Company: LRHC
Filing Date: 2025-05-29
Form Type: 10-Q
Source: 0001213900-25-048370
Chunk: 130

Company: La Rosa Holdings Corp.
Filing Date: 2025-05-29
Form: 10-Q
Item: Item 8
Chunk 130
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 possible that it could be a litigant at some point in the future.
Several of these lawsuits have been settled (see our Annual Report on Form 10-K for 2024 fiscal year “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. 

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 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,