Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 218

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 8
Chunk 218
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 and valleys depending on macroeconomic conditions that we cannot control. And
finally, our revenues fluctuate based on the changes in the aggregate fee revenue per sales agent as a significant portion of our revenue
is tied to various fees that are ultimately tied to the number of agents, including annual dues, continuing franchise fees, and certain
transaction or service-based fees. Our revenue per agent also increases in other ways including when transaction sides and transaction
sizes increase since a portion of our revenue comes from fees tied to the number and size of real estate transactions closed by our agents.
While the Company was not named as a defendant in any of the recent class action lawsuits alleging antitrust violations, it is possible
that it could be a litigant at some point in the future. Several of these lawsuits have been settled (see our Annual Report on Form 10-K
for 2024 fiscal year “Risk Factors – Adverse outcomes in litigation and regulatory actions against the NAR, other real
estate brokerage companies and agents in our industry could adversely impact our financial results). These settlements
will result in changes in the way real estate brokers are compensated for their services. Most notably, home sellers will no longer be
required to pay buyer agent commissions which will result in lower buyer agent compensation. We cannot predict the full breadth of the
outcome of these lawsuits but believe that they will result in a significant adverse effect on our financial condition and results of
operations for the foreseeable future. 

Key
factors affecting our performance

As
a result of a number of factors, our historical results of operations may not be comparable to our results of operations in future periods,
and our results of operations may not be directly comparable from period to period. Set forth below is a brief discussion of the key
factors impacting our results of operations.

Seasonality

Our
business is affected by the seasons and weather. The spring and summer seasons, when school is out, have typically resulted in higher
sales volumes compared to fall and winter seasons. With the slowdown in the later months, we have experienced slower listing activity,
fewer transaction closings and lower revenues and have seen more agent turnover as well. Bad weather or natural disasters also negatively
impact listings and sales which reduces our operating income, net income, operating margins and cash flow. While this pattern is fairly
predictable, there can be no assurance that it will continue. Moreover, with the impact of climate change, we expect more business disruptions
in the coming years, many of which could be unpredictable