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 Widens

La 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 services revenues to $57 million from $20.5 million in the prior year.

Property management revenues increased 15% to $11.1 million, whereas commercial real estate revenues skyrocketed 183% to $328,000 from $116,000. However, the company’s net loss widened to $15.9 million or 79 cents per share compared with a loss of $9.3 million or $1.27 per share in 2023, reflecting higher general and administrative expenses and interest costs.

La Rosa Holdings Corp. Price, Consensus and EPS Surprise

La Rosa Holdings Corp. price-consensus-eps-surprise-chart | La Rosa Holdings Corp. Quote

Other Key Business Metrics

Gross profit skyrocketed 110% to $6 million from $2.8 million in 2023. Despite this growth, operating expenses, including sales and marketing, general and administrative, and a goodwill impairment of $787,438, rose significantly to $17.2 million from $9.9 million a year earlier. Notably, general and administrative costs, excluding stock-based compensation, reached $11.6 million from $4.8 million in 2023.

The company added $9.8 million in revenues from eight acquisitions completed in 2024, alongside a full-year contribution from six acquisitions made in 2023. As of March 31, 2025, the agent network expanded to more than 2,500 licensed brokers and sales associates.

Management Commentary

CEO Joe La Rosa emphasized that the company’s “agent-first brokerage model” has been a pivotal growth driver. This model, which features flexible compensation plans, including 100% commission options and revenue-sharing programs, has helped attract high-performing talent. Management also highlighted the successful integration of technology solutions, such as the upgraded “My Agent Account” platform, which now includes modules for property management disbursements.

La Rosa reiterated its intent to scale operations through acquisitions and geographic expansion. The company’s 2025 revenue forecast is set at $100 million. A pending acquisition of a brokerage firm generating $19 million in 2023 revenues and representing about 945 agents could serve as a milestone if completed.

Factors Influencing Results

The outsized revenue rise in 2024 was primarily fueled by acquisitions and expanded services across the residential, property management and commercial segments. However, the sharp rise in expenses, including stock-based compensation ($4.7 million), interest expenses and amortization of debt discounts, contributed to the net loss. La Rosa also incurred a $1.3-million change in fair value of derivative liabilities and a $778,000 loss on extinguishment of debt, pressuring its bottom line.

Macroeconomic challenges such as rising mortgage rates and limited home affordability continued to impact the broader housing market, limiting transaction volumes and lengthening property marketing timelines and trends.

Guidance

The company reaffirmed its $100-million revenue target for 2025. Management expressed confidence in achieving profitability through increased agent productivity, operational efficiencies and completion of planned acquisitions. The company also received a 180-day extension from Nasdaq to regain compliance with the $1 minimum bid price rule, a development it views as supportive of executing its strategic initiatives.

Other Developments

La Rosa expanded its geographic footprint in 2024, opening its first office in North Carolina and acquiring the majority or full ownership in 12 brokerage firms across Georgia, California, Florida and Texas. It also launched the LR Agent Advance program in April 2025, offering agents upfront access to commissions — a move expected to enhance agent retention and provide recurring income for the firm. Additionally, the company began accepting cryptocurrency payments from its agents in December 2024, aligning with evolving financial preferences.

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 through Oct. 6, 2025. The company is evaluating its options, including a potential reverse stock split, to maintain its listing on the Nasdaq capital market.

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