Company: LRHC
Filing Date: 2025-05-29
Form Type: 10-Q
Source: 0001213900-25-048370
Chunk: 186

Company: La Rosa Holdings Corp.
Filing Date: 2025-05-29
Form: 10-Q
Item: Item 2
Chunk 186
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NM: Not Meaningful

Real Estate Brokerage Services (Residential)

Costs related to residential real estate brokerage
services increased by approximately $3.7 million, or 40%, in the three months ended March 31, 2025 as compared to the three months ended
March 31, 2024. The increase was driven by approximately $6.9 million of cost of revenue from the six acquisitions completed in the fourth
quarter of fiscal year 2023 and the three acquisitions completed in the first quarter of fiscal year 2024. The gross profit increased
by approximately $341 thousand, or 33%, for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024
primarily attributable to the gross profit from acquisitions.

Franchising Services

Costs of revenue for franchising services decreased
by approximately $18 thousand, or 14%, in the three months ended March 31, 2025 as compared to the three months ended March 31, 2024,
related to the acquisition of the five out of the six franchises acquired in the 2nd - 4th quarters of 2024. The
gross profit of franchising services has decreased by $87 thousand, or about 611%, for the three-month period ending March 31, 2025 over
the comparable prior year period, which is attributable to the reduction in the cost of revenue due to the acquisitions of the franchises
in 2023 and 2024.

Coaching Services

Costs of revenue related to coaching services
decreased by approximately $17 thousand, or 23%, in the three months ended March 31, 2025 as compared to the three months ended March
31, 2024. Costs related to coaching services is related to the augmentation of the coaching program. The gross profit of coaching services
has decreased by $21 thousand, or about 36%, for the three-month period ending March 31, 2025 over the comparable prior year period due
to a shift in priority to growth in onboarding without a coaching requirement.

Property Management

Costs of revenue related to property management
services increased by approximately $364 thousand, or 14%, in the three months ended March 31, 2025 as compared to the three months ended
March 31, 2024. The increase in property management costs was primarily related to an increase in properties under management. The gross