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

La Rosa Holdings Corp. (LRHC) AI Stock Analysis

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LRHC

La Rosa Holdings Corp.

(NASDAQ:LRHC)

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Neutral 42 (OpenAI - 5.2)
Rating:42Neutral
Price Target:
$0.72
▼(-3.60% Downside)
The score is primarily held down by weak financial performance (widening losses, negative cash flow, and elevated leverage) and a bearish technical setup (well below key moving averages with negative MACD). Valuation inputs provide limited support due to negative earnings and no dividend yield provided, while corporate events offer some upside via cost reductions and financing for strategic expansion but also introduce dilution and debt-related risks.
Positive Factors
Top-line Growth
Sustained near-term revenue acceleration provides scale and optionality: larger topline expands recurring cash flow potential, supports cross-selling across portfolio businesses, and creates a stronger base to fund the AI/data‑center pivot and future acquisitions if margins can be improved.
Material Financing Capacity
Access to a $1.25B financing program materially reduces execution risk on strategic pivots. Structural liquidity support enables multi-year investments in AI-optimized data centers, joint ventures, and acquisitions, providing durable optionality to reposition the business into higher-growth infrastructure markets.
Technology Cost Efficiency
A permanent shift to a proprietary technology stack and 31% annualized tech cost reduction increases operating leverage and control over data. Structurally lower tech spend and improved integration support margin improvement, faster product iteration, and better positioning for AI and data-center operations.
Negative Factors
Thin Margins & Widening Losses
Persistent low gross margins and deep operating losses indicate the company is not yet converting growth into sustainable profitability. Over months, continued negative margins will erode capital, require recurring funding, and constrain reinvestment unless structural margin expansion occurs across core businesses.
Negative Cash Generation
Recurring operating and free cash outflows create a structural funding need. Enduring negative cash generation increases reliance on external financing, limits ability to self-fund growth or maintenance capex for data centers, and raises the probability of dilutive or high‑cost capital over time.
High Leverage & Dilution Risk
Sharply higher leverage and recent secured convertible financing increase fixed servicing costs, constrain balance sheet flexibility, and create conversion-related dilution risk. Liens on assets funded by the notes can limit strategic choices for M&A or asset monetization if cash flows remain weak.

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 MoneyLa Rosa Holdings Corp. generates revenue through multiple channels, primarily by acquiring and managing a diverse portfolio of businesses that provide steady cash flow and capital appreciation. Key revenue streams include profits from its operating companies, management fees from investment advisory services, and performance-based incentives tied to the growth of its portfolio. Additionally, LRHC may engage in joint ventures and partnerships with other firms to expand its market reach and share resources, further enhancing its earning potential. The company's strategic focus on sectors with high growth potential, combined with its operational expertise, enables it to capitalize on market opportunities and optimize financial returns.

La Rosa Holdings Corp. Financial Statement Overview

Summary
La Rosa Holdings Corp. faces significant financial challenges. Despite some revenue growth, the company struggles with profitability and cash flow issues. High leverage and negative equity position pose financial risks, requiring strategic improvements to stabilize and enhance financial performance.
Income Statement
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
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
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 Revenue78.66M69.45M31.76M46.63M28.80M24.13M
Gross Profit6.67M5.95M2.84M4.00M3.51M3.08M
EBITDA-25.65M-12.28M-7.61M-2.33M370.88K151.65K
Net Income-27.91M-14.45M-7.82M-14.54M98.20K134.36K
Balance Sheet
Total Assets21.69M19.41M14.33M3.88M2.86M1.47M
Cash, Cash Equivalents and Short-Term Investments3.99M1.44M959.60K118.56K534.72K175.43K
Total Debt10.61M4.83M1.32M1.28M1.06M719.36K
Total Liabilities15.98M12.73M4.56M6.76M4.17M2.69M
Stockholders Equity1.56M2.57M5.91M-2.88M-1.31M-1.23M
Cash Flow
Free Cash Flow-7.30M-3.00M-1.89M-1.18M362.85K-331.28K
Operating Cash Flow-7.30M-3.00M-1.89M-1.18M362.85K-331.28K
Investing Cash Flow-88.54K-68.63K-141.74K0.000.000.00
Financing Cash Flow9.86M4.20M2.95M1.07M78.28K225.35K

La Rosa Holdings Corp. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.75
Price Trends
50DMA
2.01
Negative
100DMA
4.35
Negative
200DMA
7.21
Negative
Market Momentum
MACD
-0.35
Negative
RSI
33.01
Neutral
STOCH
54.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LRHC, the sentiment is Negative. The current price of 0.75 is below the 20-day moving average (MA) of 0.77, below the 50-day MA of 2.01, and below the 200-day MA of 7.21, indicating a bearish trend. The MACD of -0.35 indicates Negative momentum. The RSI at 33.01 is Neutral, neither overbought nor oversold. The STOCH value of 54.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$16.52B26.869.14%12.51%32.34%
68
Neutral
$259.30M12.842.87%-6.06%
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
58
Neutral
$223.82M-3.68-41.11%6.62%30.94%
56
Neutral
$1.02B-150.95-1.09%1.80%20.74%78.92%
51
Neutral
$42.76M-1.71-43.75%32.78%36.50%
42
Neutral
$1.52M>-0.01-856.84%24.52%-270.54%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LRHC
La Rosa Holdings Corp.
0.75
-37.04
-98.01%
JLL
Jones Lang Lasalle
350.43
109.97
45.73%
MMI
Marcus & Millichap
26.10
-7.75
-22.90%
RMAX
Re/Max Holdings
7.88
-1.37
-14.81%
FTHM
Fathom Holdings
1.38
-0.07
-4.83%
DOUG
Douglas Elliman Inc.
2.57
0.99
62.66%

La Rosa Holdings Corp. Corporate Events

Business Operations and StrategyPrivate Placements and Financing
La Rosa Holdings Completes Convertible Note Financing Transaction
Positive
Jan 9, 2026

On January 8, 2026, La Rosa Holdings Corp. completed the initial closing of a previously announced financing, issuing a senior secured convertible note with a principal amount of $11 million to institutional investors for $9.9 million in gross proceeds, as part of a broader plan to sell up to $250 million of such notes. The note, which carries 10% annual interest, a 24‑month maturity, and a conversion price initially set at $0.8347 per share with a floor of $0.778, is secured by first‑priority liens on assets acquired with the financing and second‑priority liens on other assets, and is subject to investor ownership caps to limit post‑conversion stakes. After transaction costs, the company received $9.635 million in net proceeds, earmarking $7 million to acquire cryptocurrency as a treasury asset, $2 million and an additional $500,000 in a controlled account to redeem portions of its Series X Super Voting Preferred Stock, including 200 shares held by CEO Joseph La Rosa redeemed on the closing date, with the balance reserved for general corporate purposes, working capital, acquisitions, and strategic transactions.

The most recent analyst rating on (LRHC) stock is a Hold with a $0.64 price target. To see the full list of analyst forecasts on La Rosa Holdings Corp. stock, see the LRHC Stock Forecast page.

Executive/Board Changes
La Rosa Holdings Appoints Nicholas Adler as Board Chair
Positive
Dec 30, 2025

On December 29, 2025, La Rosa Holdings Corp. announced that board member Siamack Alavi resigned from the Board of Directors, where he had also been serving as chairman of the Compensation Committee and a member of the Audit and Nominating and Corporate Governance Committees; the company stated his departure was not due to any disagreement over its operations, policies or practices. On the same date, the board appointed Nashville-based attorney and real estate developer Nicholas H. Adler as an independent director, board chairman, chairman of the Compensation Committee and member of the Audit and Nominating Committees, formalizing his role under a new director agreement with quarterly fees and terminating a prior special advisor agreement, thereby reinforcing La Rosa’s governance structure with a leader experienced in securities regulation, credit grantor representation, real estate development and public company directorships.

The most recent analyst rating on (LRHC) stock is a Hold with a $0.68 price target. To see the full list of analyst forecasts on La Rosa Holdings Corp. stock, see the LRHC Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
La Rosa Holdings Cuts Tech Costs, Expands Proprietary Platform
Positive
Dec 22, 2025

On December 22, 2025, La Rosa Holdings Corp. announced it has reduced select technology operating costs at an annualized rate of 31% between 2022 and 2025, cutting expenses from about $0.52 million to $0.17 million and generating roughly $0.35 million in annual savings. The savings stem from a multi-year shift away from multiple third-party software vendors toward a proprietary, integrated technology stack that the company says improves system performance, integration, data ownership, and long-term scalability while giving it greater control over security and product development. Management framed the initiative as part of a broader drive for efficiency and profitability, stressing that in-house platforms aligned with La Rosa’s real estate operations will support its push into AI-driven automation, data-center infrastructure, and blockchain-based tools, potentially strengthening its competitive position and operating margins over time.

The most recent analyst rating on (LRHC) stock is a Hold with a $0.77 price target. To see the full list of analyst forecasts on La Rosa Holdings Corp. stock, see the LRHC Stock Forecast page.

Executive/Board ChangesShareholder Meetings
La Rosa Holdings Corp. Holds Annual Stockholders’ Meeting
Neutral
Dec 11, 2025

On December 11, 2025, La Rosa Holdings Corp., a Nevada-based company, conducted its virtual 2025 Annual Stockholders’ Meeting. The meeting was attended by holders representing approximately 49.29% of the outstanding voting shares, constituting a quorum for conducting business. During the meeting, all five director nominees, including Joseph La Rosa, were elected to the board, and the appointment of CBIZ CPAs P.C. as independent auditors for 2025 was ratified. Additionally, an amendment to the 2022 Equity Incentive Plan was approved, and the meeting adjournment proposal was also passed.

The most recent analyst rating on (LRHC) stock is a Sell with a $1.50 price target. To see the full list of analyst forecasts on La Rosa Holdings Corp. stock, see the LRHC Stock Forecast page.

Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
La Rosa Holdings Secures $1.25 Billion for AI Strategy
Positive
Nov 20, 2025

La Rosa Holdings Corp. reported an 18% year-over-year revenue growth to $60.9 million for the first nine months of 2025, driven by strong performance in residential real estate services and property management. The company also secured $1.25 billion in financing facilities to accelerate its AI data center strategy, positioning itself in the rapidly growing data center market projected to reach $652 billion by 2030.

The most recent analyst rating on (LRHC) stock is a Sell with a $2.50 price target. To see the full list of analyst forecasts on La Rosa Holdings Corp. stock, see the LRHC Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
La Rosa Holdings Secures $250M for AI Expansion
Positive
Nov 13, 2025

On November 12, 2025, La Rosa Holdings Corp. entered into a Securities Purchase Agreement with institutional investors to issue and sell senior secured convertible notes up to $250 million. This agreement is part of a broader $1.25 billion financing strategy to pivot towards AI data center infrastructure. The company plans to use the proceeds to fund strategic acquisitions and partnerships, leveraging its real estate platform to expand into the AI ecosystem. This move positions La Rosa at the forefront of the AI industry, aiming to develop next-generation data center facilities optimized for AI workloads.

The most recent analyst rating on (LRHC) stock is a Sell with a $4.00 price target. To see the full list of analyst forecasts on La Rosa Holdings Corp. stock, see the LRHC Stock Forecast page.

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: Jan 13, 2026