10-Q - La Rosa Holdings Corp. (0001879403) (Filer)

Thu, May 29, 10:01 AM (20 days ago)

**La Rosa Holdings Corp. (LRHC) Q1 2025 Financial Summary** **Financial Health:** - **Cash Balance:** $4.9 million - **Negative Working Capital:** $94.0 million - **Liquidity Concerns:** Substantial doubt about the company's ability to continue as a going concern. **Performance Metrics:** - **Revenue:** $17.5 million (up 34% YoY) - **Residential Real Estate Brokerage:** $14.3 million (up 39% YoY) - **Property Management:** $2.9 million (up 172% YoY) - **Title Settlement and Insurance:** $77,204 (new revenue stream) - **Gross Profit:** $1.5 million (up 32% YoY) - **Net Loss:** $95.7 million (up from $4.6 million loss YoY) - **Cash Flow from Operations:** -$3.5 million (up from -$0.5 million YoY) - **Cash Flow from Financing:** $4.8 million (up from $0.7 million YoY) **Earnings Changes:** - **Loss per Share:** -$5.86 (up from -$0.35 YoY) - **Stock-Based Compensation:** $1.9 million (up from $3.2 million YoY) **Quarterly Performance:** - **Revenue Growth:** Driven by acquisitions and fee increases. - **Gross Profit Increase:** Attributable to acquisitions. - **Net Loss Increase:** Due to stock-based compensation, loss on issuance of senior secured convertible note, and fair value adjustments. **Trends:** - **Revenue Streams:** Multiple revenue streams with a focus on commissions and fees. - **Acquisitions:** Continued expansion through acquisitions. - **Liquidity:** Need for additional capital to fund operations and acquisitions. **Uncertainties:** - **Market Conditions:** Dependence on real estate market trends. - **Regulatory Risks:** Potential impacts from legal challenges to commission structures. - **Cybersecurity:** Risks associated with data breaches and cybersecurity incidents. **Future Operations Impact:** - **Growth Strategy:** Continued expansion through acquisitions and capital raising. - **Financial Performance:** Expectation of continued operating losses due to corporate overhead and public company costs. - **Capital Needs:** Requirement to raise additional capital to service debt and fund operations. **Key Takeaways:** - **Positive:** Revenue growth and new revenue streams. - **Negative:** Significant net loss and liquidity concerns. - **Outlook:** Need for strategic capital raising and cost management to sustain growth and address liquidity issues.