La Rosa Holdings Corp. reported third‑quarter 2025 revenue of $20.2 million, a 3.2% year‑over‑year increase. Residential brokerage revenue rose to $16.8 million, up 1.7% from $16.6 million in Q3 2024, while property‑management revenue climbed to $3.11 million, an 8.9% gain from $2.85 million. Gross profit margin stood at 8.45%, and the company posted a net loss of $5.5 million, or $(5.44) per share, compared with a $3.4 million loss ($16.49) per share in the same quarter last year.
Operating expenses increased to $6.7 million, driven largely by higher selling, general and administrative costs of $4.4 million versus $3.0 million in Q3 2024. The rise reflects ongoing investments in technology platforms and agent‑growth initiatives. One‑time charges were largely offset by gains on fair‑value adjustments of the company’s convertible note and warrants, which helped mitigate the impact on earnings per share.
Cash and restricted cash totaled $6.4 million at quarter‑end, doubling from $3.2 million at the end of 2024. The company also secured a $1.25 billion financing package—comprising a $1 billion equity purchase facility and a $250 million convertible‑note facility—to address a “substantial doubt” about its going‑concern status and to fund its pivot toward AI data‑center infrastructure. CEO Joe La Rosa said the financing “provides strategic flexibility to accelerate our next‑generation AI data‑center strategy, pursue targeted acquisitions, and capitalize on high‑growth opportunities across the AI value chain.”
Revenue growth was driven by modest gains in residential brokerage and a stronger property‑management segment. The residential brokerage segment’s 1.7% increase reflects steady demand for home sales, while the 8.9% rise in property‑management revenue indicates expanding rental portfolios and higher fee income. Together, these segment gains offset the modest decline in commercial brokerage revenue, which contributed only $103,000 to total revenue.
The widening net loss—from $3.4 million to $5.5 million—results from higher operating expenses and the company’s continued investment in technology and agent expansion. Although the earnings‑per‑share loss narrowed from $(16.49) to $(5.44), the absolute loss grew, and gross profit margin remained low at 8.45%. The company’s margin compression is attributed to the cost of scaling its AI and data‑center initiatives and to the one‑time fair‑value gains that offset some of the expense impact.
Management reiterated its goal of reaching $100 million in revenue and cash‑flow positivity by year‑end. While the company’s guidance for the next quarter was not disclosed, the leadership emphasized a “narrowing loss trajectory” and confidence in the new financing to support its AI data‑center strategy. Investors remain cautious due to the company’s ongoing losses and going‑concern warning, but the $1.25 billion financing has been viewed positively as a lifeline for the company’s strategic pivot.
The market reaction has been mixed: investors are concerned about the widening net loss and the company’s going‑concern status, yet the substantial financing has been seen as a positive development that could stabilize liquidity and support the AI data‑center initiative.
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