EX-99.1 2 ea025382701ex99-1_larosa.htm PRESS RELEASE OF LA ROSA HOLDINGS CORP., DATED AUGUST 19, 2025

Exhibit 99.1

 

 

 

La Rosa Holdings Corp. Reports 27% Year-Over-Year Increase in Revenue to $40.7 Million for First Half of 2025 as Compared to First Half of 2024

 

Q2 2025 Revenue Increased 22% Year-Over Year to $23.2 Million as Compared to Q2 2024

 

Celebration, FL August 19, 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 second quarter ended June 30, 2025.

 

Q2 2025 Financial Highlights

 

Total revenue increased 22% year-over-year to $23.2 million for the second quarter ended June 30, 2025 from $19.1 million for the second quarter ended June 30, 2024.

 

Residential real estate services revenue increased by approximately $3.9 million to $19.7 million, or 24%, for the second quarter ended June 30, 2025 from $15.9 million for the second quarter ended June 30, 2024

 

Property management revenue increased by approximately $326 thousand to approximately $3.1 million, or 12%, for the second quarter ended June 30, 2025 from $2.8 million for the second quarter ended June 30, 2024

 

Real Estate Brokerage Services (Commercial) revenue increased by approximately $33 thousand to $188 thousand, or approx. 21% for the second quarter ended June 30, 2025 from $155 thousand for the second quarter ended June 30, 2024

 

Gross profit increased by approximately $266 thousand, or 17%, year-over-year, to $1.9 million for the second quarter ended June 30, 2025 from $1.6 million for the second quarter ended June 30, 2024

 

H1 2025 Financial Highlights

 

Total revenue increased 27% year-over-year to $40.7 million for the six months ended June 30, 2025 from $32.1 million for the six months ended June 30, 2024.

 

Residential real estate services revenue increased by approximately $7.9 million to $34.0 million, or 30%, for the six months ended June 30, 2025 from $26.1 million for the six months ended June 30, 2024

 

Property management revenue increased by approximately $758 thousand to approximately $6.1 million, or 14%, for the six months ended June 30, 2025 from $5.3 million for the six months ended June 30, 2024

 

Real Estate Brokerage Services (Commercial) revenue increased by approximately $60 thousand to $245 thousand, or approx. 33% for the six months ended June 30, 2025 from $185 thousand for the six months ended June 30, 2024

 

Gross profit increased by approximately $642 thousand, or 23%, year-over-year, to $3.4 million for the six months ended June 30, 2025 from $2.7 million for the six months ended June 30, 2024

 

Joe La Rosa, CEO of La Rosa, commented, “We delivered strong financial performance in both the second quarter and first half of 2025. Total revenue increased 22% in Q2 2025 and 27% for the first half 2025, as compared to the same periods of 2024, driven by continued strength in our residential real estate services, which grew 24% in Q2 2025 and 30% in the first half of 2025, as compared to the same periods of 2024. Gross profit improved 17% in Q2 2025 and 23% in the first half of 2025, year-over-year, underscoring the scalability of our model and our ability to convert top-line growth into stronger margins. As of July 31, 2025, our agent network has grown to over 3,100 agents in the US. Our strategy remains focused on building high-performing offices, advancing agent success, and driving both national and international expansion. Our flexible brokerage model consistently attracts top-producing agents by offering competitive compensation, including revenue share programs, a 100% commission option with low fees, and additional income opportunities through ancillary services and integrated technology solutions.”

 

 

 

 

“Looking ahead, we are encouraged by signs of easing mortgage rates, with industry forecasts calling for 30-year fixed rates to decline toward the low-6% range by year-end. This potential trend, combined with improving inventory levels, could help unlock additional demand in the housing market and create further opportunities for growth,” concluded Mr. La Rosa.

 

Q2 2025 Financial Results

 

Total revenue for the second quarter ended June 30, 2025, was $23.2 million compared to $19.1 million for the second quarter ended June 30, 2024. Residential real estate services revenue increased by $3.9 million to $19.7 million, or 24%, for the second quarter ended June 30, 2025, from $15.9 million for the second quarter ended June 30, 2024. Selling, general and administrative costs, excluding stock-based compensation, for the second quarter ended June 30, 2025, were approximately $3.8 million, compared to $3.0 million for the second quarter ended June 30, 2024.

 

Total operating expenses were $4.3 million for the second quarter ended June 30, 2025, as compared to $3.4 million for the second quarter ended June 30, 2024, resulting in a loss from operations of $2.5 million for the second quarter ended June 30, 2025, as compared to $1.8 million for the second quarter ended June 30, 2024.

 

Other income (expense), net for the three months ended June 30, 2025, increased approximately $81 million compared to other income (expense), net, for the three months ended June 30, 2024. The increase in expense in 2025 was primarily due to the gain on extinguishment of incremental warrants for $82.3 million, gain (loss) on extinguishment of debt for $4.1 million, offset by a loss of $5.3 million on the change in fair value of convertible note and warrants.

 

Net income was $78.5 million, or $115.11 basic and $15.25 diluted income per share, for the second quarter ended June 30, 2025, compared to net loss of $2.3 million, or $(12.49) basic and diluted loss per share, for the second quarter ended June 30, 2024. The increase in income in the second quarter was primarily due to the reversal of the loss for the first quarter of 2025 tied to the Incremental Warrants and Convertible Note.

 

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.

 

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La Rosa operates 26 corporate-owned brokerage offices across Florida, California, Texas, Georgia, North Carolina, and Puerto Rico. La Rosa 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)

 

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La Rosa Holdings Corp. and Subsidiaries

Condensed Consolidated Balance Sheets

 

   June 30,
2025
(unaudited)
   December 31,
2024
(audited)
 
Assets        
Current assets:        
Cash  $5,095,257   $1,442,901 
Restricted cash   1,965,804    2,137,707 
Accounts receivable, net of allowance for credit losses of $325,627 and $166,504, respectively   1,208,048    931,662 
Other current assets   73,792    1,788 
Total current assets   8,342,901    4,514,058 
Noncurrent assets:          
Property and equipment, net   7,663    9,411 
Right-of-use asset, net   1,082,948    997,715 
Intangible assets, net   5,423,815    5,840,080 
Goodwill   8,012,331    8,012,331 
Other long-term assets   37,959    33,831 
Total noncurrent assets   14,564,716    14,893,368 
Total assets  $22,907,617   $19,407,426 
Liabilities and Stockholders’ Equity          
Current liabilities:          
Accounts payable  $2,451,504   $2,376,704 
Accrued expenses   649,421    738,065 
Contract liabilities   134,121    7,747 
Line of credit   2,332    148,976 
Derivative liability       1,607,544 
Advances on future receipts       618,681 
Accrued acquisition cash consideration   140,000    381,404 
Notes payable, current   148,757    2,187,673 
Lease liability, current   407,905    473,733 
Total current liabilities   3,934,040    8,540,527 
           
Noncurrent liabilities:          
Note payable, net of current   8,697,337    1,475,064 
Security deposits and escrow payable   1,965,804    2,137,707 
Lease liability, noncurrent   711,687    545,759 
Other liabilities   2,950    32,950 
Total non-current liabilities   11,377,778    4,191,480 
Total liabilities   15,311,818    12,732,007 
           
Commitments and contingencies (Note 6)          
           
Stockholders’ equity:          
           
Preferred stock - $0.0001 par value; 50,000,000 shares authorized; 2,000 Series X shares issued and outstanding at June 30, 2025 and December 31, 2025, respectively        
           
Preferred stock - $0.0001 par value; 6,000 shares authorized; 6,000 Series B shares issued and outstanding at June 30, 2025.   1     
           
Common stock - $0.0001 par value; 2,050,000,000 shares authorized; 729,039 and 273,122 issued and outstanding at June 30, 2025 and December 31, 2025, respectively   73    27 
           
Additional paid-in capital   47,279,861    29,123,747 
Accumulated deficit   (43,852,040)   (26,555,319)
Total stockholders’ equity – La Rosa Holdings Corp. shareholders   3,427,895    2,568,455 
Noncontrolling interest in subsidiaries   4,167,904    4,106,964 
Total stockholders’ equity   7,595,799    6,675,419 
Total liabilities and stockholders’ equity  $22,907,617   $19,407,426 

 

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La Rosa Holdings Corp. and Subsidiaries

Consolidated Statements of Operations
(unaudited)

 

   Three Months Ended June 30,   Six Months Ended June 30, 
   2025   2024   2025   2024 
Revenue  $23,214,218   $19,051,420   $40,728,612   $32,140,319 
                     
Cost of revenue   21,361,990    17,465,109    37,338,716    29,392,011 
                     
Gross profit   1,852,228    1,586,311    3,389,896    2,748,308 
                     
Operating expenses:                    
Sales and marketing   606,298    212,608    1,169,447    445,335 
General and administrative   3,201,053    2,740,156    6,928,578    5,062,011 
Stock-based compensation — general and administrative   507,457    473,972    2,422,308    3,665,110 
Total operating expenses   4,314,808    3,426,736    10,520,333    9,172,456 
                     
Loss from operations   (2,462,580)   (1,840,425)   (7,130,437)   (6,424,148)
                     
Interest expense, net   (182,807)   (78,607)   (207,148)   (98,859)
Gain (loss) on extinguishment of debt   4,113,000        3,961,075     
Amortization of debt discount       (264,101)   (63,160)   (320,104)
Change in fair value of derivative liability       (83,100)   899,874    (88,100)
Loss on issuance of senior secured convertible note and warrants           (128,836,250)    
Change on fair value of convertible note and warrants   (5,315,000)       31,830,000     
Gain on extinguishment of incremental warrants   82,299,000        82,299,000     
Other income (expense), net   11,491        11,265     
Income (loss) before provision for income taxes   78,463,104    (2,266,233)   (17,235,781)   (6,931,211)
Benefit from income taxes                
Net Income (loss)   78,463,104    (2,266,233)   (17,235,781)   (6,931,211)
Less: Net income (loss) attributable to noncontrolling interests in subsidiaries   43,246    53,839    60,940    (12,343)
Net income (loss) after noncontrolling interest in subsidiaries   78,419,858    (2,320,072)   (17,296,721)   (6,918,868)
Less: Deemed dividend   89,031        275,264    230,667 
Net income (loss) attributable to common stockholders  $78,330,827   $(2,320,072)  $(17,571,985)  $(7,149,535)
                     
Income (loss) per share of common stock attributable to common stockholders                    
Basic  $115.11   $(12.49)  $(32.00)  $(40.08)
Diluted  $15.25   $(12.49)  $(32.00)  $(40.08)
                     
Weighted average shares used in computing net income (loss) per share of common stock attributable to common stockholders                    
                     
Basic   680,504    185,813    549,104    178,366 
Diluted   5,135,893    185,813    549,104    178,366 

 

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