La Rosa Holdings Corp. Reports 34% Year-Over-Year Increase in Revenue to $17.5 Million for First Quarter of 2025
- Revenue growth of 34% YoY to $17.5 million in Q1 2025
- Residential real estate services revenue increased 39% to $14.3 million
- Property management revenue grew 17% to $3.0 million
- Commercial brokerage revenue nearly doubled with 96% growth
- Agent network expanded to over 2,800 agents nationwide
- Q2 2025 is already tracking ahead of last year's pace
- Net loss widened significantly to $95.9 million in Q1 2025 from $4.8 million in Q1 2024
- Operating expenses increased to $6.2 million from $5.7 million YoY
- Selling, general and administrative costs rose substantially to $4.3 million from $2.6 million
- Loss on issuance of senior secured convertible note of $128.8 million
- Operating loss of $4.7 million compared to $4.6 million in previous year
Insights
La Rosa reports strong revenue growth despite large net loss driven by one-time, non-cash items related to warrant liabilities.
La Rosa Holdings delivered impressive top-line growth in Q1 2025 with
Gross profit increased
However, the company's bottom line presents significant concerns. La Rosa reported a staggering net loss of
Operating expenses increased from
While management acknowledges the substantial net loss, they emphasize these are primarily non-cash charges related to derivative liabilities that they plan to restructure. The company's agent-centric model with flexible compensation structures appears to be attracting talent, and management indicates Q2 is already tracking ahead of last year's pace.
Gross Profit Increased
Residential Real Estate Services Revenue Increased
CELEBRATION, Fla., May 29, 2025 (GLOBE NEWSWIRE) -- La Rosa Holdings Corp. (NASDAQ: LRHC) (“La Rosa” or the “Company”), a real estate and PropTech company, today provided a business update and reported financial results for the for the first quarter ended March 31, 2025.
Key Financial Highlights
- Total revenue increased
34% year-over-year to$17.5 million for the first quarter ended March 31, 2025 from$13.1 million for the first quarter ended March 31, 2024. - Residential real estate services revenue increased by approximately
$4.0 million to$14.3 million , or39% , for the first quarter ended March 31, 2025 from$10.2 million for the first quarter ended March 31, 2024 - Property management revenue increased by approximately
$432 thousand to approximately$3.0 million , or17% , for the first quarter ended March 31, 2025 from$2.5 million for the first quarter ended March 31, 2024 - Real Estate Brokerage Services (Commercial) revenue increased by approximately
$28 thousand to$57 thousand , or approx.96% for the first quarter ended March 31, 2025 from$29 thousand for the first quarter ended March 31, 2024 - Gross profit increased by approximately
$376 thousand , or32% , year-over-year, to$1.5 million for the first quarter ended March 31, 2025 from$1.2 million for the first quarter ended March 31, 2024
Joe La Rosa, CEO of La Rosa, commented, “We are pleased with our strong first quarter 2025 results. Total revenue grew
“While our reported net loss for the year may appear substantial, it’s important to note that a significant portion of this loss is driven by non-cash and one-time items, primarily related to the change in fair value of our warrant-related derivative liabilities. These liabilities are marked to market each reporting period, but we intend to take proactive steps to restructure them as part of our upcoming treasury strategy. As these liabilities are phased out over time, we expect that their impact on our financials will diminish, ultimately contributing to improved net income and shareholder equity. Excluding these non-cash charges, our core business remains strong and aligned with our long-term growth strategy.”
‘We remain focused on scaling high-performing offices, supporting agent success, and advancing our national and international expansion strategy. Our scalable, agent-centric brokerage model continues to attract top-producing talent by offering competitive and flexible compensation structures, including a revenue share program, a
Financial Results
Total revenue for the first quarter ended March 31, 2025, was
Total operating expenses were
Other expense, net for the three months ended March 31, 2025, increased approximately
Net loss was
About La Rosa Holdings Corp.
La Rosa Holdings Corp. (Nasdaq: LRHC) is transforming the real estate industry by providing agents with flexible compensation options, including a revenue-sharing model or a fee-based structure with
The Company offers both residential and commercial real estate brokerage services, as well as technology-driven products and support for its agents and franchise partners. Its business model includes internal services for agents and external offerings for the public, spanning real estate brokerage, franchising, education and coaching, and property management.
La Rosa Holdings operates 26 corporate-owned brokerage offices across Florida, California, Texas, Georgia, North Carolina, and Puerto Rico. La Rosa Holdings also recently started its expansion into Europe, beginning with Spain. Additionally, the Company has six franchised offices and branches and three affiliated brokerage locations in the U.S. and Puerto Rico. The Company also operates a full-service escrow settlement and title company in Florida.
For more information, please visit: https://www.larosaholdings.com.
Stay connected with La Rosa, sign up for news alerts here: larosaholdings.com/email-alerts.
Forward-Looking Statements
This press release contains forward-looking statements regarding the Company’s current expectations that are subject to various risks and uncertainties. Such statements include statements regarding the Company’s ability to grow its business and other statements that are not historical facts, including statements which may be accompanied by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including without limitation, the Company's ability to achieve profitable operations, our ability to successfully integrate acquisitions into our business operations, customer acceptance of new services, the demand for the Company’s services and the Company’s customers' economic condition, the impact of competitive services and pricing, general economic conditions, the successful integration of the Company’s past and future acquired brokerages, the effect of the recent National Association of Realtors' landmark settlement on our business operations, and other risk factors detailed in the Company's filings with the United States Securities and Exchange Commission (the "SEC”). You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and other reports and documents that we file from time to time with the SEC. Forward-looking statements contained in this press release are made only as of the date of this press release, and La Rosa does not undertake any responsibility to update any forward-looking statements in this release, except as may be required by applicable law. References and links to websites have been provided as a convenience, and the information contained on such websites has not been incorporated by reference into this press release.
For more information, contact: info@larosaholdings.com
Investor Relations Contact:
Crescendo Communications, LLC
David Waldman/Natalya Rudman
Tel: (212) 671-1020
Email: LRHC@crescendo-ir.com
| (Tables follow) |
| La Rosa Holdings Corp. and Subsidiaries | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| March 31, 2025 | December 31, 2024 | |||||||
| (unaudited) | (audited) | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash | $ | 2,853,535 | $ | 1,442,901 | ||||
| Restricted cash | 2,065,812 | 2,137,707 | ||||||
| Accounts receivable, net of allowance for credit losses of | 1,184,252 | 931,662 | ||||||
| Other current assets | 28,111 | 1,788 | ||||||
| Total current assets | 6,131,710 | 4,514,058 | ||||||
| Noncurrent assets: | ||||||||
| Property and equipment, net | 8,448 | 9,411 | ||||||
| Right-of-use asset, net | 1,241,409 | 997,715 | ||||||
| Intangible assets, net | 5,610,997 | 5,840,080 | ||||||
| Goodwill | 8,012,331 | 8,012,331 | ||||||
| Other long-term assets | 37,959 | 33,831 | ||||||
| Total noncurrent assets | 14,911,144 | 14,893,368 | ||||||
| Total assets | $ | 21,042,854 | $ | 19,407,426 | ||||
| Liabilities and Stockholders' Equity (Deficit) | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,767,247 | $ | 2,376,704 | ||||
| Accrued expenses | 560,697 | 738,065 | ||||||
| Contract liabilities | 198,896 | 7,747 | ||||||
| Line of credit | 144,618 | 148,976 | ||||||
| Derivative liability | 81,360,000 | 1,607,544 | ||||||
| Advances on future receipts | — | 618,681 | ||||||
| Accrued acquisition cash consideration | 170,000 | 381,404 | ||||||
| Notes payable, current | 15,443,757 | 2,187,673 | ||||||
| Lease liability, current | 456,901 | 473,733 | ||||||
| Total current liabilities | 100,102,116 | 8,540,527 | ||||||
| Noncurrent liabilities: | ||||||||
| Note payable, net of current | 1,437,625 | 1,475,064 | ||||||
| Security deposits and escrow payable | 2,065,812 | 2,137,707 | ||||||
| Lease liability, noncurrent | 811,395 | 545,759 | ||||||
| Other liabilities | 2,950 | 32,950 | ||||||
| Total non-current liabilities | 4,317,782 | 4,191,480 | ||||||
| Total liabilities | 104,419,898 | 12,732,007 | ||||||
| Commitments and contingencies (Note 6) | ||||||||
| Stockholders' equity (deficit): | ||||||||
| Preferred stock - | — | — | ||||||
| Common stock - | 3,742 | 2,185 | ||||||
| Additional paid-in capital | 34,766,454 | 29,121,589 | ||||||
| Accumulated deficit | (122,271,898 | ) | (26,555,319 | ) | ||||
| Total stockholders' equity (deficit) — La Rosa Holdings Corp. shareholders | (87,501,702 | ) | 2,568,455 | |||||
| Noncontrolling interest in subsidiaries | 4,124,658 | 4,106,964 | ||||||
| Total stockholders' equity (deficit) | (83,377,044 | ) | 6,675,419 | |||||
| Total liabilities and stockholders' equity (deficit) | $ | 21,042,854 | $ | 19,407,426 | ||||
| La Rosa Holdings Corp. and Subsidiaries | ||||||||
| Condensed Consolidated Statements of Operations | ||||||||
| (unaudited) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Revenue | $ | 17,514,394 | $ | 13,088,899 | ||||
| Cost of revenue | 15,976,726 | 11,926,902 | ||||||
| Gross profit | 1,537,668 | 1,161,997 | ||||||
| Operating expenses: | ||||||||
| Sales and marketing | 563,149 | 232,727 | ||||||
| General and administrative | 3,727,525 | 2,321,855 | ||||||
| Stock-based compensation — general and administrative | 1,914,851 | 3,191,138 | ||||||
| Total operating expenses | 6,205,525 | 5,745,720 | ||||||
| Loss from operations | (4,667,857 | ) | (4,583,723 | ) | ||||
| Other income (expense) | ||||||||
| Interest expense, net | (24,341 | ) | (20,252 | ) | ||||
| Loss on extinguishment of debt | (151,925 | ) | - | |||||
| Amortization of debt discount | (63,160 | ) | (56,003 | ) | ||||
| Change in fair value of derivative liability | 899,874 | (5,000 | ) | |||||
| Loss on issuance of senior secured convertible note and warrants | (128,836,250 | ) | — | |||||
| Change on fair value of convertible note and warrants | 37,145,000 | — | ||||||
| Other (expense) income, net | (226 | ) | — | |||||
| Loss before provision for income taxes | (95,698,885 | ) | (4,664,978 | ) | ||||
| Benefit from income taxes | — | — | ||||||
| Net loss | (95,698,885 | ) | (4,664,978 | ) | ||||
| Less: Net income (loss) attributable to noncontrolling interests in subsidiaries | 17,694 | (66,182 | ) | |||||
| Net loss after noncontrolling interest in subsidiaries | (95,716,579 | ) | (4,598,796 | ) | ||||
| Less: Deemed dividend | 186,233 | 230,667 | ||||||
| Net loss attributable to common stockholders | $ | (95,902,812 | ) | $ | (4,829,463 | ) | ||
| Loss per share of common stock attributable to common stockholders | ||||||||
| Basic and diluted | $ | (5.86 | ) | $ | (0.35 | ) | ||
| Weighted average shares used in computing net loss per share of common stock attributable to common stockholders | ||||||||
| Basic and diluted | 16,358,452 | 13,672,655 | ||||||
| Comprehensive loss: | ||||||||
| Net loss | (95,716,579 | ) | (4,598,796 | ) | ||||
| Unrealized loss on debt instrument | - | - | ||||||
| Comprehensive loss | $ | (95,716,579 | ) | $ | (4,598,796 | ) | ||
FAQ
What was LRHC's revenue growth in Q1 2025?
Why did La Rosa Holdings (LRHC) report a large net loss in Q1 2025?
How many agents does La Rosa Holdings have as of Q1 2025?
What was LRHC's residential real estate services revenue in Q1 2025?
What was La Rosa Holdings' (LRHC) gross profit in Q1 2025?
