Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 781

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1C
Chunk 781
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, La Rosa Realty Lakeland
LLC DBA La Rosa Realty Prestige, and La Rosa Realty Success LLC, and 100% ownership of La Rosa Realty Winter Garden LLC, BF Prime
LLC, Nona Title Agency LLC, La Rosa Realty Beaches LLC, and Baxpi Holdings. Additionally, we acquired the remaining non-controlling
interest portions of Nona Legacy Powered By La Rosa Realty, Inc. (formerly, La Rosa Realty Lake Nona Inc.) and La Rosa Realty
Premier, LLC, making them both 100% owned entities.

In December 2024, the Company
opened its first office and wholly owned subsidiary in North Carolina, La Rosa Realty NC LLC.

Description of Our Revenues

Our financial results are primarily
driven by the total number of sales agents in our Company, the number of sales agents closing residential real estate transactions, the
number of sales agents utilizing our coaching services, the number of agents who work with our franchisees, and the number of properties
under management. We grew our agent count by six percent from 2,434 at December 31, 2023 to 2,581 at December 31, 2024.

The majority of our revenue is
derived from a stable set of fees paid by our brokers, franchisees, and consumers. We have multiple revenue streams, with the majority
of our revenue derived from commissions paid by consumers who transact business with our and our franchisees’ agents, royalties
paid by our franchisees, dues and technology fees paid by our sales agents, our franchisees, and our franchisees’ agents. Our major
revenue streams come from such sources as: (i) residential real estate brokerage revenue, (ii) revenue from our property management services,
(iii) franchise royalty fees, (iv) fees from the sale or renewal of franchises and other franchise revenue, (v) coaching, training and
assistance fees, (vi) brokerage revenue generated transactionally on commercial real estate, (vii) fees generated from title services
revenue and insurance and (viii) fees from our events and forums.

The majority of our revenue
is derived from fees and dues based on the number of agents working under the La Rosa Realty brand. Due to the low fixed cost structure
of both our Company and franchise models, the addition of new sales agents generally requires little incremental investment in capital
or infrastructure. Accordingly, the number of commission producing sales agents in our Company and our franchisees is