Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 1222

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 3
Chunk 1222
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. 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.

43

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 February 2025, the federal funds rate was 433 basis points.
The fluctuations impact interest rates, which significantly contribute to mortgage rate adjustments. During the second half of 2022, the
benchmark 30 year fixed conforming mortgage rate rose above 6% for the first time since 2008, according to Freddie Mac data,
and reached a peak of about 8% during the second half of