La Rosa Holdings Corp. — First Half 2026 Earnings Summary

Financial Performance

• Total revenue for the first half of 2026 was $28.6 million, a decrease from $34.9 million in the first half of 2025.
• Gross profit increased 9.9% to $3.7 million in the first half of 2026, compared to $3.4 million in the prior-year period.
• Gross margin expanded approximately 329 basis points to 13.0% in the first half of 2026, up from 9.7% in the prior-year period.
• Total operating expenses decreased 25.0% to $7.9 million in the first half of 2026, compared to $10.5 million in the prior-year period.
• Operating loss narrowed 41.6% to $4.2 million in the first half of 2026, compared to $7.1 million in the prior-year period.
• Net loss improved 9.4% to $15.6 million in the first half of 2026, compared to a net loss of $17.2 million in the prior-year period.
• For the second quarter of 2026, total revenue was $15.1 million, down from $20.2 million in the second quarter of 2025.
• Second quarter gross profit was $1.7 million, a 6.5% decrease from $1.9 million in the prior-year quarter.
• Second quarter gross margin expanded to 11.5% from 9.2% in the prior-year quarter.
• Second quarter operating expenses decreased 21.2% to $3.4 million, compared to $4.3 million in the prior-year quarter.
• Second quarter operating loss narrowed 32.2% to $1.7 million, compared to $2.5 million in the prior-year quarter.
• Second quarter net loss was $2.2 million, compared to net income of $78.5 million in the prior-year quarter, which included an $82.3 million gain on the settlement of incremental warrants.
• Sales and marketing expense decreased 69.0% to approximately $188,000 in the second quarter of 2026.
• Stock-based compensation expense declined 85.6% to approximately $73,000 in the second quarter of 2026.
• As of June 30, 2026, the company reported $10.3 million in restricted digital assets on the balance sheet, compared to no holdings in the prior-year period.
• Total assets increased to $21.0 million as of June 30, 2026, from $13.4 million as of December 31, 2025.
• Total liabilities increased to $28.8 million as of June 30, 2026, from $13.3 million as of December 31, 2025.
• Notes payable, current, increased to $5.6 million as of June 30, 2026, from $148,757 as of December 31, 2025.
• Note payable, net of current, increased to $16.0 million as of June 30, 2026, from $7.1 million as of December 31, 2025.
• Accumulated deficit increased to $(72.7) million as of June 30, 2026, from $(57.1) million as of December 31, 2025.

Business Segments and Product Lines

• Commercial Real Estate Brokerage revenue increased 95.4% to approximately $479,000 in the first half of 2026, compared to approximately $245,000 in the prior-year period.
• Title Settlement and Insurance revenue increased 10.9% to approximately $173,000 in the first half of 2026, compared to approximately $156,000 in the prior-year period.

Management Commentary and Tone

• CEO Joe La Rosa stated that first-half results reflect continued progress in improving operating performance and financial efficiency.
• Management noted that reported revenue was impacted by the February sale of the Company's 51% interest in LR Kissimmee, a non-core operation representing approximately 10% of the agent base that was not generating positive cash flow.
• The divestiture allowed the Company to eliminate unproductive expenses and redirect capital toward higher-return opportunities without materially impacting core agent growth or regional footprint.
• Management highlighted meaningful improvement in the underlying business, citing a nearly 10% increase in gross profit and a 329 basis point expansion in gross margin.
• Management indicated they are actively evaluating strategic opportunities including transformational transactions, tuck-in acquisitions, additional partnerships, and further divestitures of non-core or underperforming assets.
• Management expressed an intention to remain disciplined in pursuing opportunities that can improve profitability, strengthen the operating platform, and create long-term shareholder value.

Other Key Points

• The Company operates 23 corporate-owned brokerage offices across Florida, California, Texas, Georgia, and Puerto Rico.
• The Company has expanded into Europe, beginning with Spain.
• The Company maintains five franchised offices and branches and three affiliated brokerage locations in the U.S. and Puerto Rico.
• The Company operates a full-service escrow settlement and title company in Florida.
• The prior-year second quarter net income included a significant non-operating gain of approximately $82.3 million on the settlement of incremental warrants.
• The Company disclosed material weaknesses in internal control over financial reporting in its forward-looking statements.
• The Company noted the potential impact of the National Association of Realtors' landmark settlement on business operations.