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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:40Neutral
Price Target:
$5.50
▲(0.92% Upside)
La Rosa Holdings Corp. is weighed down by substantial financial challenges, including negative profitability and high leverage. The technical indicators point to bearish market sentiment. Valuation metrics are poor, with a negative P/E and no dividend yield. Despite revenue growth and strategic efforts, compliance issues with Nasdaq present additional risks.

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. (LRHC) is a diversified holding company that operates in several sectors, including real estate, technology, and renewable energy. The company focuses on acquiring and managing businesses that have the potential for growth and profitability. Its core products and services range from residential and commercial real estate development to innovative tech solutions and sustainable energy projects, positioning LRHC as a key player in multiple industries.
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. has substantial revenue growth, but this is overshadowed by operational inefficiencies and high leverage. The company operates at a loss with negative net profit, gross profit, EBIT, and EBITDA margins, alongside negative free cash flow and high debt-to-equity ratio, indicating significant financial instability.
Income Statement
30
Negative
The company shows significant revenue growth from the previous year, but it operates at a loss with negative net profit and gross profit margins. The EBIT and EBITDA margins are also negative, indicating operational challenges.
Balance Sheet
25
Negative
The debt-to-equity ratio is high, indicating potential leverage risk. The return on equity is negative due to ongoing losses. However, the equity ratio has improved slightly, showing some stability.
Cash Flow
20
Very Negative
Negative free cash flow and a poor operating cash flow to net income ratio suggest cash flow challenges. The company is not generating free cash flow, indicating liquidity issues.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue69.45M31.76M46.63M28.80M24.13M
Gross Profit5.95M2.84M4.00M3.51M3.08M
EBITDA-12.28M-7.61M-2.33M370.88K139.65K
Net Income-14.45M-7.82M-14.54M98.20K134.36K
Balance Sheet
Total Assets19.41M14.33M3.88M2.86M1.47M
Cash, Cash Equivalents and Short-Term Investments1.44M959.60K118.56K534.72K175.43K
Total Debt4.83M1.32M1.28M1.06M719.36K
Total Liabilities12.73M4.56M6.76M4.17M2.69M
Stockholders Equity2.57M5.91M-2.88M-1.31M-1.23M
Cash Flow
Free Cash Flow-3.00M-1.89M-1.18M362.85K-331.28K
Operating Cash Flow-3.00M-1.89M-1.18M362.85K-331.28K
Investing Cash Flow-68.63K-141.74K0.000.000.00
Financing Cash Flow4.20M2.95M1.07M78.28K225.35K

La Rosa Holdings Corp. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price5.45
Price Trends
50DMA
8.53
Negative
100DMA
10.74
Negative
200DMA
27.33
Negative
Market Momentum
MACD
-1.08
Negative
RSI
38.96
Neutral
STOCH
38.83
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 5.45 is below the 20-day moving average (MA) of 6.44, below the 50-day MA of 8.53, and below the 200-day MA of 27.33, indicating a bearish trend. The MACD of -1.08 indicates Negative momentum. The RSI at 38.96 is Neutral, neither overbought nor oversold. The STOCH value of 38.83 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 (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$265.61M17.312.21%-5.21%
57
Neutral
$1.44B-41.33%14.07%27.59%
53
Neutral
$1.23B2.98-2.60%5.79%-2.13%-151.64%
51
Neutral
$196.93M-36.97%8.64%1.81%
51
Neutral
$37.16M-44.60%5.80%30.19%
45
Neutral
$96.49M1.44-18.83%-13.95%37.24%
40
Neutral
$5.48M-340.81%90.36%-560.00%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LRHC
La Rosa Holdings Corp.
5.45
-84.95
-93.97%
RMAX
Re/Max Holdings
8.15
-1.72
-17.43%
FTHM
Fathom Holdings
1.36
-1.04
-43.33%
OPEN
Opendoor Technologies
2.31
0.55
31.25%
DOUG
Douglas Elliman Inc.
2.22
0.28
14.43%
STHO
Star Holdings
7.25
-5.60
-43.58%

La Rosa Holdings Corp. Corporate Events

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.

Delistings and Listing ChangesRegulatory Filings and Compliance
La Rosa Holdings Faces Nasdaq Compliance Challenges
Negative
May 30, 2025

La Rosa Holdings Corp., a Nevada-based company, faced compliance issues with Nasdaq due to its late filing of a quarterly report and a significant stockholders’ equity deficit. On May 30, 2025, the company resolved its filing compliance issue but received notice of non-compliance with Nasdaq’s stockholders’ equity requirements. The company has until July 14, 2025, to submit a compliance plan, with potential extensions until November 26, 2025. There is no guarantee that the plan will be accepted, but the company is exploring options to resolve the issue and maintain its Nasdaq listing.

Business Operations and StrategyFinancial Disclosures
La Rosa Holdings Reports Strong Q1 2025 Revenue Growth
Positive
May 29, 2025

La Rosa Holdings Corp. reported a 34% year-over-year increase in total revenue, reaching $17.5 million for the first quarter of 2025. The company’s residential real estate services revenue grew by 39%, while property management and commercial brokerage services also saw significant increases. Despite a reported net loss of $95.9 million due to non-cash and one-time items, the company remains focused on organic growth and expanding its agent network, which has grown to over 2,800 agents nationwide. The company aims to improve net income and shareholder equity by restructuring warrant-related derivative liabilities.

Delistings and Listing ChangesRegulatory Filings and Compliance
La Rosa Holdings Faces Nasdaq Non-Compliance Notice
Negative
May 28, 2025

On May 23, 2025, La Rosa Holdings Corp. entered into a waiver agreement with an institutional investor, waiving certain rights related to convertible notes and registration agreements due to the company’s failure to file a quarterly report on time. Additionally, on May 21, 2025, La Rosa received a notice from Nasdaq for non-compliance with listing rules due to the delayed filing of its quarterly report. The company has 60 days to submit a compliance plan, and its stock remains listed on Nasdaq. La Rosa is working to file the report promptly to regain compliance.

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: Jul 30, 2025