La Rosa Holdings Corp. Announces 1-for-10 Reverse Stock Split
Rhea-AI Summary
La Rosa Holdings Corp (NASDAQ: LRHC) will effect a 1-for-10 reverse stock split effective Jan 26, 2026 at 12:01 a.m. ET. The company's common stock will continue trading on Nasdaq under LRHC and will trade on a split-adjusted basis when markets open on Jan 26, 2026. The new CUSIP after the split will be 50172T301. The reverse split will reclassify every 10 issued and outstanding shares into 1 share, reducing outstanding shares from approximately 5.35 million to approximately 535 thousand (pre-rounding). The split also applies to common stock issuable upon exercise of outstanding options and warrants, and fractional shares will be rounded up to the next whole share at the participant level. The company said it has not received a Nasdaq deficiency notice and is taking the action proactively to maintain Nasdaq compliance.
Positive
- Outstanding shares reduced ~90% from ~5.35M to ~535k
- Split applies to options and warrants, simplifying post-split capitalization
- New CUSIP assigned: 50172T301, aiding post-split settlement
Negative
- Action taken to ensure compliance with Nasdaq minimum bid, implying prior bid-price pressure
News Market Reaction
On the day this news was published, LRHC declined 16.76%, reflecting a significant negative market reaction. Argus tracked a peak move of +29.1% during that session. Argus tracked a trough of -24.0% from its starting point during tracking. Our momentum scanner triggered 18 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $170K from the company's valuation, bringing the market cap to $842,570 at that time. Trading volume was very high at 3.0x the daily average, suggesting heavy selling pressure.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Pre-news, LRHC was down 3.34% with very light volume, while only one screened peer (ALBT) appeared in momentum data, moving down and without news. Other real estate service peers showed mixed moves, suggesting LRHC’s setup is stock-specific rather than a coordinated sector rotation.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 09 | AI note funding | Positive | +20.0% | Initial $11M convertible note closing under $250M AI facility. |
| Dec 30 | Board change | Positive | -5.3% | Appointment of new chairman and committee roles reshuffle. |
| Dec 22 | Cost reduction | Positive | -3.5% | Reported 31% reduction in technology costs via in-house platforms. |
| Nov 20 | Earnings update | Neutral | -3.3% | 18% revenue growth to $60.9M with higher gross profit and net loss. |
| Nov 13 | AI financing | Positive | -29.1% | Secured $1.25B facilities to pivot into AI data center infrastructure. |
Recent history shows that positive strategic and financing announcements often coincided with negative price reactions, indicating a pattern where the market focused on dilution and risk rather than growth narratives.
Over the last few months, La Rosa reported AI-focused financing facilities up to $1.25B, an initial $11M convertible note closing, and an 18% year-over-year revenue increase to $60.9M. Despite these growth-oriented updates, several events with seemingly positive or mixed fundamentals (AI pivot, cost reductions, board refresh) saw negative 24-hour price moves. The new reverse split fits into a backdrop of capital-raising, balance sheet stress, and efforts to maintain Nasdaq listing status already highlighted in recent filings.
Market Pulse Summary
The stock dropped -16.8% in the session following this news. A negative reaction despite proactive positioning would fit La Rosa’s recent pattern, where financing and structural moves around AI infrastructure and governance often coincided with selling pressure. The 1-for-10 reverse split, taking shares from roughly 5.35M to 535k, follows a prior 80-for-1 split and substantial convertible note activity. Such actions can focus attention on dilution risk, going‑concern disclosures, and execution uncertainty, which previously overshadowed growth narratives.
Key Terms
reverse stock split financial
cusip number financial
stock options financial
warrants financial
minimum bid price requirement regulatory
AI-generated analysis. Not financial advice.
Celebration, FL, Jan. 22, 2026 (GLOBE NEWSWIRE) -- La Rosa Holdings Corp. (NASDAQ: LRHC) (“La Rosa” or the “Company”), a real estate and PropTech enterprise, today announced that it will effect a 1-for-10 reverse split (“reverse stock split”) of its shares of common stock that will become effective on January 26, 2026 at 12:01 a.m. (Eastern Time).
La Rosa’s common stock will continue to trade on Nasdaq under the symbol “LRHC” and will begin trading on a split-adjusted basis when the market opens on January 26, 2026. The new CUSIP number for the common stock following the reverse stock split will be 50172T301. At the effective time of the reverse stock split, every 10 shares of the Company's issued and outstanding common stock will be automatically reclassified and combined into 1 share of common stock. The reverse stock split will reduce the number of outstanding shares of common stock from approximately 5.35 million shares to approximately 535 thousand shares, without giving effect to rounding. The reverse stock split will also apply to Company’s common stock issuable upon exercise of the Company’s outstanding stock options and warrants. No fractional shares will be issued; instead, any fractional entitlements will be rounded up to the next highest whole number at the participant level.
As of the date of this release, the Company has not received a deficiency notice from Nasdaq regarding its minimum bid price requirement. Instead, the Company is taking proactive corporate action to ensure compliance before any notice is issued. By acting early, La Rosa intends to demonstrate its commitment to maintaining its Nasdaq listing.
About La Rosa Holdings Corp.
La Rosa Holdings Corp. (Nasdaq: LRHC) intends to transform the real estate industry by providing agents with flexible compensation options, including a revenue-sharing model or a fee-based structure with
The Company offers both residential and commercial real estate brokerage services, as well as technology-driven products and support for its agents and franchise partners. Its business model includes internal services for agents and external offerings for the public, spanning real estate brokerage, franchising, education and coaching, and property management.
La Rosa operates 25 corporate-owned brokerage offices across Florida, California, Texas, Georgia, and Puerto Rico. La Rosa also started its expansion into Europe, beginning with Spain. Additionally, the Company has five franchised offices and branches and three affiliated brokerage locations in the U.S. and Puerto Rico. The Company also operates a full-service escrow settlement and title company in Florida.
For more information, please visit: https://www.larosaholdings.com.
Stay connected with La Rosa, sign up for news alerts here: larosaholdings.com/email-alerts.
Forward-Looking Statements
This press release contains forward-looking statements regarding the Company’s current expectations that are subject to various risks and uncertainties. Such statements include statements regarding the Company’s ability to grow its business and other statements that are not historical facts, including statements which may be accompanied by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including without limitation, the Company's ability to satisfy closing conditions of future tranches under of its existing financing facilities and the timing and use of proceeds thereof, including the redemption of the Series X Preferred Stock, to achieve profitable operations, customer acceptance of new services, the demand for the Company’s services and the Company’s customers' economic condition, the impact of competitive services and pricing, general economic conditions, the successful integration of the Company’s past and future acquired brokerages, the effect of the recent National Association of Realtors' landmark settlement on our business operations, and other risk factors detailed in the Company's filings with the United States Securities and Exchange Commission (the "SEC”). You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and other reports and documents that we file from time to time with the SEC. Forward-looking statements contained in this press release are made only as of the date of this press release, and La Rosa does not undertake any responsibility to update any forward-looking statements in this release, except as may be required by applicable law. References and links to websites have been provided as a convenience, and the information contained on such websites has not been incorporated by reference into this press release.
For more information, contact: info@larosaholdings.com.
Investor Relations Contact:
Crescendo Communications, LLC
David Waldman/Natalya Rudman
Tel: (212) 671-1020
Email: LRHC@crescendo-ir.com
FAQ
What is the reverse stock split ratio for La Rosa Holdings (LRHC)?
How many shares will LRHC have outstanding after the Jan 26, 2026 reverse split?
Will LRHC continue trading on Nasdaq after the reverse split and under what symbol?
How will fractional shares be handled in the LRHC 1-for-10 reverse split?
Does the LRHC reverse split affect options and warrants?
Why is La Rosa Holdings implementing the reverse split (LRHC)?
