Company: LRHC
Filing Date: 2025-05-29
Form Type: 10-Q
Source: 0001213900-25-048370
Chunk: 49

Company: La Rosa Holdings Corp.
Filing Date: 2025-05-29
Form: 10-Q
Item: Item 1
Chunk 49
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Description of Our Revenues

Our financial results are primarily driven by
the total number of sales agents in our Company, the number of sales agents closing residential real estate transactions, the number of
sales agents utilizing our coaching services, the number of agents who work with our franchisees, and the number of properties under management.
We increased our agent count by 12.8%, from 2,454 at March 31, 2024 to 2,769 at March 31, 2025.

The majority of our revenue is derived from a
stable set of fees paid by our brokers, franchisees, and consumers. We have multiple revenue streams, with the majority of our revenue
derived from commissions paid by consumers who transact business with our and our franchisees’ agents, royalties paid by our franchisees,
dues and technology fees paid by our sales agents, our franchisees, and our franchisees’ agents. Our major revenue streams come
from such sources as: (i) residential real estate brokerage revenue, (ii) revenue from our property management services, (iii) franchise
royalty fees, (iv) fees from the sale or renewal of franchises and other franchise revenue, (v) coaching, training and assistance fees,
(vi) brokerage revenue generated transactionally on commercial real estate, (vii) fees generated from title services revenue and insurance
and (viii) fees from our events and forums. 

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The majority of our revenue is derived from fees
and dues based on the number of agents working under the La Rosa Realty brand. Due to the low fixed cost structure of both our Company
and franchise models, the addition of new sales agents generally requires little incremental investment in capital or infrastructure.
Accordingly, the number of commission producing sales agents in our Company and our franchisees is the most important factor affecting
our results of operations and the addition of new agents can favorably impact our revenue and our earnings before interest, taxes, depreciation
and amortization (“EBITDA”). Historically, the number of agents in the residential real estate industry has been highly correlated
with overall home sale transaction activity. We believe that the number of agents and those that produce commissions in our network is
the primary statistic that drives our revenue. Another major factor is the cyclicality of the real estate industry that has peaks and
valleys depending on macroeconomic conditions that we cannot control. And finally, our revenues fluctuate based on the changes in the
aggregate fee revenue per sales