Company: LRHC
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001213900-25-078012
Chunk: 71

Company: La Rosa Holdings Corp.
Filing Date: 2025-08-18
Form: 10-Q
Item: Item 1
Chunk 71
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 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 and extreme.

Our revenues and operating margins will fluctuate
in successive quarters due to a wide variety of factors, including seasonality, weather, health exigencies, holidays, national or international
emergencies, the school year calendar’s impact on timing of family relocations, and changes in mortgage interest rates. This fluctuation
may make it difficult to compare or analyze our financial performance effectively across successive quarters. 

Inflation and Market Interest Rates

The U.S. Federal Reserve continues to take action
intended to address inflation. The Federal Reserve Board maintained the federal funds rate at 533 basis points from August of 2023 through
mid-September 2024, when it was reduced to 483 basis points. In June 2025, the federal funds rate was 433 basis points. The fluctuations
impact interest rates, which significantly contribute to mortgage rate adjustments. During the second half of 2022, the benchmark 30 year fixed
conforming mortgage rate rose above 6% for the first time since 2008, according to Freddie Mac data, and reached a peak of about 8% during
the second half of 2023. That interest rate sat in between 6.62% and 6.85% during 2024 and was 6.77% by the end of June 2025. Consequently,
housing demand remained soft, prices are rising, consumer sentiment has weakened, and home sales are declining. In June 2025, existing-home
sales fell 2.7% month-over-month to a seasonally adjusted rate of 3.93 million.