padron to Lead National Expansion of Commercial Real Estate Division
Globenewswire· 2025-01-30 13:15
Core Viewpoint - La Rosa Holdings Corp. has appointed Jose Miguel "JM" Padron to lead the national expansion of its commercial real estate division, aiming to enhance growth and training for agents in the commercial sector [1][3]. Company Overview - La Rosa Holdings Corp. operates as a holding company for six agent-centric, technology-integrated, cloud-based, multi-service real estate segments [1]. - The company offers agents a choice between a revenue share model or an annual fee-based model with 100% agent commissions, leveraging its proprietary technology platform [4]. - La Rosa provides both residential and commercial real estate brokerage services, along with technology-based products and services for its agents and franchisees [4]. Leadership Appointment - JM Padron brings over 30 years of experience in commercial real estate brokerage, investment strategies, and financial feasibility analysis [2]. - His previous roles include leadership positions at RE/MAX Commercial Mexico and JM Partners Holding Corporation, where he focused on market growth and expansion [2]. - Padron is expected to play a crucial role in expanding La Rosa's commercial real estate team and training residential agents in commercial real estate [3]. Business Model and Operations - La Rosa's business model includes internal services for agents and external services for the public, covering residential and commercial real estate brokerage, franchising, education, coaching, and property management [5]. - The company operates 26 corporate real estate brokerage offices and branches across several states, including Florida, California, Texas, Georgia, North Carolina, and Puerto Rico [5].