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La Rosa Holdings Corp. (LRHC)
NASDAQ:LRHC
US Market
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La Rosa Holdings Corp. (LRHC) AI Stock Analysis

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LRHC

La Rosa Holdings Corp.

(NASDAQ:LRHC)

Rating:43Neutral
Price Target:
$5.00
▼(-24.36% Downside)
La Rosa Holdings Corp. faces significant financial and technical challenges, with negative valuation metrics and compliance issues. Despite some positive corporate events, the overall outlook remains cautious due to financial instability and bearish technical indicators.

La Rosa Holdings Corp. (LRHC) vs. SPDR S&P 500 ETF (SPY)

La Rosa Holdings Corp. Business Overview & Revenue Model

Company DescriptionLa Rosa Holdings Corp., through its subsidiaries, operates primarily in the residential real estate market in the United States. It delivers coaching services to its brokers and franchisee's brokers; franchises real estate brokerage agencies, and trains its sales agents to provide residential property management services to owners of single-family residential properties. The company also engages in the real estate brokerage business, as well as sale of commercial real estate property. La Rosa Holdings Corp. was founded in 2004 and is based in Celebration, Florida.
How the Company Makes MoneyLRHC generates revenue through various channels, primarily by developing and leasing properties in the real estate sector, which provides a steady income stream from rents and property appreciation. Additionally, the company earns revenue from its technology ventures, including software development, consulting services, and strategic partnerships with tech firms. In the renewable energy space, LRHC engages in projects that generate income through energy sales and government incentives for sustainable practices. Significant partnerships with industry leaders and government agencies further enhance its revenue potential by providing access to new markets and funding opportunities.

La Rosa Holdings Corp. Financial Statement Overview

Summary
La Rosa Holdings Corp. faces significant financial challenges with fluctuating revenue trends, negative net income, and low gross profit margins. The high debt-to-equity ratio and negative equity position indicate financial instability and risk.
Income Statement
45
Neutral
La Rosa Holdings Corp. has shown fluctuating revenue trends with a significant increase in 2024 compared to 2023, indicating potential growth. However, the company has consistently reported negative net income and EBIT margins, reflecting ongoing profitability challenges. The gross profit margin remains low, suggesting limited pricing power or high cost of goods sold.
Balance Sheet
40
Negative
The company's balance sheet reveals a high debt-to-equity ratio due to low stockholders' equity, indicating potential financial risk. The equity ratio is low, reflecting a heavy reliance on debt financing. Despite an increase in total assets, the negative equity position over the years highlights financial instability.
Cash Flow
35
Negative
La Rosa Holdings Corp. has struggled with negative operating and free cash flows, indicating cash flow challenges. The operating cash flow to net income ratio is unfavorable due to persistent net losses. Although there is some improvement in financing cash flow, it has not translated into positive free cash flow.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue78.04M69.45M31.76M46.63M28.80M24.13M
Gross Profit6.59M5.95M2.84M4.00M3.51M3.08M
EBITDA-22.45M-12.28M-7.61M-2.33M370.88K139.65K
Net Income-24.83M-14.45M-7.82M-14.54M98.20K134.36K
Balance Sheet
Total Assets22.91M19.41M14.33M3.88M2.86M1.47M
Cash, Cash Equivalents and Short-Term Investments5.10M1.44M959.60K118.56K534.72K175.43K
Total Debt9.97M4.83M1.32M1.28M1.06M719.36K
Total Liabilities15.31M12.73M4.56M6.76M4.17M2.69M
Stockholders Equity3.43M2.57M5.91M-2.88M-1.31M-1.23M
Cash Flow
Free Cash Flow-6.54M-3.00M-1.89M-1.18M362.85K-331.28K
Operating Cash Flow-6.54M-3.00M-1.89M-1.18M362.85K-331.28K
Investing Cash Flow-140.34K-68.63K-141.74K0.000.000.00
Financing Cash Flow10.42M4.20M2.95M1.07M78.28K225.35K

La Rosa Holdings Corp. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price6.61
Price Trends
50DMA
6.81
Negative
100DMA
8.99
Negative
200DMA
21.97
Negative
Market Momentum
MACD
-0.14
Negative
RSI
56.40
Neutral
STOCH
70.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LRHC, the sentiment is Neutral. The current price of 6.61 is above the 20-day moving average (MA) of 5.70, below the 50-day MA of 6.81, and below the 200-day MA of 21.97, indicating a neutral trend. The MACD of -0.14 indicates Negative momentum. The RSI at 56.40 is Neutral, neither overbought nor oversold. The STOCH value of 70.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LRHC.

La Rosa Holdings Corp. Risk Analysis

La Rosa Holdings Corp. disclosed 45 risk factors in its most recent earnings report. La Rosa Holdings Corp. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks

La Rosa Holdings Corp. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$316.12M20.602.21%-5.21%
63
Neutral
$7.09B13.58-0.39%6.87%4.08%-25.24%
57
Neutral
$55.45M-50.22%19.16%12.99%
56
Neutral
$257.25M-36.97%8.64%1.81%
53
Neutral
$4.89B-41.33%14.07%27.59%
46
Neutral
$115.89M1.44-18.83%-13.95%37.24%
43
Neutral
$8.09M-611.63%54.92%-342.17%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LRHC
La Rosa Holdings Corp.
7.74
-65.86
-89.48%
RMAX
Re/Max Holdings
9.70
-1.26
-11.50%
FTHM
Fathom Holdings
1.95
-0.93
-32.29%
OPEN
Opendoor Technologies
6.04
4.07
206.60%
DOUG
Douglas Elliman Inc.
2.85
1.20
72.73%
STHO
Star Holdings
8.74
-4.08
-31.83%

La Rosa Holdings Corp. Corporate Events

Business Operations and StrategyFinancial Disclosures
La Rosa Holdings Reports Strong Q2 2025 Revenue Growth
Positive
Aug 19, 2025

La Rosa Holdings Corp. reported a 27% year-over-year increase in revenue to $40.7 million for the first half of 2025, compared to the same period in 2024. The company saw significant growth in its residential real estate services, contributing to a 22% increase in Q2 2025 revenue. Gross profit also improved by 17% in Q2 2025, highlighting the scalability of their business model. The company’s strategy focuses on expanding its agent network, enhancing agent success, and pursuing both national and international growth. The potential decline in mortgage rates and improving inventory levels could further boost demand in the housing market, presenting additional growth opportunities.

Private Placements and FinancingRegulatory Filings and Compliance
La Rosa Holdings Issues Unregistered Shares Under New Plan
Neutral
Aug 15, 2025

On August 11, 2025, La Rosa Holdings Corp., a Nevada corporation, issued 143,711 unregistered shares of common stock to its directors, officers, certain employees, and consultants under its Second Amended and Restated 2022 Equity Incentive Plan. Additionally, 75,000 unregistered shares were issued to a designee of its legal counsel for services rendered. These issuances were made under an exemption from the registration requirements of the Securities Act of 1933. The Second Amended 2022 Plan, approved by the company’s board and stockholders on July 9, 2025, increased the total number of shares available under the plan and clarified the definition of ‘Consultant’ to include legal entities wholly-owned by individuals providing services to the company. The plan became effective on August 11, 2025, replacing the previous plan adopted on November 19, 2024.

Private Placements and FinancingShareholder Meetings
La Rosa Holdings Enters Equity Purchase Agreement
Neutral
Aug 4, 2025

On August 4, 2025, La Rosa Holdings Corp. entered into an Equity Purchase Facility Agreement with an institutional investor, allowing the company to issue and sell up to $150 million in common stock over a specified period. This agreement requires stockholder approval, either through a meeting or written consent, and includes a registration rights agreement for the resale of shares. The arrangement aims to provide La Rosa Holdings with financial flexibility, potentially impacting its market positioning and stakeholder interests.

Private Placements and FinancingBusiness Operations and Strategy
La Rosa Holdings Cancels Warrants, Issues New Shares
Neutral
Jul 18, 2025

On July 14 and July 17, 2025, La Rosa Holdings Corp., a Nevada-based company, executed exchange agreements to cancel stock purchase warrants in exchange for issuing shares of common stock. The agreements involved a warrant holder and the company’s CEO, Joseph La Rosa, resulting in the issuance of 75,000 shares each, exempt from registration under the Securities Act. Additionally, on July 14, 2025, the company issued 50,000 unregistered shares to a consultant as compensation, also exempt from registration requirements.

Private Placements and FinancingRegulatory Filings and Compliance
La Rosa Holdings Clarifies Series B Stock Rights
Neutral
Jul 16, 2025

On June 18, 2025, La Rosa Holdings Corp. and an institutional investor entered into an Amendment and Exchange Agreement, resulting in the exchange of Incremental Warrants for 6,000 shares of Series B Convertible Preferred Stock. Subsequently, on July 14, 2025, the company corrected an error in the Certificate of Designation, clarifying that holders of Series B Preferred Stock have no voting rights, by filing a Certificate of Correction with the Secretary of State of Nevada.

Delistings and Listing ChangesStock SplitBusiness Operations and Strategy
La Rosa Holdings Announces 80-for-1 Reverse Stock Split
Neutral
Jul 8, 2025

On July 2, 2025, La Rosa Holdings Corp. announced an 80-for-1 reverse stock split to regain compliance with Nasdaq’s minimum bid price requirement and reduce its public float. This move, effective July 7, 2025, aims to attract more institutional and long-term investors and is part of the company’s strategy to focus on profitability and positive cash flow by the end of 2025.

Business Operations and StrategyFinancial Disclosures
La Rosa Holdings Reports Strong Mid-2025 Revenue Growth
Positive
Jul 3, 2025

On July 3, 2025, La Rosa Holdings Corp. announced it surpassed 3,000 agents and reported preliminary unaudited revenue of $38.4 million for the first half of 2025, marking a 19.4% year-over-year growth. This milestone highlights the company’s growth trajectory and the strength of its business model, which focuses on empowering agents and expanding both nationally and internationally.

Private Placements and FinancingFinancial Disclosures
La Rosa Holdings Amends Convertible Note Agreement
Neutral
Jul 2, 2025

La Rosa Holdings Corp., a Nevada corporation, issued a senior secured convertible note worth $5.5 million to an institutional investor on February 4, 2025, as part of a Securities Purchase Agreement. On June 23, 2025, the company and the investor amended the original note to correct errors in the definitions of the Maturity Date and Alternate Conversion Price, which may impact the company’s financial agreements and investor relations.

Private Placements and FinancingBusiness Operations and Strategy
La Rosa Holdings Corp. Enters Amendment and Exchange Agreement
Positive
Jun 20, 2025

On June 18, 2025, La Rosa Holdings Corp., a Nevada-based company, entered into an Amendment and Exchange Agreement with an institutional investor, which involved the exchange of Incremental Warrants for 6,000 shares of Series B Convertible Preferred Stock. This strategic move aims to enhance the company’s capital structure, with the conversion of these shares into common stock being contingent on shareholder approval. The Series B Preferred Stock does not bear dividends but allows holders to vote alongside common stockholders, with specific conversion rights and conditions outlined. The agreement reflects La Rosa Holdings Corp.’s efforts to strengthen its financial position and align with Nasdaq Capital Market regulations.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 20, 2025