Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 1870

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 6
Chunk 1870
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Item 6. [Reserved]

Not applicable.

Item 7. Management’s Discussion and Analysis
of Financial Condition and Results of Operations

Prospective investors should
read the following discussion and analysis of our financial condition and results of operations together with our financial statements
and the related notes and other financial information included elsewhere in this annual report. Some of the information contained in this
discussion and analysis or set forth elsewhere in this annual report, including information with respect to our plans and strategy for
our business, includes forward-looking statements that involve risks and uncertainties. See “Cautionary Note Regarding Forward-Looking
Statements.” This discussion should be read in conjunction with our audited consolidated financial statements and the notes
thereto included elsewhere in this report. 

Business Overview

We operate primarily in the
United States residential real estate market. Our agent-centric commission model enables our sales agents to obtain higher net commissions
than they would otherwise receive from many of our competitors in our local markets. Moreover, we believe that our proprietary technology,
training, and the support we provide to our agents at a minimal cost to them is one of the best offered in the industry. We are currently
in the process of developing and deploying our own proprietary technology which will further decrease our overall expenses as we eliminate
the need for outside technology services.

A significant driver of our
past growth, and we believe, our future growth is our ability to create revenue by requiring our agents and our franchisees’ agents
to use business services that we provide. For example, all agents new to our Company are required to have a “coach” and to
attend multi-day training sessions to learn the Company’s philosophy, technology, and business practices. Concurrently, the agent
works with his or her coach in obtaining listings, working with consumers, and closing transactions. All these activities are run through
our La Rosa Coaching, LLC, our subsidiary which teaches advanced techniques for team building, personal growth, and business development,
which we believe will enhance our revenue at a nominal increase in cost to us. In addition, unlike other residential real estate brokerages,
we encourage our sales agents to pursue commercial real estate transactions and require them to utilize the services of our commercial
real estate company, La Rosa CRE, LLC.

Our agent centric methodology,
our advanced technology, and ancillary services, such as property management, will enable us to organically grow our agent base with virtually
no incremental cost. In environments with increasing mortgage rates and declining sales transactions, we believe our model