Celebration, FL, Aug. 25, 2025 (GLOBE NEWSWIRE) -- La Rosa Holdings Corp. (NASDAQ: LRHC) (“La Rosa” or the “Company”), a real estate and PropTech company, announced today that it has received formal notification from the Nasdaq Stock Market LLC (“Nasdaq”) on August 21, 2025, that the Company has regained compliance with Nasdaq Listing Rule 5550(b)(1). Nasdaq Listing Rule 5550 requires the Company to meet at least one of the following standards: (1) stockholders’ equity of at least $2.5 million (5550 (b)(1)) ...

Core Insights - RE/MAX Holdings reported total revenue of $72.8 million for Q2 2025, a decrease of 7.3% compared to Q2 2024, primarily due to a decline in U.S. agent count and lower Broker Fees revenue [4][10] - The company achieved an adjusted EBITDA of $26.3 million, down 6.4% year-over-year, with an adjusted EBITDA margin of 36.1% [11][10] - The total agent count increased by 2.5% to 147,073 agents, with a notable 11.5% increase in agents outside the U.S. and Canada [3][10] Revenue Performance - Total revenue for Q2 2025 was $72.8 million, down from $78.5 million in Q2 2024, reflecting a decrease of $5.7 million [4][10] - Revenue excluding Marketing Funds was $54.5 million, a decline of 6.8% year-over-year, attributed to a 5.7% decrease in organic revenue and 1.1% adverse foreign currency movements [4][10] - Recurring revenue streams, including franchise fees and annual dues, accounted for 67.3% of revenue excluding Marketing Funds, down from 65.9% in the prior year [5] Operating Expenses - Total operating expenses decreased to $58.7 million in Q2 2025, down 5.7% from $62.3 million in Q2 2024 [6][10] - Selling, operating, and administrative expenses were $33.9 million, representing 62.2% of revenue excluding Marketing Funds, compared to 59.7% in the prior year [7] Profitability Metrics - Net income attributable to RE/MAX Holdings was $4.7 million for Q2 2025, an increase from $3.7 million in Q2 2024 [8][10] - Basic and diluted GAAP earnings per share were both $0.23 for Q2 2025, compared to $0.20 and $0.19 in Q2 2024, respectively [8][10] - Adjusted earnings per diluted share were $0.39, down from $0.41 in the same quarter last year [12] Balance Sheet and Cash Flow - As of June 30, 2025, the company had cash and cash equivalents of $94.3 million, a decrease of $2.3 million from the end of 2024 [13] - Outstanding debt was $439.0 million, slightly down from $440.8 million at the end of 2024 [13] - Cash flow from operations for the first half of 2025 was $10.2 million, down from $25.3 million in the same period of 2024 [26] Outlook - For Q3 2025, RE/MAX Holdings expects revenue in the range of $71.0 million to $76.0 million and adjusted EBITDA between $23.5 million and $26.5 million [19] - The full-year 2025 revenue outlook has been adjusted to a range of $290.0 million to $296.0 million [19]

Core Viewpoint - La Rosa Holdings Corp. has regained compliance with Nasdaq's minimum bid price requirement and has extinguished a majority of its outstanding warrants, strengthening its capital structure and aligning with long-term investor interests [1][4]. Group 1: Compliance and Capital Structure - On July 21, 2025, La Rosa received confirmation from Nasdaq that it has maintained a minimum closing bid price of $1.00 or greater for 10 consecutive trading days, thus regaining compliance with Nasdaq Listing Rule 5550(a)(2) [1]. - The company extinguished a majority portion of its outstanding warrants through two exchange agreements, including one with its CEO Joseph La Rosa, which reflects a commitment to strengthening its capital structure [1][4]. Group 2: Exchange Agreements - On July 14, 2025, La Rosa entered into an exchange agreement with a warrant holder to cancel warrants for 1,851,852 shares at an exercise price of $0.135 per share in exchange for 75,000 shares of common stock [2]. - On July 17, 2025, a similar agreement was made with CEO Joseph La Rosa, who surrendered his warrants for cancellation in exchange for 75,000 shares of common stock [3]. Group 3: Business Model and Operations - La Rosa Holdings Corp. operates in the real estate and PropTech sectors, providing agents with flexible compensation options, including a revenue-sharing model and a fee-based structure with 100% commission [5]. - The company offers both residential and commercial real estate brokerage services, technology-driven products, and support for agents and franchise partners, encompassing various services such as franchising, education, coaching, and property management [6]. - La Rosa operates 26 corporate-owned brokerage offices across several states and has recently begun expanding into Europe, starting with Spain [7].

Core Viewpoint - RE/MAX Holdings, Inc. will release its financial results for Q2 2025 on July 29, 2025, and will host a conference call on July 30, 2025, at 8:30 a.m. Eastern Time [1][2]. Company Overview - RE/MAX Holdings, Inc. is a leading franchisor in the real estate industry, operating under the REMAX® brand globally and the Motto® Mortgage brand in the U.S. [4] - Founded in 1973, RE/MAX has grown to over 145,000 agents in nearly 9,000 offices across more than 110 countries and territories, making it the largest real estate seller by total residential transaction sides [4]. - Motto Mortgage, launched in 2016, is the first and only national mortgage brokerage franchise brand in the U.S., with over 220 offices in more than 40 states [4].

Core Insights - La Rosa Holdings Corp. has surpassed 3,000 real estate agents in its network, marking a significant milestone in its growth trajectory [1][2] - The company reported preliminary unaudited revenue of approximately $38.4 million for the first half of 2025, reflecting a year-over-year growth of about 19.4% compared to the same period in 2024 [1][2] 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 [3] - The company aims to equip agents and franchisees with the necessary tools to deliver exceptional service through its proprietary technology platform [3] Business Model and Services - La Rosa provides both residential and commercial real estate brokerage services, along with technology-driven products and support for agents and franchise partners [4] - The business model encompasses internal services for agents and external offerings for the public, including real estate brokerage, franchising, education and coaching, and property management [4] Expansion and Operations - The company operates 26 corporate-owned brokerage offices across several states, including Florida, California, Texas, Georgia, North Carolina, and Puerto Rico [5] - La Rosa has initiated its expansion into Europe, starting with engagement of an area developer in Spain, and also has six franchised offices and branches in the U.S. and Puerto Rico [5]

Core Insights - La Rosa Holdings Corp. is advancing its international expansion strategy, particularly in Spain, following participation in key real estate events [1][4] - The company has established a subsidiary in Madrid to develop the La Rosa Realty España brand and is in the process of obtaining local licenses [2] - La Rosa has signed a Letter of Intent with a Spanish real estate professional to convert her offices into La Rosa-branded locations [2] Company Developments - The average home prices in Spain have increased by approximately 11% year-over-year as of Q1 2025, with regions like Valencia and the Canary Islands experiencing double-digit growth [3] - The CEO of La Rosa emphasized the opportunities arising from their presence at leading real estate events in Spain and the importance of establishing a strong foundation for their brand in the country [4] - La Rosa's business model includes flexible compensation options for agents, a revenue-sharing model, and a focus on technology and community culture [6][8] Market Context - La Rosa Holdings operates 26 corporate-owned brokerage offices across various states in the U.S. and has recently begun its expansion into Europe, starting with Spain [8] - The company offers a range of services including residential and commercial real estate brokerage, franchising, education, coaching, and property management [7]

Company Overview - eXp Realty is described as "the most agent-centric real estate brokerage on the planet" and is a core subsidiary of eXp World Holdings, Inc. [2] - eXp Realty operates as a cloud-based brokerage with over 81,000 agents across 27 international locations, providing industry-leading commission splits, revenue share, equity ownership opportunities, and a global network for agents [6] Key Personnel - Costanza Genoese Zerbi, a nationally ranked top producer and founder of Costanza Genoese Zerbi & Associates, has joined eXp Realty, bringing nearly a decade of experience and a strong production record [3][4] - In 2024, Costanza closed $65 million in volume on 65 units, with a goal to exceed $100 million annually [3][4] Strategic Goals - Costanza aims to return to her previous production level of $91 million and beyond, highlighting eXp's high-output environment that rewards collaboration and results [4] - The company emphasizes the importance of strong infrastructure and minimal bureaucracy, which Costanza found appealing in her decision to join eXp [4] Market Position and Recognition - Costanza is recognized as a RealTrends Top 500 agent in both volume and sides, with her insights featured in major media outlets such as CNN, Fox, and The Wall Street Journal [5] - The addition of Costanza and her husband to the eXp team is expected to enhance their reach and effectiveness in the real estate market [5] Leadership Perspective - Leo Pareja, CEO of eXp Realty, expressed enthusiasm about Costanza's leadership and production-level excellence, indicating her potential to thrive within the company [6]

Core Insights - eXp Realty has announced the addition of ERS Real Estate Group, which closed $170 million in sales volume across 575 units in 2024, enhancing its agent-centric model [1][2][3] - ERS Real Estate Group, previously affiliated with Keller Williams, aims to leverage eXp Realty's cloud-based model to scale nationally and integrate various homeownership services [2][5] - The merger with Good Life Capital, valued at $70 million, will enable ERS to launch a comprehensive real estate ecosystem, including mortgage, title, insurance, and home services [3][4] Company Overview - eXp Realty is the largest independent real estate brokerage globally, with over 81,000 agents across 27 international locations, offering industry-leading commission splits and equity ownership opportunities [6] - The company emphasizes a tech-enabled future in real estate, aligning with ERS's vision for an integrated service model [5][6] - SUCCESS® Enterprises, part of eXp's ecosystem, provides resources for agents to enhance their skills and achieve long-term success [7]

Financial Data and Key Metrics Changes - The company reported first quarter revenue of $145 million, a 12% increase compared to $129 million in the same quarter of the previous year [5][17] - Adjusted EBITDA was negative $8.7 million, reflecting a 13% improvement over the previous year [6][21] - The net loss for the quarter was $4.4 million, or $0.11 per share, an improvement from a net loss of $10 million, or $0.26 per share, in the prior year [21] Business Line Data and Key Metrics Changes - Brokerage revenue accounted for 85% of total revenue, amounting to $124 million, which is a 13% year-over-year increase [17] - Private client brokerage revenue grew 6% during the quarter, while middle market and larger transactions saw a 30% increase in dollar volume [7][19] - Financing revenue grew 26% to $18 million, driven by a 16% increase in volume and a 12% increase in the average commission rate [19] Market Data and Key Metrics Changes - The company noted that higher interest rates continue to impact sales force productivity, with listings taking longer to market [6] - The private client segment is particularly affected by tightened underwriting and limited lending, while larger transactions are seeing increased activity [7][8] - The company observed a notable recovery in the office market and continued demand for retail properties [29] Company Strategy and Development Direction - The company is focused on strategic investments in technology, talent acquisition, and expanding its brand despite current market disruptions [10][12] - Management emphasized the importance of recruiting experienced professionals and teams to mitigate turnover and enhance market coverage [14] - The company is exploring potential strategic acquisitions in core and adjacent business lines to drive growth [14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding a sustained market recovery, citing strong economic fundamentals and low unemployment as positive indicators [10][11] - The company anticipates a continued recovery in transactional activity, albeit at a moderated pace until there is greater clarity on trade and tax policies [25] - Management highlighted ongoing investments in systems and talent as key to capturing growth as market conditions improve [26] Other Important Information - The company declared a semiannual dividend of $0.25 per share, totaling approximately $10 million [23] - The company repurchased nearly 174,000 shares for $5.4 million, with $66 million remaining on the current share repurchase authorization [23] Q&A Session Summary Question: Insights on client sentiment regarding different property types - Management noted consistent enthusiasm for retail properties and a bifurcated sentiment in multifamily, with larger multifamily transactions seeing more institutional capital [28][29] Question: Geographical distinctions based on recent tariff announcements - Management observed consistent trends across the country, with growth markets like Georgia, Florida, and Texas attracting investor interest due to demographic forecasts [32][33] Question: Rating of Southern California among markets - Management indicated that California is experiencing a positive recovery, with increased capital interest despite local political issues [34][35] Question: Impact of foreign investments on business - Management stated that foreign investments have not significantly impacted the commercial real estate market, with private capital remaining a small portion of total transactions [36][37] Question: Appetite for further stock repurchases - Management confirmed ongoing stock repurchases and emphasized a balanced capital allocation strategy that includes returning capital to shareholders and investing in technology [38][39]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point for fast-moving stocks, which can lead to limited upside or downside risks [2] - Investing in bargain stocks that have recently shown price momentum can be a safer strategy, utilizing tools like the Zacks Momentum Style Score to identify potential opportunities [3] Group 2: Company Analysis - Compass, Inc. (COMP) - Compass, Inc. (COMP) has shown a price increase of 1.7% over the past four weeks, indicating growing investor interest [4] - The stock has gained 4% over the past 12 weeks, with a beta of 2.8, suggesting it moves 180% higher than the market in either direction [5] - COMP has a Momentum Score of B, indicating a favorable time to invest based on momentum [6] - An upward trend in earnings estimate revisions has led to a Zacks Rank 2 (Buy) for COMP, which is associated with strong momentum effects [7] - COMP is trading at a Price-to-Sales ratio of 0.71, suggesting it is undervalued at 71 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides COMP, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]