La Rosa Holdings doubles market capitalization on upbeat preliminary nine-month financials
Shares of La Rosa Holdings, a real estate brokerage and services company, skyrocketed over 130% on Wednesday, October 23. This followed the company’s announcement of a 120% year-over-year spike in preliminary revenue for the first nine months of 2024 and guidance for a profitable 2025.
Details
La Rosa Holdings stock gained 130% on the Nasdaq on Wednesday to close at $1.13 per share. It gave back some of those gains in after-hours trading, however, losing 18.5%. Overall, the company’s market capitalization is still down nearly 25% for the year to date and has seen a more than fourfold decline since its IPO last year.
Ahead of the opening bell on Wednesday, the company released preliminary results for the first nine months of 2024. The highlight was a 120% year-over-year increase in the top line to approximately $45 million. CEO Joseph La Rosa attributed this to the company’s “strategic focus on acquisitions,” which has seen La Rosa complete 10 deals so far this year. The latest came in September, when the company announced plans to acquire a brokerage firm with more than 950 agents and revenue of $19 million in 2023.
La Rosa expects to reach $100 million in revenue by the end of 2024 and achieve profitability in 2025, driven by expanding its revenue streams, integrating new agents and technologies, and potentially cutting costs. In 2023, the company reported a net loss of $4.7 million.
About the company
La Rosa operates as a real estate brokerage for both residential and commercial properties, offering additional services such as mortgage and insurance processing. With the acquisition of Nona Title Agency in August, La Rosa also began offering title insurance services.
In July, the company sold a $468,000 promissory note, 29,800 shares at market price (valued at $46,800 at the time), and $444,600 in warrants to an undisclosed investor. The transaction led to sharp losses in the stock. In late September, La Rosa successfully negotiated a debt restructuring with its noteholder, who agreed to suspend conversion rights for the notes.
