Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 343

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 343
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3.

Franchising Services

Franchising services
revenue decreased $554 thousand, or 63%, in the year ended December 31, 2024 against the comparable prior year period. The decrease
is primarily attributable to the six franchise acquisitions completed in the fourth quarter of fiscal year 2023 and the six
franchise acquisitions during fiscal year 2024, which no longer contribute to franchising royalty fees. These fees would have
totaled $658 thousand for the year ended December 31, 2024. Our remaining franchisees saw a slight increase in revenue due to market
conditions in our residential services stabilizing in 2024, which partially offset the decline in franchising royalty fee
revenue. Franchising royalties would be expected to decline as the acquisition of additional franchises continues.

Coaching Services

Coaching services revenue
declined slightly by $60 thousand during the year ended December 31, 2024 against the comparable prior year period. This is attributable
to structural changes to increase recruitment and NAR related matters.

Property Management

Property management revenue
increased $1.435 million, or 15%, in the year ended December 31, 2024 against the comparable prior year period primarily due to increases
in the number of properties under management from 600 in 2023 to 650 in 2024 along with the full year benefit in 2024 of a management
fee price increase effective September 1, 2023 from $44 to $55 in 2024 per agent property.

45

Gross Proft and Gross Margin

    Year Ended December 31,  
    Change 

    2024  
    2023  
    $  
    % 
  
    Real Estate Brokerage Services (Residential) 
    $5,340,029  
    $1,686,191  
    $3,653,838  
     217%
  
    Gross Margin 
     9.4% 
     8.2% 
     1.1% 

    Franchising Services 
    $(159,067) 
    $411,297  
    $(570,364) 
     -139%
  
    Gross Margin 
     -48.3% 
     46.5% 
     -94.9% 

    Coaching Services 
    $258,228  
    $298,481  
    $(40,