Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 294

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 2
Chunk 294
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 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, when it was reduced to 483 basis points. In September 2025, the federal
funds rate was 422 basis points. The fluctuations impact interest rates, which significantly contribute to mortgage rate adjustments.
During the second half of 2022,