On Wednesday, La Rosa Holdings Corp (NASDAQ: LRHC) reported financial results for the third quarter ended September 30, 2024.
Total revenue increased 188% year-over-year to $19.6 million. Residential real estate services revenue increased 328% to $16.5 million.
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Property management revenue increased by 14% to $2.9 million. Real Estate Brokerage Services (Commercial) revenue increased by 110% to $0.06 million.
The increase was driven by $12.2 million of revenue from the six acquisitions completed in the fourth quarter of fiscal year 2023 and the seven acquisitions completed in the first nine months of fiscal year 2024.
The company increased its transaction fee, monthly agent fee, and annual fee effective September 1, 2023, which, if volume returns to 2023 levels, real estate brokerage services revenue, excluding incremental acquisition revenue, will increase in 2024.
Selling, general and administrative costs, excluding stock-based compensation, for the third quarter were approximately $3.0 million, compared to $0.99 million last year.
A portion of this increase was driven by $1.1 million of additional costs from the thirteen acquisitions the company completed since the company’s initial public offering (IPO) in October 2023, in addition to increased payroll and benefits, insurance and training, and public company costs in connection with the IPO, compared to the same period in 2023.
Net loss for the third quarter was $3.4 million, or 21 cents, compared to $0.34 million, or 6 cents, in the year-ago quarter.
La Rosa Holdings expanded its footprint in the real estate market during the first nine months of fiscal 2024 by acquiring seven brokerage franchisees and finalizing the purchase of Nona Title Agency, operating as Red Door Title.
The company also announced plans to acquire a real estate brokerage firm with over 950 agents and $19 million in 2023 revenue.
Alongside these acquisitions, La Rosa restructured its debt, improving its financial stability and reducing note liabilities by approximately 9.5%.
Adding Nona Title Agency enabled La Rosa to offer title insurance services, enhancing its ability to deliver seamless, end-to-end solutions for homebuyers and sellers.
The company said that Title services are positioned as a high-margin revenue stream with significant growth potential in 2025.
Looking ahead, La Rosa projects an annualized revenue run rate of $100 million by the end of 2024, driven by operational scaling, diversified revenue streams, and new agent integrations.
Profitability is expected by 2025, supported by cost discipline, enhanced technology offerings, and a continued commitment to agent success and customer satisfaction.
Price Action: LRHC stock closed higher by 2.36% at $0.7590 on Tuesday.
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