EX-99.1 2 ea024393501ex99-1_larosa.htm PRESS RELEASE OF LA ROSA HOLDINGS CORP., DATED MAY 29, 2025

Exhibit 99.1

 

 

La Rosa Holdings Corp. Reports 34% Year-Over-Year Increase in Revenue to
$17.5 Million for First Quarter of 2025

 

Gross Profit Increased 32% Year-Over-Year to $1.5 Million in Q1 2025

 

Residential Real Estate Services Revenue Increased 39% to $14.3 Million in Q1
2025 vs Q1 2024

 

Celebration, FL May 29, 2025 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, or 39%, 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, or 17%, 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, or 32%, 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 34% year-over-year to $17.5 million, and gross profit increased 32% to $1.5 million. We believe that achieving this level of growth during a seasonally slower period reflects the strength of our platform and the disciplined execution of our organic growth strategy. As of April 30, 2025, our agent network has grown to over 2,800 agents nationwide. This growth has been entirely organic, as we have chosen to focus on strengthening our core operations rather than pursuing acquisitions. While our growth strategy remains rooted in organic expansion, it is also supported by real estate brokerage franchisees that enhance our geographic reach and operational scale. Residential real estate services revenue increased by 39% as compared to the same quarter of 2024, property management grew 17.0%, and commercial brokerage revenue nearly doubled.”

 

“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 100% commission option with low fees, and additional income opportunities through ancillary services and integrated technology solutions. With the second quarter already tracking ahead of last year’s pace, we are confident in our ability to deliver continued growth and long-term value for our stockholders,” concluded Mr. La Rosa.

 

Financial Results

 

Total revenue for the first quarter ended March 31, 2025, was $17.5 million compared to $13.1 million for the first quarter ended March 31, 2024. Residential real estate services revenue increased by $4.0 million to $14.3 million, or 39%, for the first quarter ended March 31, 2025, from $10.2 million for the first quarter ended March 31, 2024. Selling, general and administrative costs, excluding stock-based compensation, for the first quarter ended March 31, 2025, were approximately $4.3 million, compared to $2.6 million for the first quarter ended March 31, 2024.

 

Total operating expenses were $6.2 million for the first quarter ended March 31, 2025, as compared to $5.7 million for the first quarter ended March 31, 2024, resulting in a loss from operations of $4.7 million for the first quarter ended March 31, 2025, as compared to $4.6 million for the first quarter ended March 31, 2024.

 

Other expense, net for the three months ended March 31, 2025, increased approximately $90.5 million compared to other expense, net, for the three months ended March 31, 2024. The increase in expense in 2025 was primarily due to the loss on issuance of senior secured convertible note for $128.8 million and loss on extinguishment of debt for $152 thousand, offset by a gain of $37.1 million on the fair value of convertible note and warrants and a $0.9 million gain on the change in fair value of a derivative liability.

 

Net loss was $95.9 million, or $(5.86) basic and diluted loss per share, for the first quarter ended March 31, 2025, compared to net loss of $4.8 million, or $(0.35) basic and diluted loss per share, for the first quarter ended March 31, 2024.

 

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 100% commission. Powered by its proprietary technology platform, La Rosa aims to equip agents and franchisees with the tools they need to deliver exceptional service.

 

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.

 

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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)

 

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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 $312,247 and $166,504, respectively   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 - $0.0001 par value; 50,000,000 shares authorized; 2,000 Series X shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively        
Common stock - $0.0001 par value; 250,000,000 shares authorized; 37,415,775 and 21,847,514 issued and outstanding at March 31, 2025 and December 31, 2024, respectively   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 

 

See notes to the consolidated financial statements.

 

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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)

 

See notes to the consolidated financial statements.

 

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