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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:
$2.50
▲(233.33% Upside)
The score is held down primarily by weak financial quality (widening losses, negative free cash flow, and higher leverage with a thin equity buffer) and a strongly bearish technical trend (price far below major moving averages with negative MACD). Corporate updates are positive on strategy and funding, but they are not yet reflected in improved profitability or cash generation, and valuation signals are not clearly supportive based on the provided P/E and dividend data.
Positive Factors
Robust revenue growth
Sustained top-line momentum (TTM +79.8%) indicates the business model is gaining market traction and expanding revenue sources. Over 2–6 months this continued organic growth can provide scale benefits, improving negotiating power and the potential to leverage fixed costs toward future margin improvement.
Tech cost cuts and proprietary platform
A 31% reduction in tech operating costs and migration to an in-house platform permanently reduces run-rate expenses, improves data ownership and scalability, and supports longer-term margin expansion. This structural efficiency gain strengthens operating leverage and control over product roadmaps for future AI/data center work.
Strategic pivot into AI/data-center infrastructure
Access to substantial financing to pursue AI-optimized data centers represents a durable strategic shift into a large secular growth market. If executed well, leveraging real estate expertise to capture AI infrastructure demand can create new high-margin, recurring revenue streams and diversify the company beyond legacy services.
Negative Factors
Negative cash flow and widening losses
Persistent negative operating and free cash flow and a widening net loss undermine internal funding capacity and raise the need for external financing. Over several months this pattern increases refinancing risk, limits reinvestment in growth initiatives, and pressures the company to demonstrate a clear path to cash flow breakeven.
High leverage and thin equity cushion
A debt-to-equity ratio near 6.8x and a thin, volatile equity base materially reduce balance-sheet flexibility. This structural leverage elevates covenant, interest and refinancing risks, constrains strategic options, and magnifies downside if cash generation does not improve over the medium term.
Complex, dilutive financing and asset encumbrance
Reliance on secured convertible notes with liens and conversion rights increases dilution potential and encumbers assets used for operations or growth. Structural risks include constrained asset mobility, higher fixed cash interest, and potential dilution upon conversion, which can impede long-term value creation if operational turnarounds lag.

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. The company operates through six segments: Real Estate Brokerage Services (Residential), Franchising Services, Coaching Services, Property Management, Real Estate Brokerage Services (Commercial), and Title Settlement and Insurance. It is involved in the residential and commercial real estate brokerage business; delivery of coaching services to its brokers and franchisee's brokers; franchising of real estate brokerage agencies; and property management services to owners of single-family residential properties, as well as providing title services related to real estate transactions. 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
Despite strong TTM revenue growth (+79.8%), profitability and cash generation are materially weak: thin gross margin (~8–9%), deeply negative operating margin (~-34%), widening net loss (~-$27.9M), and negative operating/free cash flow (~-$7.3M). Leverage is elevated with a thin equity cushion (debt ~$10.6M vs equity ~$1.6M; ~6.8x debt-to-equity), increasing financing risk if losses persist.
Income Statement
22
Negative
TTM (Trailing-Twelve-Months) revenue grew strongly (+79.8%), extending the sharp expansion seen in 2024, but profitability has deteriorated materially. Gross margin remains thin (~8–9%) and operating results are deeply negative (TTM operating margin roughly -34%), with the net loss widening to about -$27.9M (net margin ~-35%) versus 2024’s ~-21%. The key strength is top-line momentum; the key weakness is the inability to convert that growth into sustainable profits, with losses accelerating.
Balance Sheet
18
Very Negative
Leverage has increased sharply: total debt rose to ~$10.6M TTM while equity declined to ~$1.6M, pushing debt relative to equity to ~6.8x (up from ~1.9x in 2024). Assets have grown (TTM ~$21.7M), but the capital structure looks strained because the equity cushion is thin and has been volatile (including negative equity in earlier years). Overall, the balance sheet is the primary risk area due to higher leverage and limited flexibility if losses persist.
Cash Flow
16
Very Negative
Cash generation is weak: TTM operating cash flow and free cash flow are both about -$7.3M, worse than the prior annual periods, indicating the business is consuming cash while reporting larger losses. While the provided free-cash-flow growth figure is positive in TTM, absolute free cash flow remains meaningfully negative, and recent years show a pattern of recurring cash burn (with only 2021 positive). The main strength is limited; the main weakness is ongoing negative operating cash flow that heightens funding risk.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue78.66M69.45M31.76M26.20M28.80M24.13M
Gross Profit6.67M5.95M2.84M4.00M3.51M3.08M
EBITDA-25.65M-12.28M-7.61M-1.98M370.88K151.65K
Net Income-27.91M-14.45M-7.82M-2.32M98.20K134.36K
Balance Sheet
Total Assets21.69M19.41M14.33M3.88M2.86M1.47M
Cash, Cash Equivalents and Short-Term Investments3.99M1.44M959.60K118.56K534.72K175.43K
Total Debt11.24M4.83M1.32M1.28M1.06M719.36K
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
9.99
Negative
100DMA
35.64
Negative
200DMA
61.94
Negative
Market Momentum
MACD
-2.50
Negative
RSI
20.11
Positive
STOCH
10.61
Positive
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 5.37, below the 50-day MA of 9.99, and below the 200-day MA of 61.94, indicating a bearish trend. The MACD of -2.50 indicates Negative momentum. The RSI at 20.11 is Positive, neither overbought nor oversold. The STOCH value of 10.61 is Positive, 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
$16.89B27.139.14%12.51%32.34%
68
Neutral
$253.75M12.772.87%-6.06%
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
56
Neutral
$1.06B-155.52-1.09%1.80%20.74%78.92%
54
Neutral
$239.81M-3.88-41.11%6.62%30.94%
51
Neutral
$34.33M-1.33-43.75%32.78%36.50%
42
Neutral
$4.70M-856.84%24.52%-270.54%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LRHC
La Rosa Holdings Corp.
2.45
-325.55
-99.25%
JLL
Jones Lang Lasalle
353.93
77.17
27.88%
MMI
Marcus & Millichap
26.89
-9.61
-26.33%
RMAX
Re/Max Holdings
7.84
-1.96
-20.00%
FTHM
Fathom Holdings
1.07
-0.18
-14.40%
DOUG
Douglas Elliman Inc.
2.71
0.83
44.15%

La Rosa Holdings Corp. Corporate Events

Business Operations and StrategyDelistings and Listing ChangesStock Split
La Rosa Holdings Announces 1-for-10 Reverse Stock Split
Neutral
Jan 27, 2026

On January 22, 2026, La Rosa Holdings Corp. announced it will implement a 1-for-10 reverse stock split of its common shares, effective January 26, 2026, reducing its outstanding share count from about 5.35 million to approximately 535,000, with fractional shares rounded up to the nearest whole share and the stock continuing to trade on Nasdaq under the ticker LRHC on a split-adjusted basis. While the company has not received a minimum bid price deficiency notice from Nasdaq, management framed the move as a proactive measure to preserve its Nasdaq listing, signaling an effort to strengthen market perception and maintain access to public capital markets for shareholders and other stakeholders.

The most recent analyst rating on (LRHC) stock is a Hold with a $0.37 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 Announces Strong Organic Revenue Growth in 2025
Positive
Jan 23, 2026

On January 23, 2026, La Rosa Holdings Corp. reported preliminary unaudited fiscal 2025 revenue of approximately $79 million, reflecting 14% year-over-year growth achieved organically after shifting away from its previously acquisition-led strategy. Management highlighted that this organic revenue increase came despite a historically weak U.S. housing market, with existing home sales in 2025 falling to their lowest level since 1995, and underscored recent cost-cutting measures, fee increases and ongoing work on potential AI infrastructure partnerships as efforts aimed at improving operating leverage and moving the business toward cash flow positivity, with full audited results for fiscal 2025 to follow in its upcoming annual filing.

The most recent analyst rating on (LRHC) stock is a Hold with a $0.41 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 StrategyM&A Transactions
La Rosa Holdings Plans Divestiture of Horeb Kissimmee Stake
Neutral
Jan 20, 2026

On January 19, 2026, La Rosa Holdings Corp. entered into waiver agreements with certain accredited investors to facilitate a proposed divestiture of its 51% stake in Horeb Kissimmee Realty LLC to the owner of the remaining 49% interest. The company plans to receive $500,000 in cash plus $61,200 representing its pro rata share of an existing loan, with payments scheduled over 12 months from closing, and has secured investor waivers so that the transaction will not trigger default or enforcement rights under its existing convertible note, security agreement and related financing documents, although final terms remain under negotiation and completion of the sale is not guaranteed.

The most recent analyst rating on (LRHC) stock is a Sell with a $0.52 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 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: Feb 03, 2026