Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 217

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 8
Chunk 217
---
 otherwise, all share and the price per share information for all periods presented in this report have been retroactively
adjusted for the Reverse Stock Split.

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 increased our agent count by 17.7%, from 2,647 at September 30, 2024 to 3,116 at September
30, 2025.

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. 

46

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 the most important factor affecting our results of operations and the addition of new agents can favorably impact our revenue and
our earnings before interest, taxes, depreciation and amortization (“EBITDA”). Historically, the number of agents in the
residential real estate industry has been highly correlated with overall home sale transaction activity. We believe that the number of
agents and those that produce commissions in our network is the primary statistic that drives our revenue. Another major factor is the
cyclicality of the real estate industry that has peaks