La Rosa Holdings Corp, listed on NASDAQ under the ticker LRHC, has signaled a positive shift toward organic growth in its fiscal year 2025 financials. The company disclosed preliminary unaudited revenue figures on Friday, estimating total revenue at around $79 million for the fiscal year, representing an approximate 14% increase compared to 2024. This growth exclusively stems from internal business expansion.
This accomplishment marks a notable development considering the company’s previous reliance on acquisitions for growth in 2024. La Rosa’s Chief Executive Officer, Joe La Rosa, indicated that 2024’s progress was largely driven by scaling operations and broadening revenue through acquisitions. However, the management team made a deliberate strategic shift entering 2025 to emphasize organic growth, focusing on increasing transaction volumes and agent numbers within the existing framework.
Despite ongoing headwinds in the housing market, this approach has yielded measurable results. The broader U.S. housing market showed signs of contraction, with existing home sales declining about 0.2% in 2025—the fourth consecutive year of downturn, equating to roughly 4.06 million homes sold, marking the lowest levels since 1995. Against this challenging backdrop, La Rosa’s inward growth strategy has allowed it to grow transaction activity and expand its network of agents.
Additionally, management has taken assertive measures to enhance operational efficiency and profitability. In anticipation of 2026, La Rosa has implemented a nearly 30% increase in fees, coupled with significant reductions in operating expenses. These steps are aimed at leveraging operational improvements to strengthen the company's overall financial health and platform scalability.
Looking ahead, the company projects a recovery in transaction activity during the upcoming fiscal year. Further, La Rosa Holdings is in active discussions regarding potential partnerships and joint ventures with established firms in technology and infrastructure sectors. The objective is to establish advanced AI computing facilities, which indicates a strategic move to incorporate artificial intelligence capabilities within its business model.
On the corporate actions front, La Rosa announced plans for a 1-for-10 reverse stock split effective January 26, 2026. This measure will consolidate every ten issued and outstanding common shares into one, reducing the total shares from approximately 5.35 million to around 535,000, subject to rounding. This action is a proactive step to maintain compliance with Nasdaq’s minimum bid price requirements. The company has not received any deficiency notices but views the split as a preventive measure that reinforces its commitment to remain listed on the exchange.
In premarket trading following these announcements, La Rosa’s shares were slightly down by 0.39%, trading near a 52-week low at approximately $0.42 per share. This positions the stock close to its lowest trading levels over the past year.
The developments at La Rosa Holdings underscore a critical phase of transition from acquisition-driven growth toward strengthening internal capabilities and operational efficiency. Coupled with strategic initiatives involving AI infrastructure development and financial structuring through the stock split, the company is positioning itself for enhanced competitive posture in a subdued housing market environment.