Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 2087

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 7
Chunk 2087
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 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 “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.

43

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 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