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LR

La Rosa Holdings Corp. (LRHC)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue was approximately $17.72M, down sequentially from Q3’s $19.59M, with gross margin improving modestly to ~8.9% in Q4; FY 2024 revenue totaled $69.45M and gross profit $5.95M .
  • Net loss before taxes in Q4 was an estimated $5.03M (derived from FY minus nine months), reflecting elevated SG&A from acquisitions/public-company costs and financial charges (extinguishment, derivative revaluation); FY net loss before taxes was $14.35M .
  • Management’s earlier target of a $100M exit revenue run-rate by end-2024 was not met; preliminary FY revenue was guided at ~$65M and actual reported at $69.45M, below the implied run-rate goal .
  • Strategic acquisitions (eight in FY 2024) and the launch of title services (Nona Title/FPG Title) contributed to mix expansion; the company ended 2024 with 2,581 agents and continued to emphasize technology (My Agent Account 3.0, JAEME AI) .
  • Risk overhangs persist: going-concern language, Nasdaq minimum bid price non-compliance, and industry commission rule changes post-NAR settlement may pressure margins/agent economics near-term .

What Went Well and What Went Wrong

What Went Well

  • Strong FY top-line growth: Revenue rose 119% YoY to $69.45M; residential revenue grew 179% YoY to $57.03M, supported by acquired brokerages and fee increases .
  • Property management resilience: FY segment revenue increased 15% to $11.12M; management fee pricing and a larger property portfolio underpinned growth .
  • Platform/tech emphasis and agent growth: My Agent Account 3.0 launched (property management disbursements module); JAEME AI expanded; agents increased to 2,581 at 12/31/24. CEO tone: “Achieving over 100% year-over-year revenue growth underscores the strength of our business model…driven by strategic acquisitions…increase in agent count” .

What Went Wrong

  • Sequential revenue decline: Q4 revenue ($17.72M) fell 9.6% vs Q3 ($19.59M); Q4 net loss before taxes ($5.03M) widened sequentially vs Q3 ($2.39M net loss) as operating loss increased to ~$3.03M in Q4 (derived) .
  • Elevated costs and financing headwinds: FY SG&A rose to $11.63M (public-company costs, professional fees, amortization), alongside a $0.78M debt extinguishment loss and $1.34M derivative liability revaluation, feeding FY net loss before taxes of $14.35M .
  • Guidance underachievement and macro/legal pressure: Management’s $100M exit run-rate target missed; NAR settlement changes likely lower buyer-agent compensation and complicate commission structures; going-concern and Nasdaq bid-price non-compliance heighten capital-markets risks .

Financial Results

Quarterly comparison

MetricQ3 2024Q4 2024 (derived)
Revenue ($USD)$19.593M $17.715M (FY $69.449M − 9M $51.733M)
Gross Profit ($USD)$1.636M $1.569M (FY $5.953M − 9M $4.384M)
Gross Profit Margin %8.4% (1.636/19.593) 8.9% (1.569/17.715)
Operating Income (EBIT) ($USD)$(1.748)M $(3.025)M (FY $(11.197)M − 9M $(8.172)M)
EBIT Margin %(8.9)% (−1.748/19.593) (17.1)% (−3.025/17.715)
Net Loss ($USD)$(2.393)M $(5.026)M (FY $(14.350)M − 9M $(9.324)M)
Net Income Margin %(12.2)% (−2.393/19.593) (28.4)% (−5.026/17.715)
Diluted EPS ($USD)$(0.21) N/A (not disclosed)

Segment breakdown

Segment Revenue ($USD)Q3 2024Q4 2024 (derived from FY − 9M)
Residential Brokerage$16.484M $14.445M (FY $57.025M − 9M $42.580M)
Property Management$2.854M $2.959M (FY $11.115M − 9M $8.156M)
Franchising Services$0.066M $0.050M (FY $0.329M − 9M $0.279M)
Coaching Services$0.125M $0.099M (FY $0.569M − 9M $0.469M)
Commercial Brokerage$0.064M $0.079M (FY $0.328M − 9M $0.249M)
Title Settlement & InsuranceN/A$0.083M (FY only; title initiated Q4)

FY comparison

MetricFY 2023FY 2024
Revenue ($USD)$31.759M $69.449M
Gross Profit ($USD)$2.841M $5.953M
Operating Income (Loss) ($USD)$(7.092)M $(11.197)M
Net Loss before taxes ($USD)$(7.824)M $(14.350)M

KPIs

KPIQ3 2024Q4 2024 / FY 2024
Agents (period-end)2,647 (as of 9/30/24) 2,581 (as of 12/31/24)
Corporate offices & branches24 (FL, CA, TX, GA, PR) 26 (adds NC)
Properties under managementN/A~650 (FY 2024 year-end; up from ~600 in 2023)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue run-rateExit 2024Targeting $100M annualized revenue run-rate by end of 2024 Preliminary FY 2024 revenue ~$65M; Actual FY 2024 revenue $69.45M Underachieved vs targeted exit run-rate

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
AI/technology initiativesJAEME AI; Final Offer rollout; platform tools Continued platform emphasis My Agent Account 3.0 launched with property management disbursements Expanding capability set
Macro/interest ratesMortgage rates 6.6–6.8% range; demand soft 6.1–6.9% (Q3 context) with volume softness Fed funds eased; 30yr ~6.67%; softness persists Persistent headwind
Regulatory/legal (NAR)Ongoing scrutiny; potential rule changes Settlement implications mid-July 2024 Settlement finalization; adverse impact expected on buyer-agent comp Industry disruption intensifying
Agent recruitment+6% vs YE 2023; platform draw 400+ agents onboarded since June 1, 2024 FY agents 2,581 at year-end; continued organic + M&A recruits Growth, but net declines Q4 vs Q3
Acquisitions5 acquisitions in 1H 7 YTD (inc. Nona Title) 8 in FY 2024 incl. Beaches & Baxpi; title services established Accelerated consolidation
Property managementRevenue up; fee increase effect Revenue +14% YoY; margin stable FY +15% YoY; ~650 properties Steady growth

Management Commentary

  • “Achieving over 100% year-over-year revenue growth underscores the strength of our business model…driven by strategic acquisitions of real estate brokerage franchisees and a significant increase in agent count. We anticipate that 2025 will be another strong year…expand into new states, acquire additional…increase our agent count, and continuously enhance our technology.” — CEO Joe La Rosa (Jan 23, 2025) .
  • “We’re pleased to report that revenue grew an impressive 188% in Q3 2024…fueled by acquisitions of real estate brokerage franchisees and an increase in agent count…we anticipate an annualized revenue run rate of $100 million by the end of 2024…We expect to achieve profitability in 2025…” — CEO Joe La Rosa (Nov 20, 2024) .

Q&A Highlights

  • No Q4 2024 earnings-call transcript was available in the document set, so Q&A themes and any in-call guidance clarifications could not be assessed (we searched for “earnings-call-transcript” and “other-transcript” and found none) [ListDocuments: earnings-call-transcript=none] [ListDocuments: other-transcript=none].

Estimates Context

  • We attempted to retrieve Wall Street consensus (Primary EPS and Revenue) for Q4 2024 and near-term periods; SPGI returned “Daily Request Limit Exceeded,” so estimates were unavailable at time of analysis. Based on reported Q4 revenue (~$17.72M) and FY outcomes, prior revenue expectations may need to be adjusted downward from management’s $100M exit run-rate narrative .
  • Consensus estimates unavailable due to SPGI access limit. We tried fetching “Primary EPS Consensus Mean” and “Revenue Consensus Mean” for Q4 2024. Values could not be retrieved from S&P Global at this time.

Key Takeaways for Investors

  • Sequential softness into Q4: Revenue fell ~9.6% QoQ and operating loss widened; watch near-term volume normalization amid still-elevated mortgage rates and post-NAR commission changes .
  • FY growth from acquisitions but cost intensity high: SG&A and professional fees scaled with consolidation and public-company requirements; operating leverage remains a focus to reduce losses .
  • Mix expansion opportunity: Title (FPG Title) and property management add recurring/adjacent revenue streams; monitor contribution ramp and margin profile .
  • Guidance recalibration needed: Management’s $100M exit run-rate goal wasn’t achieved; align expectations with reported ~$69.45M FY revenue and derived Q4 segment mix .
  • Capital markets/structural risks: Going-concern language and Nasdaq bid-price non-compliance increase financing/delisting risk; Feb 2025 convertible financing alleviates near-term liquidity but adds complexity .
  • Execution focus in 2025: Integration of 2024 acquisitions, technology deployment, agent recruitment/retention under new commission regime, and cost controls will drive path to profitability .
  • Tactical trading: Stock likely sensitive to further delisting updates, cost-cut milestones, and evidence of margin stabilization in core brokerage/property management segments .

Additional Data and Cross-References

  • Q3 2024 results and nine-month financials (revenue $19.593M Q3; nine-month revenue $51.733M; nine-month net loss $9.324M) .
  • FY 2024 audited financials (revenue $69.449M; gross profit $5.953M; operating loss $11.197M; net loss before taxes $14.350M) .
  • Preliminary revenue press releases (Oct 23, 2024: 9-month ~$45M; Nov 20, 2024: 9-month $51.7M and Q3 $19.6M; Jan 23, 2025: FY preliminary ~$65M) .
  • Strategic moves: Eight acquisitions in FY 2024; title services established (Nona Title/FPG Title) .
  • Macro/regulatory context: Mortgage rates ~6.67% (early 2025), NAR settlement impacts on commission rules .

Note: No Q4-2024 earnings call transcript was available; consensus estimates could not be retrieved due to SPGI access limit.